API GROUP CORP (APG)
US00187Y1001 - Common Stock
Taking everything into account, APG scores 4 out of 10 in our fundamental rating. APG was compared to 41 industry peers in the Construction & Engineering industry. Both the profitability and the financial health of APG get a neutral evaluation. Nothing too spectacular is happening here. APG is not valued too expensively and it also shows 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.
APG had negative earnings in 4 of the past 5 years.
Each year in the past 5 years APG had a positive operating cash flow.
1.2 Ratios
APG's Return On Assets of -2.12% is on the low side compared to the rest of the industry. APG is outperformed by 72.50% of its industry peers.
APG has a worse Return On Equity (-5.61%) than 70.00% of its industry peers.
APG has a Return On Invested Capital (4.81%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for APG is below the industry average of 8.24%.
The last Return On Invested Capital (4.81%) for APG is above the 3 year average (3.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.12% | ||
| ROE | -5.61% | ||
| ROIC | 4.81% |
ROA(3y)-1.47%
ROA(5y)-3.06%
ROE(3y)-3.51%
ROE(5y)-7.68%
ROIC(3y)3.31%
ROIC(5y)N/A
1.3 Margins
APG has a Operating Margin (5.56%) which is in line with its industry peers.
APG's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 28.00%, APG belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
In the last couple of years the Gross Margin of APG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.56% | ||
| PM (TTM) | N/A | ||
| GM | 28% |
OM growth 3Y89.74%
OM growth 5Y6.32%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.93%
GM growth 5Y5.81%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), APG is destroying value.
APG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, APG has more shares outstanding
Compared to 1 year ago, APG has an improved debt to assets ratio.
2.2 Solvency
APG has an Altman-Z score of 2.48. 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.
APG has a Altman-Z score of 2.48. This is comparable to the rest of the industry: APG outperforms 47.50% of its industry peers.
APG has a debt to FCF ratio of 5.47. This is a neutral value as APG would need 5.47 years to pay back of all of its debts.
APG has a Debt to FCF ratio of 5.47. This is in the better half of the industry: APG outperforms 67.50% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that APG is somewhat dependend on debt financing.
APG has a worse Debt to Equity ratio (0.81) than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 5.47 | ||
| Altman-Z | 2.48 |
ROIC/WACC0.51
WACC9.41%
2.3 Liquidity
APG has a Current Ratio of 1.43. 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 Current ratio of 1.43. This is in the better half of the industry: APG outperforms 62.50% of its industry peers.
A Quick Ratio of 1.35 indicates that APG should not have too much problems paying its short term obligations.
APG's Quick ratio of 1.35 is in line compared to the rest of the industry. APG outperforms 55.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.80% over the past year.
Measured over the past years, APG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.22% on average per year.
Looking at the last year, APG shows a small growth in Revenue. The Revenue has grown by 5.64% in the last year.
The Revenue has been growing by 13.19% on average over the past years. This is quite good.
EPS 1Y (TTM)18.8%
EPS 3Y10.22%
EPS 5YN/A
EPS growth Q2Q22.22%
Revenue 1Y (TTM)5.64%
Revenue growth 3Y24.54%
Revenue growth 5Y13.19%
Revenue growth Q2Q3.29%
3.2 Future
APG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.44% yearly.
APG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.03% yearly.
EPS Next Y19.63%
EPS Next 2Y17.55%
EPS Next 3Y16.44%
EPS Next 5YN/A
Revenue Next Year3.09%
Revenue Next 2Y3.92%
Revenue Next 3Y4.03%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 23.68, which indicates a rather expensive current valuation of APG.
Based on the Price/Earnings ratio, APG is valued a bit cheaper than 72.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. APG is around the same levels.
APG is valuated rather expensively with a Price/Forward Earnings ratio of 19.79.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APG is on the same level as its industry peers.
APG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.68 | ||
| Fwd PE | 19.79 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as APG.
Based on the Price/Free Cash Flow ratio, APG is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.83 | ||
| EV/EBITDA | 17.35 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
APG's earnings are expected to grow with 16.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.21
PEG (5Y)N/A
EPS Next 2Y17.55%
EPS Next 3Y16.44%
5. Dividend
5.1 Amount
No dividends for APG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
API GROUP CORP
NYSE:APG (5/6/2024, 4:05:00 PM)
After market: 37.41 0 (0%)37.41
+0.46 (+1.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.20B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.68 | ||
| Fwd PE | 19.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.21
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.12% | ||
| ROE | -5.61% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.56% | ||
| PM (TTM) | N/A | ||
| GM | 28% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)18.8%
EPS 3Y10.22%
EPS 5Y
EPS growth Q2Q
EPS Next Y19.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.64%
Revenue growth 3Y24.54%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y