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Altair Engineering Inc
NASDAQ:ALTR

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Altair Engineering Inc Logo
Altair Engineering Inc
NASDAQ:ALTR
Watchlist
Price: 85.08 USD 0.52% Market Closed
Updated: Mar 1, 2024

Intrinsic Value

Altair Engineering, Inc. engages in the provision of software and cloud solutions for product design & development, high performance cloud computing, and data intelligence. [ Read More ]

The intrinsic value of one ALTR stock under the Base Case scenario is 38.69 USD. Compared to the current market price of 85.08 USD, Altair Engineering Inc is Overvalued by 55%.

Key Points:
ALTR Intrinsic Value
Base Case
38.69 USD
Overvaluation 55%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Altair Engineering Inc

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Fundamental Analysis

Strong Q4 Results; Solid 2024 Growth Outlook
2023-Q4 Earnings Call

Strong Q4 Results; Solid 2024 Growth Outlook

Amid a challenging macroeconomic climate, the company celebrated record high revenue and surpassed its 2023 adjusted EBITDA margin goal by reaching 21.1%. Q4 saw billings grow by 4.4% to $196.1 million and total revenue increased by 6.9% to $171.5 million year-over-year. The focus shifted away from lower margin hardware towards high-margin software, which drove Q4 software revenue up by 7.6% to $155.9 million. The full-year financials echoed this success, with software revenue of $550.0 million, total revenue of $612.7 million, and a strong non-GAAP gross margin improvement. Looking forward, Q1 2024 software revenue is expected to grow between 1.6% and 3.6%, and total revenue is projected at $663 million to $673 million for the full year, indicating a sustainable growth trajectory. The company anticipates an adjusted EBITDA margin between 21.6% and 22.4% and a free cash flow range of $129 million to $137 million for 2024.

Financials

Balance Sheet Decomposition
Altair Engineering Inc

Current Assets 700.6m
Cash & Short-Term Investments 467.5m
Receivables 212.3m
Other Current Assets 20.9m
Non-Current Assets 662.9m
PP&E 70.6m
Intangibles 541.7m
Other Non-Current Assets 50.6m
Current Liabilities 324.1m
Accounts Payable 9m
Accrued Liabilities 78.1m
Other Current Liabilities 237m
Non-Current Liabilities 328.1m
Long-Term Debt 225.9m
Other Non-Current Liabilities 102.1m
Efficiency
Fundamental Scores

ALTR Profitability Score
Profitability Due Diligence

Altair Engineering Inc's profitability score is 48/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive Free Cash Flow
ROIC is Increasing
Positive 3-Years Revenue Growth
48/100
Profitability
Score

Altair Engineering Inc's profitability score is 48/100. The higher the profitability score, the more profitable the company is.

ALTR Solvency Score
Solvency Due Diligence

Altair Engineering Inc's solvency score is 61/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
Low D/E
Negative Net Debt
Short-Term Solvency
61/100
Solvency
Score

Altair Engineering Inc's solvency score is 61/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

ALTR Price Targets Summary
Altair Engineering Inc

Wall Street analysts forecast ALTR stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for ALTR is 90.14 USD with a low forecast of 74.74 USD and a high forecast of 105 USD.

Lowest
Price Target
74.74 USD
12% Downside
Average
Price Target
90.14 USD
6% Upside
Highest
Price Target
105 USD
23% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Ownership

ALTR Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

Shareholder Return

ALTR Price
Altair Engineering Inc

1M 1M
-1%
6M 6M
+27%
1Y 1Y
+31%
3Y 3Y
+34%
5Y 5Y
+133%
10Y 10Y
+365%
Annual Price Range
85.08
52w Low
59.11
52w High
92.26
Price Metrics
Average Annual Return 11.82%
Standard Deviation of Annual Returns 39.25%
Max Drawdown -45%
Shares Statistics
Market Capitalization 7B USD
Shares Outstanding 81 660 000
Percentage of Shares Shorted 7.99%

ALTR Return Decomposition
Main factors of price return

What is price return decomposition?

Company Profile

Altair Engineering Inc Logo
Altair Engineering Inc

Country

United States of America

Industry

Technology

Market Cap

7B USD

Dividend Yield

0%

Description

Altair Engineering, Inc. engages in the provision of software and cloud solutions for product design & development, high performance cloud computing, and data intelligence. The company is headquartered in Troy, Michigan and currently employs 2,800 full-time employees. The company went IPO on 2017-11-01. The firm operates through two segments: Software and Client Engineering Services. Its Software segment includes software and software related services, such as solvers and optimization technology products, high-performance computing software applications and hardware products, modeling and visualization tools, data analytics and analysis products, Internet of things (IoT) platform and analytics tools as well as support and the complementary software products that offer through its Altair Partner Alliance (APA). Its software-related services include consulting, implementation services, and training focused on product design and development and analysis from the component level up to complete product engineering. Its Client Engineering Services segment provides client engineering services to support its customers.

Contact

MICHIGAN
Troy
1820 E Big Beaver Rd
+12486142400.0
https://www.altair.com/

IPO

2017-11-01

Employees

2 800

Officers

Founder, Chairman & CEO
Mr. James R. Scapa
Chief Financial Officer
Mr. Matthew Charles Brown
Chief Technology Officer
Mr. Srikanth Mahalingam
Chief People Officer
Ms. Gilma Saravia
Chief Product & Strategy Officer
Mr. Ravi Kunju
Chief Operating Officer
Ms. Stephanie Buckner
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Senior VP, Principal Accounting Officer & Chief Accounting Officer
Mr. Brian Gayle
Senior Vice President of Investor Relations
Mr. David L. Simon
Chief Legal Officer
Mr. Raoul Maitra
Chief Marketing Officer
Ms. Amy Messano
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See Also

Discover More
What is the Intrinsic Value of one ALTR stock?

The intrinsic value of one ALTR stock under the Base Case scenario is 38.69 USD.

Is ALTR stock undervalued or overvalued?

Compared to the current market price of 85.08 USD, Altair Engineering Inc is Overvalued by 55%.