ASX:API

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Australian Pharmaceutical Industries

Executive Summary

Australian Pharmaceutical Industries Limited engages in the wholesale distribution of pharmaceutical, medical, health, beauty, and lifestyle products to pharmacies primarily in Australia. More Details

Rewards

Trading at 19.5% below our estimate of its fair value

Earnings are forecast to grow 53.53% per year

Risk Analysis

No risks detected for API from our risk checks.


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Australian Pharmaceutical Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: API has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

API

-2.1%

AU Healthcare

-2.5%

AU Market


1 Year Return

-20.9%

API

0.8%

AU Healthcare

-8.9%

AU Market

Return vs Industry: API underperformed the Australian Healthcare industry which returned 0.8% over the past year.

Return vs Market: API underperformed the Australian Market which returned -8.9% over the past year.


Shareholder returns

APIIndustryMarket
7 Day-1.4%-2.1%-2.5%
30 Day4.4%0.2%1.6%
90 Day-3.6%5.6%2.4%
1 Year-18.6%-20.9%2.8%0.8%-5.6%-8.9%
3 Year-19.3%-29.1%19.4%9.9%15.5%0.8%
5 Year-33.1%-43.9%25.0%7.9%42.4%12.7%

Price Volatility Vs. Market

How volatile is Australian Pharmaceutical Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Australian Pharmaceutical Industries undervalued compared to its fair value and its price relative to the market?

19.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: API (A$1.06) is trading below our estimate of fair value (A$1.32)

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


Price To Earnings Ratio

PE vs Industry: API is unprofitable, so we can't compare its PE Ratio to the AU Healthcare industry average.

PE vs Market: API is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate API's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: API is good value based on its PB Ratio (1.2x) compared to the AU Healthcare industry average (1.5x).


Next Steps

Future Growth

How is Australian Pharmaceutical Industries forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

53.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: API is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: API is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: API's is expected to become profitable in the next 3 years.

Revenue vs Market: API's revenue is expected to decline over the next 3 years (-0.09% per year).

High Growth Revenue: API's revenue is forecast to decline over the next 3 years (-0.09% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: API's Return on Equity is forecast to be low in 3 years time (8.5%).


Next Steps

  • Explore growth companies in the Healthcare industry.

Past Performance

How has Australian Pharmaceutical Industries performed over the past 5 years?

-7.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: API is currently unprofitable.

Growing Profit Margin: API is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: API is unprofitable, and losses have increased over the past 5 years at a rate of 7.6% per year.

Accelerating Growth: Unable to compare API's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: API is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (-8.1%).


Return on Equity

High ROE: API has a negative Return on Equity (-1.73%), as it is currently unprofitable.


Next Steps

Financial Health

How is Australian Pharmaceutical Industries's financial position?


Financial Position Analysis

Short Term Liabilities: API's short term assets (A$973.3M) exceed its short term liabilities (A$832.7M).

Long Term Liabilities: API's short term assets (A$973.3M) exceed its long term liabilities (A$252.5M).


Debt to Equity History and Analysis

Debt Level: API's debt to equity ratio (17.2%) is considered satisfactory.

Reducing Debt: API's debt to equity ratio has reduced from 18.9% to 17.2% over the past 5 years.

Debt Coverage: API's debt is well covered by operating cash flow (273.9%).

Interest Coverage: API is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Australian Pharmaceutical Industries's current dividend yield, its reliability and sustainability?

1.89%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: API's dividend (1.89%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.18%).

High Dividend: API's dividend (1.89%) is low compared to the top 25% of dividend payers in the Australian market (5.49%).


Stability and Growth of Payments

Stable Dividend: API's dividend payments have been volatile in the past 10 years.

Growing Dividend: API's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: API is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: API's dividends in 3 years are forecast to be covered by earnings (82.5% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Richard Vincent

3.67yrs

Tenure

AU$1,302,660

Compensation

Mr. Richard C. Vincent, B.Bus, (Accountancy), CPA, has been Chief Executive Officer, Managing Director and Executive Director at Australian Pharmaceutical Industries Limited since February 15, 2017. Mr. Vi ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD930.67K) is above average for companies of similar size in the Australian market ($USD700.61K).

Compensation vs Earnings: Richard's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Vincent
MD, CEO & Executive Director3.67yrsAU$1.30m0.098%
A$ 532.4k
Peter Mendo
Chief Financial Officer5.75yrsAU$592.46k0.012%
A$ 64.6k
Dean Matthews
Chief Information Officer3.83yrsno datano data
Anne Mustow
General Counsel & Company Secretary1.25yrsno datano data
Stephen Arthurson
General Manager of Peopleno dataAU$435.21kno data
D. Glance
NSW State Managerno dataAU$251.36kno data

3.8yrs

Average Tenure

Experienced Management: API's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Vincent
MD, CEO & Executive Director3.67yrsAU$1.30m0.098%
A$ 532.4k
Kenneth Gunderson-Briggs
Interim Independent Non-Executive Chairman0.083yrAU$164.71k0.0061%
A$ 33.2k
Lee Ausburn
Independent Non-Executive Director12yrsAU$130.97k0.017%
A$ 92.1k
Janine Allis
Non-Executive Directorno datano datano data
Jennifer Mitchell MacDonald
Independent Non-Executive Director2.92yrsAU$140.19k0.010%
A$ 55.3k

3.3yrs

Average Tenure

Experienced Board: API's board of directors are considered experienced (3.3 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Australian Pharmaceutical Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Australian Pharmaceutical Industries Limited
  • Ticker: API
  • Exchange: ASX
  • Founded: 1910
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Market Cap: AU$544.385m
  • Shares outstanding: 492.66m
  • Website: https://www.api.net.au

Location

  • Australian Pharmaceutical Industries Limited
  • 250 Camberwell Road
  • Level 5
  • Camberwell
  • Victoria
  • 3124
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APIASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 1997
APICHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 1997

Biography

Australian Pharmaceutical Industries Limited engages in the wholesale distribution of pharmaceutical, medical, health, beauty, and lifestyle products to pharmacies primarily in Australia. It also retails h ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 10:35
End of Day Share Price2020/10/28 00:00
Earnings2020/08/31
Annual Earnings2020/08/31


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.