Apiam Animal Health Ltd. (AHX) AI Stock Analysis

• Market Cap: AU$74.50M
• Dividend Yield: 4.94%
• Average Volume (3M): 42.70K
• Price to Earnings (P/E): 506.3
• Beta (1Y): 0.23
• Revenue Growth: 2.00%
• EPS Growth: -94.63%
• Country: AU
• Employees: 950
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Personal Products & Services
• EPS (TTM): 0.02
• Shares Outstanding: 183,942,520
• 10 Day Avg. Volume: 39,480
• 30 Day Avg. Volume: 42,698
• PEG Ratio: 0.11
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$0.63
• Price Target Upside: 57.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: AU$0.50 ▲(25.00%Upside)

Apiam Animal Health Ltd. benefits from strong financial performance and cash flow management, providing a solid base for future growth. However, the high P/E ratio suggests overvaluation, and technical indicators show weak momentum, which tempers the overall stock score.

Apiam Animal Health Ltd. Business Overview & Revenue Model

Company Description

Apiam Animal Health Limited, a vertically integrated animal health company, provides veterinary products and services to production and companion animals in Australia. The company operates through three segments: Dairy and Mixed, Feedlots, and Pigs. It engages in the provision of veterinary wholesale, diagnostics laboratories, custom vaccines, logistics, and other ancillary services. The company offers companion animal, dairy, swine and poultry, beef feedlot, equine, sheep, and genetic services. It also provides telemedicine, remote video headgear, health management apps for production animals systems, benchmarking databases, and herd management software. The company offers general animal health products through eCommerce. It provides its services through animal veterinary clinics. The company was founded in 1998 and is based in Bendigo, Australia.

How the Company Makes Money

Apiam Animal Health Ltd. generates revenue through its diversified veterinary services and product offerings. The primary revenue streams include veterinary consultation fees, sales of pharmaceuticals and health products, and laboratory services. The company benefits from its extensive network of veterinary clinics and a strong presence in the rural and regional markets. Additionally, strategic partnerships with pharmaceutical companies and expansion through acquisitions contribute significantly to its earnings, enhancing its market reach and service capabilities.

Apiam Animal Health Ltd. Financial Statement Overview

Summary

Apiam Animal Health Ltd. demonstrates strong financial performance with notable revenue growth and improving operational efficiencies. While profitability margins have room for improvement, robust cash flow management and balanced debt levels provide a solid foundation for future growth.

Income Statement

Apiam Animal Health Ltd. has shown a strong revenue growth trajectory with a significant increase from previous years, indicating robust business expansion. The Gross Profit Margin has improved substantially, reflecting effective cost management. However, the Net Profit Margin remains relatively low, suggesting room for improvement in overall profitability. The EBIT and EBITDA margins have shown positive trends, enhancing operational efficiency.

Balance Sheet

The company maintains a moderate Debt-to-Equity Ratio, indicating a balanced approach to leveraging. Return on Equity (ROE) reflects a moderate level of profitability relative to shareholder investments. The Equity Ratio is stable, suggesting a sound capital structure. However, the total debt level has increased, which could pose future financial risks if not managed properly.

Cash Flow

Apiam Animal Health Ltd. demonstrates a healthy Cash Flow position with consistent Free Cash Flow generation and positive Operating Cash Flow growth. The Free Cash Flow to Net Income ratio indicates efficient cash management, supporting potential reinvestment opportunities. The Operating Cash Flow to Net Income Ratio signifies strong cash generation capabilities from core operations.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
206.45M	204.66M	191.76M	157.06M	126.18M	118.33M
	Gross Profit
47.31M	137.16M	28.81M	25.98M	20.57M	19.26M
	EBIT
47.11M	12.36M	6.89M	7.95M	8.21M	7.66M
	EBITDA
19.56M	23.52M	17.11M	16.31M	14.64M	13.72M
	Net Income Common Stockholders
127.00K	4.93M	2.28M	4.64M	5.08M	4.17M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.45M	1.76M	3.17M	2.85M	2.15M	2.51M
	Total Assets
140.25M	255.78M	246.04M	199.18M	157.28M	141.67M
	Total Debt
51.63M	101.78M	98.03M	63.39M	55.04M	51.10M
	Net Debt
49.18M	100.02M	94.86M	60.55M	52.89M	48.59M
	Total Liabilities
73.64M	133.75M	128.14M	90.49M	76.46M	73.23M
	Stockholders Equity
65.74M	122.02M	117.87M	108.55M	79.81M	67.41M
Cash Flow		Free Cash Flow
13.31M	14.01M	9.25M	10.21M	8.71M	5.52M
	Operating Cash Flow
19.18M	18.88M	17.45M	15.08M	13.69M	7.51M
	Investing Cash Flow
-6.17M	-10.91M	-40.62M	-32.49M	-16.56M	-14.86M
	Financing Cash Flow
-12.42M	-9.39M	23.49M	18.11M	2.51M	7.99M

