AmeriGas Partners, L.P. through its subsidiary, AmeriGas Propane, L.P., distributes propane and related equipment and supplies in the United States.
The last earnings update was 77 days ago.
Discounted Cash Flow Calculation for DB:APK using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
DB:APK DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
AmeriGas Partners's share price is below the future cash flow value, and at a moderate discount (> 20%).
AmeriGas Partners's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
AmeriGas Partners's earnings available for a low price, and how does
this compare to other companies in the same industry?
AmeriGas Partners's earnings are expected to grow significantly at over 20% yearly.
AmeriGas Partners's revenue is expected to grow by 0.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
AmeriGas Partners's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
AmeriGas Partners's finances.
The net worth of a company is the difference between its assets and liabilities.
AmeriGas Partners's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
AmeriGas Partners's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
AmeriGas Partners's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.2x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Hugh J. Gallagher has been the President and Chief Executive Officer AmeriGas Partners, L.P. since September 18, 2018 & President, CEO & Director at Amerigas Propane, Inc. since October 10, 2018 and served as its Chief Financial Officer and Vice President of Finance from May 20, 2013 until September 18, 2018 and was Treasurer of both UGI corporations and General Partner since 2011 to 2014. Mr. Gallagher has been President and Chief Executive Officer of AmeriGas Partners at UGI Corp. since September 2018. He served as Director of Treasury Services and Investor Relations of UGI Corporation from 2009 to 2011 and served as its Director-Treasury Services from 2007 to 2009. He also served as a Director of General Partner since 2004 to 2007. Mr. Gallagher served as the Amerigas Propane, Inc.'s Director-Corporate Development from 2004 to 2007, Director of Financial Planning and Analysis from 2000 to 2004, Financial Manager-Operations from 1999 to 2000, Manager of Financial Reporting from 1996 to 1999 and Team Leader of Financial Reporting from 1995 to 1996. He joined UGI Corp. in 1990 and has served both UGI and AmeriGas in various finance, accounting and operations roles. Mr. Gallagher holds a Bachelor of Science degree in Accounting from Drexel University and is a Certified Public Accountant.
Hugh's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Hugh's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the AmeriGas Partners management team is about average.
Executive Chairman of AmeriGas Propane
VP & COO of AmeriGas Propane
VP, General Counsel & Secretary of AmeriGas Propane Inc
Chief Financial Officer of AmeriGas Propane
Controller & Chief Accounting Officer of AmeriGas Propane
Investor Relations Contact
Vice President of Human Resources & Strategic Initiatives - AmeriGas Propane Inc
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the AmeriGas Partners board of directors is about average.
AmeriGas Partners, L.P. through its subsidiary, AmeriGas Propane, L.P., distributes propane and related equipment and supplies in the United States. It serves approximately 1.7 million residential, commercial, industrial, agricultural, wholesale, and motor fuel customers in 50 states through approximately 1,900 propane distribution locations. The company’s propane is used for home heating, water heating, and cooking purposes; to fire furnaces, as a cutting gas, and in other process applications; as a supplemental fuel and motor fuel; and for tobacco curing, chicken brooding, crop drying, and orchard heating applications. It also sells, installs, and services propane appliances, such as heating systems; propane-powered generators; and offers residential heating, ventilation, air conditioning, plumbing, and related services. The company markets propane and other services primarily under the AmeriGas, America's Propane Company, Driving Every Day, Heritage Propane, and Relationships Matter names. AmeriGas Propane, Inc. serves as the general partner of the company. AmeriGas Partners, L.P. was founded in 1994 and is based in King of Prussia, Pennsylvania.
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