ASX:ALU

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

How has Altium's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ALU has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.8%

ALU

0.9%

AU Software

1.2%

AU Market


1 Year Return

3.0%

ALU

10.3%

AU Software

-10.3%

AU Market

Return vs Industry: ALU underperformed the Australian Software industry which returned 10.3% over the past year.

Return vs Market: ALU exceeded the Australian Market which returned -10.3% over the past year.


Shareholder returns

ALUIndustryMarket
7 Day2.8%0.9%1.2%
30 Day-1.9%-4.8%-2.6%
90 Day8.5%14.5%3.0%
1 Year4.2%3.0%11.2%10.3%-7.1%-10.3%
3 Year236.2%225.3%115.5%107.6%18.6%3.3%
5 Year707.0%638.9%162.4%142.1%46.1%15.4%

Price Volatility Vs. Market

How volatile is Altium's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

104.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ALU (A$35.17) is trading above our estimate of fair value (A$17.14)

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 (104.5x) compared to the AU Software industry average (34.8x).

PE vs Market: ALU is poor value based on its PE Ratio (104.5x) compared to the Australian market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: ALU is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: ALU is overvalued based on its PB Ratio (17.5x) compared to the AU Software industry average (5.5x).


Next Steps

Future Growth

How is Altium forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

26.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALU's forecast earnings growth (26.1% per year) is above the savings rate (2.3%).

Earnings vs Market: ALU's earnings (26.1% per year) are forecast to grow faster than the Australian market (17.9% per year).

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

Revenue vs Market: ALU's revenue (14.1% per year) is forecast to grow faster than the Australian market (4.4% per year).

High Growth Revenue: ALU's revenue (14.1% 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 (34.3%)


Next Steps

Past Performance

How has Altium performed over the past 5 years?

-11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALU has high quality earnings.

Growing Profit Margin: ALU's current net profit margins (16.3%) are lower than last year (30.8%).


Past Earnings Growth Analysis

Earnings Trend: ALU's earnings have declined by 11.2% per year over the past 5 years.

Accelerating Growth: ALU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ALU had negative earnings growth (-41.6%) over the past year, making it difficult to compare to the Software industry average (21%).


Return on Equity

High ROE: ALU's Return on Equity (16.8%) is considered low.


Next Steps

Financial Health

How is Altium's financial position?


Financial Position Analysis

Short Term Liabilities: ALU's short term assets ($160.2M) exceed its short term liabilities ($81.7M).

Long Term Liabilities: ALU's short term assets ($160.2M) exceed its long term liabilities ($30.0M).


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


Next Steps

Dividend

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

1.11%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ALU's dividend (1.11%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.38%).

High Dividend: ALU's dividend (1.11%) is low compared to the top 25% of dividend payers in the Australian market (5.61%).


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?

6.0yrs

Average management tenure


CEO

Aram Mirkazemi

6.67yrs

Tenure

US$1,699,571

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 ($USD1.70M) is about average for companies of similar size in the Australian market ($USD2.13M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Aram Mirkazemi
CEO & Executive Director6.67yrsUS$1.70m7.25%
$ 334.8m
Joseph Bedewi
Chief Financial Officer4.5yrsUS$1.91mno data
Henry Potts
no dataUS$1.19m0.038%
$ 1.8m
Sergiy Kostynsky
Executive Director2.67yrsUS$726.27k1.83%
$ 84.5m
Ted Pawela
Chief Operating Officerno datano datano data
Kim Besharati
Company Secretary and VP of Investor Relations & Corporate Affairs5.58yrsno datano data
Rainer Asfalg
Global Head of Technical Sales & Supportno datano datano data
Donald Cantow
Senior Vice President of Solution Salesno datano datano data
Leigh Gawne
Head of Ciivano datano datano data
Alison Raffin
Company Secretary8.83yrsno datano data
Matthew Schwaiger
Vice President of Global Customer Success6.08yrsUS$268.82kno data
Martin Ive
Vice President of Finance5.83yrsno datano data

6.0yrs

Average Tenure

Experienced Management: ALU's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Aram Mirkazemi
CEO & Executive Director6.67yrsUS$1.70m7.25%
$ 334.8m
Sergiy Kostynsky
Executive Director2.67yrsUS$726.27k1.83%
$ 84.5m
Samuel Weiss
Independent Non-Executive Chairman12.92yrsUS$285.00k1.45%
$ 66.9m
Raelene Murphy
Non-Executive Director4yrsUS$150.00k0.0072%
$ 334.1k
Lynn Mickleburgh
Non-Executive Director3.5yrsUS$146.88k0.014%
$ 647.1k

4.0yrs

Average Tenure

Experienced Board: ALU's board of directors are considered experienced (4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ALU 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 company bio, 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$4.615b
  • Shares outstanding: 131.23m
  • Website: https://www.altium.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALUASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 1999
ALMF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 1999
ALUCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 1999
A5VDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 1999

Biography

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 Syst ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/27 19:00
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.