APE - Eagers

 APE - eagers automotive

090726

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Over the last five years, Eagers Automotive (ASX: APE) has seen steady revenue growth to record highs, though net profit and Return on Equity (ROE) have experienced volatility and compressed from their cyclical peaks. [1, 2]

Financial Highlights (Last 5 Years)

• Profit: Eagers Automotive posted a record revenue of $13.05 billion for the full year 2025 (a 16.5% year-on-year increase). Net profit for FY2025 came in at $226.7 million, rebounding 11% compared to 2024 but remaining below the cyclical highs of over $281 million achieved in FY2023. [1, 2, 3, 4, 5]

• Debt: Total debt increased as the company engaged in strategic expansions, sitting around $3.06 billion in liabilities, with long-term debt reported at $1.18 billion. However, the debt-to-equity ratio has trended down (from 127.9% to 111.1%) and the company maintains a low, manageable gearing ratio of 0.18x. [1, 2, 3, 4, 5]
• ROE (Return on Equity): Reflecting the broader normalization of the automotive market and higher expenses, APE's ROE has compressed from a multi-year peak of 27.2% in 2022 to approximately 14.3%. [1, 2, 3]

You can track real-time APE statistics or view the detailed financials overview to monitor how they balance their debt and capital management in the future.

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The historical 10-year mean P/E ratio for Eagers Automotive Limited (ASX: APE) is 12.79x, with a median of 13.95x [1.31]. The company's valuation has experienced significant cyclical volatility over the decade, heavily influenced by dealership mergers (such as the AHG acquisition in 2019), the COVID-19 supply chain disruptions, and the post-pandemic automotive retail boom. [1]

Annual P/E Ratio History (2016–2026)

Year	Approximate P/E Ratio (FY Ending Dec)	Context & Valuation Drivers
2026 (TTM)	24.21x	Trading elevated relative to historical averages.
2025	26.9x – 30.7x	Valuation expanded sharply following a correction in earnings momentum.
2024	12.3x – 13.2x	Compressed as vehicle supply normalized and margins faced pressure.
2023	13.4x	Stable pricing aligned close to the company's historical median.
2022	14.9x	Normalizing down from pandemic highs as broader market multiples cooled.
2021	13.2x	Exceptionally high earnings (strong margins from vehicle shortages) kept the net P/E low despite stock price gains.
2020	52.11x (Peak)	Spiked heavily in mid-2020 due to severely depressed lockdown-era earnings.
2019	-3.04x (Trough)	Bottomed out in negative territory following statutory losses and massive restructuring costs from the AHG acquisition.
2018	10.8x	Subdued valuation reflecting a cooling Australian residential property market and lower consumer discretionary spend.
2017	13.9x	Aligned directly with the long-term historical average.
2016	15.5x	Steady, mature automotive retail cycle trading at standard retail market multiples.

Extreme Valuation Milestones

• Ten-Year High: 52.11x (Reached during the June 2020 quarter due to pandemic-related distortion of underlying earnings).
• Ten-Year Low: -3.04x (December 2019 quarter caused by one-off transactional statutory losses). [1, 2]

Key Analytical Takeaways

• Cyclical Nature: As a specialty auto retailer, Eagers Automotive's earnings fluctuate with vehicle availability, interest rates, and consumer discretionary income, swinging the multiple across cycles. [1, 2]
• Premium Rating: The current P/E ratio sits notably higher than the Australian Specialty Retail industry average (~15.6x), meaning the market has priced in a strong premium or expects a rebound via initiatives like their current share buyback. [1, 2]
• The longterm share price sits between $10 and $15... with a yield above 4%

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