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Altair Engineering

DB:8A2
Snowflake Description

High growth potential with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
8A2
DB
$3B
Market Cap
  1. Home
  2. DE
  3. Software
Company description

Altair Engineering Inc., together with its subsidiaries, provides software and cloud solutions worldwide. The last earnings update was 67 days ago. More info.


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8A2 Share Price and Events
7 Day Returns
-0.5%
DB:8A2
-1.4%
DE Software
-1.8%
DE Market
1 Year Returns
25.9%
DB:8A2
17.3%
DE Software
-6.7%
DE Market
8A2 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Altair Engineering (8A2) -0.5% 12.4% 12.1% 25.9% - -
DE Software -1.4% 6.8% 19.6% 17.3% 72.4% 107.3%
DE Market -1.8% 1.6% -1.6% -6.7% 10.1% 11%
1 Year Return vs Industry and Market
  • 8A2 outperformed the Software industry which returned 17.3% over the past year.
  • 8A2 outperformed the Market in Germany which returned -6.7% over the past year.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

8A2 Value

 Is Altair Engineering undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Altair Engineering to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Altair Engineering.

DB:8A2 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.7%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:8A2
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.12 (1 + (1- 21%) (1.61%))
1.09
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.09 * 5.96%)
6.72%

Discounted Cash Flow Calculation for DB:8A2 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Altair Engineering is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:8A2 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.72%)
2020 49.50 Analyst x5 46.38
2021 74.37 Analyst x3 65.29
2022 95.33 Est @ 28.19% 78.42
2023 114.21 Est @ 19.8% 88.04
2024 130.12 Est @ 13.93% 93.98
2025 142.90 Est @ 9.82% 96.71
2026 152.83 Est @ 6.94% 96.91
2027 160.36 Est @ 4.93% 95.28
2028 166.00 Est @ 3.52% 92.41
2029 170.20 Est @ 2.53% 88.78
Present value of next 10 years cash flows $842.20
DB:8A2 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $170.20 × (1 + 0.23%) ÷ (6.72% – 0.23%)
$2,626.00
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,626.00 ÷ (1 + 6.72%)10
$1,369.83
DB:8A2 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $842.20 + $1,369.83
$2,212.03
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,212.03 / 71.21
$31.06
DB:8A2 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:8A2 represents 0.8844x of NasdaqGS:ALTR
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.8844x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 31.06 x 0.8844
€27.47
Value per share (EUR) From above. €27.47
Current discount Discount to share price of €36.80
= -1 x (€36.80 - €27.47) / €27.47
-34%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Altair Engineering is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Altair Engineering's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Altair Engineering's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:8A2 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.03
NasdaqGS:ALTR Share Price ** NasdaqGS (2019-07-15) in USD $41.61
Germany Software Industry PE Ratio Median Figure of 18 Publicly-Listed Software Companies 34.6x
Germany Market PE Ratio Median Figure of 419 Publicly-Listed Companies 20.05x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Altair Engineering.

DB:8A2 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ALTR Share Price ÷ EPS (both in USD)

= 41.61 ÷ 0.03

1405.74x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Altair Engineering is overvalued based on earnings compared to the DE Software industry average.
  • Altair Engineering is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Altair Engineering's expected growth come at a high price?
Raw Data
DB:8A2 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 1405.74x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
70.5%per year
Germany Software Industry PEG Ratio Median Figure of 13 Publicly-Listed Software Companies 2.24x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

DB:8A2 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 1405.74x ÷ 70.5%

19.95x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Altair Engineering is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Altair Engineering's assets?
Raw Data
DB:8A2 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $4.25
NasdaqGS:ALTR Share Price * NasdaqGS (2019-07-15) in USD $41.61
Germany Software Industry PB Ratio Median Figure of 32 Publicly-Listed Software Companies 3.06x
Germany Market PB Ratio Median Figure of 565 Publicly-Listed Companies 1.74x
DB:8A2 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ALTR Share Price ÷ Book Value per Share (both in USD)

= 41.61 ÷ 4.25

9.78x

* Primary Listing of Altair Engineering.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Altair Engineering is overvalued based on assets compared to the DE Software industry average.
X
Value checks
We assess Altair Engineering's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Altair Engineering has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

8A2 Future Performance

 How is Altair Engineering expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
70.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Altair Engineering expected to grow at an attractive rate?
  • Altair Engineering's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Altair Engineering's earnings growth is expected to exceed the Germany market average.
  • Altair Engineering's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:8A2 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:8A2 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 70.5%
DB:8A2 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 13.9%
Germany Software Industry Earnings Growth Rate Market Cap Weighted Average 19.6%
Germany Software Industry Revenue Growth Rate Market Cap Weighted Average 7.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:8A2 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:8A2 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 617 91 58 3
2020-12-31 544 61 31 7
2019-12-31 476 41 16 8
DB:8A2 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 411 35 2
2018-12-31 396 36 14
2018-09-30 393 39 -27
2018-06-30 384 27 -64
2018-03-31 370 24 -73
2017-12-31 333 16 -99
2017-09-30 326 17 -33
2017-06-30 319 25 -3
2017-03-31 314 30 6
2016-12-31 313 21 10

