ALTAIR ENGINEERING INC - A (ALTR) Stock Fundamental Analysis
USA - NASDAQ:ALTR - US0213691035 - Common Stock
111.85 USD
+0.16 (+0.14%)
112.71 USD
+0.86 (+0.77%)
We assign a fundamental rating of 5 out of 10 to ALTR. ALTR was compared to 285 industry peers in the Software industry. ALTR is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. ALTR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ALTR had positive earnings in the past year.
ALTR had a positive operating cash flow in the past year.
In the past 5 years ALTR reported 4 times negative net income.
In the past 5 years ALTR always reported a positive cash flow from operatings.
1.2 Ratios
ALTR's Return On Assets of 0.98% is fine compared to the rest of the industry. ALTR outperforms 64.91% of its industry peers.
With a decent Return On Equity value of 1.65%, ALTR is doing good in the industry, outperforming 64.91% of the companies in the same industry.
ALTR has a Return On Invested Capital of 1.46%. This is in the better half of the industry: ALTR outperforms 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 1.65% | ||
| ROIC | 1.46% |
ROA(3y)-1.09%
ROA(5y)-1.06%
ROE(3y)-2.41%
ROE(5y)-2.28%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of ALTR (2.13%) is better than 64.91% of its industry peers.
ALTR has a Operating Margin of 2.66%. This is in the better half of the industry: ALTR outperforms 67.72% of its industry peers.
ALTR's Operating Margin has improved in the last couple of years.
The Gross Margin of ALTR (81.25%) is better than 85.26% of its industry peers.
In the last couple of years the Gross Margin of ALTR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.66% | ||
| PM (TTM) | 2.13% | ||
| GM | 81.25% |
OM growth 3Y-6.69%
OM growth 5Y8.25%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.34%
GM growth 5Y2.7%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALTR is destroying value.
Compared to 1 year ago, ALTR has more shares outstanding
The number of shares outstanding for ALTR has been increased compared to 5 years ago.
The debt/assets ratio for ALTR has been reduced compared to a year ago.
2.2 Solvency
ALTR has an Altman-Z score of 10.42. This indicates that ALTR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.42, ALTR belongs to the top of the industry, outperforming 88.42% of the companies in the same industry.
ALTR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.62 | ||
| Altman-Z | 10.42 |
ROIC/WACC0.14
WACC10.46%
2.3 Liquidity
ALTR has a Current Ratio of 1.61. This is a normal value and indicates that ALTR is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ALTR (1.61) is comparable to the rest of the industry.
ALTR has a Quick Ratio of 1.61. This is a normal value and indicates that ALTR is financially healthy and should not expect problems in meeting its short term obligations.
ALTR's Quick ratio of 1.61 is in line compared to the rest of the industry. ALTR outperforms 48.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
ALTR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.92%, which is quite good.
ALTR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.77% yearly.
The Revenue has grown by 8.66% in the past year. This is quite good.
ALTR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.73% yearly.
EPS 1Y (TTM)18.92%
EPS 3Y24.74%
EPS 5Y32.77%
EPS Q2Q%13.04%
Revenue 1Y (TTM)8.66%
Revenue growth 3Y7.75%
Revenue growth 5Y7.73%
Sales Q2Q%4.59%
3.2 Future
Based on estimates for the next years, ALTR will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.79% on average per year.
The Revenue is expected to grow by 9.00% on average over the next years. This is quite good.
EPS Next Y3.89%
EPS Next 2Y11.57%
EPS Next 3Y10.79%
EPS Next 5YN/A
Revenue Next Year9.17%
Revenue Next 2Y8.23%
Revenue Next 3Y9%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 84.73, the valuation of ALTR can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ALTR is on the same level as its industry peers.
ALTR is valuated expensively when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 81.56 indicates a quite expensive valuation of ALTR.
ALTR's Price/Forward Earnings ratio is in line with the industry average.
