ASX:API

Stock Analysis Report

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.

Snowflake

Fundamentals

Undervalued average dividend payer.


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


Market Performance


7 Day Return

1.1%

API

1.7%

AU Healthcare

0.4%

AU Market


1 Year Return

-13.8%

API

17.9%

AU Healthcare

9.8%

AU Market

Return vs Industry: API underperformed the Australian Healthcare industry which returned 17.9% over the past year.

Return vs Market: API underperformed the Australian Market which returned 9.8% over the past year.


Shareholder returns

APIIndustryMarket
7 Day1.1%1.7%0.4%
30 Day5.9%3.6%-1.3%
90 Day1.8%1.0%-0.5%
1 Year-9.2%-13.8%21.6%17.9%16.1%9.8%
3 Year-16.6%-27.2%7.1%-2.8%36.1%17.9%
5 Year125.3%85.2%43.2%23.1%49.4%15.7%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: API (A$1.44) is trading below our estimate of fair value (A$9.07)

Significantly Below Fair Value: API is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: API is good value based on its PE Ratio (14.9x) compared to the Healthcare industry average (19.2x).

PE vs Market: API is good value based on its PE Ratio (14.9x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: API is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: API is good value based on its PB Ratio (1.4x) 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?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: API's forecast earnings growth (9.9% per year) is above the savings rate (2.3%).

Earnings vs Market: API's earnings (9.9% per year) are forecast to grow slower than the Australian market (10.3% per year).

High Growth Earnings: API's earnings are forecast to grow, but not significantly.

Revenue vs Market: API's revenue (1.1% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: API's revenue (1.1% 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 (10.6%).


Next Steps

Past Performance

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

43.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: API has become profitable over the past 5 years, growing earnings by 43.5% per year.

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

Earnings vs Industry: API had negative earnings growth (-1.7%) over the past year, making it difficult to compare to the Healthcare industry average (-1.7%).


Return on Equity

High ROE: API's Return on Equity (9.5%) is considered low.


Return on Assets

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


Return on Capital Employed

ROCE Improving: API's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Australian Pharmaceutical Industries's financial position?


Financial Position Analysis

Short Term Liabilities: API's short term assets (A$1.0B) exceeds its short term liabilities (A$734.2M)

Long Term Liabilities: API's short term assets (1.0B) exceeds its long term liabilities (325.1M)


Debt to Equity History and Analysis

Debt Level: API's debt to equity ratio (54.2%) is considered high

Reducing Debt: API's debt to equity ratio has increased from 27.9% to 54.2% over the past 5 years.

Debt Coverage: API's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: API's interest payments on its debt are well covered by EBIT (92.2x coverage).


Balance Sheet

Inventory Level: API has a high level of physical assets or inventory.

Debt Coverage by Assets: API's debt is covered by short term assets (assets are 3.738030x debt).


Next Steps

Dividend

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

5.40%

Current Dividend Yield


Dividend Yield vs Market

company5.4%marketbottom25%2.4%markettop25%5.6%industryaverage2.9%forecastin3Years5.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: API's dividend (5.4%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: API's dividend (5.4%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).

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

Growing Dividend: API's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.6%), API's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: API's dividends in 3 years are forecast to be covered by earnings (73.2% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Richard Vincent 0

2.7yrs

Tenure

AU$1,214,861

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 ($USD831.70K) is about average for companies of similar size in the Australian market ($USD735.92K).

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


Management Age and Tenure

2.8yrs

Average Tenure

Experienced Management: API's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

63.5yo

Average Age

Experienced Board: API's board of directors are considered experienced (5.4 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.


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Ownership Breakdown


Management Team

  • D. Glance

    NSW State Manager

    • Tenure: 0yrs
    • Compensation: AU$251.36k
  • Richard Vincent

    MD, CEO & Executive Director

    • Tenure: 2.7yrs
    • Compensation: AU$1.21m
  • Peter Mendo

    Chief Financial Officer

    • Tenure: 4.8yrs
    • Compensation: AU$486.91k
  • Stephen Arthurson

    General Manager of People

    • Tenure: 0yrs
    • Compensation: AU$435.21k
  • Dean Matthews

    Chief Information Officer

    • Tenure: 2.8yrs
  • Anne Mustow

    General Counsel & Company Secretary

    • Tenure: 0.3yrs

Board Members

  • Gerry Masters (63yo)

    Independent Non-Executive Director

    • Tenure: 9.1yrs
    • Compensation: AU$108.08k
  • Rob Millner (68yo)

    Non-Executive Director

    • Tenure: 19.4yrs
    • Compensation: AU$99.96k
  • Ken Gunderson-Briggs (58yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: AU$165.54k
  • Richard Vincent

    MD, CEO & Executive Director

    • Tenure: 2.7yrs
    • Compensation: AU$1.21m
  • Mark Smith (64yo)

    Non-Executive Chairman

    • Tenure: 1.8yrs
    • Compensation: AU$168.05k
  • Lee Ausburn

    Independent Non-Executive Director

    • Tenure: 11yrs
    • Compensation: AU$99.96k
  • Jenny MacDonald

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: AU$81.40k

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$704.323m
  • Shares outstanding: 492.53m
  • 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. The company also  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 10:31
End of Day Share Price2019/10/21 00:00
Earnings2019/02/28
Annual Earnings2018/08/31


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.