APM Human Services International Pty APM

Morningstar Rating
A$1.45 0.00 (0.00%)
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Company Report

APM Human Services International Earnings: Deal Likely to Pass Despite Earnings Disappointment

Fiscal 2024 results from no-moat APM Human Services International marginally missed our estimates and company guidance. Despite a significant earnings decline, the deal to take APM private is on track to be completed by October 2024, and we still expect the takeover to go through. We leave our fair value estimate of AUD 1.45, in line with the offer price received from Ancora BidCo, an entity controlled by Madison Dearborn Partners.

Price vs Fair Value

APM is trading at a 283% premium.
Price
A$1.45
Fair Value
A$7.64
Uncertainty
High
1-Star Price
A$9.45
5-Star Price
A$9.81
Economic Moat
Hvsyx
Capital Allocation
Jchpwbkd

Bulls Say, Bears Say

Bulls

APM has industry leading star ratings across its key Australian contracts which underpins its market share.

Bears

Government funding is ultimately dependent on caseload and economic cycles.

Trading Information

Previous Close Price
A$1.45
Day Range
A$1.451.45
52-Week Range
A$0.692.24
Bid/Ask
A$0.00 / A$0.00
Market Cap
A$1.33 Bil
Volume/Avg
1.8 Mil / 1.1 Mil

Key Statistics

Price/Earnings (Normalized)
13.03
Price/Sales
0.58
Dividend Yield (Trailing)
3.46%
Dividend Yield (Forward)
0.00%
Total Yield
3.46%

Company Profile

APM Human Services International, on behalf of government bodies, provides services to assist job seekers in finding suitable employment, particularly those with a disability, injury, or illness. Services include job search assistance, vocational training, postplacement support, and allied health services such as rehabilitation and mental health. APM earns roughly 35% of revenue from Australia, 15% from Europe, 45% from North America, and the remaining 5% from New Zealand, Singapore, and South Korea.
Sector
Industrials
Industry
Staffing & Employment Services
Stock Style Box
Small Value
Total Number of Employees

Competitors

Valuation

Metric
APM
IEL
EDU
Price/Earnings (Normalized)
13.0327.8529.68
Price/Book Value
1.098.473.21
Price/Sales
0.584.282.84
Price/Cash Flow
10.2938.2620.32
Price/Earnings
APM
IEL
EDU

Financial Strength

Metric
APM
IEL
EDU
Quick Ratio
0.690.981.66
Current Ratio
1.491.591.80
Interest Coverage
−1.708.441,142.79
Quick Ratio
APM
IEL
EDU

Profitability

Metric
APM
IEL
EDU
Return on Assets (Normalized)
3.17%12.29%5.46%
Return on Equity (Normalized)
6.86%29.13%10.12%
Return on Invested Capital (Normalized)
6.15%18.71%5.75%
Return on Assets
APM
IEL
EDU

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