APE

Eagers AutomotiveASX:APE Stock Report

Market Cap

AU$4.2b

7D

3.4%

1Y

73.0%

Updated

18 Sep, 2021

Data

Company Financials +
APE fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance2/6
Financial Health4/6
Dividends4/6

APE Overview

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

Eagers Automotive Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Eagers Automotive
Historical stock prices
Current Share PriceAU$16.21
52 Week HighAU$9.07
52 Week LowAU$17.67
Beta1.76
1 Month Change0.43%
3 Month Change3.05%
1 Year Change73.00%
3 Year Change109.70%
5 Year Change53.36%
Change since IPO3,142.03%

Recent News & Updates

Jun 16
At AU$15.64, Is It Time To Put Eagers Automotive Limited (ASX:APE) On Your Watch List?

At AU$15.64, Is It Time To Put Eagers Automotive Limited (ASX:APE) On Your Watch List?

Eagers Automotive Limited ( ASX:APE ), is not the largest company out there, but it saw a double-digit share price rise...

Shareholder Returns

APEAU Specialty RetailAU Market
7D3.4%2.3%-0.02%
1Y73.0%37.9%27.0%

Return vs Industry: APE exceeded the Australian Specialty Retail industry which returned 37.9% over the past year.

Return vs Market: APE exceeded the Australian Market which returned 27% over the past year.

Price Volatility

Is APE's price volatile compared to industry and market?
APE volatility
APE Beta1.76
Industry Beta1.21
Market Beta1

Stable Share Price: APE is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: APE's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19138,537Keith Thorntonhttps://www.eagersautomotive.com.au

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, Property, and Investments. The Car Retailing segment offers a range of automotive products and services, including new and used vehicles, vehicle maintenance and repair services, vehicle parts, service contracts, vehicle brokerage services, vehicle protection products, and other aftermarket products.

Valuation

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

12.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: APE (A$16.21) is trading above our estimate of fair value (A$11.74)

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


Price To Earnings Ratio

PE vs Industry: APE is poor value based on its PE Ratio (12.3x) compared to the Australian Specialty Retail industry average (11.4x).

PE vs Market: APE is good value based on its PE Ratio (12.3x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: APE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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 (4x).


Future Growth

How is Eagers Automotive forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-12.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APE's earnings are forecast to decline over the next 3 years (-12.9% per year).

Earnings vs Market: APE's earnings are forecast to decline over the next 3 years (-12.9% per year).

High Growth Earnings: APE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: APE's revenue (4.7% per year) is forecast to grow slower than the Australian market (5.3% per year).

High Growth Revenue: APE's revenue (4.7% 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 (19.3%).


Past Performance

How has Eagers Automotive performed over the past 5 years?

8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APE has a large one-off gain of A$179.0M impacting its June 30 2021 financial results.

Growing Profit Margin: APE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: APE's earnings have grown by 8% per year over the past 5 years.

Accelerating Growth: APE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: APE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (90.7%).


Return on Equity

High ROE: Whilst APE's Return on Equity (34.17%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Eagers Automotive's financial position?


Financial Position Analysis

Short Term Liabilities: APE's short term assets (A$1.6B) exceed its short term liabilities (A$1.6B).

Long Term Liabilities: APE's short term assets (A$1.6B) exceed its long term liabilities (A$1.3B).


Debt to Equity History and Analysis

Debt Level: APE's debt to equity ratio (110.5%) is considered high.

Reducing Debt: APE's debt to equity ratio has increased from 107% to 110.5% over the past 5 years.

Debt Coverage: APE's debt is well covered by operating cash flow (22.7%).

Interest Coverage: APE's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


Dividend

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

2.47%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 18 2021Ex Dividend DateSep 23 2021Dividend Pay DateOct 15 202122 days from Ex DividendBuy in the next 4 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: APE's dividend (2.47%) is higher than the bottom 25% of dividend payers in the Australian market (2.3%).

High Dividend: APE's dividend (2.47%) is low compared to the top 25% of dividend payers in the Australian market (5.41%).


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: With its reasonably low payout ratio (33.4%), APE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: APE's dividends in 3 years are forecast to be covered by earnings (65.7% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Keith Thornton

0.58

Tenure

AU$1,498,476

Compensation

Mr. Keith Thomas Thornton, BEc, has been Chief Executive Officer at Eagers Automotive Limited (formerly known as A.P. Eagers Limited) since February 24, 2021 and had been its Chief Operating Officer of Car...


CEO Compensation Analysis

Compensation vs Market: Keith's total compensation ($USD1.09M) is below average for companies of similar size in the Australian market ($USD1.73M).

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


Leadership Team

Experienced Management: APE's management team is considered experienced (3.3 years average tenure).


Board Members

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

Eagers Automotive Limited's 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$4.189b
  • Shares outstanding: 258.43m
  • Website: https://www.eagersautomotive.com.au

Number of Employees


Location

  • Eagers Automotive Limited
  • 5 Edmund Street
  • Newstead
  • Queensland
  • 4006
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 08:02
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.