APEX Investment Company P.S.C (ADX:APEX) - Share price, News & Analysis

Q: What is the Fair Price of APEX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

APEX (AED4.95) is trading above our estimate of [[fair value]] (AED0.53)

APEX fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	0/6

APEX Stock Overview

APEX Investment Company P.S.C. produces and markets clinker and cement in the United Arab Emirates and internationally.

Rewards

Became profitable this year

Risk Analysis

Shareholders have been substantially diluted in the past year

Large one-off items impacting financial results

APEX Investment Company P.S.C Competitors

Arkan Building Materials Company (ARKAN) PJSC

ADX:EMSTEEL

د.إ8.5b

Ras Al Khaimah for White Cement & Construction Materials P.S.C

ADX:RAKWCT

د.إ1.0b

National Cement Company (Public Shareholding)

DFM:NCC

د.إ803.7m

Fujairah Building Industries P.J.S.C

ADX:FBI

د.إ296.5m

Price History & Performance

Summary of all time highs, changes and price drops for APEX Investment Company P.S.C
Historical stock prices
Current Share Price	د.إ4.95
52 Week High	د.إ8.70
52 Week Low	د.إ2.48
Beta	0.13
1 Month Change	-1.00%
3 Month Change	-3.51%
1 Year Change	52.31%
3 Year Change	673.44%
5 Year Change	551.32%
Change since IPO	471.73%

Recent News & Updates

Jul 18

APEX Investment Company P.S.C (ADX:APEX) Is Looking To Continue Growing Its Returns On Capital

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

May 09

APEX Investment Company P.S.C's (ADX:APEX) Weak Earnings Might Be Worse Than They Appear

APEX Investment Company P.S.C.'s ( ADX:APEX ) stock wasn't much affected by its recent lackluster earnings numbers. We...

Shareholder Returns

	APEX	AE Basic Materials	AE Market
7D	1.0%	-0.4%	2.8%
1Y	52.3%	41.0%	30.7%

Return vs Industry: APEX exceeded the AE Basic Materials industry which returned 41% over the past year.

Return vs Market: APEX exceeded the AE Market which returned 30.7% over the past year.

Price Volatility

Is APEX's price volatile compared to industry and market?
APEX volatility
APEX Average Weekly Movement	5.0%
Basic Materials Industry Average Movement	7.4%
Market Average Movement	4.5%
10% most volatile stocks in AE Market	8.3%
10% least volatile stocks in AE Market	2.7%

Stable Share Price: APEX is not significantly more volatile than the rest of AE stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: APEX's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1995	n/a	Ahmed Ali Alnuaimi	https://www.rakcc.ae

APEX Investment Company P.S.C. produces and markets clinker and cement in the United Arab Emirates and internationally. It offers portland, masonry, oil well, Sulfate resistant portland, powercrete, and moderate Sulfate resistant Portland cement. The company was formerly known as Ras Al Khaimah Cement Company P.S.C.

APEX Investment Company P.S.C Fundamentals Summary

How do APEX Investment Company P.S.C's earnings and revenue compare to its market cap?
APEX fundamental statistics
Market Cap	د.إ17.59b
Earnings (TTM)	د.إ113.87m
Revenue (TTM)	د.إ530.77m

154.5x

P/E Ratio

33.1x

P/S Ratio

Is APEX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
APEX income statement (TTM)
Revenue	د.إ530.77m
Cost of Revenue	د.إ397.67m
Gross Profit	د.إ133.10m
Other Expenses	د.إ19.23m
Earnings	د.إ113.87m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.032
Gross Margin	25.08%
Net Profit Margin	21.45%
Debt/Equity Ratio	0.9%

How did APEX perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is APEX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for APEX?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for APEX. This is calculated by dividing APEX's market cap by their current preferred multiple.
What is APEX's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	د.إ17.59b

APEX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	31.9x
Enterprise Value/EBITDA	157.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does APEX's PS Ratio compare to its peers?

APEX PS Ratio vs Peers

The above table shows the PS ratio for APEX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	3.1x
EMSTEEL Arkan Building Materials Company (ARKAN) PJSC	1.2x	n/a	د.إ8.5b
RAKWCT Ras Al Khaimah for White Cement & Construction Materials P.S.C	4.3x	n/a	د.إ1.0b
NCC National Cement Company (Public Shareholding)	5.6x	n/a	د.إ803.7m
FBI Fujairah Building Industries P.J.S.C	1.7x	n/a	د.إ296.5m
APEX APEX Investment Company P.S.C	33.1x	n/a	د.إ17.6b

Price-To-Sales vs Peers: APEX is expensive based on its Price-To-Sales Ratio (33.1x) compared to the peer average (3.1x).

Price to Earnings Ratio vs Industry

How does APEX's PE Ratio compare vs other companies in the Asian Basic Materials Industry?

Price-To-Sales vs Industry: APEX is expensive based on its Price-To-Sales Ratio (33.1x) compared to the AE Basic Materials industry average (1.8x)

Price to Sales Ratio vs Fair Ratio

What is APEX's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

APEX PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	33.1x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate APEX's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of APEX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: APEX (AED4.95) is trading above our estimate of fair value (AED0.53)

Significantly Below Fair Value: APEX is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is APEX Investment Company P.S.C forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

17.6%

Forecasted Materials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as APEX Investment Company P.S.C has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine APEX Investment Company P.S.C's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has APEX Investment Company P.S.C performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

10.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: APEX has a large one-off gain of AED30.6M impacting its June 30 2022 financial results.

Growing Profit Margin: APEX became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: APEX has become profitable over the past 5 years, growing earnings by 10.8% per year.

Accelerating Growth: APEX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: APEX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Basic Materials industry (-9.8%).

Return on Equity

High ROE: APEX's Return on Equity (5.8%) is considered low.

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Financial Health

How is APEX Investment Company P.S.C's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: APEX's short term assets (AED1.7B) exceed its short term liabilities (AED258.7M).

Long Term Liabilities: APEX's short term assets (AED1.7B) exceed its long term liabilities (AED4.1M).

Debt to Equity History and Analysis

Debt Level: APEX has more cash than its total debt.

Reducing Debt: APEX's debt to equity ratio has reduced from 3.8% to 0.9% over the past 5 years.

Debt Coverage: APEX's debt is well covered by operating cash flow (586.4%).

Interest Coverage: APEX's interest payments on its debt are well covered by EBIT (78.1x coverage).

Balance Sheet

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Dividend

What is APEX Investment Company P.S.C current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate APEX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate APEX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if APEX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if APEX's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: APEX is not paying a notable dividend for the AE market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as APEX has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

0.4yrs

Average board tenure

CEO

Ahmed Ali Alnuaimi

no data

Tenure

Mr. Ahmed Ali Anoon Alnaeemi serves as General Manager of Ras Al Khaimah Cement Company-P.S.C.

Board Members

Experienced Board: APEX's board of directors are not considered experienced ( 0.4 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 606.2%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/15 00:00
End of Day Share Price	2022/08/15 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31