APT

AfterpayASX:APT Stock Report

Market Cap

AU$36.6b

7D

2.2%

1Y

70.3%

Updated

22 Sep, 2021

Data

Company Financials +
APT fundamental analysis
Snowflake Score
Valuation0/6
Future Growth5/6
Past Performance0/6
Financial Health4/6
Dividends0/6

APT Overview

Afterpay Limited, together with its subsidiaries, provides payments solutions to customers, merchants, and businesses.

Afterpay Competitors

Sezzle

ASX:SZL

AU$1.2b

Splitit Payments

ASX:SPT

AU$193.5m

Laybuy Group Holdings

ASX:LBY

AU$127.2m

Visa

NYSE:V

US$473.7b

Price History & Performance

Summary of all time highs, changes and price drops for Afterpay
Historical stock prices
Current Share PriceAU$126.23
52 Week HighAU$72.77
52 Week LowAU$160.05
Beta1.95
1 Month Change-6.57%
3 Month Change-2.15%
1 Year Change70.26%
3 Year Change609.16%
5 Year Changen/a
Change since IPO4,575.18%

Recent News & Updates

Shareholder Returns

APTAU ITAU Market
7D2.2%0.9%-2.3%
1Y70.3%31.3%25.4%

Return vs Industry: APT exceeded the Australian IT industry which returned 27.3% over the past year.

Return vs Market: APT exceeded the Australian Market which returned 23.7% over the past year.

Price Volatility

Is APT's price volatile compared to industry and market?
APT volatility
APT Beta1.95
Industry Beta1.67
Market Beta1

Stable Share Price: APT is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: APT's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20171,300Ant Eisenhttps://www.afterpay.com

Afterpay Limited, together with its subsidiaries, provides payments solutions to customers, merchants, and businesses. Its Afterpay Asia Pacific segment operates the Afterpay platforms in Australia, New Zealand, and Asia. The company’s Afterpay North America segment operates the Afterpay platforms in the United States and Canada.

Afterpay Fundamentals Summary

How do Afterpay's earnings and revenue compare to its market cap?
APT fundamental statistics
Market CapAU$36.62b
Earnings (TTM)-AU$156.30m
Revenue (TTM)AU$836.05m

43.8x

P/S Ratio

-234.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
APT income statement (TTM)
RevenueAU$836.05m
Cost of RevenueAU$249.56m
Gross ProfitAU$586.48m
ExpensesAU$742.78m
Earnings-AU$156.30m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.55
Gross Margin70.15%
Net Profit Margin-18.69%
Debt/Equity Ratio98.7%

How did APT perform over the long term?

See historical performance and comparison

Valuation

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

28.1x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate APT's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate APT's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: APT is unprofitable, so we can't compare its PE Ratio to the Australian IT industry average.

PE vs Market: APT 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 APT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: APT is overvalued based on its PB Ratio (28.1x) compared to the AU IT industry average (3.3x).


Future Growth

How is Afterpay forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

55.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

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

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

Revenue vs Market: APT's revenue (29% per year) is forecast to grow faster than the Australian market (5.6% per year).

High Growth Revenue: APT's revenue (29% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: APT's Return on Equity is forecast to be low in 3 years time (19.9%).


Past Performance

How has Afterpay performed over the past 5 years?

-57.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APT is currently unprofitable.

Growing Profit Margin: APT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: APT is unprofitable, and losses have increased over the past 5 years at a rate of 57.7% per year.

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

Earnings vs Industry: APT is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (-11.2%).


Return on Equity

High ROE: APT has a negative Return on Equity (-12.22%), as it is currently unprofitable.


Financial Health

How is Afterpay's financial position?


Financial Position Analysis

Short Term Liabilities: APT's short term assets (A$2.7B) exceed its short term liabilities (A$325.4M).

Long Term Liabilities: APT's short term assets (A$2.7B) exceed its long term liabilities (A$1.5B).


Debt to Equity History and Analysis

Debt Level: APT's debt to equity ratio (98.7%) is considered high.

Reducing Debt: APT's debt to equity ratio has increased from 0.2% to 98.7% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: APT has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: APT has sufficient cash runway for 1.4 years if free cash flow continues to reduce at historical rates of 46.5% each year.


Dividend

What is Afterpay current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate APT'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 APT's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of APT'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?

1.6yrs

Average management tenure


CEO

Ant Eisen (49 yo)

0.83

Tenure

AU$738,925

Compensation

Mr. Anthony Mathew Eisen, also known as Ant, B.Com., C.A., is a Co-Founder of Afterpay Limited and serves as its Managing Director since July 1, 2019 and serves as its Co-Chief Executive Officer since Nove...


CEO Compensation Analysis

Compensation vs Market: Ant's total compensation ($USD533.94K) is below average for companies of similar size in the Australian market ($USD3.53M).

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


Leadership Team

Experienced Management: APT's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: APT's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: APT insiders have only sold shares 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%.


Top Shareholders

Company Information

Afterpay Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Afterpay Limited
  • Ticker: APT
  • Exchange: ASX
  • Founded: 2017
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: AU$36.617b
  • Shares outstanding: 290.08m
  • Website: https://www.afterpay.com

Number of Employees


Location

  • Afterpay Limited
  • 406 Collins Street
  • Level 5
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 15:24
End of Day Share Price2021/09/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.