Loading...

Applus Services

BME:APPS
Snowflake Description

Adequate balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
APPS
BME
€2B
Market Cap
  1. Home
  2. ES
  3. Commercial Services
Company description

Applus Services, S.A. provides testing, inspection, and certification services. The last earnings update was 143 days ago. More info.


Add to Portfolio Compare Print
APPS Share Price and Events
7 Day Returns
1%
BME:APPS
0.3%
Europe Professional Services
-1%
ES Market
1 Year Returns
4.6%
BME:APPS
4.6%
Europe Professional Services
-4.8%
ES Market
APPS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Applus Services (APPS) 1% 10.7% 16.2% 4.6% 35.7% -10.9%
Europe Professional Services 0.3% -1.4% 2.9% 4.6% 35.5% 62.3%
ES Market -1% -0.4% -3.1% -4.8% 9.3% -16.5%
1 Year Return vs Industry and Market
  • APPS matched the Professional Services industry (4.6%) over the past year.
  • APPS outperformed the Market in Spain which returned -4.8% over the past year.
Price Volatility
APPS
Industry
5yr Volatility vs Market

APPS Value

 Is Applus Services undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Applus Services to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Applus Services.

BME:APPS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.1%
Perpetual Growth Rate 10-Year ES Government Bond Rate 1.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BME:APPS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year ES Govt Bond Rate 1.5%
Equity Risk Premium S&P Global 8.2%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.851 (1 + (1- 25%) (34.52%))
1.048
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.05
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.53% + (1.048 * 8.18%)
10.1%

Discounted Cash Flow Calculation for BME:APPS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Applus Services 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.

BME:APPS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 10.1%)
2020 155.83 Analyst x9 141.54
2021 166.86 Analyst x9 137.65
2022 228.00 Analyst x1 170.84
2023 254.24 Est @ 11.51% 173.03
2024 275.89 Est @ 8.51% 170.54
2025 293.60 Est @ 6.42% 164.84
2026 308.13 Est @ 4.95% 157.13
2027 320.22 Est @ 3.92% 148.31
2028 330.48 Est @ 3.2% 139.03
2029 339.41 Est @ 2.7% 129.68
Present value of next 10 years cash flows €1,532.58
BME:APPS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €339.41 × (1 + 1.53%) ÷ (10.1% – 1.53%)
€4,019.40
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €4,019.40 ÷ (1 + 10.1%)10
€1,535.77
BME:APPS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €1,532.58 + €1,535.77
€3,068.34
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €3,068.34 / 142.74
€21.5
BME:APPS Discount to Share Price
Calculation Result
Value per share (EUR) From above. €21.50
Current discount Discount to share price of €12.51
= -1 x (€12.51 - €21.50) / €21.50
41.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Applus Services is available for.
Intrinsic value
42%
Share price is €12.51 vs Future cash flow value of €21.5
Current Discount Checks
For Applus Services to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Applus Services's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Applus Services'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 Applus Services's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Applus Services's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BME:APPS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in EUR €0.29
BME:APPS Share Price ** BME (2019-07-19) in EUR €12.51
Europe Professional Services Industry PE Ratio Median Figure of 96 Publicly-Listed Professional Services Companies 18.44x
Spain Market PE Ratio Median Figure of 141 Publicly-Listed Companies 17.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Applus Services.

BME:APPS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BME:APPS Share Price ÷ EPS (both in EUR)

= 12.51 ÷ 0.29

43.42x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Applus Services is overvalued based on earnings compared to the Europe Professional Services industry average.
  • Applus Services is overvalued based on earnings compared to the Spain market.
Price based on expected Growth
Does Applus Services's expected growth come at a high price?
Raw Data
BME:APPS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 43.42x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
18.5%per year
Europe Professional Services Industry PEG Ratio Median Figure of 57 Publicly-Listed Professional Services Companies 1.38x
Spain Market PEG Ratio Median Figure of 82 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

BME:APPS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 43.42x ÷ 18.5%

2.34x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Applus Services is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Applus Services's assets?
Raw Data
BME:APPS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in EUR €5.30
BME:APPS Share Price * BME (2019-07-19) in EUR €12.51
Europe Professional Services Industry PB Ratio Median Figure of 125 Publicly-Listed Professional Services Companies 2.22x
Spain Market PB Ratio Median Figure of 185 Publicly-Listed Companies 1.63x
BME:APPS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BME:APPS Share Price ÷ Book Value per Share (both in EUR)

