Altair Engineering Inc.

Technology
Computer Software: Prepackaged Software
www.altair.com

Earnings Score
Moat Score
Safety Score

Market Cap $8.90B
PE 271
Debt $226.81M
Cash $513.44M
EV $8.61B
FCF $126.16M

Earnings

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Sales & Net Margins

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Earnings	$32.85M
EBIT	$52.54M
ROE	4%
ROA	4%
FCF	$126.16M
Equity	$836.90M
Growth Stability	1
PE	270.83
PB	10.63
P/FCF	70.53
P/S	13.8
Price/Cash	0.06
Debt/Equity	0.27
Debt/FCF	1.8
Net Margins	3%
Gross Margins	81%
Op. Margins	8%
Earnings CAGR	1%
Sales Growth YoY	13%
Sales Growth QoQ	2%
Sales CAGR	10%
FCF CAGR	36%
Equity CAGR	24%
Earnings Stability	-0.04
Earnings Growth YoY	-141%
Earnings Growth QoQ	-135%

Sales CAGR 5Y	8%
FCF CAGR 5Y	47%
Equity CAGR 5Y	21%
Earnings CAGR 3Y	7%
Sales CAGR 3Y	7%
FCF CAGR 3Y	101%
Equity CAGR 3Y	14%
Market Cap	$8.90B
Revenue	$644.66M
Assets	$1.38B
Total Debt	$226.81M
Cash	$513.44M
Shares Outstanding	83.68M
EV	8.61B
Earnings Score	6%
Moat Score	50%
Safety Score	94%
Final Score	50%
Working Capital	476.89M
Current Ratio	3.27
Gross Profit	$524.06M
Shares Growth 3y	3%
Equity Growth QoQ	6%
Equity Growth YoY	32%

Assets & ROA

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Stockholders Equity & ROE

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Altair Engineering Inc is a provider of enterprise-class engineering software enabling origination of the entire product lifecycle from concept design to in-service operation. The integrated suite of software provided by the company optimizes design performance across multiple disciplines encompassing structures, motion, fluids, thermal management, system modeling, and embedded systems. It operates through two segments: Software which includes the portfolio of software products such as solvers and optimization technology products, modeling and visualization tools, industrial and concept design tools, and others; and Client Engineering Services which provides client engineering services to support customers. Most of its revenue comes from the software segment within the United States.

SEC Filings

Direct access to Altair Engineering Inc. (ALTR) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Altair Engineering Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Altair Engineering Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 1%

Stability -4%

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Altair Engineering Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Altair Engineering Inc..

Years

Calculation mode

= $15B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$126M	$172M	$234M	$318M	$433M	$589M	$801M	$1.1B	$1.5B	$2B	$2.7B	$27B
DCF		$156M	$193M	$239M	$295M	$365M	$452M	$559M	$692M	$856M	$1.1B	$11B
Value	$15B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	4%	3%	-30%	3%	-2%	-2%	-2%	-8%	-1%	3%
ROA	-	6%	-12%	6%	1%	1%	1%	-1%	1%	4%
ROE	-	-29%	-164%	5%	-2%	-3%	-1%	-8%	-1%	4%

Bad Net Margins (2.79%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	8.02	0.07	1.09	10.66	10.87	3.71	10.21	2.62	1.8
Debt over Equity	-	-2.77	0.01	0.11	0.65	0.77	0.33	0.54	0.43	0.27
Growth Stability	-	-	-	-	-	-	-	-	-	1

Good Debt/FCF ratio (1.8)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.27)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	6%	6%	19%	16%	2%	13%	8%	7%	8%
Earnings YoY growth	-	-7%	-1K%	-114%	-155%	39%	-16%	394%	-79%	-
Equity YoY growth	-	-18%	-275%	373%	24%	7%	62%	-7%	25%	21%
FCF YoY growth	-	113%	-28%	245%	-27%	23%	101%	-44%	291%	47%