API GROUP CORP (APG) Stock Fundamental Analysis
USA - NYSE:APG - US00187Y1001 - Common Stock
34.65 USD
+0.09 (+0.26%)
34.65 USD
0 (0%)
Taking everything into account, APG scores 4 out of 10 in our fundamental rating. APG was compared to 54 industry peers in the Construction & Engineering industry. APG has an average financial health and profitability rating. APG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
APG had positive earnings in the past year.
In the past year APG had a positive cash flow from operations.
In the past 5 years APG reported 4 times negative net income.
APG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
APG has a Return On Assets of 1.65%. This is comparable to the rest of the industry: APG outperforms 42.59% of its industry peers.
APG's Return On Equity of 4.45% is in line compared to the rest of the industry. APG outperforms 42.59% of its industry peers.
The Return On Invested Capital of APG (5.89%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for APG is significantly below the industry average of 17.10%.
The 3 year average ROIC (4.40%) for APG is below the current ROIC(5.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 4.45% | ||
| ROIC | 5.89% |
ROA(3y)-1.5%
ROA(5y)-3.28%
ROE(3y)-4.07%
ROE(5y)-8.43%
ROIC(3y)4.4%
ROIC(5y)3.23%
1.3 Margins
Looking at the Profit Margin, with a value of 1.91%, APG is in line with its industry, outperforming 42.59% of the companies in the same industry.
APG's Operating Margin of 7.42% is fine compared to the rest of the industry. APG outperforms 61.11% of its industry peers.
In the last couple of years the Operating Margin of APG has grown nicely.
APG's Gross Margin of 31.08% is amongst the best of the industry. APG outperforms 85.19% of its industry peers.
APG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.42% | ||
| PM (TTM) | 1.91% | ||
| GM | 31.08% |
OM growth 3Y27.83%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.2%
GM growth 5Y9.63%
2. Health
2.1 Basic Checks
APG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
APG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for APG has been increased compared to 5 years ago.
Compared to 1 year ago, APG has a worse debt to assets ratio.
2.2 Solvency
APG has an Altman-Z score of 2.86. This is not the best score and indicates that APG is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of APG (2.86) is comparable to the rest of the industry.
APG has a debt to FCF ratio of 5.38. This is a neutral value as APG would need 5.38 years to pay back of all of its debts.
APG has a Debt to FCF ratio (5.38) which is comparable to the rest of the industry.
APG has a Debt/Equity ratio of 0.93. This is a neutral value indicating APG is somewhat dependend on debt financing.
APG has a Debt to Equity ratio (0.93) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 5.38 | ||
| Altman-Z | 2.86 |
ROIC/WACC0.54
WACC10.99%
2.3 Liquidity
APG has a Current Ratio of 1.45. This is a normal value and indicates that APG is financially healthy and should not expect problems in meeting its short term obligations.
APG has a better Current ratio (1.45) than 68.52% of its industry peers.
APG has a Quick Ratio of 1.37. This is a normal value and indicates that APG is financially healthy and should not expect problems in meeting its short term obligations.
APG has a better Quick ratio (1.37) than 68.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
APG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.02%.
The Earnings Per Share has been growing slightly by 7.97% on average over the past years.
Looking at the last year, APG shows a small growth in Revenue. The Revenue has grown by 7.59% in the last year.
APG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.39% yearly.
EPS 1Y (TTM)-17.02%
EPS 3Y7.97%
EPS 5YN/A
EPS Q2Q%19.39%
Revenue 1Y (TTM)7.59%
Revenue growth 3Y21.22%
Revenue growth 5Y11.39%
Sales Q2Q%15.03%
3.2 Future
Based on estimates for the next years, APG will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.83% on average per year.
The Revenue is expected to grow by 7.19% on average over the next years.
EPS Next Y7.86%
EPS Next 2Y11.41%
EPS Next 3Y10.83%
EPS Next 5YN/A
Revenue Next Year10.71%
Revenue Next 2Y8.22%
Revenue Next 3Y7.19%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.25, the valuation of APG can be described as expensive.
APG's Price/Earnings ratio is a bit cheaper when compared to the industry. APG is cheaper than 74.07% of the companies in the same industry.
APG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.73 indicates a rather expensive valuation of APG.