= 12.51 ÷ 5.30

2.36x

* Primary Listing of Applus Services.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Applus Services is overvalued based on assets compared to the Europe Professional Services industry average.
X
Value checks
We assess Applus Services's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. Applus Services has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

APPS Future Performance

 How is Applus Services expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
18.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Applus Services expected to grow at an attractive rate?
  • Applus Services's earnings growth is expected to exceed the low risk savings rate of 1.5%.
Growth vs Market Checks
  • Applus Services's earnings growth is expected to exceed the Spain market average.
  • Applus Services's revenue growth is expected to exceed the Spain market average.
Annual Growth Rates Comparison
Raw Data
BME:APPS Future Growth Rates Data Sources
Data Point Source Value (per year)
BME:APPS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 18.5%
BME:APPS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 5%
Europe Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 9.3%
Europe Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
Spain Market Earnings Growth Rate Market Cap Weighted Average 7.7%
Spain Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BME:APPS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BME:APPS Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 2,216 1
2022-12-31 2,062 296 88 3
2021-12-31 1,955 257 82 11
2020-12-31 1,873 242 72 12
2019-12-31 1,784 226 62 12
BME:APPS Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-12-31 1,676 159 41
2018-09-30 1,643 41
2018-06-30 1,607 154 41
2018-03-31 1,587 38
2017-12-31 1,583 137 36
2017-09-30 1,586 27
2017-06-30 1,592 161 18
2017-03-31 1,572 11
2016-12-31 1,586 169 20
2016-09-30 1,606 168 25
2016-06-30 1,625 166 31
2016-03-31 1,663 163 34

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Applus Services's earnings are expected to grow by 18.5% yearly, however this is not considered high growth (20% yearly).
  • Applus Services's revenue is expected to grow by 5% 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.
Raw Data
BME:APPS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Applus Services Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BME:APPS Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 0.62 0.62 0.62 1.00
2021-12-31 0.61 0.74 0.51 8.00
2020-12-31 0.53 0.64 0.47 8.00
2019-12-31 0.44 0.46 0.42 7.00
BME:APPS Past Financials Data
Date (Data in EUR Millions) EPS *
2018-12-31 0.29
2018-09-30 0.29
2018-06-30 0.30
2018-03-31 0.28
2017-12-31 0.27
2017-09-30 0.21
2017-06-30 0.14
2017-03-31 0.09
2016-12-31 0.15
2016-09-30 0.19
2016-06-30 0.24
2016-03-31 0.26

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Applus Services is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Applus Services's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Applus Services has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

APPS Past Performance

  How has Applus Services performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Applus Services's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Applus Services has delivered over 20% year on year earnings growth in the past 5 years.
  • Applus Services's 1-year earnings growth is less than its 5-year average (15.8% vs 57.5%)
  • Applus Services's earnings growth has exceeded the Europe Professional Services industry average in the past year (15.8% vs 9.2%).
Earnings and Revenue History
Applus Services's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Applus Services Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BME:APPS Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,675.94 41.21
2018-09-30 1,643.19 41.38
2018-06-30 1,606.61 41.48
2018-03-31 1,586.79 37.98
2017-12-31 1,583.09 35.58
2017-09-30 1,586.42 27.50
2017-06-30 1,592.10 18.31
2017-03-31 1,572.17 11.37
2016-12-31 1,586.50 19.54
2016-09-30 1,605.62 25.05
2016-06-30 1,624.75 30.55
2016-03-31 1,663.11 34.40
2015-12-31 1,701.47 38.24
2015-09-30 1,700.24 41.00
2015-06-30 1,698.30 43.08
2015-03-31 1,658.51 33.42
2014-12-31 1,618.72 23.76
2014-09-30 1,605.20 -79.68 784.36
2014-06-30 1,599.97 -91.89
2014-03-31 1,590.24 -130.98
2013-12-31 1,580.50 -170.08
2012-12-31 1,192.65 -69.16 640.08

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Applus Services has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Applus Services used its assets less efficiently than the Europe Professional Services industry average last year based on Return on Assets.
  • Applus Services has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Applus Services's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.
Applus Services has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

APPS Health

 How is Applus Services's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Applus Services's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Applus Services is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Applus Services's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Applus Services'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 checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, 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.
Raw Data

All data from Applus Services Company Filings, last reported 6 months ago.

