Altair Engineering Inc.
Altair Engineering Inc. Fundamental Analysis
Altair Engineering Inc. (ALTR) shows weak financial fundamentals with a PE ratio of 3437.68, profit margin of 0.81%, and ROE of 0.33%. The company generates $0.3B in annual revenue with moderate year-over-year growth of 8.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ALTR's fundamental strength across five key dimensions:
Efficiency Score
WeakALTR struggles to generate sufficient returns from assets.
Valuation Score
ModerateALTR shows balanced valuation metrics.
Growth Score
ModerateALTR shows steady but slowing expansion.
Financial Health Score
ExcellentALTR maintains a strong and stable balance sheet.
Profitability Score
ModerateALTR maintains healthy but balanced margins.
Key Financial Metrics
Is ALTR Expensive or Cheap?
P/E Ratio
ALTR trades at 3437.68 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ALTR's PEG of -59.79 indicates potential undervaluation.
Price to Book
The market values Altair Engineering Inc. at 11.13 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 342.92 times EBITDA. This signals the market has high growth expectations.
How Well Does ALTR Make Money?
Net Profit Margin
For every $100 in sales, Altair Engineering Inc. keeps $0.81 as profit after all expenses.
Operating Margin
Core operations generate 1.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.33 in profit for every $100 of shareholder equity.
ROA
Altair Engineering Inc. generates $0.19 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Altair Engineering Inc. produces operating cash flow of $52.59M, showing steady but balanced cash generation.
Free Cash Flow
Altair Engineering Inc. generates strong free cash flow of $43.42M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.50 in free cash annually.
FCF Yield
ALTR converts 0.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
3437.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-59.79
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
28.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.30
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.003
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.007
vs 25 benchmark
How ALTR Stacks Against Its Sector Peers
| Metric | ALTR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 3437.68 | 35.19 | Worse (Expensive) |
| ROE | 0.33% | 1155.00% | Weak |
| Net Margin | 0.81% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.30 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 1.61 | 4.71 | Neutral |
| ROA | 0.19% | -314918.00% (disorted) | Weak |
ALTR outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Altair Engineering Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
23.44%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
259.92%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
317.62%
Industry Style: Growth, Innovation, High Beta
High Growth