Altair Engineering Profitability Analysis

ALTR
 Stock
  

USD 57.89  2.99  4.91%   

For Altair Engineering profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Altair Engineering to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Altair Engineering utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Altair Engineering's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Altair Engineering over time as well as its relative position and ranking within its peers. Please continue to Trending Equities.
  
Altair Engineering Return on Sales is relatively stable at the moment as compared to the past year. Altair Engineering reported last year Return on Sales of 0.022. As of 08/07/2022, Sales per Share is likely to grow to 7.38, while Price to Sales Ratio is likely to drop 9.78. As of 08/07/2022, Income Tax Expense is likely to grow to about 11.3 M, while Accumulated Other Comprehensive Income is likely to drop (9.7 M).

Altair Engineering Revenues

511.52 Million

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
4.7 B
Quarterly Revenue Growth YOY
0.064
Return On Assets
0.0106
Return On Equity
-0.0229
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.

Altair Engineering Shares Owned by Institutions vs. Short Ratio Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Altair Engineering's current stock value. Our valuation model uses many indicators to compare Altair Engineering value to that of its competitors to determine the firm's financial worth.
Altair Engineering is number one stock in short ratio category among related companies. It is number one stock in shares owned by institutions category among related companies producing about  13.41  of Shares Owned by Institutions per Short Ratio. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Altair Engineering by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Altair Engineering's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Altair Engineering's earnings, one of the primary drivers of an investment's value.

Altair Shares Owned by Institutions vs. Short Ratio

Short Ratio is typically used by traders and speculators to identify trends in current market sentiment for a particular equity instrument. In its simple terms this ratio shows how many days it will take all current short sellers to cover their positions if the price of a stock begins to rise.
Altair Engineering 
Short Ratio 
 = 
Short Interest 
Average Trading Volume 
7.35 X
The higher the Short Ratio, the longer it would take to buy back the borrowed shares. In theory, the more short positions are currently outstanding, the faster it will be to cover shorted positions.
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.
Altair Engineering 
Shares Held by Institutions 
 = 
Funds and Banks 
Firms 
98.59 %
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.

Altair Shares Owned by Institutions Comparison

Altair Engineering is currently under evaluation in shares owned by institutions category among related companies.

Altair Engineering Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Altair Engineering, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Altair Engineering will eventually generate negative long term returns. The profitability progress is the general direction of Altair Engineering's change in net profit over the period of time. It can combine multiple indicators of Altair Engineering, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-8.9 M-9.7 M
Consolidated Income-8.8 M-9.5 M
Net Income-8.8 M-9.5 M
Net Income Common Stock-8.8 M-9.5 M
Operating Income12.3 M11 M
Income Tax Expense8.5 M11.3 M
Net Income Per Employee-3.1 K-3.4 K
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.

Altair Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Altair Engineering. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Altair Engineering position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Altair Engineering's important profitability drivers and their relationship over time.

Altair Engineering Profitability Trends

Altair Engineering profitability trend refers to the progression of profit or loss within a business. An upward trend means that Altair Engineering's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Altair Engineering's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Altair Engineering Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Altair Engineering different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Altair Engineering in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Altair Engineering's future profitability.

Use Altair Engineering in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Altair Engineering position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Altair Engineering will appreciate offsetting losses from the drop in the long position's value.

Altair Engineering Pair Trading

Altair Engineering Pair Trading Analysis

The ability to find closely correlated positions to Altair Engineering could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Altair Engineering when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Altair Engineering - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Altair Engineering to buy it.
The correlation of Altair Engineering is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Altair Engineering moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Altair Engineering moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Altair Engineering can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Altair Engineering position

In addition to having Altair Engineering in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Recycling
Recycling Theme
West management companies as well as entities specializing in pollution control and recycling. The Recycling theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Recycling Theme or any other thematic opportunities.
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Please continue to Trending Equities. 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

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To fully project Altair Engineering's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Altair Engineering at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Altair Engineering's income statement, its balance sheet, and the statement of cash flows.
Potential Altair Engineering investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Altair Engineering investors may work on each financial statement separately, they are all related. The changes in Altair Engineering's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Altair Engineering's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.