Altium Limited (ASX:ALU) share price goes absolutely ballistic after delivering record revenue and profit growth, on track for 2020

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Altium Limited (ASX:ALU) has reported full year revenue growth of 26 per cent to $US140 million, with increased profit margins boosting profits by 34 per cent to $US37.5 million.

The report came after the stock market close on Tuesday.

In early Wednesday trading, the Altium share price has gone absolutely ballistic, soaring $5.23 or almost 24 per cent to $29.06.

Altium shares have been one of the best performers in the ASX 200 index over the past 12 months, jumping over 150 per cent higher.

The electronic design software company said earnings per share (EPS) jumped 33 per cent higher to US28.66 cents per share. The company declared a full year dividend of AU27 cents per share, up 17 per cent.

With the Altium share price at around $29, the stock trades on a price to earnings ratio (P/E) of around 74 times earnings. As you would expect for a growth company, the Altium dividend yield is a lowly 0.93 per cent.

Commenting on the results, Altium CEO, Mr Aram Mirkazemi said: “After six years of consecutive growth and profitability, Altium has delivered its strongest ever performance in FY18.”

“Altium’s performance in FY18 places the company firmly on track to achieve its 2020 revenue target of US$200 million with strong margin expansion.”

Pleasingly for shareholders, Altium’s revenue growth is accelerating.

Source: Company presentation

Altium is targeting 100,000 active subscribers of its flagship Altium Designer product before 2025, something it says will compel key stakeholders within the manufacturing and supply chain industry to support its agenda to transform electronic design and its realisation.

Altium says it is the largest and fastest growing company in the industry, growing at 2-3 times the average growth.

The company is not lacking in confidence, with it saying “Altium will dominate the competition well before 2025.”

Source: Company presentation

 

Altium shares don’t look cheap, but these 3 shares do…

Combining countless hours of research with over 30 years of hands-on stock market investing experience, The Capital Club’s founder Bruce Jackson has just published his definitive list of 3 Cheap and Good ASX Stocks for 2018.

Altium was not one of them, but the list does include one tiny gold mining stock, and the company one top fund manager calls the cheapest stock in the ASX 100.

Find out why these 3 Cheap and Good Stocks could be better buys than Altium. But you better hurry… these stocks may not stay cheap for long.

See the 3 stocks

Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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Bruce Jackson has 30 years of hands on investing experience. He is passionate about stock market investing, running his own portfolio and SMSF. His focus is on small cap growth stocks. You can contact Bruce at brucej@thecapitalclub.com.au