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Australian Pharmaceutical Industries

ASX:API
Snowflake Description

Undervalued average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
API
ASX
A$667M
Market Cap
  1. Home
  2. AU
  3. Healthcare
Company description

Australian Pharmaceutical Industries Limited engages in the wholesale distribution of pharmaceutical, medical, health, beauty, and lifestyle products to pharmacies primarily in Australia. The last earnings update was 123 days ago. More info.


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API Share Price and Events
7 Day Returns
-2.9%
ASX:API
-1%
AU Healthcare
-2.6%
AU Market
1 Year Returns
-22.4%
ASX:API
7.5%
AU Healthcare
-0.7%
AU Market
API Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Australian Pharmaceutical Industries (API) -2.9% -3.2% 5% -22.4% -30.2% 139.8%
AU Healthcare -1% -2.2% 2.8% 7.5% -9.7% 25.6%
AU Market -2.6% -4.1% 0.5% -0.7% 13% 5.9%
1 Year Return vs Industry and Market
  • API underperformed the Healthcare industry which returned 7.5% over the past year.
  • API underperformed the Market in Australia which returned -0.7% over the past year.
Price Volatility
API
Industry
5yr Volatility vs Market

API Value

 Is Australian Pharmaceutical Industries undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Australian Pharmaceutical Industries to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Australian Pharmaceutical Industries.

ASX:API Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:API
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.63
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.627 (1 + (1- 30%) (41.5%))
0.872
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.87
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.872 * 5.96%)
7.51%

Discounted Cash Flow Calculation for ASX:API using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Australian Pharmaceutical Industries is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

ASX:API DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 7.51%)
2020 45.65 Analyst x2 42.46
2021 89.70 Analyst x1 77.61
2022 131.22 Est @ 46.29% 105.60
2023 174.65 Est @ 33.09% 130.74
2024 216.32 Est @ 23.86% 150.63
2025 253.95 Est @ 17.4% 164.48
2026 286.63 Est @ 12.87% 172.68
2027 314.44 Est @ 9.7% 176.21
2028 337.98 Est @ 7.49% 176.18
2029 358.03 Est @ 5.93% 173.60
Present value of next 10 years cash flows A$1,370.19
ASX:API DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$358.03 × (1 + 2.31%) ÷ (7.51% – 2.31%)
A$7,050.72
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$7,050.72 ÷ (1 + 7.51%)10
A$3,418.62
ASX:API Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$1,370.19 + A$3,418.62
A$4,788.81
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$4,788.81 / 492.53
A$9.72
ASX:API Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$9.72
Current discount Discount to share price of A$1.36
= -1 x (A$1.36 - A$9.72) / A$9.72
86.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Australian Pharmaceutical Industries is available for.
Intrinsic value
>50%
Share price is A$1.36 vs Future cash flow value of A$9.72
Current Discount Checks
For Australian Pharmaceutical Industries to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Australian Pharmaceutical Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Australian Pharmaceutical Industries's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Australian Pharmaceutical Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Australian Pharmaceutical Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:API PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-02-28) in AUD A$0.10
ASX:API Share Price ** ASX (2019-08-16) in AUD A$1.36
Australia Healthcare Industry PE Ratio Median Figure of 24 Publicly-Listed Healthcare Companies 17.04x
Australia Market PE Ratio Median Figure of 538 Publicly-Listed Companies 15.86x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Australian Pharmaceutical Industries.

ASX:API PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:API Share Price ÷ EPS (both in AUD)

= 1.36 ÷ 0.10

14.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Australian Pharmaceutical Industries is good value based on earnings compared to the AU Healthcare industry average.
  • Australian Pharmaceutical Industries is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Australian Pharmaceutical Industries's expected growth come at a high price?
Raw Data
ASX:API PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.09x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
9.9%per year
Australia Healthcare Industry PEG Ratio Median Figure of 18 Publicly-Listed Healthcare Companies 1.57x
Australia Market PEG Ratio Median Figure of 352 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

