BME:APPS

Stock Analysis Report

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Executive Summary

Applus Services, S.A. provides testing, inspection, and certification services.


Snowflake Analysis

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Applus Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: APPS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.3%

APPS

3.3%

ES Professional Services

9.1%

ES Market


1 Year Return

-32.4%

APPS

1.6%

ES Professional Services

-13.4%

ES Market

Return vs Industry: APPS underperformed the Spanish Professional Services industry which returned 2.4% over the past year.

Return vs Market: APPS underperformed the Spanish Market which returned -14.9% over the past year.


Shareholder returns

APPSIndustryMarket
7 Day10.3%3.3%9.1%
30 Day35.3%7.4%14.8%
90 Day-14.8%6.9%-1.8%
1 Year-31.8%-32.4%3.9%1.6%-10.8%-13.4%
3 Year-25.5%-27.6%25.4%15.7%-19.0%-26.4%
5 Year-19.0%-23.0%71.8%49.7%-9.5%-24.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

19.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: APPS (€7.85) is trading below our estimate of fair value (€9.72)

Significantly Below Fair Value: APPS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: APPS is poor value based on its PE Ratio (20.2x) compared to the Professional Services industry average (17.3x).

PE vs Market: APPS is poor value based on its PE Ratio (20.2x) compared to the Spanish market (16x).


Price to Earnings Growth Ratio

PEG Ratio: APPS is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: APPS is good value based on its PB Ratio (1.4x) compared to the XE Professional Services industry average (1.8x).


Next Steps

Future Growth

How is Applus Services forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APPS's forecast earnings growth (9.9% per year) is above the savings rate (1.3%).

Earnings vs Market: APPS's earnings (9.9% per year) are forecast to grow slower than the Spanish market (18.2% per year).

High Growth Earnings: APPS's earnings are forecast to grow, but not significantly.

Revenue vs Market: APPS's revenue (0.5% per year) is forecast to grow slower than the Spanish market (4.9% per year).

High Growth Revenue: APPS's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: APPS's Return on Equity is forecast to be low in 3 years time (11.9%).


Next Steps

Past Performance

How has Applus Services performed over the past 5 years?

11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APPS has high quality earnings.

Growing Profit Margin: APPS's current net profit margins (3.1%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: APPS's earnings have grown by 11.6% per year over the past 5 years.

Accelerating Growth: APPS's earnings growth over the past year (35%) exceeds its 5-year average (11.6% per year).

Earnings vs Industry: APPS earnings growth over the past year (35%) exceeded the Professional Services industry -2.6%.


Return on Equity

High ROE: APPS's Return on Equity (9.3%) is considered low.


Next Steps

Financial Health

How is Applus Services's financial position?


Financial Position Analysis

Short Term Liabilities: APPS's short term assets (€613.1M) exceed its short term liabilities (€457.9M).

Long Term Liabilities: APPS's short term assets (€613.1M) do not cover its long term liabilities (€890.2M).


Debt to Equity History and Analysis

Debt Level: APPS's debt to equity ratio (72.7%) is considered high.

Reducing Debt: APPS's debt to equity ratio has reduced from 123.9% to 72.7% over the past 5 years.

Debt Coverage: APPS's debt is well covered by operating cash flow (41.4%).

Interest Coverage: APPS's interest payments on its debt are well covered by EBIT (7.7x coverage).


Balance Sheet


Next Steps

Dividend

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

2.01%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: APPS is not paying a notable dividend for the Spanish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of APPS's dividend in 3 years as they are not forecast to pay a notable one for the Spanish market.


Next Steps

Management

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

7.4yrs

Average management tenure


CEO

Fernando Basabe Armijo (60yo)

9.42yrs

Tenure

€1,028,000

Compensation

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 Execut ...


CEO Compensation Analysis

Compensation vs Market: Fernando's total compensation ($USD0.00) is below average for companies of similar size in the Spanish market ($USD1.09M).

Compensation vs Earnings: Fernando's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Fernando Basabe Armijo
CEO & Executive Director9.42yrs€1.03m0.014% 162.3k
Joan Amigo I. Casas
CFO & Executive Director1.08yrsno data0.017% 185.7k
Aston Swift
Vice President of Investor Relations6.42yrsno datano data
Eva Argilés Malonda
General Counsel7.42yrsno datano data
Anna Díaz
Compliance Officer & Risk Manager5.42yrsno datano data
José Delfín Pérez Fernández
Senior Vice President of Human Resources2.42yrsno datano data
Javier Serrano
Senior Vice President for Corporate Developmentno datano datano data
Aitor Retes Aguado
Executive Vice President of Automotive Division11.42yrsno datano data
Jordi Brufau Redondo
Executive Vice President of Laboratories Division13.42yrs€162.00kno data
Ramón Fernández Armas
Executive Vice President of Energy & Industry Division3.5yrsno datano data

7.4yrs

Average Tenure

52yo

Average Age

Experienced Management: APPS's management team is seasoned and experienced (7.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Fernando Basabe Armijo
CEO & Executive Director9.42yrs€1.03m0.014% 162.3k
Joan Amigo I. Casas
CFO & Executive Director1.08yrsno data0.017% 185.7k
Richard Campbell Nelson
Non-Executive Independent Director10.67yrs€100.00k0.050% 561.4k
Ernesto Mata Lopez
Non-Executive Independent Director12.58yrs€90.00kno data
Nicolás Villén Jiménez
Non-Executive Independent Director4.67yrs€14.00k0.010% 112.3k
John Hofmeister
Non-Executive Independent Director6.92yrs€90.00k0.010% 112.3k
Essimari Kairisto
Non-Executive Independent Director1.17yrsno datano data
María José Esteruelas Aguirre
Non-Executive Independent Director1.33yrsno datano data
Christopher Cole
Independent Non-Executive Chairman6.08yrs€230.00k0.010% 112.3k
Maria Cristina Henriquez de Luna Basagoiti
Non-Executive Independent Director3.92yrsno data0.00046% 5.2k

5.4yrs

Average Tenure

65yo

Average Age

Experienced Board: APPS's board of directors are considered experienced (5.4 years average tenure).


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

Applus Services, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Applus Services, S.A.
  • Ticker: APPS
  • Exchange: BME
  • Founded: 1996
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: €1.121b
  • Shares outstanding: 142.74m
  • Website: https://www.applus.com

Number of Employees


Location

  • Applus Services, S.A.
  • Parque Empresarial Las Mercedes
  • Campezo, 1
  • Madrid
  • Madrid
  • 28022
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APPSBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURMay 2014
APPSEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURMay 2014
0QTZLSE (London Stock Exchange)YesOrdinary SharesGBEURMay 2014
39ADB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2014

Biography

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. This segment 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 and electronic payment systems, 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 23:52
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.