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API GROUP CORP (APG) Stock Fundamental Analysis

NYSE:APG - New York Stock Exchange, Inc. - US00187Y1001 - Common Stock

38.36  +0.91 (+2.43%)

After market: 38.5 +0.14 (+0.36%)

Fundamental Rating

4

APG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 45 industry peers in the Construction & Engineering industry. There are concerns on the financial health of APG while its profitability can be described as average. APG has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year APG was profitable.
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.
APG Yearly Net Income VS EBIT VS OCF VS FCFAPG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M

1.2 Ratios

APG has a Return On Assets of -5.48%. This is amonst the worse of the industry: APG underperforms 81.82% of its industry peers.
The Return On Equity of APG (-15.23%) is worse than 77.27% of its industry peers.
APG's Return On Invested Capital of 5.33% is in line compared to the rest of the industry. APG outperforms 54.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for APG is significantly below the industry average of 11.60%.
The last Return On Invested Capital (5.33%) for APG is above the 3 year average (3.31%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -5.48%
ROE -15.23%
ROIC 5.33%
ROA(3y)-1.47%
ROA(5y)-3.06%
ROE(3y)-3.51%
ROE(5y)-7.68%
ROIC(3y)3.31%
ROIC(5y)N/A
APG Yearly ROA, ROE, ROICAPG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 -20

1.3 Margins

Looking at the Operating Margin, with a value of 6.90%, APG is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
APG's Operating Margin has improved in the last couple of years.
APG has a Gross Margin of 30.52%. This is amongst the best in the industry. APG outperforms 81.82% of its industry peers.
APG's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 6.9%
PM (TTM) N/A
GM 30.52%
OM growth 3Y89.74%
OM growth 5Y6.32%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.93%
GM growth 5Y5.81%
APG Yearly Profit, Operating, Gross MarginsAPG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20

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3

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 better debt/assets ratio than last year.
APG Yearly Shares OutstandingAPG Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
APG Yearly Total Debt VS Total AssetsAPG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B

2.2 Solvency

APG has an Altman-Z score of 2.36. 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 (2.36) is comparable to the rest of the industry.
The Debt to FCF ratio of APG is 5.74, which is a neutral value as it means it would take APG, 5.74 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.74, APG is in line with its industry, outperforming 52.27% of the companies in the same industry.
APG has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of APG (1.02) is worse than 68.18% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.02
Debt/FCF 5.74
Altman-Z 2.36
ROIC/WACC0.49
WACC10.97%
APG Yearly LT Debt VS Equity VS FCFAPG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

A Current Ratio of 1.51 indicates that APG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.51, APG is in the better half of the industry, outperforming 61.36% of the companies in the same industry.
APG has a Quick Ratio of 1.42. 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 Quick ratio of 1.42. This is comparable to the rest of the industry: APG outperforms 59.09% of its industry peers.
Industry RankSector Rank
Current Ratio 1.51
Quick Ratio 1.42
APG Yearly Current Assets VS Current LiabilitesAPG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

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5

3. Growth

3.1 Past

APG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.67%, which is quite good.
The Earnings Per Share has been growing by 10.22% 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 0.64% in the last year.
APG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.19% yearly.
EPS 1Y (TTM)18.67%
EPS 3Y10.22%
EPS 5YN/A
EPS Q2Q%6.25%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y24.54%
Revenue growth 5Y13.19%
Sales Q2Q%2.35%

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 14.32% yearly.
APG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.81% yearly.
EPS Next Y17.76%
EPS Next 2Y15.98%
EPS Next 3Y14.32%
EPS Next 5YN/A
Revenue Next Year0.91%
Revenue Next 2Y3.59%
Revenue Next 3Y3.81%
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.
APG Yearly Revenue VS EstimatesAPG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B
APG Yearly EPS VS EstimatesAPG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

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5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 21.55, the valuation of APG can be described as rather expensive.
APG's Price/Earnings ratio is rather cheap when compared to the industry. APG is cheaper than 84.09% of the companies in the same industry.
APG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
The Price/Forward Earnings ratio is 18.05, which indicates a rather expensive current valuation of APG.
APG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. APG is cheaper than 77.27% of the companies in the same industry.
APG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 21.55
Fwd PE 18.05
APG Price Earnings VS Forward Price EarningsAPG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

APG's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of APG indicates a somewhat cheap valuation: APG is cheaper than 68.18% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 19.31
EV/EBITDA 16.69
APG Per share dataAPG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

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 14.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.21
PEG (5Y)N/A
EPS Next 2Y15.98%
EPS Next 3Y14.32%

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0

5. Dividend

5.1 Amount

No dividends for APG!.
Industry RankSector Rank
Dividend Yield N/A

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API GROUP CORP

NYSE:APG (1/21/2025, 8:04:00 PM)

