ISE:APGN

Stock Analysis Report

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Executive Summary

Applegreen plc operates motorway service areas and petrol filling stations in Ireland, the United Kingdom, and the United States.


Snowflake Analysis

Solid track record with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

6.4%

APGN

7.8%

IE Specialty Retail

7.3%

IE Market


1 Year Return

-21.6%

APGN

0.6%

IE Specialty Retail

5.9%

IE Market

Return vs Industry: APGN underperformed the Irish Specialty Retail industry which returned 0.2% over the past year.

Return vs Market: APGN underperformed the Irish Market which returned 5.3% over the past year.


Shareholder returns

APGNIndustryMarket
7 Day6.4%7.8%7.3%
30 Day30.7%21.3%18.8%
90 Day-18.5%-1.4%3.5%
1 Year-21.5%-21.6%2.4%0.6%7.2%5.9%
3 Year-20.5%-20.9%-20.6%-28.9%10.9%5.8%
5 Yearn/a-15.0%-28.0%40.8%30.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

21.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: APGN (€4) is trading above our estimate of fair value (€3.1)

Significantly Below Fair Value: APGN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: APGN is poor value based on its PE Ratio (21.7x) compared to the Specialty Retail industry average (12.1x).

PE vs Market: APGN is poor value based on its PE Ratio (21.7x) compared to the Irish market (14.3x).


Price to Earnings Growth Ratio

PEG Ratio: APGN is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: APGN is overvalued based on its PB Ratio (1.6x) compared to the XE Specialty Retail industry average (1.1x).


Next Steps

Future Growth

How is Applegreen forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

23.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APGN's forecast earnings growth (23.3% per year) is above the savings rate (0.7%).

Earnings vs Market: APGN's earnings (23.3% per year) are forecast to grow faster than the Irish market (15.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: APGN's revenue (4% per year) is forecast to grow slower than the Irish market (6.3% per year).

High Growth Revenue: APGN's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: APGN's Return on Equity is forecast to be low in 3 years time (12.8%).


Next Steps

Past Performance

How has Applegreen performed over the past 5 years?

5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APGN has high quality earnings.

Growing Profit Margin: APGN's current net profit margins (0.7%) are higher than last year (0.7%).


Past Earnings Growth Analysis

Earnings Trend: APGN's earnings have grown by 5.4% per year over the past 5 years.

Accelerating Growth: APGN's earnings growth over the past year (62.3%) exceeds its 5-year average (5.4% per year).

Earnings vs Industry: APGN earnings growth over the past year (62.3%) exceeded the Specialty Retail industry -0.2%.


Return on Equity

High ROE: Whilst APGN's Return on Equity (20.18%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Applegreen's financial position?


Financial Position Analysis

Short Term Liabilities: APGN's short term assets (€267.3M) do not cover its short term liabilities (€376.6M).

Long Term Liabilities: APGN's short term assets (€267.3M) do not cover its long term liabilities (€1.4B).


Debt to Equity History and Analysis

Debt Level: APGN's debt to equity ratio (477.6%) is considered high.

Reducing Debt: APGN's debt to equity ratio has increased from 304.1% to 477.6% over the past 5 years.

Debt Coverage: APGN's debt is well covered by operating cash flow (28.8%).

Interest Coverage: APGN's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Next Steps

Dividend

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

0.59%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: APGN is not paying a notable dividend for the Irish market.


Future Payout to Shareholders

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


Next Steps

Management

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

5.8yrs

Average board tenure


CEO

Bob Etchingham (65yo)

no data

Tenure

€568,000

Compensation

Mr. Robert Etchingham, also known as Bob, serves as the Chief Executive Officer of Applegreen Plc and has been its Executive Director since November 19, 2010. Mr. Etchingham co-founded Petrogas Group Ltd.  ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD642.82K) is below average for companies of similar size in the Irish market ($USD1.16M).

Compensation vs Earnings: Bob's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Robert Etchingham
CEO & Executive Directorno data€568.00kno data
Niall Dolan
CFO, Company Secretary & Director2.25yrs€379.00kno data
Joseph James Barrett
COO & Executive Director9.58yrs€588.00kno data
Howard Millar
Independent Non-Executive Director5.08yrs€50.00k0.035% 165.8k
Daniel Kitchen
Independent Non-Executive Chairman5.08yrs€80.00k0.033% 155.6k
Martin Southgate
Independent Non-Executive Director6.33yrs€23.00k0.038% 179.6k
Brian Geraghty
Independent Non-Executive Director5.83yrs€20.00k0.014% 63.8k

5.8yrs

Average Tenure

58yo

Average Age

Experienced Board: APGN's board of directors are considered experienced (5.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Applegreen plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Applegreen plc
  • Ticker: APGN
  • Exchange: ISE
  • Founded: 1992
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: UK£416.315m
  • Listing Market Cap: UK£467.861m
  • Shares outstanding: 120.67m
  • Website: https://www.applegreenstores.com

Number of Employees


Location

  • Applegreen plc
  • Parkwest Business Park
  • Block 17
  • Dublin
  • 12
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APGNAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 2015
APGNISE (Irish Stock Exchange)YesOrdinary SharesIEEURJun 2015
APGNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2015
APGNBST (Boerse-Stuttgart)YesOrdinary SharesDEEURJun 2015
APGNIBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJun 2015

Biography

Applegreen plc operates motorway service areas and petrol filling stations in Ireland, the United Kingdom, and the United States. It operates in three segments: Retail Ireland, Retail UK, and Retail USA. The company operates as a roadside convenience food and beverage retailer that sells fuel, food, and other groceries under its Bakewell brands, as well as other partnered international brands, such as Burger King, Subway, Costa Coffee, Greggs, Lavazza, Chopstix, Freshii, 7-Eleven, Starbucks, KFC, Pret a Manger, Pizza Express, Waitrose, WH Smith, Harry Ramsden, Tossed and the Ramada, and Days Inn hotel. As of December 31, 2018, it operated 472 forecourt sites in the United Kingdom, Ireland, and the United States. The company was founded in 1992 and is headquartered in Dublin, Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 00:18
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.