Altair Engineering Inc., together with its subsidiaries, provides software and cloud solutions worldwide.
Adequate balance sheet with concerning outlook.
Share Price & News
How has Altair Engineering's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 8A2's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: 8A2 underperformed the German Software industry which returned 6.9% over the past year.
Return vs Market: 8A2 underperformed the German Market which returned 2.5% over the past year.
Price Volatility Vs. Market
How volatile is Altair Engineering's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Altair Engineering undervalued compared to its fair value and its price relative to the market?
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: 8A2 (€34) is trading above our estimate of fair value (€11.16)
Significantly Below Fair Value: 8A2 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 8A2 is unprofitable, so we can't compare its PE Ratio to the Software industry average.
PE vs Market: 8A2 is unprofitable, so we can't compare its PE Ratio to the German market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 8A2's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 8A2 is overvalued based on its PB Ratio (7.9x) compared to the DE Software industry average (3.4x).
How is Altair Engineering forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 8A2 is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: 8A2 is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: 8A2 is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: 8A2's revenue (8% per year) is forecast to grow faster than the German market (5.9% per year).
High Growth Revenue: 8A2's revenue (8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 8A2's Return on Equity is forecast to be low in 3 years time (5.4%).
How has Altair Engineering performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 8A2 is currently unprofitable.
Growing Profit Margin: 8A2 is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: 8A2 is unprofitable, and losses have increased over the past 5 years at a rate of -4.4% per year.
Accelerating Growth: Unable to compare 8A2's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: 8A2 is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (30.6%).
Return on Equity
High ROE: 8A2 has a negative Return on Equity (-4.08%), as it is currently unprofitable.
How is Altair Engineering's financial position?
Financial Position Analysis
Short Term Liabilities: 8A2's short term assets ($357.5M) exceed its short term liabilities ($150.6M).
Long Term Liabilities: 8A2's short term assets ($357.5M) exceed its long term liabilities ($227.9M).
Debt to Equity History and Analysis
Debt Level: 8A2's debt to equity ratio (50.6%) is considered high.
Reducing Debt: Insufficient data to determine if 8A2's debt to equity ratio has reduced over the past 5 years.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable 8A2 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: 8A2 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 24.2% per year.
What is Altair Engineering current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate 8A2's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate 8A2's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if 8A2's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if 8A2's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 8A2's dividend in 3 years as they are not forecast to pay a notable one for the German market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jim Scapa (63yo)
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 ...
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD2.37M) is about average for companies of similar size in the German market ($USD2.40M).
Compensation vs Earnings: Jim's compensation has increased whilst the company is unprofitable.
|Chief Financial Officer||7.42yrs||US$596.04k||0.64% $16.1m|
|Chief Marketing Officer||1.5yrs||US$712.02k||0.00072% $18.1k|
|Chief Technical Officer of Solvers & Optimization||6.5yrs||US$473.66k||0.065% $1.6m|
|Chief Information Officer||0.83yr||no data||no data|
|Chief Administrative Officer||1.5yrs||no data||0.030% $746.8k|
|Chief Legal Officer||0.42yr||no data||0.0090% $225.7k|
|Chief People Officer||0.42yr||no data||no data|
|Senior Vice President of Corporate Marketing||no data||no data||no data|
Experienced Management: 8A2's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
|Independent Non-Employee Director||7yrs||US$172.15k||0.0052% $129.3k|
|Independent Director||9.17yrs||US$172.15k||0.0010% $25.9k|
|Independent Non-Employee Director||3.25yrs||US$172.15k||0.0052% $129.3k|
|Independent Non-Employee Director||3.92yrs||US$172.15k||0.0052% $129.3k|
|Independent Director||2.25yrs||US$172.15k||0.014% $358.8k|
Experienced Board: 8A2's board of directors are considered experienced (3.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 8A2 insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.
Altair Engineering Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Altair Engineering Inc.
- Ticker: 8A2
- Exchange: DB
- Founded: 1985
- Industry: Application Software
- Sector: Software
- Market Cap: US$2.842b
- Listing Market Cap: US$2.511b
- Shares outstanding: 72.87m
- Website: https://www.altair.com
Number of Employees
- Altair Engineering Inc.
- 1820 East Big Beaver Road
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ALTR||NasdaqGS (Nasdaq Global Select)||Yes||New Class A Shares||US||USD||Nov 2017|
|8A2||DB (Deutsche Boerse AG)||Yes||New Class A Shares||DE||EUR||Nov 2017|
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.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/07/09 21:43|
|End of Day Share Price||2020/07/09 00:00|
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.