NYSE:APY

Stock Analysis Report

Executive Summary

Apergy Corporation provides engineered equipment and technologies that help companies drill for and produce oil and gas worldwide.

Snowflake

Fundamentals

Reasonable growth potential with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.8%

APY

2.8%

US Energy Services

1.3%

US Market


1 Year Return

-42.1%

APY

-47.2%

US Energy Services

5.9%

US Market

Return vs Industry: APY exceeded the US Energy Services industry which returned -47.2% over the past year.

Return vs Market: APY underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

APYIndustryMarket
7 Day5.8%2.8%1.3%
30 Day-11.6%-10.5%-1.9%
90 Day-16.0%-16.3%-1.8%
1 Year-42.1%-42.1%-45.7%-47.2%8.3%5.9%
3 Yearn/a-53.2%-58.9%45.6%36.2%
5 Yearn/a-64.9%-70.1%66.1%47.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

20.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: APY ($25.42) is trading above our estimate of fair value ($16.49)

Significantly Undervalued: APY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: APY is poor value based on its PE Ratio (20.9x) compared to the Energy Services industry average (15.1x).

PE vs Market: APY is poor value based on its PE Ratio (20.9x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: APY is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: APY is overvalued based on its PB Ratio (1.9x) compared to the US Energy Services industry average (0.6x).


Next Steps

Future Growth

How is Apergy forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

28.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APY's forecast earnings growth (28.6% per year) is above the savings rate (2.7%).

Earnings vs Market: APY's earnings (28.6% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: APY's revenue (8.2% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: APY's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Apergy performed over the past 5 years?

26.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: APY's earnings have grown significantly by 26.5% per year over the past 5 years.

Accelerating Growth: APY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: APY had negative earnings growth (-25.4%) over the past year, making it difficult to compare to the Energy Services industry average (-13.1%).


Return on Equity

High ROE: APY's Return on Equity (9.2%) is considered low.


Return on Assets

ROA vs Industry: APY has a higher Return on Assets than the Energy Services industry average last year.


Return on Capital Employed

ROCE Improving: APY has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Apergy's financial position?


Financial Position Analysis

Short Term Liabilities: APY's short term assets ($529.5M) exceeds its short term liabilities ($201.1M)

Long Term Liabilities: APY's short term assets (529.5M) do not cover its long term liabilities (742.6M)


Debt to Equity History and Analysis

Debt Level: APY's debt to equity ratio (59.1%) is considered high

Reducing Debt: Insufficient data to determine if APY's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: APY's debt is well covered by operating cash flow (27%).

Interest Coverage: APY's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet

Inventory Level: APY has a high level of physical assets or inventory.

Debt Coverage by Assets: APY's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage4.4%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if APY'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 APY's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Soma Somasundaram (53yo)

1.4yrs

Tenure

US$9,363,752

Compensation

Mr. Sivasankaran Somasundaram, also known as Soma, served as the Chief Executive Officer and President of Dover Energy at Dover Corporation since August 2013 until May 9, 2018. Prior to that he was Executi ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Soma's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Soma's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.4yrs

Average Tenure

52yo

Average Age

Experienced Management: APY's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

1.4yrs

Average Tenure

63yo

Average Age

Experienced Board: APY's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$37,30127 Feb 19
Sivasankaran Somasundaram
EntityIndividual
Role
Chief Executive Officer
President
Shares893
Max PriceUS$41.77
SellUS$2,42327 Feb 19
Syed Raza
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Digital Officer
Shares58
Max PriceUS$41.77
SellUS$16,54727 Feb 19
Paul Mahoney
EntityIndividual
Role
Senior Key Executive
President of Production & Automation Technologies
Shares397
Max PriceUS$41.68
SellUS$6,12727 Feb 19
Amy Broussard
EntityIndividual
Role
Head of Human Resources
Senior VP & Chief Human Resources Officer
Shares147
Max PriceUS$41.68
SellUS$1,21425 Feb 19
Shankar Annamalai
EntityIndividual
Role
Chief Operating Officer
Senior Vice President of Operations
Shares30
Max PriceUS$40.47

Ownership Breakdown


Management Team

  • Soma Somasundaram (53yo)

    President

    • Tenure: 1.4yrs
    • Compensation: US$9.36m
  • Jay Nutt (56yo)

    Senior VP & CFO

    • Tenure: 1.4yrs
    • Compensation: US$2.83m
  • Rob Galloway (52yo)

    President of Drilling Technologies

    • Tenure: 1.4yrs
    • Compensation: US$1.43m
  • David Skipper

    VP & Treasurer

    • Tenure: 1.4yrs
  • Michael White (46yo)

    VP, Corporate Controller & Chief Accounting Officer

    • Tenure: 1.4yrs
  • Julia Wright (44yo)

    Senior VP

    • Tenure: 1.4yrs
    • Compensation: US$1.95m
  • Paul Mahoney (55yo)

    President of Production & Automation Technologies

    • Tenure: 1.4yrs
    • Compensation: US$2.16m
  • Shankar Annamalai (38yo)

    Senior Vice President of Operations

    • Tenure: 1.4yrs
  • Amy Broussard (43yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 1.4yrs
  • Ali Raza (53yo)

    Senior VP & Chief Digital Officer

    • Tenure: 1.4yrs
    • Compensation: US$714.47k

Board Members

  • Dan Rabun (64yo)

    Chairman of the Board of Directors

    • Tenure: 1.8yrs
    • Compensation: US$306.35k
  • Kenneth Fisher (57yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$156.54k
  • Gary Luquette (63yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$153.29k
  • Soma Somasundaram (53yo)

    President

    • Tenure: 1.4yrs
    • Compensation: US$9.36m
  • Mamatha Chamarthi (49yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$146.80k
  • Stephen Todd (70yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$146.80k
  • Stephen Wagner (71yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$153.29k

Company Information

Apergy Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Apergy Corporation
  • Ticker: APY
  • Exchange: NYSE
  • Founded: 2017
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$1.969b
  • Shares outstanding: 77.46m
  • Website: https://apergy.com

Location

  • Apergy Corporation
  • Building 4
  • 12th Floor
  • The Woodlands
  • Texas
  • 77381
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APYNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2018
X9PDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2018

Biography

Apergy Corporation provides engineered equipment and technologies that help companies drill for and produce oil and gas worldwide. The company operates through two segments, Production & Automation Technol ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 00:42
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.