ASX:API PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.09x ÷ 9.9%

1.42x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Australian Pharmaceutical Industries is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Australian Pharmaceutical Industries's assets?
Raw Data
ASX:API PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-02-28) in AUD A$1.03
ASX:API Share Price * ASX (2019-08-16) in AUD A$1.36
Australia Healthcare Industry PB Ratio Median Figure of 29 Publicly-Listed Healthcare Companies 1.64x
Australia Market PB Ratio Median Figure of 1,687 Publicly-Listed Companies 1.67x
ASX:API PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:API Share Price ÷ Book Value per Share (both in AUD)

= 1.36 ÷ 1.03

1.32x

* Primary Listing of Australian Pharmaceutical Industries.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Australian Pharmaceutical Industries is good value based on assets compared to the AU Healthcare industry average.
X
Value checks
We assess Australian Pharmaceutical Industries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. Australian Pharmaceutical Industries has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

API Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Australian Pharmaceutical Industries expected to grow at an attractive rate?
  • Australian Pharmaceutical Industries's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Australian Pharmaceutical Industries's earnings growth is expected to exceed the Australia market average.
  • Australian Pharmaceutical Industries's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:API Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:API Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 9.9%
ASX:API Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 1.1%
Australia Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 10.7%
Australia Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 7.6%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.9%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:API Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:API Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-08-31 4,120 96 62 3
2020-08-31 4,103 81 56 4
2019-08-31 4,047 69 51 4
ASX:API Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-02-28 3,994 -29 47
2018-11-30 4,010 12 48
2018-08-31 4,026 54 48
2018-05-31 4,041 72 48
2018-02-28 4,055 90 48
2017-11-30 4,058 93 50
2017-08-31 4,061 95 52
2017-05-31 4,064 116 55
2017-02-28 4,067 136 58
2016-11-30 3,953 109 55
2016-08-31 3,840 83 52
2016-05-31 3,687 28 48

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Australian Pharmaceutical Industries's earnings are expected to grow by 9.9% yearly, however this is not considered high growth (20% yearly).
  • Australian Pharmaceutical Industries's revenue is expected to grow by 1.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:API Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Australian Pharmaceutical Industries Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:API Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-08-31 0.13 0.13 0.12 2.00
2020-08-31 0.11 0.12 0.11 3.00
2019-08-31 0.10 0.11 0.10 3.00
ASX:API Past Financials Data
Date (Data in AUD Millions) EPS *
2019-02-28 0.10
2018-11-30 0.10
2018-08-31 0.10
2018-05-31 0.10
2018-02-28 0.10
2017-11-30 0.10
2017-08-31 0.11
2017-05-31 0.11
2017-02-28 0.12
2016-11-30 0.11
2016-08-31 0.11
2016-05-31 0.10

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Australian Pharmaceutical Industries is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Australian Pharmaceutical Industries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Australian Pharmaceutical Industries has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

API Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Australian Pharmaceutical Industries's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Australian Pharmaceutical Industries has delivered over 20% year on year earnings growth in the past 5 years.
  • Australian Pharmaceutical Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Australian Pharmaceutical Industries's 1-year earnings growth is negative, it can't be compared to the AU Healthcare industry average.
Earnings and Revenue History
Australian Pharmaceutical Industries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Australian Pharmaceutical Industries Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:API Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-02-28 3,994.08 47.36 443.42
2018-11-30 4,010.19 47.71 433.31
2018-08-31 4,026.30 48.06 423.20
2018-05-31 4,040.69 48.11 419.93
2018-02-28 4,055.07 48.17 416.66
2017-11-30 4,058.14 50.27 413.49
2017-08-31 4,061.20 52.37 410.31
2017-05-31 4,064.08 55.14 404.59
2017-02-28 4,066.97 57.91 398.87
2016-11-30 3,953.48 54.79 397.65
2016-08-31 3,839.99 51.67 396.42
2016-05-31 3,686.74 48.21 393.62
2016-02-29 3,533.50 44.75 390.82
2015-11-30 3,495.45 43.94 388.00
2015-08-31 3,457.40 43.13 385.18
2015-05-31 3,428.48 44.28 382.00
2015-02-28 3,399.57 45.44 378.82
2014-11-30 3,372.76 -22.67 376.06
2014-08-31 3,345.95 -90.77 373.31
2014-05-31 3,285.96 -97.14 371.64
2014-02-28 3,225.97 -103.50 369.98
2013-11-30 3,196.17 -39.60 367.49
2013-08-31 3,166.37 24.29 365.00
2013-05-31 3,179.19 24.56 361.60
2013-02-28 3,192.00 24.83 358.21
2012-11-30 3,195.50 27.56 355.60
2012-08-31 3,199.00 30.28 353.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Australian Pharmaceutical Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Australian Pharmaceutical Industries used its assets less efficiently than the AU Healthcare industry average last year based on Return on Assets.
  • Australian Pharmaceutical Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Australian Pharmaceutical Industries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Australian Pharmaceutical Industries has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