ALTR's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.73 | ||
| Fwd PE | 81.56 |
4.2 Price Multiples
ALTR's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as ALTR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.54 | ||
| EV/EBITDA | 154.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ALTR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)21.76
PEG (5Y)2.59
EPS Next 2Y11.57%
EPS Next 3Y10.79%
5. Dividend
5.1 Amount
ALTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
111.85
+0.16 (+0.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners96.66%
Inst Owner Change0%
Ins Owners2.18%
Ins Owner Change0%
Market Cap9.60B
Revenue(TTM)665.79M
Net Income(TTM)14.18M
Analysts51.67
Price Target110.7 (-1.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.32%
Min EPS beat(2)0.29%
Max EPS beat(2)46.35%
EPS beat(4)4
Avg EPS beat(4)15.85%
Min EPS beat(4)0.29%
Max EPS beat(4)46.35%
EPS beat(8)8
Avg EPS beat(8)44.6%
EPS beat(12)12
Avg EPS beat(12)80.9%
EPS beat(16)16
Avg EPS beat(16)169.86%
Revenue beat(2)1
Avg Revenue beat(2)-1.38%
Min Revenue beat(2)-3.99%
Max Revenue beat(2)1.24%
Revenue beat(4)2
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)1.24%
Revenue beat(8)4
Avg Revenue beat(8)0.08%
Revenue beat(12)7
Avg Revenue beat(12)0.83%
Revenue beat(16)11
Avg Revenue beat(16)2.07%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-2.72%
EPS NY rev (1m)-6.27%
EPS NY rev (3m)-5.57%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.73 | ||
| Fwd PE | 81.56 | ||
| P/S | 14.41 | ||
| P/FCF | 68.54 | ||
| P/OCF | 62.28 | ||
| P/B | 11.19 | ||
| P/tB | 29.82 | ||
| EV/EBITDA | 154.74 |
EPS(TTM)1.32
EY1.18%
EPS(NY)1.37
Fwd EY1.23%
FCF(TTM)1.63
FCFY1.46%
OCF(TTM)1.8
OCFY1.61%
SpS7.76
BVpS9.99
TBVpS3.75
PEG (NY)21.76
PEG (5Y)2.59
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 1.65% | ||
| ROCE | 1.85% | ||
| ROIC | 1.46% | ||
| ROICexc | 3.53% | ||
| ROICexgc | N/A | ||
| OM | 2.66% | ||
| PM (TTM) | 2.13% | ||
| GM | 81.25% | ||
| FCFM | 21.03% |
ROA(3y)-1.09%
ROA(5y)-1.06%
ROE(3y)-2.41%
ROE(5y)-2.28%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-10.9%
ROICexc growth 5Y14.86%
OM growth 3Y-6.69%
OM growth 5Y8.25%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.34%
GM growth 5Y2.7%
F-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.62 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 33.41% | ||
| Cap/Sales | 2.12% | ||
| Interest Coverage | 4.08 | ||
| Cash Conversion | 257.46% | ||
| Profit Quality | 987.64% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 10.42 |
F-Score7
WACC10.46%
ROIC/WACC0.14
Cap/Depr(3y)28.88%
Cap/Depr(5y)30.63%
Cap/Sales(3y)1.82%
Cap/Sales(5y)1.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)18.92%
EPS 3Y24.74%
EPS 5Y32.77%
EPS Q2Q%13.04%
EPS Next Y3.89%
EPS Next 2Y11.57%
EPS Next 3Y10.79%
EPS Next 5YN/A
Revenue 1Y (TTM)8.66%
Revenue growth 3Y7.75%
Revenue growth 5Y7.73%
Sales Q2Q%4.59%
Revenue Next Year9.17%
Revenue Next 2Y8.23%
Revenue Next 3Y9%
Revenue Next 5YN/A
EBIT growth 1Y9207.89%
EBIT growth 3Y0.54%
EBIT growth 5Y16.62%
EBIT Next Year42.89%
EBIT Next 3Y16.18%
EBIT Next 5YN/A
FCF growth 1Y19.54%
FCF growth 3Y37.86%
FCF growth 5Y45.78%
OCF growth 1Y21.03%
OCF growth 3Y35.73%
OCF growth 5Y37.47%
ALTAIR ENGINEERING INC - A / ALTR FAQ
What is the ChartMill fundamental rating of ALTAIR ENGINEERING INC - A (ALTR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ALTR.
What is the valuation status of ALTAIR ENGINEERING INC - A (ALTR) stock?
ChartMill assigns a valuation rating of 2 / 10 to ALTAIR ENGINEERING INC - A (ALTR). This can be considered as Overvalued.
How profitable is ALTAIR ENGINEERING INC - A (ALTR) stock?
ALTAIR ENGINEERING INC - A (ALTR) has a profitability rating of 6 / 10.
What is the valuation of ALTAIR ENGINEERING INC - A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ALTAIR ENGINEERING INC - A (ALTR) is 84.73 and the Price/Book (PB) ratio is 11.19.
Can you provide the expected EPS growth for ALTR stock?
The Earnings per Share (EPS) of ALTAIR ENGINEERING INC - A (ALTR) is expected to grow by 3.89% in the next year.