APOLLO INVESTMENT CORP's gross profit margin for the third quarter of its fiscal year 2012 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.78% from the same quarter last year.
| Income Statement | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Net Sales ($mil) | 83.21 | 83.82 |
| EBITDA ($mil) | 56.73 | 55.86 |
| EBIT ($mil) | 56.73 | 55.86 |
| Net Income ($mil) | -22.74 | 63.7 |
| Balance Sheet | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Cash & Equiv. ($mil) | 41.52 | 0.0 |
| Total Assets ($mil) | 2779.5 | 2942.94 |
| Total Debt ($mil) | 1040.94 | 1213.19 |
| Equity ($mil) | 1652.15 | 1607.41 |
| Profitability | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Gross Profit Margin | 68.18 | 66.65 |
| EBITDA Margin | 68.17 | 66.65 |
| Operating Margin | 68.18 | 66.65 |
| Sales Turnover | 0.12 | 0.12 |
| Return on Assets | 5.6 | -3.1 |
| Return on Equity | 9.43 | -5.68 |
| Debt | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Current Ratio | 0.0 | 0.0 |
| Debt/Capital | 0.39 | 0.43 |
| Interest Expense | 14.65 | 16.93 |
| Interest Coverage | 3.87 | 3.3 |
| Share Data | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Shares outstanding (mil) | 202.89 | 197.04 |
| Div / share | 0.2 | 0.28 |
| EPS | -0.11 | 0.31 |
| Book value / share | 8.14 | 8.16 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 1671316.0 | 1940944.0 |
HOLD. The current P/E ratio indicates a significant discount compared to an average of 28.99 for the Capital Markets industry and a discount compared to the S&P 500 average of 18.80. For additional comparison, its price-to-book ratio of 1.07 indicates a discount versus the S&P 500 average of 2.40 and a discount versus the industry average of 1.83. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. Upon assessment of these and other key valuation criteria, APOLLO INVESTMENT CORP proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AINV 11.21 | Peers 28.99 | AINV 4.68 | Peers 25.80 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. AINV is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. AINV is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
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| AINV 10.28 | Peers 18.87 | AINV NM | Peers 1.45 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. AINV is trading at a significant discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. AINV's negative PEG ratio makes this valuation measure meaningless. |
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| Price/Book |
|
Earnings Growth |
|
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| AINV 1.07 | Peers 1.83 | AINV 262.50 | Peers 60.09 | |||||||||||||||||||||
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Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. AINV is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. AINV is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
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| AINV 5.33 | Peers 5.69 | AINV -9.41 | Peers 11.69 | |||||||||||||||||||||
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Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. AINV is trading at a valuation on par with its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. AINV significantly trails its peers on the basis of sales growth |
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