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Altair Engineering's earnings are expected to grow significantly at over 20% yearly.
  • Altair Engineering's revenue is expected to grow by 13.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:8A2 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Altair Engineering Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:8A2 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.83 0.97 0.69 2.00
2020-12-31 0.47 0.69 0.27 4.00
2019-12-31 0.21 0.26 0.15 3.00
DB:8A2 Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.03
2018-12-31 0.20
2018-09-30 -0.42
2018-06-30 -1.07
2018-03-31 -1.30
2017-12-31 -1.89
2017-09-30 -0.66
2017-06-30 -0.06
2017-03-31 0.12
2016-12-31 0.21

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Altair Engineering is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Altair Engineering's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Altair Engineering has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

8A2 Past Performance

  How has Altair Engineering performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Altair Engineering's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Altair Engineering's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Altair Engineering has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Altair Engineering has become profitable in the last year making it difficult to compare the DE Software industry average.
Earnings and Revenue History
Altair Engineering's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Altair Engineering Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:8A2 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 410.98 2.05 171.19 102.41
2018-12-31 396.38 13.72 160.03 97.59
2018-09-30 392.56 -26.84 152.51 95.78
2018-06-30 383.63 -63.78 167.52 99.07
2018-03-31 369.71 -72.54 170.56 97.17
2017-12-31 333.33 -99.41 167.94 93.23
2017-09-30 326.31 -33.16 155.71 87.11
2017-06-30 319.43 -3.22 136.94 78.92
2017-03-31 313.95 6.00 126.30 73.09
2016-12-31 313.24 10.16 123.29 71.33
2015-12-31 294.13 10.93 117.15 62.78

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Altair Engineering has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Altair Engineering used its assets less efficiently than the DE Software industry average last year based on Return on Assets.
  • Altair Engineering's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Altair Engineering's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Altair Engineering has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

8A2 Health

 How is Altair Engineering's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Altair Engineering's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Altair Engineering is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Altair Engineering's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Altair Engineering's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 9.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Altair Engineering Company Filings, last reported 3 months ago.

DB:8A2 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 301.69 14.81 39.77
2018-12-31 286.78 30.94 35.35
2018-09-30 209.45 1.07 197.41
2018-06-30 201.71 1.08 199.23
2018-03-31 65.13 0.82 63.20
2017-12-31 60.59 0.41 39.21
2017-09-30 -62.56 92.09 16.67
2017-06-30 -41.43 71.10 17.42
2017-03-31 -34.65 85.24 16.87
2016-12-31 -34.65 85.24 16.87
2015-12-31 -42.04 83.18 13.76
  • Altair Engineering's level of debt (5.3%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Altair Engineering's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (216%, greater than 20% of total debt).
  • Altair Engineering earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Altair Engineering's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Altair Engineering has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

8A2 Dividends

 What is Altair Engineering's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Altair Engineering dividends. Estimated to be 0% next year.
If you bought €2,000 of Altair Engineering shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Altair Engineering's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Altair Engineering's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:8A2 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Germany Software Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 1.2%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:8A2 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 1.00
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Altair Engineering has not reported any payouts.
  • Unable to verify if Altair Engineering's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Altair Engineering's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Altair Engineering has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Altair Engineering's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess Altair Engineering's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Altair Engineering afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Altair Engineering has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

8A2 Management

 What is the CEO of Altair Engineering's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jim Scapa
COMPENSATION $1,953,130
AGE 62
TENURE AS CEO 27.5 years
CEO Bio

Mr. James R. Scapa, also known as Jim, has been President and Director of Datawatch Corporation since December 13, 2018. Mr. Scapa is Founder of Altair Engineering, Inc., and has been its Chairman of the Board and Chief Executive Officer since 1992. Mr. Scapa serves as Chairman and Chief Executive Officer at Altair Engineering Ltd. Mr. Scapa served as Secretary and Treasurer of Altair Engineering, Inc. since its inception in 1985 and served as its President. He has more than 30 years of engineering experience. He began his career in 1978 with Ford Motor Company, working on virtual prototyping technology. He left Ford in 1981 and took a part-time position at an engineering consulting firm, which he joined full-time after graduation. In 1985, he left Altair Engineering, Inc. to form Altair with partners George Christ and Mark Kistner. He served as an Engineering Consultant to the automotive industry. He serves as Director at Altair Engineering, Inc. In 2004, he was named an Ernst & Young Entrepreneur of the Year in Technology. Mr. Scapa holds a Bachelor of Science Degree in Mechanical Engineering from Columbia University in New York City and a Master of Business Administration from the University of Michigan.

