Altair Engineering
Market Cap
US$2.5b
Last Updated
2019/10/24 00:49 UTC
Data Sources
Company Financials +
Executive Summary
Altair Engineering Inc., together with its subsidiaries, provides software and cloud solutions worldwide.
Snowflake
Fundamentals
Reasonable growth potential with mediocre balance sheet.
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
Market Performance
7 Day Return
-2.7%
ALTR
-4.4%
US Software
0.07%
US Market
1 Year Return
-7.4%
ALTR
19.3%
US Software
8.9%
US Market
Return vs Industry: ALTR underperformed the US Software industry which returned 19.3% over the past year.
Return vs Market: ALTR underperformed the US Market which returned 8.9% over the past year.
Shareholder returns
| ALTR | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.7% | -4.4% | 0.07% |
| 30 Day | 1.3% | -4.4% | -0.3% |
| 90 Day | -20.0% | -9.3% | -1.6% |
| 1 Year | -7.4%-7.4% | 21.1%19.3% | 11.3%8.9% |
| 3 Year | n/a | 108.2%99.8% | 46.3%36.8% |
| 5 Year | n/a | 157.9%139.3% | 62.1%44.3% |
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 month ago | Simply Wall St
Is Altair Engineering Inc. (NASDAQ:ALTR) Worth US$32.42 Based On Its Intrinsic Value?2 months ago | Simply Wall St
If You Had Bought Altair Engineering (NASDAQ:ALTR) Stock A Year Ago, You Could Pocket A 23% Gain Today3 months ago | Simply Wall St
Altair Engineering Inc. (NASDAQ:ALTR) Might Not Be A Great InvestmentValuation
Is Altair Engineering undervalued compared to its fair value and its price relative to the market?
243262.41x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ALTR ($34.3) is trading above our estimate of fair value ($23.14)
Significantly Below Fair Value: ALTR is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ALTR is poor value based on its PE Ratio (243262.4x) compared to the Software industry average (45x).
PE vs Market: ALTR is poor value based on its PE Ratio (243262.4x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: ALTR is poor value based on its PEG Ratio (3028.7x)
Price to Book Ratio
PB vs Industry: ALTR is overvalued based on its PB Ratio (6.8x) compared to the US Software industry average (5.3x).
Next Steps
Future Growth
How is Altair Engineering forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
80.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ALTR's forecast earnings growth (80.3% per year) is above the savings rate (2.7%).
Earnings vs Market: ALTR's earnings (80.3% per year) are forecast to grow faster than the US market (14.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ALTR's revenue (12.6% per year) is forecast to grow faster than the US market (7.2% per year).
High Growth Revenue: ALTR's revenue (12.6% 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 (13.4%).
Next Steps
Past Performance
How has Altair Engineering performed over the past 5 years?
-20.3%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: ALTR's earnings have declined by -20.3% per year over the past 5 years.
Accelerating Growth: ALTR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: ALTR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (19.1%).
Return on Equity
High ROE: ALTR's Return on Equity (0%) is considered low.
Return on Assets
ROA vs Industry: ALTR's Return on Assets is below or equal to the Software industry average last year.
Return on Capital Employed
ROCE Improving: ALTR's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is Altair Engineering's financial position?
Financial Position Analysis
Short Term Liabilities: ALTR's short term assets ($364.4M) exceeds its short term liabilities ($141.1M)
Long Term Liabilities: ALTR's short term assets (364.4M) exceeds its long term liabilities (228.8M)
Debt to Equity History and Analysis
Debt Level: ALTR's debt to equity ratio (47.9%) is considered high
Reducing Debt: Insufficient data to determine if ALTR's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: ALTR's debt is not well covered by operating cash flow (17.9%).
Interest Coverage: ALTR earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: ALTR has a low level of unsold assets or inventory.
Debt Coverage by Assets: ALTR's debt is covered by short term assets (assets are 2.1x debt).
Next Steps
Dividend
What is Altair Engineering's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: Unable to evaluate ALTR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate ALTR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
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
What is the CEO of Altair Engineering's salary, the management and board of directors tenure and is there insider trading?
3.8yrs
Average management tenure
CEO
Jim Scapa (62yo)
27.8yrs
Tenure
US$1,953,130
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: Insufficient data to establish whether Jim's total compensation is reasonable compared to companies of similar size in the US market.
Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.
Management Age and Tenure
3.8yrs
Average Tenure
58yo
Average Age
Experienced Management: ALTR's management team is considered experienced (3.8 years average tenure).
Board Age and Tenure
3.2yrs
Average Tenure
60yo
Average Age
Experienced Board: ALTR's board of directors are considered experienced (3.2 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 167 |
| Max Price | US$35.64 |
| Entity | Individual |
| Role | Chief Administrative Officer Chief Administrative Officer |
| Shares | 84 |
| Max Price | US$35.64 |
| Entity | Individual |
| Role | Chief Executive Officer Founder |
| Shares | 1,309 |
| Max Price | US$35.64 |
| Entity | Individual |
| Shares | 85 |
| Max Price | US$35.64 |
| Entity | Individual |
| Role | Senior Key Executive Chief Technical Officer of Solvers & Optimization |
| Shares | 198 |
| Max Price | US$35.64 |
| Entity | Individual |
| Shares | 167 |
| Max Price | US$35.64 |
| Entity | Individual |
| Shares | 5,000 |
| Max Price | US$35.59 |
Ownership Breakdown
Management Team
Jim Scapa (62yo)
Founder
- Tenure: 27.8yrs
- Compensation: US$1.95m
Michael Kidder
Senior Vice President of Corporate Marketing
- Tenure: 0yrs
Michael Hoffmann (62yo)
Senior Vice President Math & Systems
- Tenure: 0yrs
Uwe Schramm (61yo)
Chief Technical Officer of Solvers & Optimization
- Tenure: 5.8yrs
- Compensation: US$423.19k
Max Fariello (57yo)
Senior VP and Chief of Research & Development
- Tenure: 8.3yrs
- Compensation: US$579.91k
Dave Simon (55yo)
Chief Administrative Officer
- Tenure: 0.8yrs
Brett Chouinard (54yo)
President
- Tenure: 0.8yrs
- Compensation: US$458.81k
Howard Morof (59yo)
Chief Financial Officer
- Tenure: 6.7yrs
- Compensation: US$566.96k
Amy Messano (48yo)
Chief Marketing Officer
- Tenure: 0.8yrs
Andrea Siudara
Chief Information Officer
- Tenure: 0.08yrs
Board Members
Jim Scapa (62yo)
Founder
- Tenure: 27.8yrs
- Compensation: US$1.95m
Jan Kowal (65yo)
Non-Employee Director
- Tenure: 6.3yrs
- Compensation: US$178.96k
Brett Chouinard (54yo)
President
- Tenure: 0.8yrs
- Compensation: US$458.81k
Steve Earhart (71yo)
Independent Director
- Tenure: 8.4yrs
- Compensation: US$178.96k
Richard Hart (55yo)
Non-Employee Director
- Tenure: 2.5yrs
- Compensation: US$178.96k
Trace Harris (54yo)
Non-Employee Director
- Tenure: 3.2yrs
- Compensation: US$178.96k
Mary Boyce (60yo)
Independent Director
- Tenure: 1.5yrs
- Compensation: US$465.06k
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$2.457b
- Shares outstanding: 71.64m
- 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 | 2019/10/24 00:49 |
| End of Day Share Price | 2019/10/23 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.