API GROUP CORP (APG) Stock Fundamental Analysis
NYSE:APG - New York Stock Exchange, Inc. - US00187Y1001 - Common Stock - Currency: USD
Overall APG gets a fundamental rating of 4 out of 10. We evaluated APG against 52 industry peers in the Construction & Engineering industry. APG has a medium profitability rating, but doesn't score so well on its financial health evaluation. APG is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
APG had positive earnings in the past year.
APG had a positive operating cash flow in the past year.
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 has a Return On Assets of 1.74%. This is comparable to the rest of the industry: APG outperforms 46.15% of its industry peers.
Looking at the Return On Equity, with a value of 4.73%, APG is in line with its industry, outperforming 50.00% of the companies in the same industry.
APG has a Return On Invested Capital of 5.67%. This is comparable to the rest of the industry: APG outperforms 55.77% of its industry peers.
APG had an Average Return On Invested Capital over the past 3 years of 4.40%. This is significantly below the industry average of 16.61%.
The 3 year average ROIC (4.40%) for APG is below the current ROIC(5.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 4.73% | ||
| ROIC | 5.67% |
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
With a Profit Margin value of 1.98%, APG perfoms like the industry average, outperforming 51.92% of the companies in the same industry.
APG's Operating Margin of 7.10% is fine compared to the rest of the industry. APG outperforms 67.31% of its industry peers.
In the last couple of years the Operating Margin of APG has grown nicely.
The Gross Margin of APG (31.22%) is better than 84.62% of its industry peers.
APG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.1% | ||
| PM (TTM) | 1.98% | ||
| GM | 31.22% |
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.
The number of shares outstanding for APG has been increased compared to 1 year ago.
The number of shares outstanding for APG has been increased compared to 5 years ago.
APG has a worse debt/assets ratio than last year.
2.2 Solvency
APG has an Altman-Z score of 2.80. 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 (2.80) which is in line with its industry peers.
APG has a debt to FCF ratio of 5.05. This is a neutral value as APG would need 5.05 years to pay back of all of its debts.
APG has a Debt to FCF ratio (5.05) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.99 indicates that APG is somewhat dependend on debt financing.
APG has a Debt to Equity ratio of 0.99. This is in the lower half of the industry: APG underperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 5.05 | ||
| Altman-Z | 2.8 |
ROIC/WACC0.57
WACC9.97%
2.3 Liquidity
APG has a Current Ratio of 1.47. This is a normal value and indicates that APG is financially healthy and should not expect problems in meeting its short term obligations.
APG's Current ratio of 1.47 is fine compared to the rest of the industry. APG outperforms 71.15% of its industry peers.
APG has a Quick Ratio of 1.38. This is a normal value and indicates that APG is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of APG (1.38) is better than 71.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.57% over the past year.
The Earnings Per Share has been growing by 20.02% on average over the past years. This is a very strong growth
Looking at the last year, APG shows a small growth in Revenue. The Revenue has grown by 3.20% 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)12.57%
EPS 3Y20.02%
EPS 5YN/A
EPS Q2Q%8.82%
Revenue 1Y (TTM)3.2%
Revenue growth 3Y21.22%
Revenue growth 5Y11.39%
Sales Q2Q%7.37%
3.2 Future
The Earnings Per Share is expected to grow by 12.53% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.78% on average over the next years.
EPS Next Y13.53%
EPS Next 2Y13.83%
EPS Next 3Y12.53%
EPS Next 5YN/A
Revenue Next Year7.3%
Revenue Next 2Y6.32%
Revenue Next 3Y5.78%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
A Price/Earnings ratio of 25.35 indicates a quite expensive valuation of APG.
69.23% of the companies in the same industry are more expensive than APG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.59, APG is valued at the same level.
Based on the Price/Forward Earnings ratio of 19.88, the valuation of APG can be described as rather expensive.
63.46% of the companies in the same industry are more expensive than APG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of APG to the average of the S&P500 Index (22.39), we can say APG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.35 | ||
| Fwd PE | 19.88 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as APG.
