API GROUP CORP (APG)
US00187Y1001 - Common Stock
Overall APG gets a fundamental rating of 4 out of 10. We evaluated APG against 44 industry peers in the Construction & Engineering industry. While APG is still in line with the averages on profitability rating, there are concerns on its financial health. APG has a correct valuation and a medium 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.
APG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
APG's Return On Assets of -5.48% is on the low side compared to the rest of the industry. APG is outperformed by 80.95% of its industry peers.
The Return On Equity of APG (-15.23%) is worse than 73.81% 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 50.00% of its industry peers.
APG had an Average Return On Invested Capital over the past 3 years of 3.31%. This is significantly below the industry average of 9.25%.
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 Rank | Sector 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
1.3 Margins
APG has a better Operating Margin (6.90%) than 64.29% of its industry peers.
In the last couple of years the Operating Margin of APG has grown nicely.
APG has a better Gross Margin (30.52%) than 80.95% of its industry peers.
APG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), APG is destroying value.
Compared to 1 year ago, APG has more shares outstanding
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.
2.2 Solvency
An Altman-Z score of 2.30 indicates that APG is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.30, APG is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
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.
APG has a Debt to FCF ratio (5.74) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.02 is on the high side and indicates that APG has dependencies on debt financing.
APG has a Debt to Equity ratio of 1.02. This is in the lower half of the industry: APG underperforms 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 5.74 | ||
| Altman-Z | 2.3 |
ROIC/WACC0.49
WACC10.83%
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 64.29% 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.
With a decent Quick ratio value of 1.42, APG is doing good in the industry, outperforming 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.42 |
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.
APG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.22% yearly.
APG shows a small growth in Revenue. In the last year, the Revenue has grown by 0.64%.
The Revenue has been growing by 13.19% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 14.22% on average over the next years. This is quite good.
APG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.78% yearly.
EPS Next Y18.49%
EPS Next 2Y16.59%
EPS Next 3Y14.22%
EPS Next 5YN/A
Revenue Next Year1.06%
Revenue Next 2Y3.59%
Revenue Next 3Y3.78%
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 20.06, which indicates a rather expensive current valuation of APG.
Compared to the rest of the industry, the Price/Earnings ratio of APG indicates a rather cheap valuation: APG is cheaper than 88.10% of the companies listed in the same industry.
APG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.65.
Based on the Price/Forward Earnings ratio of 16.63, the valuation of APG can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APG indicates a somewhat cheap valuation: APG is cheaper than 76.19% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.50. APG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.06 | ||
| Fwd PE | 16.63 |
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 78.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.97 | ||
| EV/EBITDA | 16.08 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as APG's earnings are expected to grow with 14.22% in the coming years.
PEG (NY)1.09
PEG (5Y)N/A
EPS Next 2Y16.59%
EPS Next 3Y14.22%
5. Dividend
5.1 Amount
No dividends for APG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
API GROUP CORP
NYSE:APG (11/18/2024, 8:08:57 PM)
Premarket: 35.4 -0.31 (-0.87%)35.71
+0.34 (+0.96%)
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 Cap9.81B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.06 | ||
| Fwd PE | 16.63 | ||
| 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)1.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.48% | ||
| ROE | -15.23% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.9% | ||
| PM (TTM) | N/A | ||
| GM | 30.52% | ||
| 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 Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.42 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)18.67%
EPS 3Y10.22%
EPS 5Y
EPS Q2Q%
EPS Next Y18.49%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.64%
Revenue growth 3Y24.54%
Revenue growth 5Y
Sales 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