API Health

 How is Australian Pharmaceutical Industries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Australian Pharmaceutical Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Australian Pharmaceutical Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Australian Pharmaceutical Industries's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Australian Pharmaceutical Industries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Australian Pharmaceutical Industries Company Filings, last reported 5 months ago.

ASX:API Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-02-28 509.50 276.11 14.96
2018-11-30 509.50 276.11 14.96
2018-08-31 495.20 90.49 35.95
2018-05-31 495.20 90.49 35.95
2018-02-28 562.40 50.57 27.09
2017-11-30 562.40 50.57 27.09
2017-08-31 554.25 30.25 39.78
2017-05-31 554.25 30.25 39.78
2017-02-28 548.31 90.63 36.43
2016-11-30 548.31 90.63 36.43
2016-08-31 536.70 47.45 25.49
2016-05-31 536.70 47.45 25.49
2016-02-29 519.11 157.05 19.77
2015-11-30 519.11 157.05 19.77
2015-08-31 505.40 94.41 28.05
2015-05-31 505.40 94.41 28.05
2015-02-28 494.72 87.65 13.48
2014-11-30 494.72 87.65 13.48
2014-08-31 480.74 119.15 23.53
2014-05-31 480.74 119.15 23.53
2014-02-28 463.31 131.89 22.33
2013-11-30 463.31 131.89 22.33
2013-08-31 583.69 139.40 22.58
2013-05-31 583.69 139.40 22.58
2013-02-28 576.23 138.29 18.04
2012-11-30 576.23 138.29 18.04
2012-08-31 568.31 164.28 19.55
  • Australian Pharmaceutical Industries's level of debt (54.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (27.9% vs 54.2% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 92.2x coverage).
X
Financial health checks
We assess Australian Pharmaceutical Industries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Australian Pharmaceutical Industries has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

API Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.72%
Current annual income from Australian Pharmaceutical Industries dividends. Estimated to be 6.13% next year.
If you bought A$2,000 of Australian Pharmaceutical Industries shares you are expected to receive A$114 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Australian Pharmaceutical Industries's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.66%).
  • Australian Pharmaceutical Industries's dividend is below the markets top 25% of dividend payers in Australia (5.9%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:API Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Australia Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 3%
Australia Market Average Dividend Yield Market Cap Weighted Average of 412 Stocks 4.3%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.7%
Australia Top 25% Dividend Yield 75th Percentile 5.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:API Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2021-08-31 0.09 4.00
2020-08-31 0.08 5.00
2019-08-31 0.08 5.00
ASX:API Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-04-16 0.078 5.711
2018-10-17 0.080 5.533
2018-04-18 0.070 4.521
2017-10-18 0.070 4.562
2017-04-19 0.070 4.070
2016-10-19 0.070 3.615
2016-04-20 0.050 2.725
2015-10-21 0.050 2.561
2014-10-22 0.035 2.791
2014-06-06 0.033 5.293
2014-04-29 0.030 5.611
2013-10-23 0.035 5.992
2013-04-17 0.030 6.543
2012-10-25 0.030 6.550
2011-10-26 0.025 7.829
2011-04-19 0.025 9.405
2010-10-28 0.030 7.570
2010-04-28 0.020 4.395
2009-10-22 0.020 3.161
2009-04-30 0.000 0.000
2008-10-30 0.010 2.223

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Australian Pharmaceutical Industries's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Australian Pharmaceutical Industries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Australian Pharmaceutical Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Australian Pharmaceutical Industries has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

API Management

 What is the CEO of Australian Pharmaceutical Industries's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Richard Vincent
COMPENSATION A$1,214,861
TENURE AS CEO 2.5 years
CEO Bio