After market: 38.5 +0.14 (+0.36%)

38.36

+0.91 (+2.43%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)10-31 2024-10-31/bmo
Earnings (Next)N/A N/A
Inst Owners78.99%
Inst Owner Change-0.6%
Ins Owners2.17%
Ins Owner Change-0.16%
Market Cap10.54B
Analysts83.08
Price Target44.99 (17.28%)
Short Float %1.48%
Short Ratio2.51
Dividend
Industry RankSector 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)1
Avg EPS beat(2)1.05%
Min EPS beat(2)-0.69%
Max EPS beat(2)2.79%
EPS beat(4)3
Avg EPS beat(4)1.42%
Min EPS beat(4)-0.69%
Max EPS beat(4)2.79%
EPS beat(8)7
Avg EPS beat(8)2.48%
EPS beat(12)11
Avg EPS beat(12)4.24%
EPS beat(16)13
Avg EPS beat(16)2.82%
Revenue beat(2)0
Avg Revenue beat(2)-3.85%
Min Revenue beat(2)-4.31%
Max Revenue beat(2)-3.39%
Revenue beat(4)0
Avg Revenue beat(4)-2.44%
Min Revenue beat(4)-4.31%
Max Revenue beat(4)-0.81%
Revenue beat(8)2
Avg Revenue beat(8)-1.18%
Revenue beat(12)5
Avg Revenue beat(12)0.77%
Revenue beat(16)7
Avg Revenue beat(16)0.81%
PT rev (1m)1.79%
PT rev (3m)-1.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.61%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-1.89%
Valuation
Industry RankSector Rank
PE 21.55
Fwd PE 18.05
P/S 1.52
P/FCF 19.31
P/OCF 16.63
P/B 3.55
P/tB N/A
EV/EBITDA 16.69
EPS(TTM)1.78
EY4.64%
EPS(NY)2.13
Fwd EY5.54%
FCF(TTM)1.99
FCFY5.18%
OCF(TTM)2.31
OCFY6.01%
SpS25.17
BVpS10.8
TBVpS-6.17
PEG (NY)1.21
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -5.48%
ROE -15.23%
ROCE 7.38%
ROIC 5.33%
ROICexc 5.76%
ROICexgc 26.22%
OM 6.9%
PM (TTM) N/A
GM 30.52%
FCFM 7.89%
ROA(3y)-1.47%
ROA(5y)-3.06%
ROE(3y)-3.51%
ROE(5y)-7.68%
ROIC(3y)3.31%
ROIC(5y)N/A
ROICexc(3y)3.85%
ROICexc(5y)N/A
ROICexgc(3y)14.77%
ROICexgc(5y)N/A
ROCE(3y)4.58%
ROCE(5y)N/A
ROICexcg growth 3Y93.1%
ROICexcg growth 5Y-0.69%
ROICexc growth 3Y88.88%
ROICexc growth 5Y-14.01%
OM growth 3Y89.74%
OM growth 5Y6.32%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.93%
GM growth 5Y5.81%
F-Score5
Asset Turnover0.84
Health
Industry RankSector Rank
Debt/Equity 1.02
Debt/FCF 5.74
Debt/EBITDA 3.92
Cap/Depr 29.53%
Cap/Sales 1.27%
Interest Coverage 3.29
Cash Conversion 81.81%
Profit Quality N/A
Current Ratio 1.51
Quick Ratio 1.42
Altman-Z 2.36
F-Score5
WACC10.97%
ROIC/WACC0.49
Cap/Depr(3y)27.2%
Cap/Depr(5y)27.92%
Cap/Sales(3y)1.28%
Cap/Sales(5y)1.29%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)18.67%
EPS 3Y10.22%
EPS 5YN/A
EPS Q2Q%6.25%
EPS Next Y17.76%
EPS Next 2Y15.98%
EPS Next 3Y14.32%
EPS Next 5YN/A
Revenue 1Y (TTM)0.64%
Revenue growth 3Y24.54%
Revenue growth 5Y13.19%
Sales Q2Q%2.35%
Revenue Next Year0.91%
Revenue Next 2Y3.59%
Revenue Next 3Y3.81%
Revenue Next 5YN/A
EBIT growth 1Y31.77%
EBIT growth 3Y136.29%
EBIT growth 5Y20.35%
EBIT Next Year57.48%
EBIT Next 3Y24.52%
EBIT Next 5YN/A
FCF growth 1Y340.32%
FCF growth 3Y-2.23%
FCF growth 5Y62.31%
OCF growth 1Y223.47%
OCF growth 3Y1.2%
OCF growth 5Y35.63%