Based on the Price/Forward Earnings ratio, APG is valued a bit cheaper than 79.63% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.99. APG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.25 | ||
| Fwd PE | 20.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of APG is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, APG is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.33 | ||
| EV/EBITDA | 19.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.34
PEG (5Y)N/A
EPS Next 2Y11.41%
EPS Next 3Y10.83%
5. Dividend
5.1 Amount
APG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
34.65
+0.09 (+0.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners83.79%
Inst Owner Change0.73%
Ins Owners2.07%
Ins Owner Change-0.43%
Market Cap14.41B
Analysts85.33
Price Target42.85 (23.67%)
Short Float %2.79%
Short Ratio3.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.33%
Min EPS beat(2)1.93%
Max EPS beat(2)2.72%
EPS beat(4)3
Avg EPS beat(4)1.3%
Min EPS beat(4)-0.69%
Max EPS beat(4)2.72%
EPS beat(8)7
Avg EPS beat(8)2.07%
EPS beat(12)11
Avg EPS beat(12)2.29%
EPS beat(16)14
Avg EPS beat(16)3.55%
Revenue beat(2)2
Avg Revenue beat(2)3.43%
Min Revenue beat(2)3%
Max Revenue beat(2)3.86%
Revenue beat(4)3
Avg Revenue beat(4)0.88%
Min Revenue beat(4)-3.39%
Max Revenue beat(4)3.86%
Revenue beat(8)3
Avg Revenue beat(8)-1.05%
Revenue beat(12)6
Avg Revenue beat(12)-0.04%
Revenue beat(16)8
Avg Revenue beat(16)0.99%
PT rev (1m)0%
PT rev (3m)-20.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.06%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)3.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.25 | ||
| Fwd PE | 20.73 | ||
| P/S | 1.95 | ||
| P/FCF | 25.33 | ||
| P/OCF | 22.24 | ||
| P/B | 4.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.59 |
EPS(TTM)1.32
EY3.81%
EPS(NY)1.67
Fwd EY4.82%
FCF(TTM)1.37
FCFY3.95%
OCF(TTM)1.56
OCFY4.5%
SpS17.78
BVpS7.62
TBVpS-3.91
PEG (NY)3.34
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 4.45% | ||
| ROCE | 8.31% | ||
| ROIC | 5.89% | ||
| ROICexc | 6.3% | ||
| ROICexgc | 28.27% | ||
| OM | 7.42% | ||
| PM (TTM) | 1.91% | ||
| GM | 31.08% | ||
| FCFM | 7.69% |
ROA(3y)-1.5%
ROA(5y)-3.28%
ROE(3y)-4.07%
ROE(5y)-8.43%
ROIC(3y)4.4%
ROIC(5y)3.23%
ROICexc(3y)4.81%
ROICexc(5y)3.67%
ROICexgc(3y)21.45%
ROICexgc(5y)15.26%
ROCE(3y)6.22%
ROCE(5y)4.56%
ROICexcg growth 3Y50.67%
ROICexcg growth 5YN/A
ROICexc growth 3Y26.04%
ROICexc growth 5YN/A
OM growth 3Y27.83%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.2%
GM growth 5Y9.63%
F-Score8
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 5.38 | ||
| Debt/EBITDA | 3.41 | ||
| Cap/Depr | 24.76% | ||
| Cap/Sales | 1.07% | ||
| Interest Coverage | 3.76 | ||
| Cash Conversion | 74.65% | ||
| Profit Quality | 403.55% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 2.86 |
F-Score8
WACC10.99%
ROIC/WACC0.54
Cap/Depr(3y)27.39%
Cap/Depr(5y)24.77%
Cap/Sales(3y)1.21%
Cap/Sales(5y)1.22%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-17.02%
EPS 3Y7.97%
EPS 5YN/A
EPS Q2Q%19.39%
EPS Next Y7.86%
EPS Next 2Y11.41%
EPS Next 3Y10.83%
EPS Next 5YN/A
Revenue 1Y (TTM)7.59%
Revenue growth 3Y21.22%
Revenue growth 5Y11.39%
Sales Q2Q%15.03%
Revenue Next Year10.71%
Revenue Next 2Y8.22%
Revenue Next 3Y7.19%
Revenue Next 5YN/A
EBIT growth 1Y22.82%
EBIT growth 3Y54.95%
EBIT growth 5YN/A
EBIT Next Year55.8%
EBIT Next 3Y23.44%
EBIT Next 5YN/A
FCF growth 1Y80.06%
FCF growth 3Y61.6%
FCF growth 5Y18.33%
OCF growth 1Y59.21%
OCF growth 3Y50.47%
OCF growth 5Y16.01%