Altair Engineering
Market Cap
US$3.8b
Last Updated
2020/11/25 00:17 UTC
Data Sources
Company Financials +
Executive Summary
Altair Engineering Inc., together with its subsidiaries, provides software and cloud solutions worldwide. More Details
Snowflake Analysis
Adequate balance sheet with weak fundamentals.
Similar Companies
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: ALTR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: ALTR's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
3.1%
ALTR
1.2%
US Software
1.8%
US Market
1 Year Return
53.8%
ALTR
44.8%
US Software
20.4%
US Market
Return vs Industry: ALTR exceeded the US Software industry which returned 44.8% over the past year.
Return vs Market: ALTR exceeded the US Market which returned 20.4% over the past year.
Shareholder returns
| ALTR | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.1% | 1.2% | 1.8% |
| 30 Day | 7.5% | 0.4% | 6.0% |
| 90 Day | 19.5% | 0.6% | 6.8% |
| 1 Year | 53.8%53.8% | 45.7%44.8% | 23.2%20.4% |
| 3 Year | 113.5%113.5% | 134.9%127.4% | 47.4%37.6% |
| 5 Year | n/a | 211.6%195.5% | 91.9%70.8% |
Long-Term 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
1 week ago | Simply Wall St
Have Altair Engineering Inc. (NASDAQ:ALTR) Insiders Been Selling Their Stock?2 weeks ago | Simply Wall St
Altair Engineering Inc. (NASDAQ:ALTR) Just Reported And Analysts Have Been Lifting Their Price Targets2 weeks ago | Simply Wall St
A Quick Analysis On Altair Engineering's (NASDAQ:ALTR) CEO CompensationValuation
Is Altair Engineering undervalued compared to its fair value and its price relative to the market?
10.41x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: ALTR ($50.96) is trading above our estimate of fair value ($16.58)
Significantly Below Fair Value: ALTR is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ALTR is unprofitable, so we can't compare its PE Ratio to the US Software industry average.
PE vs Market: ALTR is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate ALTR's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: ALTR is overvalued based on its PB Ratio (10.4x) compared to the US Software industry average (7.9x).
Next Steps
Future Growth
How is Altair Engineering forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
42.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ALTR is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: ALTR is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: ALTR is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: ALTR's revenue (8% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: ALTR'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: ALTR's Return on Equity is forecast to be low in 3 years time (5.1%).
Next Steps
Past Performance
How has Altair Engineering performed over the past 5 years?
-1.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ALTR is currently unprofitable.
Growing Profit Margin: ALTR is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: ALTR is unprofitable, and losses have increased over the past 5 years at a rate of 1.4% per year.
Accelerating Growth: Unable to compare ALTR's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: ALTR is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (8.9%).
Return on Equity
High ROE: ALTR has a negative Return on Equity (-3.95%), as it is currently unprofitable.
Next Steps
Financial Health
How is Altair Engineering's financial position?
Financial Position Analysis
Short Term Liabilities: ALTR's short term assets ($359.8M) exceed its short term liabilities ($149.5M).
Long Term Liabilities: ALTR's short term assets ($359.8M) exceed its long term liabilities ($270.8M).
Debt to Equity History and Analysis
Debt Level: ALTR's debt to equity ratio (60%) is considered high.
Reducing Debt: Insufficient data to determine if ALTR's debt to equity ratio has reduced over the past 5 years.
Balance Sheet
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 ALTR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: ALTR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 21.9% per year.
Next Steps
Dividend
What is Altair Engineering current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ALTR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ALTR'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 ALTR's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ALTR'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 ALTR's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Jim Scapa (63 yo)
28.83yrs
Tenure
US$2,369,530
Compensation
Mr. James R. Scapa, also known as Jim, has been President and Director of Datawatch Corporation since December 13, 2018. Mr. Scapa is Founder of Altair Engineering, Inc., and has been its Chairman of the ...
CEO Compensation Analysis
Compensation vs Market: Jim's total compensation ($USD2.37M) is below average for companies of similar size in the US market ($USD5.17M).
Compensation vs Earnings: Jim's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 28.83yrs | US$2.37m | 9.71% $ 364.6m | |
| President | 1.92yrs | US$576.81k | 0.015% $ 557.0k | |
| Chief Financial Officer | 7.75yrs | US$596.04k | 0.61% $ 22.8m | |
| Chief Marketing Officer | 1.83yrs | US$712.02k | 0.0017% $ 63.4k | |
| Chief Technical Officer of Solvers & Optimization | 6.83yrs | US$473.66k | 0.050% $ 1.9m | |
| Chief Information Officer | 1.17yrs | no data | no data | |
| Chief Administrative Officer | 1.83yrs | no data | 0.026% $ 976.7k | |
| Chief Legal Officer | 0.75yr | no data | 0.0048% $ 180.9k | |
| Chief People Officer | 0.75yr | no data | no data | |
| Senior Vice President of Corporate Marketing | no data | no data | no data | |
| Senior Vice President Math & Systems | no data | no data | no data | |
| Chief Revenue Officer | 14.83yrs | no data | 0.030% $ 1.1m |
2.3yrs
Average Tenure
55yo
Average Age
Experienced Management: ALTR's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 28.83yrs | US$2.37m | 9.71% $ 364.6m | |
| President | 1.92yrs | US$576.81k | 0.015% $ 557.0k | |
| Independent Non-Employee Director | 7.33yrs | US$172.15k | 0.0051% $ 191.1k | |
| Independent Director | 9.5yrs | US$172.15k | 0.0010% $ 38.3k | |
| Independent Non-Employee Director | 3.58yrs | US$172.15k | 0.0061% $ 229.3k | |
| Independent Non-Employee Director | 4.25yrs | US$172.15k | 0.0051% $ 191.1k | |
| Independent Director | 2.58yrs | US$172.15k | 0.014% $ 530.8k |
4.3yrs
Average Tenure
61yo
Average Age
Experienced Board: ALTR's board of directors are considered experienced (4.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ALTR insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.6%.
Top Shareholders
Company Information
Altair Engineering Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Altair Engineering Inc.
- Ticker: ALTR
- Exchange: NasdaqGS
- Founded: 1985
- Industry: Application Software
- Sector: Software
- Market Cap: US$3.754b
- Shares outstanding: 73.66m
- Website: https://www.altair.com
Number of Employees
Location
- Altair Engineering Inc.
- 1820 East Big Beaver Road
- Troy
- Michigan
- 48083
- United States
Listings
| 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 |
Biography
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...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/25 00:17 |
| End of Day Share Price | 2020/11/24 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.