Shares in internet of things printed circuit board designer Altium Limited (ASX: ALU) will be under the microscope tomorrow after the group posted a full year profit of US$28.1 million on revenues of US$110.87 million.
The San Diego-based business also grew its EBITDA or profit margin to 32.2% of revenues and boasts of a goal to increase it to 35% by 2020. Moreover, the group is still forecasting that it could nearly double revenues to hit US$200 million by 2020. If it delivers on its bullish revenue and EBITDA growth margin targets by 2020 then today's share price is likely to be good value.
Altium delivered US21.7 cents in earnings per share and thanks to the weak Australian dollar will be able to pay out a total of 23 cents per share to Australian investors over the financial year. That amount will include a final dividend of 12 cents per share to help lift total dividends 15% over the entire year.
The group has no debt and a strong balance sheet with US$44.3 million in cash and today announced the acquisition of Canadian printed circuit board design business Upverter Inc, although it has not disclosed the cost of the deal as yet.
As Altium itself stated it continues to sit in a growth sweet spot thanks to its role in designing internet-of-things related electronics: "The proliferation of electronics through the rise of smart connected devices continues to drive growth for our business in the forseeable future".
The group appears well positioned to deliver more growth and at $8.50 shares change hands on around 31x trailing FX-adjusted earnings per share. It also offers a trailing yield in the region of 2.8% and whether today's results will be sufficient to support its current valuation remains to be seen.