BME:APPS Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 810.89 615.98 142.02
2018-09-30 802.89 637.44 157.13
2018-06-30 802.89 636.58 157.13
2018-03-31 794.96 626.90 154.06
2017-12-31 794.96 624.95 154.06
2017-09-30
2017-06-30 656.28 714.74 143.82
2017-03-31 657.59 785.00 192.85
2016-12-31 657.59 782.30 192.85
2016-09-30 657.59 782.30 192.85
2016-06-30 650.10 764.00 123.63
2016-03-31 650.10 764.00 123.63
2015-12-31 651.30 817.64 166.70
2015-09-30 651.30 817.64 166.70
2015-06-30 660.13 834.46 131.86
2015-03-31 660.13 834.46 131.86
2014-12-31 633.57 785.00 154.33
2014-09-30 625.25 761.15 118.95
2014-06-30 625.25 761.15 118.95
2014-03-31 625.25 761.15 118.95
2013-12-31 323.25 1,100.58 183.73
2012-12-31 390.40 1,195.64 144.25
  • Applus Services's level of debt (76%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (338.2% vs 76% today).
  • Debt is well covered by operating cash flow (25.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.1x coverage).
X
Financial health checks
We assess Applus Services's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Applus Services has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

APPS Dividends

 What is Applus Services's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.2%
Current annual income from Applus Services dividends. Estimated to be 1.45% next year.
If you bought €2,000 of Applus Services shares you are expected to receive €24 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Applus Services's pays a lower dividend yield than the bottom 25% of dividend payers in Spain (2.3%).
  • Applus Services's dividend is below the markets top 25% of dividend payers in Spain (5.43%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BME:APPS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
Europe Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 75 Stocks 2.5%
Spain Market Average Dividend Yield Market Cap Weighted Average of 77 Stocks 4.4%
Spain Minimum Threshold Dividend Yield 10th Percentile 1.2%
Spain Bottom 25% Dividend Yield 25th Percentile 2.3%
Spain Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BME:APPS Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.19 2.00
2021-12-31 0.20 12.00
2020-12-31 0.18 12.00
2019-12-31 0.17 12.00
BME:APPS Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-03-21 0.150 1.328
2018-02-28 0.130 1.169
2018-02-27 0.130 1.146
2017-02-28 0.130 1.175
2016-02-29 0.130 1.474
2015-02-27 0.100 1.102
2015-02-25 0.100 0.969

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Applus Services has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Applus Services only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Applus Services's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.6x coverage).
X
Income/ dividend checks
We assess Applus Services's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Applus Services afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Applus Services has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

APPS Management

 What is the CEO of Applus Services's salary, the management and board of directors tenure and is there insider trading?

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.
CEO
Fernando Basabe Armijo
COMPENSATION €1,028,000
AGE 60
TENURE AS CEO 8.5 years
CEO Bio

Mr. Fernando Basabe Armijo has been the Chief Executive Officer of Applus Services, S.A. since January 2011. Mr. Basabe Armijo serves as Chief Executive Officer of Applus RTD B.V. He served as Chief Executive Officer of Applus RTD Benelux B.V. Mr. Basabe Armijo started his career with Manufacturers Hanover Trust Co (today J. P. Morgan) where he served different positions within the corporate banking division. He served as Chief Operating officer of Western Europe from 2002 to 2011 and Member of Operations Council of SGS SA. He started in SGS Spain in 1996 as Corporate Development Manager and was promoted in 1999 to Managing Director. Mr. Basabe Armijo served as Chief Operating Officer - South West Europe at SGS SA. Mr. Basabe Armijo Joined SGS in 1996 in Spain as Business Development Manager. He began his career in Finance. He served as Deputy General Manager of Grupo Fosforera SA in Spain. He joined SGS Tecnos S.A., in 1996 as Business Development Manager and also served as its General Manager since 1999. He has been an Executive Director at Applus Services, S.A. since February 1, 2011. Mr. Basabe Armijo served as National Chief Executive of SGS Spain. He holds a BA degree in Law from the University of Madrid and an MBA from IESE in Barcelona.

