ASX:AHX

Stock Analysis Report

Apiam Animal Health

Executive Summary

Apiam Animal Health Limited, a vertically integrated animal health company, provides veterinary products and services to production and companion animals in Australia.

Snowflake

Fundamentals

Undervalued with reasonable growth potential.

Share Price & News

How has Apiam Animal Health's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.1%

AHX

1.6%

AU Healthcare

0.1%

AU Market


1 Year Return

-15.2%

AHX

19.8%

AU Healthcare

11.9%

AU Market

Return vs Industry: AHX underperformed the Australian Healthcare industry which returned 19.8% over the past year.

Return vs Market: AHX underperformed the Australian Market which returned 11.9% over the past year.


Shareholder returns

AHXIndustryMarket
7 Day1.1%1.6%0.1%
30 Day-7.8%3.9%-1.1%
90 Day3.3%0.3%-1.4%
1 Year-12.3%-15.2%23.5%19.8%18.5%11.9%
3 Year-66.7%-69.1%10.8%0.6%36.4%18.1%
5 Yearn/a41.4%21.6%50.9%16.7%

Price Volatility Vs. Market

How volatile is Apiam Animal Health's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Apiam Animal Health undervalued compared to its fair value and its price relative to the market?

18.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AHX (A$0.48) is trading below our estimate of fair value (A$0.58)

Significantly Below Fair Value: AHX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AHX is good value based on its PE Ratio (15.8x) compared to the Healthcare industry average (19.1x).

PE vs Market: AHX is good value based on its PE Ratio (15.8x) compared to the Australian market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: AHX is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: AHX is good value based on its PB Ratio (0.8x) compared to the AU Healthcare industry average (1.7x).


Next Steps

Future Growth

How is Apiam Animal Health forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

36.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AHX's forecast earnings growth (36.6% per year) is above the savings rate (2.3%).

Earnings vs Market: AHX's earnings (36.6% per year) are forecast to grow faster than the Australian market (10.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AHX's revenue (5.5% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: AHX's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AHX's Return on Equity is forecast to be low in 3 years time (15%).


Next Steps

Past Performance

How has Apiam Animal Health performed over the past 5 years?

19.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AHX's earnings have grown by 19.3% per year over the past 5 years.

Accelerating Growth: AHX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AHX had negative earnings growth (-3.4%) over the past year, making it difficult to compare to the Healthcare industry average (0.3%).


Return on Equity

High ROE: AHX's Return on Equity (5.1%) is considered low.


Return on Assets

ROA vs Industry: AHX's Return on Assets is below or equal to the Healthcare industry average last year.


Return on Capital Employed

ROCE Improving: AHX has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Apiam Animal Health's financial position?


Financial Position Analysis

Short Term Liabilities: AHX's short term assets (A$27.7M) exceeds its short term liabilities (A$18.8M)

Long Term Liabilities: AHX's short term assets (27.7M) exceeds its long term liabilities (24.4M)


Debt to Equity History and Analysis

Debt Level: AHX's debt to equity ratio (40.9%) is considered high

Reducing Debt: Insufficient data to determine if AHX's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: AHX's debt is not well covered by operating cash flow (19.5%).

Interest Coverage: AHX's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet

Inventory Level: AHX has a low level of unsold assets or inventory.

Debt Coverage by Assets: AHX's debt is covered by short term assets (assets are 1.106630x debt).


Next Steps

Dividend

What is Apiam Animal Health's current dividend yield, its reliability and sustainability?

3.37%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%2.4%markettop25%5.6%industryaverage2.9%forecastin3Years5.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AHX's dividend (3.37%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: AHX's dividend (3.37%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).

Stable Dividend: Whilst dividend payments have been stable, AHX has been paying a dividend for less than 10 years.

Growing Dividend: AHX has only been paying a dividend for 3 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.2%), AHX's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AHX's dividends in 3 years are forecast to be well covered by earnings (30% payout ratio).


Next Steps

Management

What is the CEO of Apiam Animal Health's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Chris Richards 0

3.9yrs

Tenure

AU$389,485

Compensation

Dr. Christopher Irwin Richards, also known as Chris, BSc, BVSc, serves as Managing Director of Apiam Animal Health Limited. Dr. Richards founded Chris Richards & Associates in 1998 as a pig specific veteri ...


CEO Compensation Analysis

Compensation vs. Market: Chris's total compensation ($USD267.28K) is about average for companies of similar size in the Australian market ($USD260.53K).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.7yrs

Average Tenure

Experienced Management: AHX's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

Experienced Board: AHX's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyAU$454,99921 Oct 19
Merrill Lynch & Co. Inc., Banking Investments
EntityCompany
Shares1,000,000
Max PriceAU$0.45
BuyAU$1,306,53604 Oct 19
Regal Funds Management Pty Limited
EntityCompany
Shares2,531,915
Max PriceAU$0.54
SellAU$1,887,72604 Oct 19
Regal Funds Management Pty Limited
EntityCompany
Shares3,548,262
Max PriceAU$0.54
BuyAU$489,01928 Jun 19
Regal Funds Management Pty Limited
EntityCompany
Shares1,169,291
Max PriceAU$0.49
SellAU$183,79108 Mar 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares372,743
Max PriceAU$0.52
BuyAU$8,39828 Feb 19
Andrew Vizard
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares17,000
Max PriceAU$0.49

Ownership Breakdown


Management Team

  • Sophie Karzis

    Company Secretary

    • Tenure: 2.7yrs
  • Chris Richards

    MD & Executive Director

    • Tenure: 3.9yrs
    • Compensation: AU$389.49k
  • Matthew White

    Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: AU$246.83k
  • Corne Loots

    General Manager of Veterinary Services

    • Tenure: 2.3yrs
    • Compensation: AU$233.44k
  • Kate Hitchins

    General Manager of People and Culture

    • Tenure: 0yrs

Board Members

  • Andrew Vizard (60yo)

    Independent Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: AU$120.00k
  • Rick Dennis

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: AU$70.00k
  • Chris Richards

    MD & Executive Director

    • Tenure: 3.9yrs
    • Compensation: AU$389.49k
  • Michael van Blommestein

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: AU$60.00k
  • Jan Tennent

    Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: AU$55.00k

Company Information

Apiam Animal Health Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Apiam Animal Health Limited
  • Ticker: AHX
  • Exchange: ASX
  • Founded: 1998
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: AU$53.730m
  • Shares outstanding: 111.94m
  • Website: https://www.apiam.com.au

Number of Employees


Location

  • Apiam Animal Health Limited
  • 27-33 Piper Lane
  • East Bendigo
  • Bendigo
  • Victoria
  • 3550
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AHXASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2015
AHXCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2015

Biography

Apiam Animal Health Limited, a vertically integrated animal health company, provides veterinary products and services to production and companion animals in Australia. It operates through three segments: D ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 10:42
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.