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Fundamental analysis: Altair Engineering Inc. (ALTR)

Awarener score: 5.0

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 7.5

• Business growth has been almost stagnant. It's been below average when measured against peer companies.
• Altair Engineering Inc. business trend is extremely stable, which is best. It looks top-notch against rivals.

Margins score: 5.7

• ALTR profit margins -on goods and services sold- are usually excellent. They stand somewhat better than rival companies.
• Business profit on sales tends to be hardly sufficient. It's more than average in relation to competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually hardly sufficient. They remain a slight improvement compared to peers.
• Earnings -before income taxes and interests on loans taken- tend to be hardly sufficient in relation to total revenues. They're still well ranked against similar companies.
• Profits -before income taxes- are usually hardly sufficient considering total sales, and remain encouraging in relation to rivals.
• Total net profit tends to be hardly sufficient when confronted to sales. Company stands encouraging in relation to comparable firms.

Growth score: 1.7

• Altair Engineering Inc. profit -on goods and services sold- has been growing at a low pace. It's been close to average when compared to competitors.
• In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
• Profits -available to repay debt and purchase properties- tended to shrink, which compares substantially worse when measured against peer enterprises.
• In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
• In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
• In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
• The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 3.3

• ALTR had to pay too much income taxes in relation to profits made in the past years. It's been worse than most peers.
• Research and development expenses consume quite a bit of revenues. It's below average when measured against competitors.
• The company grows very little in relation to research and development efforts. It stands in a weak position compared to rival companies.

Profitability score: 5.8

• Altair Engineering Inc. usually gets sufficient returns on the resources it controls. It proves more than average in relation to peer firms.
• The company normally gets hardly sufficient proceeds -on the resources directly invested in the business-. They remain a slight improvement compared to similar companies.
• Profitability -in relation to owned resources- is usually modest. It ranks encouraging in relation to competitors.
• In the past, got good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's more than average in relation to comparable enterprises.

Usage of Funds score: 5.2

• ALTR usually uses a modest portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments isn't too high. It stands more than average in relation to rival firms.
• The company is usually replacing part of the property, plant, and equipment that gets old, keeping some funds for something else. It can't keep forever, which is weak when measured against industry peers.
• In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
• The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
• As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
• The company somewhat enlarges a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains a slight improvement compared to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
• The company uses a low portion of genuine fund generation to reward investors, which can most likely be sustained. It still looks great when measured against competitors.

Balance Sheet score: 4.9

• Altair Engineering Inc. intangible assets (like brands and goodwill) represent a significant portion of resources controlled, according to accounting books. There could be significant difficulties in liquidating them if the company ever gets in financial distress. It happens to be below average when measured against peer companies.
• The company has roughly double short-term resources than short-term obligations. Liquidity concerns are normally not an issue. It turns to be rather normal in relation to similar firms.
• Roughly a quarter of resources controlled were provided for with financial debt. Creditors have some claims on the company. It remains slightly worse than rival firms.
• Controlled resources might be turned into cash and equivalents neither fast nor too slow. Liquidity and risk might be run-of-the-mill. It looks below average when measured against rivals.
• For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's a slight improvement compared to peer firms.
• For every dollar of short-term obligations, the company has roughly another of cash and equivalents, which is somewhat better than similar enterprises.
• Usually, sales are on somewhat less than three months credit. It still ranks below average when measured against peers.
• Normally has no inventories. It comes up as impressive in relation to competitors.
• On average, it takes higher than three months from the purchase to charging customers. It happens to be slightly worse than peers.
• On average pays suppliers before a month from the purchase. It ranks weak when measured against industry peers.
• The company pays its suppliers roughly two months before charging its customers, so there's some money invested in working capital. It's lacking compared to similar companies.
• Net interest expenses consume a significant portion of usual business earnings, but are mostly bearable. It stands somewhat worse than rival firms.
• Business earnings have usually been very low when measured against loans taken. Even significantly cutting back reinvesting in the business, it could take more than ten years to repay the obligations with current profitability. It ranks below average when measured against comparable enterprises.
• Revenues are very good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements allows the company to keep more money to reward stockholders in the long run. It looks close to average when compared to similar firms.
• Resource exploitation is reasonable when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still slightly worse than peer companies.

Valuation score: 3.4

• Altair Engineering Inc. reported losses, so valuating it in relation to earnings is meaningless. It happens to be last-in-rank when measured against competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a very weak position compared to peers.
• In the past twelve months, the company neither generated nor consumed funds. Whatever funds it could generate, it reinvested in the business, which stands slightly worse than similar companies.
• In the past years the company barely generated enough genuine funds to cover up for its business needs. Business prospects should improve to be in a better position to reward investors. It's still almost average when measured against industry firms.
• In the past twelve months, the company has enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among somewhat more stockholders. It came up rather normal in relation to peer ventures.
• The company has more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks slightly better than similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation has been negative, as the company lost money. It ranks last-in-rank when measured against peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a very large relationship. The stock price might rely more on expectations and resources controlled than on anything else. It looks in a very weak position compared to rival firms.
• The relation between the stock price and accounting book value is extremely high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains somewhat worse than peer firms.
• In the past twelve months, the operating business lost some money. It happens to be similar to industry peers.
• In an alternate metric of bang for the buck, the company has usually shown a somewhat low earnings power ability when measured against the current stock price and financial position. It's still a slight improvement compared to peer companies.

Total score: 4.7

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Awarener score: 5.0

Conclusion

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