ASX:APE

Stock Analysis Report

Executive Summary

A.P. Eagers Limited owns and operates motor vehicle dealerships in Australia.


Snowflake Analysis

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

How has A.P. Eagers's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

2.1%

APE

0.9%

AU Specialty Retail

0.02%

AU Market


1 Year Return

24.4%

APE

37.6%

AU Specialty Retail

14.6%

AU Market

Return vs Industry: APE underperformed the Australian Specialty Retail industry which returned 37.6% over the past year.

Return vs Market: APE exceeded the Australian Market which returned 14.6% over the past year.


Shareholder returns

APEIndustryMarket
7 Day2.1%0.9%0.02%
30 Day-1.3%3.0%0.2%
90 Day-4.4%6.9%5.7%
1 Year29.6%24.4%43.0%37.6%19.7%14.6%
3 Year16.7%2.9%37.7%20.2%38.7%20.2%
5 Year70.0%40.1%90.3%53.5%50.6%17.1%

Price Volatility Vs. Market

How volatile is A.P. Eagers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is A.P. Eagers undervalued compared to its fair value and its price relative to the market?

28.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: APE (A$9.33) is trading below our estimate of fair value (A$13)

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


Price To Earnings Ratio

PE vs Industry: APE is poor value based on its PE Ratio (19.6x) compared to the Specialty Retail industry average (16.7x).

PE vs Market: APE is poor value based on its PE Ratio (19.6x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: APE is overvalued based on its PB Ratio (2.6x) compared to the AU Specialty Retail industry average (2.4x).


Next Steps

Future Growth

How is A.P. Eagers forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APE's forecast earnings growth (13.3% per year) is above the savings rate (1.1%).

Earnings vs Market: APE's earnings (13.3% per year) are forecast to grow faster than the Australian market (9.3% per year).

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

Revenue vs Market: APE's revenue (10.7% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: APE's revenue (10.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: APE's Return on Equity is forecast to be low in 3 years time (12.4%).


Next Steps

Past Performance

How has A.P. Eagers performed over the past 5 years?

5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APE has high quality earnings.

Growing Profit Margin: APE's current net profit margins (2.2%) are lower than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: APE's earnings have grown by 5.7% per year over the past 5 years.

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

Earnings vs Industry: APE had negative earnings growth (-7.4%) over the past year, making it difficult to compare to the Specialty Retail industry average (-2.3%).


Return on Equity

High ROE: APE's Return on Equity (13.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is A.P. Eagers's financial position?


Financial Position Analysis

Short Term Liabilities: APE's short term assets (A$992.7M) exceed its short term liabilities (A$988.5M).

Long Term Liabilities: APE's short term assets (A$992.7M) exceed its long term liabilities (A$471.3M).


Debt to Equity History and Analysis

Debt Level: APE's debt to equity ratio (129.6%) is considered high.

Reducing Debt: APE's debt to equity ratio has increased from 103.4% to 129.6% over the past 5 years.

Debt Coverage: APE's debt is not well covered by operating cash flow (11.5%).

Interest Coverage: APE's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: APE's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

What is A.P. Eagers's current dividend yield, its reliability and sustainability?

3.91%

Current Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%2.3%markettop25%5.3%industryaverage4.0%forecastin3Years4.6%

Current dividend yield vs market & industry

Notable Dividend: APE's dividend (3.91%) is higher than the bottom 25% of dividend payers in the Australian market (2.29%).

High Dividend: APE's dividend (3.91%) is low compared to the top 25% of dividend payers in the Australian market (5.35%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.8%), APE's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: APE's dividends in 3 years are forecast to be covered by earnings (69.5% payout ratio).


Next Steps

Management

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

8.3yrs

Average management tenure


CEO

Martin Ward 0

14.1yrs

Tenure

AU$1,595,251

Compensation

Mr. Martin Andrew Ward, B.Sc. (Hons), F.A.I.C.D., has been the Chief Executive Officer of AP Eagers Ltd. since January 1, 2006 and as its Managing Director since March 6, 2006. Mr. Ward served as the Chief ...


CEO Compensation Analysis

Compensation vs Market: Martin's total compensation ($USD1.06M) is about average for companies of similar size in the Australian market ($USD1.37M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Martin Ward
CEO, MD & Executive Director14.1yrsAU$1.60m0.97% A$23.2m
Sophie Moore
Director & CFO2.9yrsAU$675.73k0.0065% A$155.1k
Denis Stark
General Counsel & Company Secretary12.1yrsAU$448.22k0.057% A$1.4m
Keith Thornton
Chief Operating Officer – Cars3.1yrsAU$1.07m0.18% A$4.4m
Antoinette Yerbury
General Manager of Marketing & Sales0yrsno datano data
Hazel Cromie
Group Human Resources Manager0yrsno datano data

8.3yrs

Average Tenure

Experienced Management: APE's management team is seasoned and experienced (8.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Martin Ward
CEO, MD & Executive Director14.1yrsAU$1.60m0.97% A$23.2m
Sophie Moore
Director & CFO2.9yrsAU$675.73k0.0065% A$155.1k
Nicholas Politis
Non-Executive Director19.8yrsAU$93.89k0.0023% A$55.1k
Timothy Boyd Crommelin
Independent Chairman6.8yrsAU$110.31k0.15% A$3.7m
Daniel Ryan
Non-Executive Director10.1yrsAU$93.89k0.00047% A$11.3k
David Cowper
Independent Non-Executive Director7.6yrsAU$102.10k0.0059% A$140.5k
Gregory Duncan
Independent Non-Executive Director0.2yrsno data0.11% A$2.7m
David Blackhall
Independent Non-Executive Director0.2yrsno data0.0090% A$215.0k
Marcus Birrell
Non-Executive Director3.6yrsAU$93.89k0.78% A$18.7m
Michelle Prater
Non-Executive Director0yrsno data0.39% A$9.4m

6.8yrs

Average Tenure

Experienced Board: APE's board of directors are considered experienced (6.8 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

A.P. Eagers Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: A.P. Eagers Limited
  • Ticker: APE
  • Exchange: ASX
  • Founded: 1913
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: AU$2.397b
  • Shares outstanding: 256.93m
  • Website: https://www.apeagers.com.au

Number of Employees


Location

  • A.P. Eagers Limited
  • 5 Edmund Street
  • Newstead
  • Queensland
  • 4006
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APEASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
APECHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

A.P. Eagers Limited owns and operates motor vehicle dealerships in Australia. The company operates through four segments: Car Retailing, Truck Retailing, Property, and Investments. It sells new and used vehicles and trucks; distributes and sells vehicle and truck parts, accessories, and car care products; maintains, repairs, and services vehicles and trucks; and offers vehicle and truck protection, and other aftermarket products. The company also provides vehicle brokerage services; facilitates finance and leasing of vehicles and trucks; offers extended warranties and service contracts; and owns property and investments. In addition, it is also involved in the motor vehicle auction business. The company has operations primarily in Queensland, Adelaide, Darwin, Melbourne, Sydney, the Newcastle/Hunter Valley region of New South Wales, and Tasmania. A.P. Eagers Limited was founded in 1913 and is based in Newstead, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 10:33
End of Day Share Price2020/02/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.