NasdaqGS:ALTR

Stock Analysis Report

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

ALTRIndustryMarket
7 Day-2.7%-4.4%0.07%
30 Day1.3%-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 Yearn/a108.2%99.8%46.3%36.8%
5 Yearn/a157.9%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

Valuation

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

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

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

SellUS$5,95206 Jun 19
James Dagg
EntityIndividual
Shares167
Max PriceUS$35.64
SellUS$2,99406 Jun 19
David Simon
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer
Shares84
Max PriceUS$35.64
SellUS$46,65306 Jun 19
James Scapa
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,309
Max PriceUS$35.64
SellUS$3,02906 Jun 19
Nelson Dias
EntityIndividual
Shares85
Max PriceUS$35.64
SellUS$7,05706 Jun 19
Uwe Schramm
EntityIndividual
Role
Senior Key Executive
Chief Technical Officer of Solvers & Optimization
Shares198
Max PriceUS$35.64
SellUS$5,95206 Jun 19
Srikanth Mahalingam
EntityIndividual
Shares167
Max PriceUS$35.64
SellUS$177,95007 Mar 19
Martin Nichols
EntityIndividual
Shares5,000
Max PriceUS$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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALTRNasdaqGS (Nasdaq Global Select)YesNew Class A SharesUSUSDNov 2017
8A2DB (Deutsche Boerse AG)YesNew Class A SharesDEEURNov 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/24 00:49
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.