Altium Limited’s Stock Skyrocketed After The Company Posted Strong Result For 1HFY19

  • Feb 20, 2019 AEDT
  • Team Kalkine
Altium Limited’s Stock Skyrocketed After The Company Posted Strong Result For 1HFY19

Information Technology company Altium Limited (ASX: ALU) posted its financial results for the half year ended 31st December 2018, after which the stock flared near to its 52-week high of $33.640.

The Company’s revenue, excluding interest income, increased from US$63.23 million in the first half of FY18 to US$78.11 million in the first half of FY19, which represents a healthy growth of 24% in a year. Most of the company's revenue growth was driven by China alone with a 49% increase compared to previous corresponding period along with all other regions and segments delivering double-digit growth. 

And the growth story does not halt here! The management has also given future guidance of ramping up the revenue even higher from here and is expected to hit US$200 million by 2020 and US$500 million by 2025.

The EBIDTA stood at US$28.36 million as compared to US$18.98 million a year ago with EBIDTA margin going up from 30% to 36.3%. The guidance for the EBIDTA margin has been kept around 35% for 2020

The major credits for the outstanding performance of the business also goes to the increase in the subscription pool which grew by 9% to 39,179 and is expected to touch 100,000 by 2025 as stated by the management. This will reportedly be done by investing in next generation marketing and business systems and by scaling aggressively in China and USA to lay a strong foundation for accelerated growth. Operating cash flow has also increased at an astounding rate of 80% from $14.83 million to $26.81 million a year ago.

A significant improvement is seen in the profit after tax where the company delivered a massive 58% increase from US$14.87 million to US$23.44 million in just a year. This has resulted in almost equivalent increase in the earnings per share (EPS) of the company which rose by 57% from 11.48 cents in 1HFY18 to 18 cents in 1HFY19

An interim dividend of 16 cents for the half year ended 31st December 2018 has also been announced which is an increase of 23% from the interim dividend declared a year ago. The record date, ex-dividend date and payment date for the dividend is 4 March 2019, 1 March 2019 and 27 March 2019 respectively.

Altium CEO, Mr Aram Mirkazemi’s positive statements about the future scalability of the business and commitment towards the consistent and sustainable growth over the long term helped to boost investors’ confidence which resulted in massive increase in stock price.

On 19th February 2019, the stock price closed significantly higher at $32.56, reflecting intra-day change of +20.2%. The stock continues to move in the same trend on 20 February 2019, up 1.873% to trade at $33.170 (12:27 PM AEST). ALU is currently trading at a Price to Earning ratio of 65.340 x with a market capitalization of $4.25 billion.

Over the past 12 months, the stock has massively gone up by 81.68% including a positive price movement of 14.65% in the last three months.


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.



All pictures are copyright to their respective owner(s) does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK