ASX:APE

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Average dividend payer with mediocre balance sheet.

Risks

  • A.P. Eagers has significant price volatility in the past 3 months.
  • A.P. Eagers's last earnings update was 184 days ago.

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

4.5%

ASX:APE

4.7%

AU Specialty Retail

-1.7%

AU Market


1 Year Return

44.0%

ASX:APE

2.5%

AU Specialty Retail

1.5%

AU Market

APE outperformed the Specialty Retail industry which returned 2.5% over the past year.

APE outperformed the Market in Australia which returned 1.5% over the past year.


Share holder returns

APEIndustryMarket
7 Day4.5%4.7%-1.7%
30 Day12.0%4.3%-3.2%
90 Day20.5%5.4%-0.1%
1 Year51.2%44.0%7.4%2.5%7.3%1.5%
3 Year8.6%-4.4%4.3%-9.2%30.7%13.8%
5 Year143.4%99.5%58.5%28.6%37.6%7.0%

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 based on future cash flows and its price relative to the stock market?

22x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

A.P. Eagers's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

A.P. Eagers's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

A.P. Eagers is overvalued based on earnings compared to the AU Specialty Retail industry average.

A.P. Eagers is overvalued based on earnings compared to the Australia market.


Price Based on Expected Growth

A.P. Eagers is poor value based on expected growth next year.


Price Based on Value of Assets

A.P. Eagers is overvalued based on assets compared to the AU Specialty Retail industry average.


Next Steps

Future Growth

How is A.P. Eagers expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

A.P. Eagers's revenue is expected to grow by 1.2% yearly, however this is not considered high growth (20% yearly).

A.P. Eagers's earnings are expected to grow by 0.2% yearly, however this is not considered high growth (20% yearly).

A.P. Eagers's revenue growth is positive but not above the Australia market average.

A.P. Eagers's earnings growth is positive but not above the Australia market average.

A.P. Eagers's earnings growth is positive but not above the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

A.P. Eagers is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

8.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

A.P. Eagers's year on year earnings growth rate has been positive over the past 5 years.

A.P. Eagers's 1-year earnings growth is less than its 5-year average (3.7% vs 8.9%)

A.P. Eagers's earnings growth has not exceeded the AU Specialty Retail industry average in the past year (3.7% vs 3.7%).


Return on Equity

A.P. Eagers has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

A.P. Eagers used its assets more efficiently than the AU Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

A.P. Eagers's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

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


Financial Position Analysis

A.P. Eagers is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

A.P. Eagers's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

A.P. Eagers's level of debt (134.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (95.5% vs 134.7% today).

Debt is not well covered by operating cash flow (10.1%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

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

3.05%

Expected Dividend Yield


Dividend Yield and Payments Analysis

A.P. Eagers's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.55%).

A.P. Eagers's dividend is below the markets top 25% of dividend payers in Australia (5.84%).

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

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.3x coverage).


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?

7.8yrs

Average management tenure


CEO

Martin Ward 0

13.6yrs

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

Martin's remuneration is lower than average for companies of similar size in Australia.

Martin's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.8yrs

Average Tenure

The average tenure for the A.P. Eagers management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.1yrs

Average Tenure

The tenure for the A.P. Eagers board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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
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
BuyAU$371,28918 Oct 18
Nicholas Politis
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares49,009
Max PriceAU$7.63
BuyAU$105,46312 Oct 18
Nicholas Politis
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares13,364
Max PriceAU$7.89
BuyAU$309,11812 Oct 18
Nicholas Politis
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares40,991
Max PriceAU$7.55
BuyAU$68,91707 Oct 18
Nicholas Politis
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares8,689
Max PriceAU$7.97
BuyAU$37,15201 Oct 18
Nicholas Politis
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares4,710
Max PriceAU$7.89
BuyAU$206,62225 Sep 18
Nicholas Politis
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares26,398
Max PriceAU$7.86
BuyAU$292,58621 Sep 18
Nicholas Politis
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares37,761
Max PriceAU$7.76
BuyAU$85,52717 Sep 18
Nicholas Politis
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares10,841
Max PriceAU$7.89

Ownership Breakdown


Management Team

  • Denis Stark

    General Counsel & Company Secretary

    • Tenure: 11.6yrs
    • Compensation: AU$448.22k
  • Martin Ward

    CEO, MD & Executive Director

    • Tenure: 13.6yrs
    • Compensation: AU$1.60m
  • Keith Thornton

    Chief Operating Officer – Cars

    • Tenure: 2.6yrs
    • Compensation: AU$1.07m
  • Sophie Moore

    Director & CFO

    • Tenure: 2.4yrs
    • Compensation: AU$675.73k
  • Antoinette Yerbury

    General Manager of Marketing & Sales

    • Tenure: 0.0yrs
  • Hazel Cromie

    Group Human Resources Manager

    • Tenure: 0.0yrs

Board Members

  • Nicholas Politis (77yo)

    Non-Executive Director

    • Tenure: 19.3yrs
    • Compensation: AU$93.89k
  • Tim Crommelin (71yo)

    Chairman

    • Tenure: 6.3yrs
    • Compensation: AU$110.31k
  • Martin Ward

    CEO, MD & Executive Director

    • Tenure: 13.6yrs
    • Compensation: AU$1.60m
  • Dan Ryan

    Non-Executive Director

    • Tenure: 9.6yrs
    • Compensation: AU$93.89k
  • David Cowper

    Independent Non-Executive Director

    • Tenure: 7.1yrs
    • Compensation: AU$102.10k
  • Sophie Moore

    Director & CFO

    • Tenure: 2.4yrs
    • Compensation: AU$675.73k
  • Marcus Birrell

    Non-Executive Director

    • Tenure: 3.1yrs
    • 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$2.213b
  • Shares outstanding: 191.31m
  • 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 Analysis2019/08/22 10:33
End of Day Share Price2019/08/22 00:00
Earnings2018/12/31
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.