Executive Summary
APA Group develops, owns, and operates natural gas transportation and energy infrastructure in Australia. More Details
Rewards
Risk Analysis
Dividend of 5.47% is not well covered by earnings or forecast to be in the next 3 years
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
| APA | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.2% | -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 Year | 34.2%16.6% | 13.7%2.9% | 28.5%13.0% |
| 5 Year | 42.6%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
4 days ago | Simply Wall St
Is APA Group (ASX:APA) At Risk Of Cutting Its Dividend?2 weeks ago | Simply Wall St
Is APA Group (ASX:APA) Popular Amongst Institutions?4 weeks ago | Simply Wall St
Should APA Group (ASX:APA) Be Disappointed With Their 18% Profit?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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Director | 1.58yrs | AU$3.16m | 0.0063% A$ 675.6k | |
| Group Executive of Operations | 1.08yrs | AU$887.86k | 0.00032% A$ 34.2k | |
| President of North American Development | 8.75yrs | AU$2.36m | 0.0038% A$ 405.1k | |
| Chief Financial Officer | 0.25yr | no data | no data | |
| Group Executive of Transformation & Technology | 0.92yr | no data | no data | |
| Group Head of Investor Relations | no data | no data | no data | |
| Head of Corporate Communications | no data | no data | no data | |
| Acting Group Executive People | 0.083yr | no data | no data | |
| Group Executive of Governance & External Affairs and Company Secretary | 5.33yrs | AU$1.01m | no data | |
| Additional Company Secretary | 1yr | no data | no data | |
| Group Executive of Infrastructure Development | 8.5yrs | AU$1.29m | no data | |
| General Manager of Investor Relations & Analysis | no data | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Director | 1.58yrs | AU$3.16m | 0.0063% A$ 675.6k | |
| Independent Non Executive Director | 10.08yrs | AU$221.40k | 0.011% A$ 1.2m | |
| Independent Director | 2.92yrs | AU$241.40k | 0.0022% A$ 235.2k | |
| Independent Chairman | 3.33yrs | AU$511.40k | 0.0087% A$ 932.2k | |
| Independent Director | 2yrs | AU$221.40k | 0.0026% A$ 279.0k | |
| Independent Director | 2.92yrs | AU$237.40k | 0.0021% A$ 226.6k | |
| Independent Non-Executive Director | 5.42yrs | AU$245.40k | 0.0021% A$ 219.1k | |
| Independent Director | 0.67yr | AU$18.12k | 0.000080% A$ 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| APA | ASX (Australian Securities Exchange) | Yes | Stapled Securities | AU | AUD | Jun 2000 |
| APAJ.F | OTCPK (Pink Sheets LLC) | Yes | Stapled Securities | US | USD | Jun 2000 |
| PJZ | DB (Deutsche Boerse AG) | Yes | Stapled Securities | DE | EUR | Jun 2000 |
| APA | CHIA (Chi-X Australia) | Yes | Stapled Securities | AU | AUD | Jun 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/24 07:06 |
| End of Day Share Price | 2021/02/24 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
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.