APG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. APG is cheaper than 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.95 | ||
| EV/EBITDA | 19.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates APG does not grow enough to justify the current Price/Earnings ratio.
APG's earnings are expected to grow with 12.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.87
PEG (5Y)N/A
EPS Next 2Y13.83%
EPS Next 3Y12.53%
5. Dividend
5.1 Amount
No dividends for APG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
47.66
-0.03 (-0.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners80.44%
Inst Owner Change6.31%
Ins Owners2.02%
Ins Owner Change0.63%
Market Cap13.19B
Analysts84.29
Price Target53.83 (12.95%)
Short Float %1.72%
Short Ratio2.24
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)1.59%
Min EPS beat(2)1.25%
Max EPS beat(2)1.93%
EPS beat(4)3
Avg EPS beat(4)1.32%
Min EPS beat(4)-0.69%
Max EPS beat(4)2.79%
EPS beat(8)7
Avg EPS beat(8)1.98%
EPS beat(12)11
Avg EPS beat(12)2.53%
EPS beat(16)14
Avg EPS beat(16)3.42%
Revenue beat(2)2
Avg Revenue beat(2)1.52%
Min Revenue beat(2)0.05%
Max Revenue beat(2)3%
Revenue beat(4)2
Avg Revenue beat(4)-1.16%
Min Revenue beat(4)-4.31%
Max Revenue beat(4)3%
Revenue beat(8)2
Avg Revenue beat(8)-1.64%
Revenue beat(12)5
Avg Revenue beat(12)-0.47%
Revenue beat(16)8
Avg Revenue beat(16)0.94%
PT rev (1m)10.98%
PT rev (3m)17.55%
EPS NQ rev (1m)1.2%
EPS NQ rev (3m)1.62%
EPS NY rev (1m)2.73%
EPS NY rev (3m)-0.37%
Revenue NQ rev (1m)0.52%
Revenue NQ rev (3m)2.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.35 | ||
| Fwd PE | 19.88 | ||
| P/S | 1.85 | ||
| P/FCF | 21.95 | ||
| P/OCF | 19.55 | ||
| P/B | 4.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.24 |
EPS(TTM)1.88
EY3.94%
EPS(NY)2.4
Fwd EY5.03%
FCF(TTM)2.17
FCFY4.56%
OCF(TTM)2.44
OCFY5.12%
SpS25.78
BVpS10.77
TBVpS-5.75
PEG (NY)1.87
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 4.73% | ||
| ROCE | 8% | ||
| ROIC | 5.67% | ||
| ROICexc | 6.11% | ||
| ROICexgc | 27.61% | ||
| OM | 7.1% | ||
| PM (TTM) | 1.98% | ||
| GM | 31.22% | ||
| FCFM | 8.42% |
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-Score7
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 5.05 | ||
| Debt/EBITDA | 3.59 | ||
| Cap/Depr | 23.64% | ||
| Cap/Sales | 1.04% | ||
| Interest Coverage | 3.36 | ||
| Cash Conversion | 82.32% | ||
| Profit Quality | 426.24% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 2.8 |
F-Score7
WACC9.97%
ROIC/WACC0.57
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)12.57%
EPS 3Y20.02%
EPS 5YN/A
EPS Q2Q%8.82%
EPS Next Y13.53%
EPS Next 2Y13.83%
EPS Next 3Y12.53%
EPS Next 5YN/A
Revenue 1Y (TTM)3.2%
Revenue growth 3Y21.22%
Revenue growth 5Y11.39%
Sales Q2Q%7.37%
Revenue Next Year7.3%
Revenue Next 2Y6.32%
Revenue Next 3Y5.78%
Revenue Next 5YN/A
EBIT growth 1Y21.58%
EBIT growth 3Y54.95%
EBIT growth 5YN/A
EBIT Next Year52.93%
EBIT Next 3Y12.93%
EBIT Next 5YN/A
FCF growth 1Y101%
FCF growth 3Y61.6%
FCF growth 5Y18.33%
OCF growth 1Y74.42%
OCF growth 3Y50.47%
OCF growth 5Y16.01%