Apiam Animal Health Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AHX, the sentiment is Positive. The current price of 0.4 is above the 20-day moving average (MA) of 0.40, above the 50-day MA of 0.40, and below the 200-day MA of 0.41, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.13 is Neutral, neither overbought nor oversold. The STOCH value of 19.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AHX.

Apiam Animal Health Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AHX	64 Neutral	AU$74.50M	506.25	0.11%	4.94%	2.00%	-94.63%
Sector *	62 Neutral	$6.84B	11.41	2.80%	3.87%	2.70%	-24.58%
CMXHF		$76.28B	26.67	15.38%	1.85%	―	―
MEOBF		$1.46B	―	-21.31%	―	―	―
RMSYF		$5.63B	1,072.73	0.52%	2.23%	―	―
SHL	72 Outperform	AU$12.68B	23.17	6.86%	4.05%	10.15%	6.20%

Apiam Animal Health Ltd. Corporate Events

Apiam Animal Health Announces Leadership Transition with Interim CEO Appointment

Apiam Animal Health Limited has announced a leadership transition with the departure of Dr. Chris Richards as CEO and Managing Director after over nine years. Bruce Dixon, a non-executive director with a proven track record in profitable growth, will serve as Interim Managing Director while the company searches for a new CEO. The transition aims to maintain focus on revenue opportunities and operational efficiencies within Apiam’s clinic portfolio, signaling a strategic shift in leadership to support continued growth and development.

The most recent analyst rating on (AU:AHX) stock is a Buy with a A$0.63 price target. To see the full list of analyst forecasts on Apiam Animal Health Ltd. stock, see the AU:AHX Stock Forecast page.

Apiam Animal Health Reports Resilient FY25 Results and Launches AI Tool

Apiam Animal Health Ltd. reported resilient financial results for the fiscal year 2025 to date, despite challenges in the equine market and reduced export diagnostic testing revenues. The company has divested two underperforming clinics to improve EBIT and is rolling out CoVet, an AI-driven clinical tool, to enhance efficiency and customer experience across its network. This strategic move is expected to streamline workflows, increase clinic capacity, and improve both employee and customer satisfaction, positioning Apiam favorably in the veterinary services industry.

Apiam Animal Health Issues Performance Rights in Employee Incentive Scheme

Apiam Animal Health Ltd. announced the issuance of 128,671 performance rights as part of an employee incentive scheme. These securities are unquoted and are not intended to be listed on the ASX, reflecting the company’s strategy to reward and retain its workforce, potentially impacting its operational efficiency and stakeholder engagement.

Apiam Animal Health Ltd. Announces Quotation of New Securities

Apiam Animal Health Ltd. announced the application for the quotation of 1,420,737 fully paid ordinary securities on the Australian Securities Exchange (ASX). This move is part of a dividend or distribution plan, potentially impacting the company’s financial structure and providing additional liquidity options for stakeholders.

Apiam Animal Health Director Increases Shareholding

Apiam Animal Health Ltd. announced a change in the director’s interest, with Christopher Richards acquiring 112,406 fully paid ordinary shares, bringing his total to 43,386,270 shares. This acquisition, conducted through a market purchase, reflects a strategic move that could potentially impact the company’s market positioning and stakeholder confidence.

Apiam Animal Health Updates Dividend Reinvestment Plan Details

Apiam Animal Health Ltd. has announced an update regarding the issue price of shares for shareholders participating in the Dividend Reinvestment Plan for the H1 FY2025 Interim Dividend. This update clarifies the financial arrangements for shareholders, potentially impacting their investment decisions and reflecting the company’s ongoing commitment to shareholder value.