CEO Compensation
  • Jim's compensation has increased in line with Altair Engineering recently becoming profitable.
  • Jim's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Altair Engineering management team in years:

6
Average Tenure
57
Average Age
  • The average tenure for the Altair Engineering management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jim Scapa

TITLE
Founder
COMPENSATION
$2M
AGE
62
TENURE
27.5 yrs

Brett Chouinard

TITLE
President
COMPENSATION
$459K
AGE
54
TENURE
1.5 yrs

Howard Morof

TITLE
Chief Financial Officer
COMPENSATION
$567K
AGE
59
TENURE
6.4 yrs

Uwe Schramm

TITLE
Chief Technical Officer of Solvers & Optimization
COMPENSATION
$423K
AGE
61
TENURE
5.5 yrs

Max Fariello

TITLE
Senior VP and Chief of Research & Development
COMPENSATION
$580K
AGE
57
TENURE
8 yrs

Martin Nichols

TITLE
Chief Information Officer
AGE
56
TENURE
8 yrs

Dave Simon

TITLE
Chief Administrative Officer
AGE
55
TENURE
0.5 yrs

Amy Messano

TITLE
Chief Marketing Officer
AGE
48
TENURE
0.5 yrs

Michael Kidder

TITLE
Senior Vice President of Corporate Marketing

Michael Hoffmann

TITLE
Senior Vice President Math & Systems
AGE
62
Board of Directors Tenure

Average tenure and age of the Altair Engineering board of directors in years:

2.9
Average Tenure
60
Average Age
  • The average tenure for the Altair Engineering board of directors is less than 3 years, this suggests a new board.
Board of Directors

Jim Scapa

TITLE
Founder
COMPENSATION
$2M
AGE
62
TENURE
27.5 yrs

Brett Chouinard

TITLE
President
COMPENSATION
$459K
AGE
54
TENURE
0.6 yrs

Trace Harris

TITLE
Non-Employee Director
COMPENSATION
$179K
AGE
54
TENURE
2.9 yrs

Richard Hart

TITLE
Non-Employee Director
COMPENSATION
$179K
AGE
55
TENURE
2.3 yrs

Mary Boyce

TITLE
Director
COMPENSATION
$465K
AGE
60
TENURE
1.3 yrs

Steve Earhart

TITLE
Director
COMPENSATION
$179K
AGE
71
TENURE
8.2 yrs

Jan Kowal

TITLE
Non-Employee Director
COMPENSATION
$179K
AGE
65
TENURE
6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
06. Jun 19 Sell Srikanth Mahalingam Individual 06. Mar 19 06. Mar 19 -167 €31.49 €-5,259
06. Jun 19 Sell Uwe Schramm Individual 06. Mar 19 06. Mar 19 -198 €31.49 €-6,235
06. Jun 19 Sell David Simon Individual 06. Mar 19 06. Mar 19 -84 €31.49 €-2,645
06. Jun 19 Sell James Scapa Individual 06. Mar 19 06. Mar 19 -1,309 €31.49 €-41,222
06. Jun 19 Sell James Dagg Individual 06. Mar 19 06. Mar 19 -167 €31.49 €-5,259
06. Jun 19 Sell Nelson Dias Individual 06. Mar 19 06. Mar 19 -85 €31.49 €-2,677
07. Mar 19 Sell Martin Nichols Individual 05. Mar 19 05. Mar 19 -5,000 €31.50 €-157,486
X
Management checks
We assess Altair Engineering's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Altair Engineering has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

8A2 News

Simply Wall St News

8A2 Company Info

Description

Altair Engineering Inc., together with its subsidiaries, provides software and cloud solutions worldwide. The company operates through two segments, Software and Client Engineering Services. Its integrated suite of multi-disciplinary computer aided engineering software optimizes design performance across various disciplines, including structures, motion, fluids, thermal management, electromagnetics, system modeling and embedded systems. The company offers software products in the areas of design, modeling, visualization; physics simulation; data intelligence; cloud computing; and Internet of Things for decision making in product design and development, manufacturing, energy management and exploration, financial services, health care, and retail operations. It also provides consulting, training, and implementation services; and client engineering services to support customers with ongoing product design and development services. The company was founded in 1985 and is headquartered in Troy, Michigan.

Details
Name: Altair Engineering Inc.
8A2
Exchange: DB
Founded: 1985
$2,605,305,244
71,213,728
Website: http://www.altair.com
Address: Altair Engineering Inc.
1820 East Big Beaver Road,
Troy,
Michigan, 48083,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ALTR New Class A Shares Nasdaq Global Select US USD 01. Nov 2017
DB 8A2 New Class A Shares Deutsche Boerse AG DE EUR 01. Nov 2017
Number of employees
Current staff
Staff numbers
2,850
Altair Engineering employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 22:34
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/05/16
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.