Altium Limited
Altium Limited Fundamental Analysis
Altium Limited (ALU.AX) shows moderate financial fundamentals with a PE ratio of 94.34, profit margin of 25.27%, and ROE of 23.00%. The company generates $0.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 81.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ALU.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentALU.AX demonstrates superior asset utilization.
Valuation Score
ModerateALU.AX shows balanced valuation metrics.
Growth Score
ModerateALU.AX shows steady but slowing expansion.
Financial Health Score
ExcellentALU.AX maintains a strong and stable balance sheet.
Profitability Score
ExcellentALU.AX achieves industry-leading margins.
Key Financial Metrics
Is ALU.AX Expensive or Cheap?
P/E Ratio
ALU.AX trades at 94.34 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ALU.AX's PEG of 1.37 indicates fair valuation.
Price to Book
The market values Altium Limited at 20.63 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 46.69 times EBITDA. This signals the market has high growth expectations.
How Well Does ALU.AX Make Money?
Net Profit Margin
For every $100 in sales, Altium Limited keeps $25.27 as profit after all expenses.
Operating Margin
Core operations generate 49.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.00 in profit for every $100 of shareholder equity.
ROA
Altium Limited generates $15.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Altium Limited produces operating cash flow of $55.14M, showing steady but balanced cash generation.
Free Cash Flow
Altium Limited generates strong free cash flow of $51.50M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.39 in free cash annually.
FCF Yield
ALU.AX converts 0.83% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
94.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.37
vs 25 benchmark
P/B Ratio
Price to book value ratio
20.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
23.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.81
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.40
vs 25 benchmark
How ALU.AX Stacks Against Its Sector Peers
| Metric | ALU.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 94.34 | 33.61 | Worse (Expensive) |
| ROE | 23.00% | 1020.00% | Weak |
| Net Margin | 25.27% | -56528.00% (disorted) | Strong |
| Debt/Equity | 0.04 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 2.81 | 5.65 | Strong Liquidity |
| ROA | 15.57% | -291484.00% (disorted) | Strong |
ALU.AX outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Altium Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta