ASX:APA

Stock Analysis Report

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Executive Summary

APA Group develops, owns, and operates natural gas transportation and energy infrastructure in Australia. More Details


Snowflake Analysis

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

How has APA Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: APA is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: APA's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

0.2%

APA

-0.3%

AU Gas Utilities

-1.6%

AU Market


1 Year Return

-13.8%

APA

-0.4%

AU Gas Utilities

5.8%

AU Market

Return vs Industry: APA underperformed the Australian Gas Utilities industry which returned -1.2% over the past year.

Return vs Market: APA underperformed the Australian Market which returned 4.4% over the past year.


Shareholder returns

APAIndustryMarket
7 Day0.2%-0.3%-1.6%
30 Day-2.4%2.1%-0.9%
90 Day-12.7%1.8%3.9%
1 Year-9.5%-13.8%3.3%-0.4%9.3%5.8%
3 Year34.2%16.6%13.7%2.9%28.5%13.0%
5 Year42.6%9.8%44.6%20.6%66.2%33.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

36.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: APA (A$9.33) is trading below our estimate of fair value (A$14.77)

Significantly Below Fair Value: APA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: APA is poor value based on its PE Ratio (84.5x) compared to the XX Gas Utilities industry average (17.4x).

PE vs Market: APA is poor value based on its PE Ratio (84.5x) compared to the Australian market (22.1x).


Price to Earnings Growth Ratio

PEG Ratio: APA is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: APA is overvalued based on its PB Ratio (3.4x) compared to the XX Gas Utilities industry average (1.5x).


Next Steps

Future Growth

How is APA Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

23.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APA's forecast earnings growth (23% per year) is above the savings rate (2%).

Earnings vs Market: APA's earnings (23% per year) are forecast to grow faster than the Australian market (15.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: APA's revenue (2.9% per year) is forecast to grow slower than the Australian market (5.1% per year).

High Growth Revenue: APA's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: APA's Return on Equity is forecast to be low in 3 years time (15.9%).


Next Steps

Past Performance

How has APA Group performed over the past 5 years?

6.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APA has a large one-off loss of A$249.3M impacting its December 31 2020 financial results.

Growing Profit Margin: APA's current net profit margins (5.1%) are lower than last year (12.1%).


Past Earnings Growth Analysis

Earnings Trend: APA's earnings have grown by 6.5% per year over the past 5 years.

Accelerating Growth: APA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: APA had negative earnings growth (-57.4%) over the past year, making it difficult to compare to the Gas Utilities industry average (2.3%).


Return on Equity

High ROE: APA's Return on Equity (4%) is considered low.


Next Steps

Financial Health

How is APA Group's financial position?


Financial Position Analysis

Short Term Liabilities: APA's short term assets (A$1.2B) exceed its short term liabilities (A$578.4M).

Long Term Liabilities: APA's short term assets (A$1.2B) do not cover its long term liabilities (A$11.4B).


Debt to Equity History and Analysis

Debt Level: APA's debt to equity ratio (305.1%) is considered high.

Reducing Debt: APA's debt to equity ratio has increased from 236.5% to 305.1% over the past 5 years.

Debt Coverage: APA's debt is not well covered by operating cash flow (11%).

Interest Coverage: APA's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Next Steps

Dividend

What is APA Group current dividend yield, its reliability and sustainability?

5.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: APA's dividend (5.47%) is higher than the bottom 25% of dividend payers in the Australian market (2.04%).

High Dividend: APA's dividend (5.47%) is in the top 25% of dividend payers in the Australian market (5.25%)


Stability and Growth of Payments

Stable Dividend: APA's dividends per share have been stable in the past 10 years.

Growing Dividend: APA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (461.6%), APA's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: APA's dividends in 3 years are not forecast to be well covered by earnings (173.3% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Rob Wheals

1.58yrs

Tenure

AU$3,160,765

Compensation

Mr. Robert Anthony Wheals, also known as Rob, BCom, CA, GAICD, MAICD, has been Group Executive of Transmission at Australian Pipeline Limited - Responsible Entity of APT Investment Trust since September 22...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD2.50M) is about average for companies of similar size in the Australian market ($USD2.46M).

Compensation vs Earnings: Rob's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Wheals
CEO, MD & Director1.58yrsAU$3.16m0.0063%
A$ 675.6k
Darren Rogers
Group Executive of Operations1.08yrsAU$887.86k0.00032%
A$ 34.2k
Ross Gersbach
President of North American Development8.75yrsAU$2.36m0.0038%
A$ 405.1k
Adam Watson
Chief Financial Officer0.25yrno datano data
Hannah McCaughey
Group Executive of Transformation & Technology0.92yrno datano data
Jennifer Blake
Group Head of Investor Relationsno datano datano data
Vanessa Puli
Head of Corporate Communicationsno datano datano data
Vicki Barron
Acting Group Executive People0.083yrno datano data
Nevenka Codevelle
Group Executive of Governance & External Affairs and Company Secretary5.33yrsAU$1.01mno data
Amanda Cheney
Additional Company Secretary1yrno datano data
Kevin Lester
Group Executive of Infrastructure Development8.5yrsAU$1.29mno data
Yoko Kosugi
General Manager of Investor Relations & Analysisno datano datano data

1.1yrs

Average Tenure

Experienced Management: APA's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Robert Wheals
CEO, MD & Director1.58yrsAU$3.16m0.0063%
A$ 675.6k
Steven Crane
Independent Non Executive Director10.08yrsAU$221.40k0.011%
A$ 1.2m
Peter Wasow
Independent Director2.92yrsAU$241.40k0.0022%
A$ 235.2k
Michael Fraser
Independent Chairman3.33yrsAU$511.40k0.0087%
A$ 932.2k
James Fazzino
Independent Director2yrsAU$221.40k0.0026%
A$ 279.0k
Shirley In't Veld
Independent Director2.92yrsAU$237.40k0.0021%
A$ 226.6k
Debra Goodin
Independent Non-Executive Director5.42yrsAU$245.40k0.0021%
A$ 219.1k
Rhoda Phillippo
Independent Director0.67yrAU$18.12k0.000080%
A$ 8.6k

2.9yrs

Average Tenure

63yo

Average Age

Experienced Board: APA's board of directors are not considered experienced ( 2.9 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: 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

APA Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: APA Group
  • Ticker: APA
  • Exchange: ASX
  • Founded: 2000
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: AU$10.690b
  • Shares outstanding: 1.18b
  • Website: https://www.apa.com.au

Number of Employees


Location

  • APA Group
  • 580 George Street
  • Level 25
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APAASX (Australian Securities Exchange)YesStapled SecuritiesAUAUDJun 2000
APAJ.FOTCPK (Pink Sheets LLC)YesStapled SecuritiesUSUSDJun 2000
PJZDB (Deutsche Boerse AG)YesStapled SecuritiesDEEURJun 2000
APACHIA (Chi-X Australia)YesStapled SecuritiesAUAUDJun 2000

Biography

APA Group develops, owns, and operates natural gas transportation and energy infrastructure in Australia. The company operates through three segments: Energy Infrastructure, Asset Management, and Energy In...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/24 07:06
End of Day Share Price2021/02/24 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.