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. Vincent started his professional career in finance with Bridgestone before moving to Britax Rainsfords where he was CFO. He joined FH Faulding & Co Limited in 1998 and remained with that company until 2005, during which time he held a number of senior leadership roles, including responsibility for the pharmacy distribution, retail merchandise and generic pharmaceutical development. Mr. Vincent joined API in 2005 where he has held a number of General Management roles that have included pharmacy business development, strategy, supply chain, franchise recruitment, IT, manufacturing and mergers and acquisition. Mr. Vincent served as Group General Manager of Business Development & Operations at Australian Pharmaceutical Industries Limited until February 15, 2017 and also served as its General Manager of Pharmacy Distribution. Mr. Vincent served as the Head of Pharmacy Distribution of Australian Pharmaceutical Industries since April 24, 2005. He serves as a Director of Clifford Hallam Healthcare Pty Ltd. Mr. Vincent is the Deputy Chairman of the National Pharmaceutical Services Association and was also a Director of CH2 Holdings Pty Ltd from 2006 to 2015.

CEO Compensation
  • Richard's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Richard's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Australian Pharmaceutical Industries management team in years:

2.6
Average Tenure
  • The tenure for the Australian Pharmaceutical Industries management team is about average.
Management Team

Richard Vincent

TITLE
MD, CEO & Executive Director
COMPENSATION
A$1M
TENURE
2.5 yrs

Peter Mendo

TITLE
Chief Financial Officer
COMPENSATION
A$487K
TENURE
4.6 yrs

Dean Matthews

TITLE
Chief Information Officer
TENURE
2.7 yrs

Anne Mustow

TITLE
General Counsel & Company Secretary
TENURE
0.1 yrs

Stephen Arthurson

TITLE
General Manager of People
COMPENSATION
A$435K

D. Glance

TITLE
NSW State Manager
COMPENSATION
A$251K
Board of Directors Tenure

Average tenure and age of the Australian Pharmaceutical Industries board of directors in years:

5.3
Average Tenure
63.5
Average Age
  • The tenure for the Australian Pharmaceutical Industries board of directors is about average.
Board of Directors

Mark Smith

TITLE
Non-Executive Chairman
COMPENSATION
A$168K
AGE
64
TENURE
1.6 yrs

Richard Vincent

TITLE
MD, CEO & Executive Director
COMPENSATION
A$1M
TENURE
2.5 yrs

Lee Ausburn

TITLE
Independent Non-Executive Director
COMPENSATION
A$100K
TENURE
10.8 yrs

Gerry Masters

TITLE
Independent Non-Executive Director
COMPENSATION
A$108K
AGE
63
TENURE
8.9 yrs

Ken Gunderson-Briggs

TITLE
Independent Non-Executive Director
COMPENSATION
A$166K
AGE
58
TENURE
5.3 yrs

