Is it too late to get in on electronic PCB software business Altium Limited (ASX: ALU), which has been a millionaire maker for some portfolios?
Over the past decade the share price of Altium has risen from a share price of $0.26 to today's $33.03. That is a huge return. Keep in mind that Altium's latest dividend payment was $0.20 per share.
I certainly don't think that Altium's share price will be over $3,000 in another decade, but I believe it can be a strong long-term performer even from here.
On 23 March 2020 I said it was one of two top shares to buy amid the coronavirus share market sell-off. Since then Altium has risen 34% (and my other idea has gone up 60.7%).
Have you missed the gains on Altium?
Well, the first thing to reassure yourself with is that the ASX (and all share markets) may not have permanently recovered. The economic and healthcare crisis haven't been solved. We still don't have a cure for the coronavirus. Many businesses are still either closed or seeing a large reduction of activity.
There isn't a quick fix. As some ASX bankers have already said, some businesses may not get through this. Particularly if there is a fundamental change in how people live and spend their money. I think Altium will be fine, but sentiment may cause the overall share market to decline again.
For the longer-term outlook, I don't think we've missed out on all the gains from millionaire maker Altium. It's still aiming for many years of growth. Higher earnings should result in a higher share price as those planned targets are reached.
It's targeting 100,000 Altium Designer subscribers and US$500 million of revenue by 2025. This should turn into higher profit margins, an even stronger balance sheet and bigger dividends.
Foolish takeaway
Whilst Altium has prudently withdrawn its FY20 guidance due to the coronavirus, management did say that its cash balance continues to grow. That's a good sign. I'd be happy to buy Altium shares for the long-term, but I'd only want to buy a small parcel today considering the share market's strong recent performance.
