Altair Beneish M Score

ALTR
 Stock
  

USD 56.41  1.09  1.97%   

This module uses fundamental data of Altair Engineering to approximate the value of its Beneish M Score. Altair Engineering M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please continue to Altair Engineering Piotroski F Score and Altair Engineering Altman Z Score analysis.
  
Altair Engineering Debt Current is relatively stable at the moment as compared to the past year. Altair Engineering reported last year Debt Current of 209.64 Million. As of 08/15/2022, Debt Non Current is likely to grow to about 20.1 M, while Issuance Repayment of Debt Securities is likely to drop (30.8 M). Altair Engineering Cash Flow Per Share is relatively stable at the moment as compared to the past year. Altair Engineering reported last year Cash Flow Per Share of 0.78. As of 08/15/2022, Revenue to Assets is likely to grow to 0.47, while PPandE Turnover is likely to drop 12.60.
At this time, it appears that Altair Engineering is an unlikely manipulator. The earnings manipulation may begin if Altair Engineering's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Altair Engineering executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Altair Engineering's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.13
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.97Focus
Asset QualityN/AFocus
Expense Coverage1.0Focus
Gross Margin Strengs1.06Focus
Accruals Factor1.0Focus
Depreciation Resistance1.01Focus
Net Sales Growth0.96Focus
Financial Leverage Condition1.08Focus

Altair Engineering Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Altair Engineering's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues511.5 M532.2 M
Sufficiently Down
Increasing
Slightly volatile
Selling General and Administrative Expense215.5 M224.2 M
Sufficiently Down
Increasing
Slightly volatile
Net Cash Flow from Operations49.8 M61.6 M
Significantly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion23.1 M25.6 M
Moderately Down
Increasing
Slightly volatile
Total Assets941.8 M1.2 B
Significantly Down
Increasing
Slightly volatile
Property Plant and Equipment Net62.8 M69 M
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables128.7 M137.6 M
Notably Down
Increasing
Slightly volatile
Total Liabilities483.6 M549.3 M
Fairly Down
Increasing
Slightly volatile
Current Assets634.7 M588.2 M
Significantly Up
Increasing
Slightly volatile
Assets Non Current481.1 M575.1 M
Fairly Down
Increasing
Slightly volatile
Current Liabilities511.4 M474 M
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current113.3 M75.3 M
Way Up
Increasing
Stable
Total Debt194.3 M229.2 M
Fairly Down
Increasing
Slightly volatile
Debt Current226.2 M209.6 M
Significantly Up
Increasing
Slightly volatile
Debt Non Current20.1 M19.6 M
Fairly Up
Increasing
Very volatile
Operating Income11 M12.3 M
Fairly Down
Decreasing
Stable
Gross Margin0.80.756
Notably Up
Increasing
Slightly volatile

Altair Engineering Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Altair Engineering's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Altair Engineering in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Altair Engineering's degree of accounting gimmicks and manipulations.

About Altair Engineering Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

23.08 Million

Altair Engineering Depreciation Amortization and Accretion is relatively stable at the moment as compared to the past year. Altair Engineering reported last year Depreciation Amortization and Accretion of 25.64 Million

Altair Engineering Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Altair Engineering. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues333.33 M396.38 M458.92 M469.92 M532.18 M511.52 M
Total Assets287.87 M487.2 M743.14 M829.9 M1.16 B941.76 M
Current Assets143.89 M154.03 M352.46 M386.94 M588.22 M634.66 M
Assets Non Current143.98 M333.16 M390.69 M442.97 M575.05 M481.1 M
Total Liabilities224.93 M191.16 M386.09 M450.53 M549.29 M483.57 M
Current Liabilities197.46 M127.23 M152.87 M200.75 M473.98 M511.4 M
Total Debt410 K31.75 M207.98 M252.92 M229.19 M194.29 M
Debt Current232 K331 K9.57 M40.29 M209.64 M226.19 M
Debt Non Current178 K31.42 M198.41 M212.62 M19.55 M20.06 M
Operating Income(33.26 M)24.64 M8.21 M11.71 M12.34 M10.96 M
Gross Margin0.670.680.710.740.760.8

About Altair Engineering Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Altair Engineering's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Altair Engineering using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Altair Engineering based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Altair Engineering Inc., together with its subsidiaries, provides software and cloud solutions in the areas of simulation, high-performance computing, data analytics, and artificial intelligence worldwide. Altair Engineering Inc. was incorporated in 1985 and is headquartered in Troy, Michigan. Altair Engineering operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 3050 people.

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Please continue to Altair Engineering Piotroski F Score and Altair Engineering Altman Z Score analysis. Note that the Altair Engineering information on this page should be used as a complementary analysis to other Altair Engineering's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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When running Altair Engineering price analysis, check to measure Altair Engineering's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Altair Engineering is operating at the current time. Most of Altair Engineering's value examination focuses on studying past and present price action to predict the probability of Altair Engineering's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Altair Engineering's price. Additionally, you may evaluate how the addition of Altair Engineering to your portfolios can decrease your overall portfolio volatility.
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Is Altair Engineering's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Altair Engineering. If investors know Altair will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Altair Engineering listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.28
Market Capitalization
4.5 B
Quarterly Revenue Growth YOY
0.11
Return On Assets
0.0136
Return On Equity
-0.0663
The market value of Altair Engineering is measured differently than its book value, which is the value of Altair that is recorded on the company's balance sheet. Investors also form their own opinion of Altair Engineering's value that differs from its market value or its book value, called intrinsic value, which is Altair Engineering's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Altair Engineering's market value can be influenced by many factors that don't directly affect Altair Engineering's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Altair Engineering's value and its price as these two are different measures arrived at by different means. Investors typically determine Altair Engineering value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Altair Engineering's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.