NasdaqGS:ALTR

Stock Analysis Report

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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

ALTRIndustryMarket
7 Day3.1%1.2%1.8%
30 Day7.5%0.4%6.0%
90 Day19.5%0.6%6.8%
1 Year53.8%53.8%45.7%44.8%23.2%20.4%
3 Year113.5%113.5%134.9%127.4%47.4%37.6%
5 Yearn/a211.6%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

Valuation

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

NamePositionTenureCompensationOwnership
James Scapa
Founder28.83yrsUS$2.37m9.71%
$ 364.6m
Brett Chouinard
President1.92yrsUS$576.81k0.015%
$ 557.0k
Howard Morof
Chief Financial Officer7.75yrsUS$596.04k0.61%
$ 22.8m
Amy Messano
Chief Marketing Officer1.83yrsUS$712.02k0.0017%
$ 63.4k
Uwe Schramm
Chief Technical Officer of Solvers & Optimization6.83yrsUS$473.66k0.050%
$ 1.9m
Andrea Siudara
Chief Information Officer1.17yrsno datano data
David Simon
Chief Administrative Officer1.83yrsno data0.026%
$ 976.7k
Raoul Maitra
Chief Legal Officer0.75yrno data0.0048%
$ 180.9k
Gilma Saravia
Chief People Officer0.75yrno datano data
Michael Kidder
Senior Vice President of Corporate Marketingno datano datano data
Michael Hoffmann
Senior Vice President Math & Systemsno datano datano data
Nelson Dias
Chief Revenue Officer14.83yrsno data0.030%
$ 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

NamePositionTenureCompensationOwnership
James Scapa
Founder28.83yrsUS$2.37m9.71%
$ 364.6m
Brett Chouinard
President1.92yrsUS$576.81k0.015%
$ 557.0k
Jan Kowal
Independent Non-Employee Director7.33yrsUS$172.15k0.0051%
$ 191.1k
Stephen Earhart
Independent Director9.5yrsUS$172.15k0.0010%
$ 38.3k
Richard Hart
Independent Non-Employee Director3.58yrsUS$172.15k0.0061%
$ 229.3k
Trace Harris
Independent Non-Employee Director4.25yrsUS$172.15k0.0051%
$ 191.1k
Mary Boyce
Independent Director2.58yrsUS$172.15k0.014%
$ 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

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 Analysis2020/11/25 00:17
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.