ASX:APE

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Eagers Automotive

Executive Summary

Eagers Automotive Limited engages in the ownership and operation of motor vehicle and truck dealerships in Australia and New Zealand. More Details


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: APE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.0%

APE

-2.4%

AU Specialty Retail

-0.4%

AU Market


1 Year Return

-1.3%

APE

15.2%

AU Specialty Retail

-7.0%

AU Market

Return vs Industry: APE underperformed the Australian Specialty Retail industry which returned 15.2% over the past year.

Return vs Market: APE exceeded the Australian Market which returned -7% over the past year.


Shareholder returns

APEIndustryMarket
7 Day3.0%-2.4%-0.4%
30 Day31.2%12.0%4.3%
90 Day68.6%30.5%4.3%
1 Year2.6%-1.3%19.2%15.2%-3.8%-7.0%
3 Year83.9%62.5%90.0%66.4%17.0%2.3%
5 Year39.0%14.2%100.1%59.4%42.9%14.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Eagers Automotive undervalued compared to its fair value and its price relative to the market?

4.08x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: APE (A$12.19) is trading above our estimate of fair value (A$3.47)

Significantly Below Fair Value: APE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: APE is unprofitable, so we can't compare its PE Ratio to the AU Specialty Retail industry average.

PE vs Market: APE is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate APE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: APE is overvalued based on its PB Ratio (4.1x) compared to the AU Specialty Retail industry average (2.7x).


Next Steps

Future Growth

How is Eagers Automotive forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: APE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: APE's is expected to become profitable in the next 3 years.

Revenue vs Market: APE's revenue (5.5% per year) is forecast to grow faster than the Australian market (4.7% per year).

High Growth Revenue: APE's revenue (5.5% 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 (16.7%).


Next Steps

Past Performance

How has Eagers Automotive performed over the past 5 years?

-29.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APE is currently unprofitable.

Growing Profit Margin: APE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: APE is unprofitable, and losses have increased over the past 5 years at a rate of 29.2% per year.

Accelerating Growth: Unable to compare APE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: APE is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (-3.9%).


Return on Equity

High ROE: APE has a negative Return on Equity (-10.32%), as it is currently unprofitable.


Next Steps

Financial Health

How is Eagers Automotive's financial position?


Financial Position Analysis

Short Term Liabilities: APE's short term assets (A$1.7B) do not cover its short term liabilities (A$1.9B).

Long Term Liabilities: APE's short term assets (A$1.7B) exceed its long term liabilities (A$1.5B).


Debt to Equity History and Analysis

Debt Level: APE's debt to equity ratio (164%) is considered high.

Reducing Debt: APE's debt to equity ratio has increased from 95.7% to 164% over the past 5 years.

Debt Coverage: APE's debt is well covered by operating cash flow (41%).

Interest Coverage: APE is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Eagers Automotive current dividend yield, its reliability and sustainability?

2.40%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate APE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate APE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if APE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if APE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: APE is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of APE's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

9.0yrs

Average management tenure


CEO

Martin Ward

14.75yrs

Tenure

AU$2,225,534

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 ($USD1.58M) is about average for companies of similar size in the Australian market ($USD1.30M).

Compensation vs Earnings: Martin's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Martin Ward
CEO, MD & Executive Director14.75yrsAU$2.23m0.81%
A$ 25.3m
Sophie Moore
Executive Director & CFO3.58yrsAU$1.11m0.047%
A$ 1.5m
Denis Stark
General Counsel & Company Secretary12.75yrsAU$770.88k0.068%
A$ 2.1m
Keith Thornton
Chief Operating Officer of Cars3.75yrsAU$1.49m0.15%
A$ 4.8m
Antoinette Yerbury
General Manager of Marketing & Salesno datano datano data

9.0yrs

Average Tenure

Experienced Management: APE's management team is seasoned and experienced (9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Martin Ward
CEO, MD & Executive Director14.75yrsAU$2.23m0.81%
A$ 25.3m
Sophie Moore
Executive Director & CFO3.58yrsAU$1.11m0.047%
A$ 1.5m
Nicholas Politis
Non-Executive Director20.42yrsAU$93.70k0.0023%
A$ 72.0k
Timothy Boyd Crommelin
Independent Chairman7.42yrsAU$110.13k0.17%
A$ 5.3m
Daniel Ryan
Non-Executive Director10.75yrsAU$93.70k0.00047%
A$ 14.7k
David Cowper
Independent Non-Executive Director8.25yrsAU$110.13k0.0059%
A$ 183.5k
Gregory Duncan
Independent Non-Executive Director0.83yrAU$6.68k0.12%
A$ 3.7m
David Blackhall
Independent Non-Executive Director0.83yrAU$6.68k0.011%
A$ 342.0k
Marcus Birrell
Non-Executive Director4.25yrsAU$93.70k0.78%
A$ 24.4m
Michelle Prater
Non-Executive Director0.67yrno data0.99%
A$ 31.0m

5.8yrs

Average Tenure

Experienced Board: APE's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: APE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.7%.


Top Shareholders

Company Information

Eagers Automotive Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eagers Automotive Limited
  • Ticker: APE
  • Exchange: ASX
  • Founded: 1913
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: AU$3.132b
  • Shares outstanding: 256.93m
  • Website: https://www.eagersautomotive.com.au

Number of Employees


Location

  • Eagers Automotive 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

Eagers Automotive Limited engages in the ownership and operation of motor vehicle and truck dealerships in Australia and New Zealand. It operates through four segments: Car Retailing, Truck Retailing, Prop ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 10:35
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.