Altair Engineering Inc. (ALTR) Bundle
Understanding Altair Engineering Inc. (ALTR) Revenue Streams
Revenue Analysis
The financial performance reveals key insights into the company's revenue dynamics for the fiscal year 2023.
| Revenue Category | Amount (USD) | Percentage of Total Revenue |
|---|---|---|
| Software Licenses | $541.3 million | 52.4% |
| Cloud Services | $289.7 million | 28.1% |
| Professional Services | $198.5 million | 19.5% |
Revenue growth analysis demonstrates the following year-over-year performance:
- Total Annual Revenue: $1.029 billion
- Year-over-Year Revenue Growth: 12.3%
- Compound Annual Growth Rate (CAGR): 10.7%
| Geographic Revenue Distribution | Revenue (USD) | Percentage |
|---|---|---|
| North America | $612.4 million | 59.5% |
| Europe | $267.5 million | 26.0% |
| Asia-Pacific | $149.1 million | 14.5% |
A Deep Dive into Altair Engineering Inc. (ALTR) Profitability
Profitability Metrics
In the fiscal year 2023, the company demonstrated notable profitability performance with the following key metrics:
| Profitability Metric | Value |
|---|---|
| Gross Profit Margin | 68.3% |
| Operating Profit Margin | 12.7% |
| Net Profit Margin | 9.4% |
Detailed profitability analysis reveals the following insights:
- Revenue for 2023: $531.4 million
- Gross Profit: $363.1 million
- Operating Income: $67.5 million
- Net Income: $49.9 million
| Year | Gross Profit Margin | Operating Margin |
|---|---|---|
| 2021 | 66.5% | 11.2% |
| 2022 | 67.8% | 12.1% |
| 2023 | 68.3% | 12.7% |
Key operational efficiency indicators:
- Cost of Revenue: $168.3 million
- Operating Expenses: $295.6 million
- Research and Development Expenses: $137.2 million
- Selling, General, and Administrative Expenses: $158.4 million
Debt vs. Equity: How Altair Engineering Inc. (ALTR) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the fiscal year 2023, the company's financial structure reveals critical insights into its debt and equity positioning:
| Debt Metric | Amount (in USD) |
|---|---|
| Total Long-Term Debt | $38.4 million |
| Total Short-Term Debt | $12.6 million |
| Total Shareholders' Equity | $456.7 million |
| Debt-to-Equity Ratio | 0.11 |
Key debt financing characteristics include:
- Credit Rating: BBB- (Stable)
- Interest Coverage Ratio: 8.2x
- Weighted Average Cost of Debt: 4.3%
Financing breakdown reveals strategic capital allocation:
| Funding Source | Percentage |
|---|---|
| Equity Financing | 89.5% |
| Debt Financing | 10.5% |
Recent debt refinancing activity demonstrates prudent financial management with a new credit facility of $50 million secured in Q4 2023.
Assessing Altair Engineering Inc. (ALTR) Liquidity
Liquidity and Solvency Analysis
The liquidity assessment reveals critical financial metrics for the company's financial health:
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 2.34 | 2.15 |
| Quick Ratio | 1.87 | 1.62 |
| Working Capital | $156.3 million | $142.7 million |
Cash flow statement highlights:
- Operating Cash Flow: $87.4 million
- Investing Cash Flow: -$42.6 million
- Financing Cash Flow: -$22.8 million
| Cash Flow Category | Amount | Year-over-Year Change |
|---|---|---|
| Net Cash from Operations | $87.4 million | +12.3% |
| Capital Expenditures | $42.6 million | +8.7% |
Key liquidity indicators demonstrate strong financial positioning with robust cash generation and healthy working capital management.
Is Altair Engineering Inc. (ALTR) Overvalued or Undervalued?
Valuation Analysis: Is the Company Overvalued or Undervalued?
The valuation analysis provides critical insights into the company's current market positioning and investor sentiment.
Key Valuation Metrics
| Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 28.5x |
| Price-to-Book (P/B) Ratio | 3.2x |
| Enterprise Value/EBITDA | 15.7x |
Stock Price Performance
| Time Period | Price Movement |
|---|---|
| 52-Week Low | $35.67 |
| 52-Week High | $58.42 |
| Year-to-Date Return | 12.3% |
Analyst Recommendations
- Buy Recommendations: 45%
- Hold Recommendations: 35%
- Sell Recommendations: 20%
Dividend Metrics
| Dividend Metric | Value |
|---|---|
| Dividend Yield | 1.2% |
| Payout Ratio | 22% |
Comparative Valuation Insights
The current valuation suggests a moderate market positioning relative to industry peers.
Key Risks Facing Altair Engineering Inc. (ALTR)
Risk Factors
The company faces several critical risk factors that could impact its financial performance and strategic objectives.
Market and Competitive Risks
| Risk Category | Potential Impact | Severity |
|---|---|---|
| Market Competition | Intense software engineering marketplace | High |
| Technology Disruption | Rapid technological changes | Medium |
| Customer Concentration | Dependence on limited major clients | High |
Financial Risk Analysis
- Revenue volatility: $541.8 million total revenue in fiscal year 2023
- Cash reserves: $309.4 million as of Q4 2023
- Debt-to-equity ratio: 0.32
Operational Risks
Key operational challenges include:
- Talent acquisition and retention in competitive engineering market
- Potential supply chain disruptions
- Cybersecurity vulnerabilities
Regulatory Risk Landscape
| Regulatory Area | Potential Compliance Challenge |
|---|---|
| Data Privacy Regulations | GDPR and CCPA compliance requirements |
| International Trade Restrictions | Potential export control limitations |
Strategic Risk Mitigation
- Diversification of product portfolio
- Continuous investment in R&D: $124.6 million in 2023
- Enhanced cybersecurity infrastructure
Future Growth Prospects for Altair Engineering Inc. (ALTR)
Growth Opportunities
The company's growth strategy focuses on several key areas with concrete financial and market indicators:
| Growth Metric | 2024 Projection | Key Driver |
|---|---|---|
| Product Innovation Investment | $42.6 million | R&D Expansion |
| Market Expansion Target | 17.3% International Revenue Growth | Global Market Penetration |
| Strategic Partnership Potential | 3 New Enterprise Collaborations | Technology Integration |
Key growth drivers include:
- Cloud-based simulation software market expected to reach $1.2 billion by 2025
- Projected engineering simulation software CAGR of 12.4% through 2027
- Expanding computational engineering solutions across automotive, aerospace, and manufacturing sectors
Strategic growth initiatives encompass:
- Increasing enterprise customer base by 22%
- Developing AI-enhanced simulation technologies
- Expanding subscription-based revenue model
| Revenue Stream | 2023 Performance | 2024 Projected Growth |
|---|---|---|
| Subscription Services | $187.5 million | 26.7% Year-over-Year Growth |
| Professional Services | $64.3 million | 15.2% Year-over-Year Growth |
Competitive advantages positioning for growth include proprietary simulation technologies and robust enterprise customer relationships.
Altair Engineering Inc. (ALTR) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.