AIM:APC

Stock Analysis Report

APC Technology Group

Executive Summary

APC Technology Group PLC designs, specifies, and distributes specialist electronic components and systems, lighting technologies, and connectivity products in the United Kingdom, North America, Europe, and Asia.

Rewards

Trading at 73% below its fair value

Earnings are forecast to grow 13.68% per year

Earnings grew by 42.7% over the past year

Risk Analysis

Has a high level of debt

Large one-off items impacting financial results

Shareholders have been diluted in the past year

Does not have a meaningful market cap (£18M)



Snowflake Analysis

Good value with proven track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: APC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

APC

6.2%

GB Electronic

8.6%

GB Market


1 Year Return

41.1%

APC

-3.9%

GB Electronic

-19.4%

GB Market

Return vs Industry: APC exceeded the UK Electronic industry which returned 21.7% over the past year.

Return vs Market: APC exceeded the UK Market which returned 12.7% over the past year.


Shareholder returns

APCIndustryMarket
7 Day0%6.2%8.6%
30 Day0%0.6%-3.5%
90 Day25.4%-12.4%-23.0%
1 Year41.1%41.1%-2.4%-3.9%-15.5%-19.4%
3 Year33.9%33.9%31.9%25.7%-8.8%-19.9%
5 Year-59.7%-59.7%85.5%69.5%4.2%-19.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: APC (£0.1) is trading below our estimate of fair value (£0.37)

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


Price To Earnings Ratio

PE vs Industry: APC is good value based on its PE Ratio (21.5x) compared to the Electronic industry average (21.5x).

PE vs Market: APC is poor value based on its PE Ratio (21.5x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate APC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: APC is good value based on its PB Ratio (2.2x) compared to the GB Electronic industry average (2.4x).


Next Steps

Future Growth

How is APC Technology Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APC's forecast earnings growth (13.7% per year) is above the savings rate (1.2%).

Earnings vs Market: APC's earnings (13.7% per year) are forecast to grow faster than the UK market (11.7% per year).

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

Revenue vs Market: Insufficient data to determine if APC's revenue is forecast to grow faster than the UK market.

High Growth Revenue: Insufficient data to determine if APC's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if APC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has APC Technology Group performed over the past 5 years?

0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APC has a large one-off loss of £281.0K impacting its February 28 2019 financial results.

Growing Profit Margin: APC's current net profit margins (3.9%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: APC has become profitable over the past 5 years, growing earnings by 0.7% per year.

Accelerating Growth: APC's earnings growth over the past year (42.7%) exceeds its 5-year average (0.7% per year).

Earnings vs Industry: APC earnings growth over the past year (42.7%) exceeded the Electronic industry -20.7%.


Return on Equity

High ROE: APC's Return on Equity (9%) is considered low.


Next Steps

Financial Health

How is APC Technology Group's financial position?


Financial Position Analysis

Short Term Liabilities: APC's short term assets (£6.0M) do not cover its short term liabilities (£8.1M).

Long Term Liabilities: APC's short term assets (£6.0M) exceed its long term liabilities (£110.0K).


Debt to Equity History and Analysis

Debt Level: APC's debt to equity ratio (43.5%) is considered high.

Reducing Debt: APC had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: APC's debt is well covered by operating cash flow (23.5%).

Interest Coverage: APC's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


Next Steps

Dividend

What is APC Technology Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate APC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if APC's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Richard Hodgson (50yo)

4.25s

Tenure

UK£259,000

Compensation

Mr. Richard George Hodgson has been the Chief Executive Officer of APC Technology Group plc since August 18, 2015. Mr. Hodgson has been the Chief Operating Officer of Green Compliance plc since January 3,  ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD334.31K) is about average for companies of similar size in the UK market ($USD326.78K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Richard Hodgson
CEO & Director4.25yrsUK£259.00k1.81% £325.9k
Phillip Lancaster
Business Development Director & Director16.17yrsUK£140.00k0.55% £99.6k
Hugh Edmonds
Company Secretary5.42yrsUK£2.00kno data

5.4yrs

Average Tenure

Experienced Management: APC's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Hodgson
CEO & Director4.25yrsUK£259.00k1.81% £325.9k
Phillip Lancaster
Business Development Director & Director16.17yrsUK£140.00k0.55% £99.6k
Anthony Lochery
Non-Executive Chairman2.75yrsno data2.69% £485.4k

5.2yrs

Average Tenure

Experienced Board: APC's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: APC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 21%.


Top Shareholders

Company Information

APC Technology Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: APC Technology Group PLC
  • Ticker: APC
  • Exchange: AIM
  • Founded: 1982
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: UK£18.034m
  • Shares outstanding: 182.63m
  • Website: https://apcplc.com

Number of Employees


Location

  • APC Technology Group PLC
  • 6 Stirling Park
  • Laker Road
  • Rochester
  • Kent
  • ME1 3QR
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APCAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPNov 1996

Biography

APC Technology Group PLC designs, specifies, and distributes specialist electronic components and systems, lighting technologies, and connectivity products in the United Kingdom, North America, Europe, and Asia. The company offers electronic components, including power supplies, avionics data bus, semiconductors and opto electronics, high voltage and temperature products, passive components, hybrid and electric drivetrain solutions, and electromagnetic solutions, as well as oil and gas, space, and power control products. It also provides RF and microwave products, such as active and passive devices, amplifiers, cable assemblies, connectors, capacitors and resistors, filters, frequency sources, GaN and semiconductors, QFN packages, space qualified devices, and switches; and computing, wireless, and Internet of things products. In addition, the company provides project based lighting solutions comprising lighting design and specification, and installation; and connectivity and sensing products, including utility and environment monitoring, food and building fabric monitoring, smart parking, and water conformance and control products, as well as multisensory devices, telemetry and asset tracking modules, and data loggers. Further, it offers timing systems, NTP time servers, PTP solutions, PTP network switches and cars, intelligent modular synchronization systems, and antennas and accessories, as well as technical and product support services. Additionally, the company provides mediagenic keyboards and mouse; and energy efficiency verification services. The company serves aerospace, broadcast, commercial real estate, counter-IED, data centers, defense, education, facilities management, finance, healthcare, manufacturing, military, oil and gas, retail, space, systems integrators, telecommunications, and transport markets. APC Technology Group PLC was incorporated in 1982 and is headquartered in Rochester, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/04 20:37
End of Day Share Price2019/11/01 00:00
Earnings2019/02/28
Annual Earnings2018/08/31


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.