ASX:APE

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

High growth potential average dividend payer.


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


Market Performance


7 Day Return

-5.0%

APE

-0.9%

AU Specialty Retail

0.4%

AU Market


1 Year Return

65.2%

APE

23.1%

AU Specialty Retail

9.8%

AU Market

Return vs Industry: APE exceeded the Australian Specialty Retail industry which returned 23.1% over the past year.

Return vs Market: APE exceeded the Australian Market which returned 9.8% over the past year.


Shareholder returns

APEIndustryMarket
7 Day-5.0%-0.9%0.4%
30 Day-3.8%2.4%-1.1%
90 Day25.0%16.9%-0.6%
1 Year72.1%65.2%28.7%23.1%16.1%9.8%
3 Year46.0%28.7%19.9%4.5%36.1%17.9%
5 Year186.2%135.8%83.7%49.7%49.4%15.7%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: APE (A$12.97) is trading below our estimate of fair value (A$26.24)

Significantly Undervalued: 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 (27.3x) compared to the Specialty Retail industry average (15.6x).

PE vs Market: APE is poor value based on its PE Ratio (27.3x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: APE is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: APE is overvalued based on its PB Ratio (3.6x) compared to the AU Specialty Retail industry average (2.2x).


Next Steps

Future Growth

How is A.P. Eagers forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

39.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APE's forecast earnings growth (39% per year) is above the savings rate (2.3%).

Earnings vs Market: APE's earnings (39% per year) are forecast to grow faster than the Australian market (10.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: APE's revenue (23.8% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: APE's revenue (23.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: APE's Return on Equity is forecast to be low in 3 years time (15.6%).


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


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 (-2.1%).


Return on Equity

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


Return on Assets

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


Return on Capital Employed

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


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) exceeds its short term liabilities (A$988.5M)

Long Term Liabilities: APE's short term assets (992.7M) exceeds its long term liabilities (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% 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 1.095530x debt).


Next Steps

Dividend

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

2.81%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%2.4%markettop25%5.6%industryaverage3.9%forecastin3Years3.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: APE's dividend (2.81%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: APE's dividend (2.81%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).

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 (63.9% payout ratio).


Next Steps

Management

What is the CEO of A.P. Eagers's salary, the management and board of directors tenure and is there insider trading?

8.0yrs

Average management tenure


CEO

Martin Ward 0

13.8yrs

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 ($USD1.09M) is about average for companies of similar size in the Australian market ($USD1.42M).

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


Management Age and Tenure

8.0yrs

Average Tenure

Experienced Management: APE's management team is seasoned and experienced (8 years average tenure).


Board Age and Tenure

7.3yrs

Average Tenure

Experienced Board: APE's board of directors are considered experienced (7.3 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.


Recent Insider Transactions

SellAU$63,749,99424 Sep 19
Patterson Cheney Holdings Pty. Ltd.
EntityCompany
Shares5,000,000
Max PriceAU$12.75
SellAU$15,331,23320 Sep 19
Perpetual Limited
EntityCompany
Shares1,164,531
Max PriceAU$13.93
BuyAU$86,24720 Sep 19
Perpetual Limited
EntityCompany
Shares7,394
Max PriceAU$11.67
BuyAU$412,57928 Aug 19
Perpetual Limited
EntityCompany
Shares53,096
Max PriceAU$9.95
SellAU$1,121,77828 Aug 19
Perpetual Limited
EntityCompany
Shares100,000
Max PriceAU$11.22
BuyAU$46,376,96128 Aug 19
WFM Motors Pty Ltd
EntityCompany
Shares6,717,507
Max PriceAU$6.90
BuyAU$107,573,88920 Aug 19
Perpetual Limited
EntityCompany
Shares10,991,205
Max PriceAU$9.79
SellAU$10,579,81820 Aug 19
Perpetual Limited
EntityCompany
Shares1,000,000
Max PriceAU$10.58
BuyAU$67,13518 Feb 19
Nicholas Politis
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares10,400
Max PriceAU$6.49
BuyAU$128,62406 Feb 19
Nicholas Politis
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares21,057
Max PriceAU$6.18
BuyAU$122,34426 Dec 18
Nicholas Politis
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares20,000
Max PriceAU$6.27
BuyAU$383,90810 Dec 18
Nicholas Politis
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares57,000
Max PriceAU$6.96
BuyAU$371,47003 Dec 18
Nicholas Politis
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares54,234
Max PriceAU$6.89
BuyAU$178,27627 Nov 18
Nicholas Politis
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares25,487
Max PriceAU$7.08
BuyAU$132,03520 Nov 18
Nicholas Politis
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares18,828
Max PriceAU$7.02
BuyAU$87,50915 Nov 18
Nicholas Politis
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares12,327
Max PriceAU$7.23
BuyAU$65,02612 Nov 18
Timothy Boyd Crommelin
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares9,000
Max PriceAU$7.25
BuyAU$159,87612 Nov 18
Nicholas Politis
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares22,624
Max PriceAU$7.14
BuyAU$137,30431 Oct 18
Nicholas Politis
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares18,000
Max PriceAU$7.69
BuyAU$327,10424 Oct 18
Nicholas Politis
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares42,000
Max PriceAU$7.91

Ownership Breakdown


Management Team

  • Denis Stark

    General Counsel & Company Secretary

    • Tenure: 11.8yrs
    • Compensation: AU$448.22k
  • Martin Ward

    CEO, MD & Executive Director

    • Tenure: 13.8yrs
    • Compensation: AU$1.60m
  • Keith Thornton

    Chief Operating Officer – Cars

    • Tenure: 2.8yrs
    • Compensation: AU$1.07m
  • Sophie Moore

    Director & CFO

    • Tenure: 2.6yrs
    • Compensation: AU$675.73k
  • Antoinette Yerbury

    General Manager of Marketing & Sales

    • Tenure: 0yrs
  • Hazel Cromie

    Group Human Resources Manager

    • Tenure: 0yrs

Board Members

  • Nicholas Politis (77yo)

    Non-Executive Director

    • Tenure: 19.4yrs
    • Compensation: AU$93.89k
  • Tim Crommelin (71yo)

    Independent Chairman

    • Tenure: 6.4yrs
    • Compensation: AU$110.31k
  • Martin Ward

    CEO, MD & Executive Director

    • Tenure: 13.8yrs
    • Compensation: AU$1.60m
  • Dan Ryan

    Non-Executive Director

    • Tenure: 9.8yrs
    • Compensation: AU$93.89k
  • David Cowper

    Independent Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: AU$102.10k
  • Sophie Moore

    Director & CFO

    • Tenure: 2.6yrs
    • Compensation: AU$675.73k
  • Marcus Birrell

    Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: AU$93.89k

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$3.246b
  • Shares outstanding: 250.26m
  • Website: https://www.apeagers.com.au

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 ve ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 10:32
End of Day Share Price2019/10/18 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.