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ALU

AltiumASX:ALU Stock Report

Market Cap

AU$4.9b

7D

7.7%

1Y

-3.5%

Updated

22 Oct, 2021

Data

Company Financials +
ALU fundamental analysis
Snowflake Score
Valuation0/6
Future Growth5/6
Past Performance5/6
Financial Health6/6
Dividends0/6

ALU Overview

Altium Limited develops and sells computer software for the design of electronic products in the United States and internationally.

Rewards

Earnings are forecast to grow 24.94% per year

Earnings grew by 78.8% over the past year

Risk Analysis

No risks detected for ALU from our risk checks.

Altium Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Altium
Historical stock prices
Current Share PriceAU$37.96
52 Week HighAU$23.66
52 Week LowAU$40.18
Beta0.40
1 Month Change5.01%
3 Month Change14.65%
1 Year Change-3.51%
3 Year Change85.80%
5 Year Change384.18%
Change since IPO1,213.50%

Recent News & Updates

Mar 31
Something To Consider Before Buying Altium Limited (ASX:ALU) For The 1.4% Dividend

Something To Consider Before Buying Altium Limited (ASX:ALU) For The 1.4% Dividend

Today we'll take a closer look at Altium Limited ( ASX:ALU ) from a dividend investor's perspective. Owning a strong...

Shareholder Returns

ALUAU SoftwareAU Market
7D7.7%2.2%0.7%
1Y-3.5%28.7%21.4%

Return vs Industry: ALU underperformed the Australian Software industry which returned 28.7% over the past year.

Return vs Market: ALU underperformed the Australian Market which returned 21.4% over the past year.

Price Volatility

Is ALU's price volatile compared to industry and market?
ALU volatility
ALU Beta0.40
Industry Beta0.85
Market Beta1

Stable Share Price: ALU is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ALU's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1985759Aram Mirkazemihttps://www.altium.com

Altium Limited develops and sells computer software for the design of electronic products in the United States and internationally. It operates through Board and Systems; Microcontrollers and Embedded Systems; and Nexar segments. The company offers printed circuit board (PCB) design software products, including Altium Designer, Altium NEXUS, CircuitStudio, and CircuitMaker.

Altium Fundamentals Summary

How do Altium's earnings and revenue compare to its market cap?
ALU fundamental statistics
Market CapUS$3.66b
Earnings (TTM)US$35.27m
Revenue (TTM)US$180.22m

106.0x

P/E Ratio

20.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALU income statement (TTM)
RevenueUS$180.22m
Cost of RevenueUS$95.45m
Gross ProfitUS$84.77m
ExpensesUS$49.50m
EarningsUS$35.27m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.27
Gross Margin47.04%
Net Profit Margin19.57%
Debt/Equity Ratio0%

How did ALU perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

112%

Payout Ratio

Valuation

Is Altium undervalued compared to its fair value and its price relative to the market?

105.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ALU (A$37.96) is trading above our estimate of fair value (A$24.57)

Significantly Below Fair Value: ALU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ALU is poor value based on its PE Ratio (106x) compared to the Australian Software industry average (45.8x).

PE vs Market: ALU is poor value based on its PE Ratio (106x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: ALU is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: ALU is overvalued based on its PB Ratio (14.6x) compared to the AU Software industry average (5.2x).


Future Growth

How is Altium forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

24.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALU's forecast earnings growth (24.9% per year) is above the savings rate (1.9%).

Earnings vs Market: ALU's earnings (24.9% per year) are forecast to grow faster than the Australian market (11.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ALU's revenue (16.2% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: ALU's revenue (16.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ALU's Return on Equity is forecast to be high in 3 years time (26.6%)


Past Performance

How has Altium performed over the past 5 years?

4.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALU has high quality earnings.

Growing Profit Margin: ALU's current net profit margins (19.6%) are higher than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: ALU's earnings have grown by 4.9% per year over the past 5 years.

Accelerating Growth: ALU's earnings growth over the past year (78.8%) exceeds its 5-year average (4.9% per year).

Earnings vs Industry: ALU earnings growth over the past year (78.8%) exceeded the Software industry 37.5%.


Return on Equity

High ROE: ALU's Return on Equity (13.8%) is considered low.


Financial Health

How is Altium's financial position?


Financial Position Analysis

Short Term Liabilities: ALU's short term assets ($265.8M) exceed its short term liabilities ($109.3M).

Long Term Liabilities: ALU's short term assets ($265.8M) exceed its long term liabilities ($17.9M).


Debt to Equity History and Analysis

Debt Level: ALU is debt free.

Reducing Debt: ALU has not had any debt for past 5 years.

Debt Coverage: ALU has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ALU has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Altium current dividend yield, its reliability and sustainability?

1.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ALU's dividend (1.01%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: ALU's dividend (1.01%) is low compared to the top 25% of dividend payers in the Australian market (5.31%).


Stability and Growth of Payments

Stable Dividend: ALU is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: ALU is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ALU is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ALU's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Aram Mirkazemi

7.75yrs

Tenure

US$1,008,640

Compensation

Mr. Aram Mirkazemi, BE, has been the Chief Executive Officer at Altium Limited since January 16, 2014. Mr. Mirkazemi served as Chief Technology Officer of Altium Ltd. since October 16, 2012 until January 1...


CEO Compensation Analysis

Compensation vs Market: Aram's total compensation ($USD1.01M) is below average for companies of similar size in the Australian market ($USD1.79M).

Compensation vs Earnings: Aram's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ALU's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: ALU's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Altium Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Altium Limited
  • Ticker: ALU
  • Exchange: ASX
  • Founded: 1985
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$4.884b
  • Shares outstanding: 131.47m
  • Website: https://www.altium.com

Number of Employees


Location

  • Altium Limited
  • 4225 Executive Square
  • Level 7
  • La Jolla
  • California
  • 92037
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 07:01
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.