API GROUP CORP (APG) Stock Fundamental Analysis
NYSE:APG - New York Stock Exchange, Inc. - US00187Y1001 - Common Stock - Currency: USD
APG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 49 industry peers in the Construction & Engineering industry. APG has only an average score on both its financial health and profitability. 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.
In the past 5 years APG reported 4 times negative net income.
Each year in the past 5 years APG had a positive operating cash flow.
1.2 Ratios
APG has a Return On Assets of 1.65%. This is comparable to the rest of the industry: APG outperforms 44.90% of its industry peers.
APG has a Return On Equity (4.45%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 5.89%, APG is in line with its industry, outperforming 51.02% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for APG is significantly below the industry average of 16.75%.
The last Return On Invested Capital (5.89%) for APG is above the 3 year average (4.40%), which is a sign of increasing profitability.
| 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
APG has a Profit Margin of 1.91%. This is comparable to the rest of the industry: APG outperforms 42.86% of its industry peers.
APG has a better Operating Margin (7.42%) than 65.31% of its industry peers.
APG's Operating Margin has improved in the last couple of years.
The Gross Margin of APG (31.08%) is better than 83.67% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so APG is destroying value.
APG has more shares outstanding than it did 1 year ago.
APG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for APG is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.86 indicates that APG is not a great score, but indicates only limited risk for bankruptcy at the moment.
APG has a Altman-Z score (2.86) which is comparable to the rest of the industry.
The Debt to FCF ratio of APG is 5.38, which is a neutral value as it means it would take APG, 5.38 years of fcf income to pay off 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's Debt to Equity ratio of 0.93 is in line compared to the rest of the industry. APG outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 5.38 | ||
| Altman-Z | 2.86 |
ROIC/WACC0.57
WACC10.32%
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.
Looking at the Current ratio, with a value of 1.45, APG is in the better half of the industry, outperforming 69.39% of the companies in the same industry.
A Quick Ratio of 1.37 indicates that APG should not have too much problems paying its short term obligations.
APG has a Quick ratio of 1.37. This is in the better half of the industry: APG outperforms 67.35% 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 -15.05%.
The Earnings Per Share has been growing by 16.23% on average over the past years. This is quite good.
Looking at the last year, APG shows a small growth in Revenue. The Revenue has grown by 7.59% in the last year.
The Revenue has been growing by 11.39% on average over the past years. This is quite good.
EPS 1Y (TTM)-15.05%
EPS 3Y16.23%
EPS 5YN/A
EPS Q2Q%-20.41%
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 small growth in Earnings Per Share. The EPS will grow by 1.79% on average per year.
APG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.69% yearly.
EPS Next Y-16.28%
EPS Next 2Y-1.91%
EPS Next 3Y1.79%
EPS Next 5YN/A
Revenue Next Year7.44%
Revenue Next 2Y6.43%
Revenue Next 3Y5.69%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
APG is valuated rather expensively with a Price/Earnings ratio of 23.23.
Based on the Price/Earnings ratio, APG is valued a bit cheaper than the industry average as 73.47% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.03. APG is around the same levels.
Based on the Price/Forward Earnings ratio of 21.42, the valuation of APG can be described as rather expensive.
APG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. APG is cheaper than 67.35% of the companies in the same industry.
APG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.23 | ||
| Fwd PE | 21.42 |
4.2 Price Multiples
APG's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as APG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.27 | ||
| EV/EBITDA | 19.59 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.91%
EPS Next 3Y1.79%
5. Dividend
5.1 Amount
APG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
34.62
-0.97 (-2.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners83.73%
Inst Owner Change-1.52%
Ins Owners2.04%
Ins Owner Change0.78%
Market Cap14.38B
Analysts85.33
Price Target42.41 (22.5%)
Short Float %N/A
Short Ratio2.41
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)-26.97%
PT rev (3m)-16.21%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-31.76%
EPS NY rev (1m)-33.06%
EPS NY rev (3m)-31.21%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)1.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.23 | ||
| Fwd PE | 21.42 | ||
| P/S | 1.94 | ||
| P/FCF | 25.27 | ||
| P/OCF | 22.19 | ||
| P/B | 4.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.59 |
EPS(TTM)1.49
EY4.3%
EPS(NY)1.62
Fwd EY4.67%
FCF(TTM)1.37
FCFY3.96%
OCF(TTM)1.56
OCFY4.51%
SpS17.81
BVpS7.64
TBVpS-3.92
PEG (NY)N/A
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
WACC10.32%
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)-15.05%
EPS 3Y16.23%
EPS 5YN/A
EPS Q2Q%-20.41%
EPS Next Y-16.28%
EPS Next 2Y-1.91%
EPS Next 3Y1.79%
EPS Next 5YN/A
Revenue 1Y (TTM)7.59%
Revenue growth 3Y21.22%
Revenue growth 5Y11.39%
Sales Q2Q%15.03%
Revenue Next Year7.44%
Revenue Next 2Y6.43%
Revenue Next 3Y5.69%
Revenue Next 5YN/A
EBIT growth 1Y22.82%
EBIT growth 3Y54.95%
EBIT growth 5YN/A
EBIT Next Year55.04%
EBIT Next 3Y23.63%
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%