CEO Compensation
  • Fernando's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Fernando's remuneration is higher than average for companies of similar size in Spain.
Management Team Tenure

Average tenure and age of the Applus Services management team in years:

9.5
Average Tenure
53
Average Age
  • The average tenure for the Applus Services management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Fernando Basabe Armijo

TITLE
CEO & Executive Director
COMPENSATION
€1M
AGE
60
TENURE
8.5 yrs

Joan I. Casas

TITLE
CFO & Executive Director
AGE
53
TENURE
11.6 yrs

Aston Swift

TITLE
Vice President of Investor Relations
TENURE
5.5 yrs

Eva Argilés Malonda

TITLE
General Counsel
AGE
46
TENURE
6.5 yrs

Anna Díaz

TITLE
Compliance Officer & Risk Manager
AGE
47
TENURE
4.5 yrs

José Pérez Fernández

TITLE
Senior Vice President of Human Resources
AGE
52
TENURE
1.5 yrs

Jorge Lluch Zanón

TITLE
Senior Vice President of Corporate Development
AGE
59
TENURE
12.5 yrs

Aitor Retes Aguado

TITLE
Executive Vice President of Automotive Division
AGE
52
TENURE
10.5 yrs

Carles Grasas Alsina

TITLE
Executive Vice President of Idiada Division
AGE
65
TENURE
32.5 yrs

Jordi Brufau Redondo

TITLE
Executive Vice President of Laboratories Division
COMPENSATION
€162K
AGE
60
TENURE
12.5 yrs
Board of Directors Tenure

Average tenure and age of the Applus Services board of directors in years:

4.5
Average Tenure
65
Average Age
  • The tenure for the Applus Services board of directors is about average.
Board of Directors

Christopher Cole

TITLE
Non-Executive Chairman
COMPENSATION
€230K
AGE
73
TENURE
5.2 yrs

Fernando Basabe Armijo

TITLE
CEO & Executive Director
COMPENSATION
€1M
AGE
60
TENURE
8.4 yrs

Joan I. Casas

TITLE
CFO & Executive Director
AGE
53
TENURE
0.2 yrs

John Hofmeister

TITLE
Non-Executive Independent Director
COMPENSATION
€90K
AGE
71
TENURE
6 yrs

Nicolás Jiménez

TITLE
Non-Executive Independent Director
COMPENSATION
€14K
AGE
70
TENURE
3.8 yrs

Ernesto Gerardo Mata López

TITLE
Non-Executive Independent Director
COMPENSATION
€90K
AGE
78
TENURE
11.7 yrs

Richard Campbell Nelson

TITLE
Non-Executive Independent Director
COMPENSATION
€100K
AGE
76
TENURE
9.8 yrs

María Cristina Henriquez de Luna

TITLE
Non-Executive Independent Director
AGE
53
TENURE
3 yrs

María Esteruelas Aguirre

TITLE
Non-Executive Independent Director
AGE
47
TENURE
0.4 yrs

Essimari Kairisto

TITLE
Non-Executive Independent Director
AGE
53
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
17. Jul 19 Buy Fernando Basabe Armijo Individual 22. Feb 19 22. Feb 19 20,668 €10.42 €215,361
14. Nov 18 Buy Nicolás Jiménez Individual 09. Nov 18 13. Nov 18 10,000 €11.50 €114,778
31. Jul 18 Sell Fernando Basabe Armijo Individual 26. Jul 18 27. Jul 18 -44,253 €12.63 €-558,011
X
Management checks
We assess Applus Services's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Applus Services has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

APPS News

Simply Wall St News

Despite Its High P/E Ratio, Is Applus Services, S.A. (BME:APPS) Still Undervalued?

Check out our latest analysis for Applus Services How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Applus Services: P/E of 43 = €12.39 ÷ €0.29 (Based on the year to December 2018.) Is A High Price-to-Earnings Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' Does Applus Services Have A Relatively High Or Low P/E For Its Industry?

Simply Wall St -

Is Applus Services (BME:APPS) A Risky Investment?

Either way, since Applus Services does have more debt than cash, it's worth keeping an eye on its balance sheet. … Happily for any shareholders, Applus Services actually produced more free cash flow than EBIT over the last three years. … If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

Simply Wall St -

Why We’re Not Impressed By Applus Services, S.A.’s (BME:APPS) 6.7% ROCE

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Applus Services: 0.067 = €111m ÷ (€2.0b - €344m) (Based on the trailing twelve months to December 2018.) So, Applus Services has an ROCE of 6.7%. … How Applus Services's Current Liabilities Impact Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Why You Should Care About Applus Services, S.A.’s (BME:APPS) Low Return On Capital

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Applus Services: 0.067 = €111m ÷ (€2.0b - €344m) (Based on the trailing twelve months to December 2018.) So, Applus Services has an ROCE of 6.7%. … Do Applus Services's Current Liabilities Skew Its ROCE? … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Is Applus Services, S.A.'s (BME:APPS) 1.3% Dividend Worth Your Time?