Rob Millner

TITLE
Non-Executive Director
COMPENSATION
A$100K
AGE
68
TENURE
19.3 yrs

Jenny MacDonald

TITLE
Independent Non-Executive Director
COMPENSATION
A$81K
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
05. Aug 19 Sell Commonwealth Bank of Australia, Asset Management Arm Company 16. Jul 19 16. Jul 19 -3,577 A$1.39 A$-4,972
05. Aug 19 Buy Realindex Investments Pty Limited Company 08. Apr 19 22. Jul 19 3,927,185 A$1.32 A$5,177,251
05. Aug 19 Buy Colonial First State Asset Management (Australia) Limited Company 22. Mar 19 18. Jul 19 1,249,110 A$1.38 A$1,718,804
20. May 19 Buy Mark Smith Individual 16. May 19 16. May 19 5,000 A$1.26 A$6,300
10. May 19 Buy Mark Smith Individual 08. May 19 09. May 19 10,000 A$1.32 A$13,200
06. May 19 Sell LSV Asset Management Company 02. May 19 02. May 19 -134,900 A$1.39 A$-187,970
24. Apr 19 Buy Mark Smith Individual 18. Apr 19 18. Apr 19 10,000 A$1.45 A$14,450
22. Mar 19 Sell Realindex Investments Pty Limited Company 04. Oct 18 11. Mar 19 -524,362 A$1.54 A$-809,965
22. Mar 19 Buy Realindex Investments Pty Limited Company 26. Sep 18 21. Mar 19 5,604,048 A$1.50 A$8,417,713
22. Mar 19 Sell Colonial First State Asset Management (Australia) Limited Company 21. Sep 18 05. Mar 19 -1,434,287 A$1.54 A$-2,211,537
22. Mar 19 Buy Colonial First State Asset Management (Australia) Limited Company 18. Oct 18 01. Mar 19 92,259 A$1.74 A$151,978
31. Jan 19 Buy Mark Smith Individual 30. Jan 19 30. Jan 19 10,000 A$1.29 A$12,950
29. Jan 19 Buy Mark Smith Individual 25. Jan 19 25. Jan 19 30,000 A$1.36 A$40,942
20. Dec 18 Sell LSV Asset Management Company 10. Oct 18 23. Oct 18 -144,700 A$1.68 A$-232,764
20. Dec 18 Buy LSV Asset Management Company 04. Dec 18 10. Dec 18 908,642 A$1.56 A$1,353,216
18. Dec 18 Buy Mark Smith Individual 14. Dec 18 14. Dec 18 70,000 A$1.52 A$106,621
12. Sep 18 Buy Realindex Investments Pty Limited Company 11. Sep 18 11. Sep 18 79,179 A$1.77 A$140,147
03. Sep 18 Buy Realindex Investments Pty Limited Company 30. Aug 18 30. Aug 18 18,919 A$1.87 A$35,379
21. Sep 18 Buy Realindex Investments Pty Limited Company 13. Sep 18 20. Sep 18 1,287,453 A$1.92 A$2,453,325
31. Aug 18 Buy Realindex Investments Pty Limited Company 04. Jul 18 27. Aug 18 196,592 A$1.65 A$324,692
06. Sep 18 Buy Realindex Investments Pty Limited Company 04. Sep 18 04. Sep 18 29,224 A$1.79 A$52,457
03. Sep 18 Sell Colonial First State Asset Management (Australia) Limited Company 30. Aug 18 30. Aug 18 -33,679 A$1.84 A$-61,892
X
Management checks
We assess Australian Pharmaceutical Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Australian Pharmaceutical Industries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

API News

Simply Wall St News

Has Australian Pharmaceutical Industries Limited's (ASX:API) Earnings Momentum Changed Recently?

Check out our latest analysis for Australian Pharmaceutical Industries How Well Did API Perform? … Furthermore, its return on assets (ROA) of 3.1% is below the AU Healthcare industry of 4.2%, indicating Australian Pharmaceutical Industries's are utilized less efficiently. … I suggest you continue to research Australian Pharmaceutical Industries to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for API’s future growth?

Simply Wall St -

Does Australian Pharmaceutical Industries Limited (ASX:API) Have A Good P/E Ratio?

We'll look at Australian Pharmaceutical Industries Limited's (ASX:API) P/E ratio and reflect on what it tells us about the company's share price. … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Australian Pharmaceutical Industries: P/E of 14.45 = A$1.39 ÷ A$0.096 (Based on the year to February 2019.) Is A High Price-to-Earnings Ratio Good? … How Does Australian Pharmaceutical Industries's Debt Impact Its P/E Ratio?

Simply Wall St -

Brief Commentary On Australian Pharmaceutical Industries Limited's (ASX:API) Fundamentals

In the case of API, it is a highly-regarded dividend payer that has been a rockstar for income investors, currently trading at an attractive share price. … Undervalued average dividend payer API's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. … ASX:API Historical Dividend Yield, July 24th 2019 Next Steps: For Australian Pharmaceutical Industries, I've compiled three important factors you should look at: Future Outlook: What are well-informed industry analysts predicting for API’s future growth?

Simply Wall St -

Australian Pharmaceutical Industries (ASX:API) Has A Pretty Healthy Balance Sheet

Check out our latest analysis for Australian Pharmaceutical Industries What Is Australian Pharmaceutical Industries's Net Debt? … ASX:API Historical Debt, July 11th 2019 How Strong Is Australian Pharmaceutical Industries's Balance Sheet? … Either way, since Australian Pharmaceutical Industries does have more debt than cash, it's worth keeping an eye on its balance sheet.

