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API

Australian Pharmaceutical IndustriesASX:API Stock Report

Market Cap

AU$748.8m

7D

1.0%

1Y

43.4%

Updated

17 Oct, 2021

Data

Company Financials +
API fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance0/6
Financial Health4/6
Dividends1/6

API Overview

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

Australian Pharmaceutical Industries Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Australian Pharmaceutical Industries
Historical stock prices
Current Share PriceAU$1.52
52 Week HighAU$1.05
52 Week LowAU$1.55
Beta0.080
1 Month Change3.75%
3 Month Change8.57%
1 Year Change43.40%
3 Year Change-12.89%
5 Year Change-20.63%
Change since IPO-35.32%

Recent News & Updates

May 27
Australian Pharmaceutical Industries (ASX:API) Takes On Some Risk With Its Use Of Debt

Australian Pharmaceutical Industries (ASX:API) Takes On Some Risk With Its Use Of Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Feb 25
Is Australian Pharmaceutical Industries Limited (ASX:API) A Good Dividend Stock?

Is Australian Pharmaceutical Industries Limited (ASX:API) A Good Dividend Stock?

Dividend paying stocks like Australian Pharmaceutical Industries Limited ( ASX:API ) tend to be popular with investors...

Feb 08
How Does Australian Pharmaceutical Industries' (ASX:API) CEO Salary Compare to Peers?

How Does Australian Pharmaceutical Industries' (ASX:API) CEO Salary Compare to Peers?

Richard Vincent became the CEO of Australian Pharmaceutical Industries Limited ( ASX:API ) in 2017, and we think it's a...

Shareholder Returns

APIAU HealthcareAU Market
7D1.0%-1.3%0.9%
1Y43.4%11.5%20.2%

Return vs Industry: API exceeded the Australian Healthcare industry which returned 11.5% over the past year.

Return vs Market: API exceeded the Australian Market which returned 20.2% over the past year.

Price Volatility

Is API's price volatile compared to industry and market?
API volatility
API Beta0.080
Industry Beta0.61
Market Beta1

Stable Share Price: API is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

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

About the Company

FoundedEmployeesCEOWebsite
1910n/aRichard Vincenthttps://www.api.net.au

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 health and beauty products to consumers through a network of Priceline and Priceline Pharmacy franchise stores, and company owned Priceline stores in Australia; sells beauty products through Clear Skincare network of clinics in Australia and New Zealand; and manufactures and distributes pharmaceutical and toiletry goods to New Zealand, Australian, and Asian markets, as well as provides cosmetic products and non-invasive aesthetic beauty services. The company was founded in 1910 and is based in Camberwell, Australia.

Australian Pharmaceutical Industries Fundamentals Summary

How do Australian Pharmaceutical Industries's earnings and revenue compare to its market cap?
API fundamental statistics
Market CapAU$748.84m
Earnings (TTM)-AU$14.29m
Revenue (TTM)AU$3.97b

0.2x

P/S Ratio

-52.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
API income statement (TTM)
RevenueAU$3.97b
Cost of RevenueAU$3.49b
Gross ProfitAU$475.36m
ExpensesAU$489.64m
Earnings-AU$14.29m

Last Reported Earnings

Feb 28, 2021

Next Earnings Date

Oct 28, 2021

Earnings per share (EPS)-0.029
Gross Margin11.98%
Net Profit Margin-0.36%
Debt/Equity Ratio40.9%

How did API perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

-121%

Payout Ratio

Valuation

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

1.63x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: API (A$1.52) is trading above our estimate of fair value (A$0.89)

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


Price To Earnings Ratio

PE vs Industry: API is unprofitable, so we can't compare its PE Ratio to the Australian 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 (1.6x) compared to the AU Healthcare industry average (2.1x).


Future Growth

How is Australian Pharmaceutical Industries forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

34.4%

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 (1.9%).

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 (2.2% per year) is forecast to grow slower than the Australian market (5.5% per year).

High Growth Revenue: API's revenue (2.2% per year) is forecast to grow slower than 20% 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 (9.6%).


Past Performance

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

-22.0%

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 22% 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 (61.3%).


Return on Equity

High ROE: API has a negative Return on Equity (-3.13%), as it is currently unprofitable.


Financial Health

How is Australian Pharmaceutical Industries's financial position?


Financial Position Analysis

Short Term Liabilities: API's short term assets (A$938.1M) exceed its short term liabilities (A$727.6M).

Long Term Liabilities: API's short term assets (A$938.1M) exceed its long term liabilities (A$313.7M).


Debt to Equity History and Analysis

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

Reducing Debt: API's debt to equity ratio has increased from 30% to 40.9% over the past 5 years.

Debt Coverage: API's debt is well covered by operating cash flow (43.1%).

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


Balance Sheet


Dividend

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

1.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: API's dividend (1.97%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: API's dividend (1.97%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


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 (65.9% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Richard Vincent

4.67yrs

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 ($USD966.87K) is above average for companies of similar size in the Australian market ($USD736.11K).

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


Leadership Team

Experienced Management: API's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: API's board of directors are not considered experienced ( 1.1 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.


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 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$748.837m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 07:02
End of Day Share Price2021/10/15 00:00
Earnings2021/02/28
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.