(BME:APPS) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful. With a 1.3% yield and a four-year payment history, investors probably think Applus Services looks like a reliable dividend stock. A low yield is generally a turn-off, but if the prospects for earnings growth were strong, investors might be pleasantly surprised by the long-term results. Some simple research can reduce the risk of buying Applus Services for its dividend - read on to learn more. Click the interactive chart for our full dividend analysis BME:APPS Historical Dividend Yield, June 18th 2019 Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. Applus Services paid out 52% of its profit as dividends, over the trailing twelve month period. This is a healthy payout ratio, and while it does limit the amount of earnings that can be reinvested in the business, there is also some room to lift the payout ratio over time. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Applus Services paid out 17% of its free cash flow as dividends last year, which is conservative and suggests the dividend is sustainable. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. Is Applus Services's Balance Sheet Risky? As Applus Services has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … Applus Services has been paying a dividend for the past four years. … It's good to see Applus Services has been growing its earnings per share at 32% a year over the past 5 years.

Simply Wall St -

You Might Like Applus Services, S.A. (BME:APPS) But Do You Like Its Debt?

On top of this, APPS has produced cash from operations of €159m in the last twelve months, resulting in an operating cash to total debt ratio of 26%, signalling that APPS’s current level of operating cash is high enough to cover debt. … With current liabilities at €344m, it seems that the business has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.66x. … We can check to see whether APPS is able to meet its debt obligations by looking at the net interest coverage ratio.

Simply Wall St -

Is Applus Services, S.A.'s (BME:APPS) 7.4% ROE Worse Than Average?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Applus Services: 7.4% = €41m ÷ €811m (Based on the trailing twelve months to December 2018.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does Applus Services Have A Good Return On Equity? … Combining Applus Services's Debt And Its 7.4% Return On Equity Although Applus Services does use debt, its debt to equity ratio of 0.76 is still low.

Simply Wall St -

How Does Applus Services, S.A. (BME:APPS) Affect Your Portfolio Volatility?

Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Could Applus Services, S.A.'s (BME:APPS) Investor Composition Influence The Stock Price?

(BME:APPS), then you'll have to look at the makeup of its share registry. … Generally speaking, as a company grows, institutions will increase their ownership. … Conversely, insiders often decrease their ownership over time.

Simply Wall St -

Have Insiders Been Selling Applus Services, S.A. (BME:APPS) Shares?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … So what is clear is that an insider saw fit to sell at around the current price of €10.66. … But insiders sold 168k shares worth €2.0m

Simply Wall St -

APPS Company Info

Description

Applus Services, S.A. provides testing, inspection, and certification services. The company’s Applus+ Energy & lndustry segment provides non-destructive testing, quality control, and accreditation services, as well as project management, supplier inspection, facility inspection, and asset certification and integrity services. It also provides qualified staff recruitment and hiring services for the oil and gas, aircraft, energy, mining, telecommunications, and construction industries. Its Applus+ Laboratories segment offers a range of laboratory testing, system certification, and product development services across various industries, including aerospace and industrial sectors. The company’s Applus+ Automotive segment provides mandatory vehicle roadworthiness testing services, verifying vehicles' compliance with safety and emissions regulations in force in various countries. Its Applus+ IDIADA segment offers design, engineering, testing, and certification services primarily to car manufacturers. Applus Services, S.A. primarily operates in Spain, the rest of Europe, the United States, Canada, the Asia Pacific, the Middle East, Africa, and Latin America. The company was formerly known as Applus Technologies Holding, S.L. and changed its name to Applus Services, S.A. in March 2014. Applus Services, S.A. was founded in 1996 and is headquartered in Madrid, Spain.

Details
Name: Applus Services, S.A.
APPS
Exchange: BME
Founded: 1996
€1,785,615,225
142,735,030
Website: http://www.applus.com
Address: Applus Services, S.A.
Parque Empresarial Las Mercedes,
Campezo, 1,
Madrid,
Madrid, 28022,
Spain
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BME APPS Ordinary Shares Bolsas y Mercados Espanoles ES EUR 09. May 2014
DB 39A Ordinary Shares Deutsche Boerse AG DE EUR 09. May 2014
LSE 0QTZ Ordinary Shares London Stock Exchange GB EUR 09. May 2014
BATS-CHIXE APPSE Ordinary Shares BATS 'Chi-X Europe' GB EUR 09. May 2014
Number of employees
Current staff
Staff numbers
22,852
Applus Services employees.
Industry
Research and Consulting Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 22:37
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/18
Last earnings filing: 2019/02/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.