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APE

Eagers Automotive ASX:APE Stock Report

Last Price

AU$13.28

Market Cap

AU$3.4b

7D

1.4%

1Y

-17.3%

Updated

19 Aug, 2022

Data

Company Financials +
APE fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance6/6
Financial Health4/6
Dividends3/6

APE Stock 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$13.28
52 Week HighAU$17.50
52 Week LowAU$8.65
Beta1.77
1 Month Change8.58%
3 Month Change20.51%
1 Year Change-17.26%
3 Year Change14.78%
5 Year Change68.10%
Change since IPO2,556.03%

Recent News & Updates

Jul 28
Is Now The Time To Put Eagers Automotive (ASX:APE) On Your Watchlist?

Is Now The Time To Put Eagers Automotive (ASX:APE) On Your Watchlist?

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...

Jun 14
At AU$9.21, Is Eagers Automotive Limited (ASX:APE) Worth Looking At Closely?

At AU$9.21, Is Eagers Automotive Limited (ASX:APE) Worth Looking At Closely?

Eagers Automotive Limited ( ASX:APE ), is not the largest company out there, but it received a lot of attention from a...

Jun 01
An Intrinsic Calculation For Eagers Automotive Limited (ASX:APE) Suggests It's 24% Undervalued

An Intrinsic Calculation For Eagers Automotive Limited (ASX:APE) Suggests It's 24% Undervalued

How far off is Eagers Automotive Limited ( ASX:APE ) from its intrinsic value? Using the most recent financial data...

Shareholder Returns

APEAU Specialty RetailAU Market
7D1.4%-0.5%0.8%
1Y-17.3%-16.2%-4.9%

Return vs Industry: APE underperformed the Australian Specialty Retail industry which returned -16.2% over the past year.

Return vs Market: APE underperformed the Australian Market which returned -4.9% over the past year.

Price Volatility

Is APE's price volatile compared to industry and market?
APE volatility
APE Average Weekly Movement5.7%
Specialty Retail Industry Average Movement6.4%
Market Average Movement10.5%
10% most volatile stocks in AU Market17.8%
10% least volatile stocks in AU Market4.6%

Stable Share Price: APE is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: APE's weekly volatility (6%) 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: Car Retailing, Truck Retailing, and Property segments. 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.

Eagers Automotive Fundamentals Summary

How do Eagers Automotive's earnings and revenue compare to its market cap?
APE fundamental statistics
Market CapAU$3.40b
Earnings (TTM)AU$325.82m
Revenue (TTM)AU$8.67b

10.5x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
APE income statement (TTM)
RevenueAU$8.67b
Cost of RevenueAU$7.04b
Gross ProfitAU$1.63b
Other ExpensesAU$1.30b
EarningsAU$325.82m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 24, 2022

Earnings per share (EPS)1.27
Gross Margin18.80%
Net Profit Margin3.76%
Debt/Equity Ratio92.6%

How did APE perform over the long term?

See historical performance and comparison

Dividends

6.4%

Current Dividend Yield

49%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is APE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for APE?

Other financial metrics that can be useful for relative valuation.

APE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA10.4x
PEG Ratio-0.9x

Price to Earnings Ratio vs Peers

How does APE's PE Ratio compare to its peers?

APE PE Ratio vs Peers
The above table shows the PE ratio for APE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.2x
ASG Autosports Group
8.7x-6.0%AU$409.7m
PWR Peter Warren Automotive Holdings
11x-3.8%AU$460.1m
MTO MotorCycle Holdings
6.3x-5.2%AU$150.0m
PMV Premier Investments
14.4x1.1%AU$3.5b
APE Eagers Automotive
10.5x-11.1%AU$3.4b

Price-To-Earnings vs Peers: APE is expensive based on its Price-To-Earnings Ratio (10.5x) compared to the peer average (10.2x).


Price to Earnings Ratio vs Industry

How does APE's PE Ratio compare vs other companies in the AU Specialty Retail Industry?

Price-To-Earnings vs Industry: APE is expensive based on its Price-To-Earnings Ratio (10.5x) compared to the Australian Specialty Retail industry average (10.4x)


Price to Earnings Ratio vs Fair Ratio

What is APE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

APE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.5x
Fair PE Ratio11.7x

Price-To-Earnings vs Fair Ratio: APE is good value based on its Price-To-Earnings Ratio (10.5x) compared to the estimated Fair Price-To-Earnings Ratio (11.7x).


Share Price vs Fair Value

What is the Fair Price of APE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: APE (A$13.28) is trading below our estimate of fair value (A$14.81)

Significantly Below Fair Value: APE is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-11.1%

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 (-11.1% per year).

Earnings vs Market: APE's earnings are forecast to decline over the next 3 years (-11.1% per year).

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

Revenue vs Market: APE's revenue (3.4% per year) is forecast to grow slower than the Australian market (5% per year).

High Growth Revenue: APE's revenue (3.4% 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 (19.5%).


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Past Performance

How has Eagers Automotive performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


19.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: APE has high quality earnings.

Growing Profit Margin: APE's current net profit margins (3.8%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: APE's earnings have grown by 19.1% per year over the past 5 years.

Accelerating Growth: APE's earnings growth over the past year (78.4%) exceeds its 5-year average (19.1% per year).

Earnings vs Industry: APE earnings growth over the past year (78.4%) exceeded the Specialty Retail industry 21.4%.


Return on Equity

High ROE: APE's Return on Equity (31.1%) is considered high.


Discover strong past performing companies

Financial Health

How is Eagers Automotive's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: APE's short term assets (A$1.4B) exceed its short term liabilities (A$1.3B).

Long Term Liabilities: APE's short term assets (A$1.4B) exceed its long term liabilities (A$1.3B).


Debt to Equity History and Analysis

Debt Level: APE's net debt to equity ratio (74.5%) is considered high.

Reducing Debt: APE's debt to equity ratio has increased from 88.7% to 92.6% over the past 5 years.

Debt Coverage: APE's debt is well covered by operating cash flow (30%).

Interest Coverage: APE's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


6.40%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: APE's dividend (6.4%) is higher than the bottom 25% of dividend payers in the Australian market (2.63%).

High Dividend: APE's dividend (6.4%) is low compared to the top 25% of dividend payers in the Australian market (6.42%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (48.7%), APE's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (93%), APE's dividend payments are not well covered by cash flows.


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Management

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

7.0yrs

Average management tenure


CEO

Keith Thornton

1.5yrs

Tenure

AU$3,994,561

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 ($USD2.78M) is above average for companies of similar size in the Australian market ($USD1.59M).

Compensation vs Earnings: Keith's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: APE's management team is seasoned and experienced (7 years average tenure).


Board Members

Experienced Board: APE's board of directors are considered experienced (6.1 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 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
  • Implied Market Cap: AU$3.400b
  • Shares outstanding: 257.01m
  • 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 Analysis2022/08/19 00:00
End of Day Share Price2022/08/19 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.