Simply Wall St -

Investors Who Bought Australian Pharmaceutical Industries (ASX:API) Shares Five Years Ago Are Now Up 124%

During the five years of share price growth, Australian Pharmaceutical Industries moved from a loss to profitability. … We can see that the Australian Pharmaceutical Industries share price is down 22% in the last three years. … As it happens, Australian Pharmaceutical Industries's TSR for the last 5 years was 172%, which exceeds the share price return mentioned earlier.

Simply Wall St -

Who Has Been Buying Australian Pharmaceutical Industries Limited (ASX:API) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Australian Pharmaceutical Industries Limited (ASX:API). … View our latest analysis for Australian Pharmaceutical Industries Australian Pharmaceutical Industries Insider Transactions Over The Last Year Non-Executive Chairman Mark Smith made the biggest insider purchase in the last 12 months. … ASX:API Recent Insider Trading, June 15th 2019 Australian Pharmaceutical Industries is not the only stock insiders are buying.

Simply Wall St -

Do Institutions Own Australian Pharmaceutical Industries Limited (ASX:API) Shares?

Australian Pharmaceutical Industries is not a large company by global standards. … Check out our latest analysis for Australian Pharmaceutical Industries ASX:API Ownership Summary, June 4th 2019 What Does The Institutional Ownership Tell Us About Australian Pharmaceutical Industries? … Insider Ownership Of Australian Pharmaceutical Industries The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

Australian Pharmaceutical Industries Limited (ASX:API) Has A ROE Of 9.5%

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every A$1 worth of shareholders' equity, it generated A$0.095 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Australian Pharmaceutical Industries Limited (ASX:API): Ex-Dividend Is In 4 Days

On the 31 May 2019, Australian Pharmaceutical Industries Limited (ASX:API) will be paying shareholders an upcoming dividend amount of AU$0.037 per share. … Below, I will explain how holding Australian Pharmaceutical Industries can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:?

Simply Wall St -

Why You Should Care About Australian Pharmaceutical Industries Limited’s (ASX:API) Cash Levels

Two important questions to ask before you buy Australian Pharmaceutical Industries Limited (ASX:API) is, how it makes money and how it spends its cash. … I’ve analysed below, the health and outlook of Australian Pharmaceutical Industries’s cash flow, which will help you understand the stock from a cash standpoint. … There are two methods I will use to evaluate the quality of Australian Pharmaceutical Industries’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

Simply Wall St -

API Company Info

Description

Australian Pharmaceutical Industries Limited engages in the wholesale distribution of pharmaceutical, medical, health, beauty, and lifestyle products to pharmacies primarily in Australia. The company also retails health and beauty products to consumers; and manufactures and distributes pharmaceutical and toiletry goods to New Zealand, Australian, and Asian markets, as well as provides cosmetic products and procedures. In addition, its services include wholesale product delivery, retail services, marketing programs, and business advisory services. The company markets its products and services under the Soul Pattinson Chemist, Pharmacist Advice, Club Premium, and Pharmacy Best Buys brand names, as well as through 475 Priceline and Priceline Pharmacy franchise stores, and company owned Priceline stores. Australian Pharmaceutical Industries Limited was founded in 1910 and is based in Camberwell, Australia.

Details
Name: Australian Pharmaceutical Industries Limited
API
Exchange: ASX
Founded: 1910
A$667,382,843
492,533,464
Website: http://www.api.net.au
Address: Australian Pharmaceutical Industries Limited
250 Camberwell Road,
Level 5,
Camberwell,
Victoria, 3124,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX API Ordinary Shares Australian Securities Exchange AU AUD 17. Jun 1997
CHIA API Ordinary Shares Chi-X Australia AU AUD 17. Jun 1997
Number of employees
Current staff
Staff numbers
0
Australian Pharmaceutical Industries employees.
Industry
Health Care Distributors
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/17 10:32
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/15
Last earnings filing: 2019/04/16
Last earnings reported: 2019/02/28
Last annual earnings reported: 2018/08/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.