Shareholding Review: Altium (ASX:ALU) 2016 Results

By | September 7, 2016

shareholding review Altium 2016 results - dividends down under blogAuthor: Mr and Mrs DDU.

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Every six months Australia has a reporting season; nearly all the major companies on the Australian Stock Exchange report their full-year financials at the end of the tax/financial year (the financial year ends on the 30th June). So we get a busy few weeks of company reports to read in August (as well as the half-year result in 6 month’s time). We find it the most exciting time of year (for shares) because we get to see how our companies have actually performed. For 363 days of the year, the share price moves up and down whilst bearing no correlation to actual results, but on the 2 reporting dates the truth is revealed.

 

Since we bought Altium (ASX:ALU) (software developer and electronic printed circuit boards company) they have done extremely well. Let’s have a look at what they’ve achieved since our last review of their results.

 

Altium’s full year results ending 30th June 2016

All of these numbers are taken directly from Altium’s investor presentation and are comparing against the 2015 figures:

Revenue (in US dollars) up 17% to $93.6m

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) (in US dollars) up 21% to $27.4m

EBITDA Margin up to 29.3% from 28.3%

Dividend (in AU dollars) up 25%

 

Our Investment Breakdown

Here is our graph showing the yield we’re receiving on the initial cost of our 113 Altium shares.

Altium asx alu Dividends Down Under dividend yield on cost

We are also extremely pleased that our investment has grown by more than 100% since January 2016 (8 months ago).

 

What other things did Altium report?

Altium said that the ‘Internet of Things’ is just starting to happen, the market for most businesses and products is yet to mature.

The products of the world are continuing to get more complicated and this can only benefit Altium as developers will need their tools to design the products of tomorrow.

Of course there’s a risk that Altium may not be the one to come up with the next big software or product. But at the moment they are the challenger, being the disruptor to the current bigger players.

Altium’s global market share of electronic printed circuit boards is now 16% and they want to keep growing it with a target of $200m revenue by 2020.

They continue to be debt free and with the growth they are achieving each update, it looks likely that they will always be debt free.

Final thoughts

Altium’s future continues to be bright. Not many companies are experiencing fast growth and most predictions for the immediate future are that the economy won’t be going anywhere fast. Altium could be one of the few exciting prospects for us.

 

Thanks for reading this article about our investing journey Down Under.

Onwards and upwards!

10 thoughts on “Shareholding Review: Altium (ASX:ALU) 2016 Results

  1. Finance Solver

    Wow, a 100% return in just 8 short months is fantastic. I can see how far the IoT products will go because I truly believe that is the way of the future. My previous company that I interned for manufactures semiconductors for the IoT industry and they are at all time highs in stock price right now (at least, when looking in the 52 week trend, they IPO’d at the height of the tech bubble, a very smart company). Altium’s financials look very good, now it’s all about keeping up the trend!

    Reply
    1. Dividends Down Under Post author

      We are very happy indeed, and the market concurs how exciting Altium is. There are certain companies out there that you can see having increased demand, it’s just hard to know what the right price to pay for them is.

      Mr DDU

      Reply
  2. ADI

    Holy moly. A few more of those please! I’ve tended to avoid anything technology based because I’m a luddite… maybe I should pay more attention!

    Well done!

    Reply
    1. Dividends Down Under Post author

      Thanks ADI – I think every industry deserves a chance to be considered initially. True there aren’t many typical dividend stocks in the tech space but Altium ticked a lot of boxes for us.

      Mr DDU

      Reply
  3. Team CF

    Wow, that is one fast increase in dividends over the course of a year! Nice.
    Hope they can keep this trend going. Would be great for you too!

    Reply

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