ALTR Stock Overview
Altair Engineering Inc., together with its subsidiaries, provides software and cloud solutions in the areas of simulation, high-performance computing, data analytics, and artificial intelligence worldwide.
Altair Engineering Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$59.35|
|52 Week High||US$82.96|
|52 Week Low||US$54.64|
|1 Month Change||-20.36%|
|3 Month Change||-21.80%|
|1 Year Change||-0.67%|
|3 Year Change||89.92%|
|5 Year Change||n/a|
|Change since IPO||224.14%|
Recent News & Updates
Returns On Capital At Altair Engineering (NASDAQ:ALTR) Paint A Concerning Picture
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. In a perfect...
Altair Engineering: Not Much Incentive To Staying Invested
Shares of Altair Engineering have powered nearly 40% higher this year, despite ho-hum results. The company hasn't substantially expanded its product universe, but has toyed with more flexible consumption contracts with its customers. Altair Units, a system of credits by which customers can purchase access to a variety of Altair Credits, is now installed by three-quarters of Altair's base. At the same time, be careful of pending deceleration and a relatively high valuation. Q3 results were decent and beat expectations, but were hardly exciting enough to produce additional enthusiasm for the stock.
|ALTR||US Software||US Market|
Return vs Industry: ALTR underperformed the US Software industry which returned 9.6% over the past year.
Return vs Market: ALTR underperformed the US Market which returned 6.6% over the past year.
|ALTR Average Weekly Movement||5.0%|
|Software Industry Average Movement||8.6%|
|Market Average Movement||6.7%|
|10% most volatile stocks in US Market||15.6%|
|10% least volatile stocks in US Market||2.4%|
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.
About the Company
Altair Engineering Inc., together with its subsidiaries, provides software and cloud solutions in the areas of simulation, high-performance computing, data analytics, and artificial intelligence worldwide. The company operates through two segments, Software and Client Engineering Services. Its software segment includes solvers and optimization technology products, high-performance computing software applications and hardware products, modeling and visualization tools, data analytics and analysis products, and IoT platform and analytics tools, as well as support and complementary software products.
Altair Engineering Fundamentals Summary
|ALTR fundamental statistics|
Is ALTR overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ALTR income statement (TTM)|
|Cost of Revenue||US$128.63m|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||-0.066|
|Net Profit Margin||-0.99%|
How did ALTR perform over the long term?See historical performance and comparison
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: ALTR ($59.35) is trading above our estimate of fair value ($33.16)
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 (7.8x) compared to the US Software industry average (4.9x).
How is Altair Engineering forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ALTR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).
Earnings vs Market: ALTR is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: ALTR's is expected to become profitable in the next 3 years.
Revenue vs Market: ALTR's revenue (7.9% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: ALTR's revenue (7.9% 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 (11.3%).
How has Altair Engineering performed over the past 5 years?
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, but has reduced losses over the past 5 years at a rate of 22.3% 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 (20.5%).
Return on Equity
High ROE: ALTR has a negative Return on Equity (-0.86%), as it is currently unprofitable.
How is Altair Engineering's financial position?
Financial Position Analysis
Short Term Liabilities: ALTR's short term assets ($579.5M) exceed its short term liabilities ($347.9M).
Long Term Liabilities: ALTR's short term assets ($579.5M) exceed its long term liabilities ($64.3M).
Debt to Equity History and Analysis
Debt Level: ALTR has more cash than its total debt.
Reducing Debt: ALTR had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
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 25.8% per year.
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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jim Scapa (64 yo)
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 ($USD2.02M) is below average for companies of similar size in the US market ($USD5.23M).
Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.
Experienced Management: ALTR's management team is considered experienced (3 years average tenure).
Experienced Board: ALTR's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 7%.
Altair Engineering Inc.'s employee growth, exchange listings and data sources
- Name: Altair Engineering Inc.
- Ticker: ALTR
- Exchange: NasdaqGS
- Founded: 1985
- Industry: Application Software
- Sector: Software
- Implied Market Cap: US$4.680b
- Shares outstanding: 78.85m
- Website: https://www.altair.com
Number of Employees
- Altair Engineering Inc.
- 1820 East Big Beaver Road
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/21 23:45|
|End of Day Share Price||2022/01/21 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.