OTCPK:ALMF.F

Stock Analysis Report

Executive Summary

Altium Limited develops and sells computer software for the design of electronic products in the United States and internationally.

Rewards

Earnings are forecast to grow 19.99% per year

Earnings grew by 41.1% over the past year

Risk Analysis

No risks detected for ALMF.F from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Altium's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ALMF.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.7%

ALMF.F

1.7%

US Software

1.5%

US Market


1 Year Return

42.3%

ALMF.F

42.3%

US Software

20.1%

US Market

Return vs Industry: ALMF.F matched the US Software industry which returned 42.2% over the past year.

Return vs Market: ALMF.F exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

ALMF.FIndustryMarket
7 Day1.7%1.7%1.5%
30 Day8.6%7.7%1.4%
90 Day21.3%18.4%8.7%
1 Year42.3%42.3%43.9%42.3%22.7%20.1%
3 Year346.6%346.6%152.8%142.4%50.1%40.5%
5 Year1161.3%1161.3%224.7%201.5%73.1%54.1%

Price Volatility Vs. Market

How volatile is Altium's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Altium undervalued compared to its fair value and its price relative to the market?

69.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ALMF.F ($28) is trading above our estimate of fair value ($19.06)

Significantly Below Fair Value: ALMF.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ALMF.F is poor value based on its PE Ratio (69.3x) compared to the Software industry average (52.1x).

PE vs Market: ALMF.F is poor value based on its PE Ratio (69.3x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: ALMF.F is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: ALMF.F is overvalued based on its PB Ratio (19.9x) compared to the US Software industry average (6x).


Next Steps

Future Growth

How is Altium forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

20.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALMF.F's forecast earnings growth (20% per year) is above the savings rate (1.7%).

Earnings vs Market: ALMF.F's earnings (20% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: ALMF.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: ALMF.F's revenue (16.5% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: ALMF.F's revenue (16.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ALMF.F's Return on Equity is forecast to be high in 3 years time (36.4%)


Next Steps

Past Performance

How has Altium performed over the past 5 years?

-0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALMF.F has high quality earnings.

Growing Profit Margin: ALMF.F's current net profit margins (30.8%) are higher than last year (26.7%).


Past Earnings Growth Analysis

Earnings Trend: ALMF.F's earnings have declined by -0.3% per year over the past 5 years.

Accelerating Growth: ALMF.F's earnings growth over the past year (41.1%) exceeds its 5-year average (-0.3% per year).

Earnings vs Industry: ALMF.F earnings growth over the past year (41.1%) exceeded the Software industry 17.1%.


Return on Equity

High ROE: ALMF.F's Return on Equity (28.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Altium's financial position?


Financial Position Analysis

Short Term Liabilities: ALMF.F's short term assets ($131.5M) exceed its short term liabilities ($72.4M).

Long Term Liabilities: ALMF.F's short term assets ($131.5M) exceed its long term liabilities ($21.0M).


Debt to Equity History and Analysis

Debt Level: ALMF.F is debt free.

Reducing Debt: ALMF.F has not had any debt for past 5 years.

Debt Coverage: ALMF.F has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ALMF.F has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: ALMF.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ALMF.F's debt is covered by short term assets.


Next Steps

Dividend

What is Altium's current dividend yield, its reliability and sustainability?

0.86%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: ALMF.F's dividend (0.86%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: ALMF.F's dividend (0.86%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: ALMF.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: ALMF.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.8%), ALMF.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ALMF.F's dividends in 3 years are forecast to be covered by earnings (69.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average management tenure


CEO

Aram Mirkazemi 0

6.1yrs

Tenure

US$3,054,189

Compensation

Mr. Aram Mirkazemi, BE, has been the Chief Executive Officer at Altium Limited since January 16, 2014. Mr. Mirkazemi served as Chief Technology Officer of Altium Ltd. since October 16, 2012 until January 1 ...


CEO Compensation Analysis

Compensation vs Market: Aram's total compensation ($USD3.05M) is below average for companies of similar size in the US market ($USD4.88M).

Compensation vs Earnings: Aram's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Aram Mirkazemi
CEO & Executive Director6.1yrsUS$3.05m7.27% $267.5m
Joseph Bedewi
Chief Financial Officer3.9yrsUS$915.14kno data
Henry Potts
0yrsUS$3.40m0.038% $1.4m
Sergiy Kostynsky
Executive Director2.1yrsUS$1.07m1.83% $67.5m
Ted Pawela
Chief Operating Officer0yrsno datano data
Kim Besharati
Company Secretary and VP of Investor Relations & Corporate Affairs5yrsno datano data
Rainer Asfalg
Global Head of Technical Sales & Support0yrsno datano data
Donald Cantow
Senior Vice President of Solution Sales0yrsno datano data
Leigh Gawne
Head of Ciiva0yrsno datano data
Alison Raffin
Company Secretary8.3yrsno datano data

5.5yrs

Average Tenure

Experienced Management: ALMF.F's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Aram Mirkazemi
CEO & Executive Director6.1yrsUS$3.05m7.27% $267.5m
Sergiy Kostynsky
Executive Director2.1yrsUS$1.07m1.83% $67.5m
Samuel Weiss
Independent Non-Executive Chairman12.3yrsUS$285.00k1.45% $53.4m
Raelene Murphy
Non-Executive Director3.4yrsUS$150.00k0.0067% $246.9k
Lynn Mickleburgh
Non-Executive Director2.9yrsUS$142.50k0.014% $517.0k

3.4yrs

Average Tenure

Experienced Board: ALMF.F's board of directors are considered experienced (3.4 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Altium Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Altium Limited
  • Ticker: ALMF.F
  • Exchange: OTCPK
  • Founded: 1985
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$5.477b
  • Listing Market Cap: AU$3.680b
  • Shares outstanding: 130.97m
  • Website: https://www.altium.com

Number of Employees


Location

  • Altium Limited
  • 4225 Executive Square
  • Level 7
  • La Jolla
  • California
  • 92037
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALUASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 1999
ALMF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 1999
ALUCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 1999
A5VDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 1999

Biography

Altium Limited develops and sells computer software for the design of electronic products in the United States and internationally. It operates through Board and Systems; Microcontrollers and Embedded Systems; and Electronic Parts, Search and Discovery Business segments. The company offers printed circuit board (PCB) design software products, including Altium Designer, a PCB design tool; CircuitStudio, a professional PCB design tool; CircuitMaker, a community based PCB design tool for makers, hobbyists, and DIYers community; and NEXUS, an agile PCB design for teams, as well as embedded products, such as TASKING tools for embedded software development. It also provides cloud platform comprising Altium 365, a connecting PCB design to the manufacturing floor; and Altium Concord Pro, a solution for library management. In addition, the company offers component data products comprising Ciiva, an intelligent parts database; and Octopart, a component database, as well as PDN Analyzer, a power distribution network analysis product. Further, it provides Altium DXP Developer and Altium 365 Online Viewer, as well as live and on-demand courses. The company serves the automotive, military/aerospace, communications, contract engineering, education, consumer electronics, industrial systems, entertainment, and bioscience and medical industries. Altium Limited was founded in 1985 and is headquartered in La Jolla, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:25
End of Day Share Price2020/02/11 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.