Apotex Health Corp. Fundamental Analysis (TSX: APTX.TO)
Apotex Health Corp. Fundamental Analysis (TSX: APTX.TO)
Apotex Health Corp. (TSX: APTX.TO) shows moderate financial fundamentals with a PE ratio of 20.58, profit margin of 10.71%, and ROE of -2.80%. The company generates $3.4B in annual revenue with moderate year-over-year growth of 4.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -173.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze APTX.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakAPTX.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAPTX.TO trades at attractive valuation levels.
Growth Score
WeakAPTX.TO faces weak or negative growth trends.
Financial Health Score
ExcellentAPTX.TO maintains a strong and stable balance sheet.
Profitability Score
WeakAPTX.TO struggles to sustain strong margins.
Key Financial Metrics
Is APTX.TO Expensive or Cheap?
P/E Ratio
APTX.TO trades at 20.58 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, APTX.TO's PEG of 0.21 indicates potential undervaluation.
Price to Book
The market values Apotex Health Corp. at -13.76 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.50 times EBITDA. This is generally considered low.
How Well Does APTX.TO Make Money?
Net Profit Margin
For every $100 in sales, Apotex Health Corp. keeps $10.71 as profit after all expenses.
Operating Margin
Core operations generate 22.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.80 in profit for every $100 of shareholder equity.
ROA
Apotex Health Corp. generates $8.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Apotex Health Corp. produces operating cash flow of $632.03M, showing steady but balanced cash generation.
Free Cash Flow
Apotex Health Corp. generates strong free cash flow of $452.59M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.98 in free cash annually.
FCF Yield
APTX.TO converts 6.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.58
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
-13.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-6.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.50
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-2.80
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How APTX.TO Stacks Against Its Sector Peers
| Metric | APTX.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.58 | 32.02 | Better (Cheaper) |
| ROE | -279.63% | 569.00% | Weak |
| Net Margin | 10.71% | 29961.00% | Weak |
| Debt/Equity | -6.31 | 0.53 | Strong (Low Leverage) |
| Current Ratio | 1.50 | 5.67 | Neutral |
| ROA | 8.23% | -96.00% (disorted) | Weak |
APTX.TO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Apotex Health Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
17.06%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
350.87%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
10.71%
Industry Style: Defensive, Growth, Innovation
High Growth