Alpha Pro Tech Ltd (NYSE: APT)

Sector: Industrials Industry: Building Products & Equipment CIK: 0000884269
Market Cap 54.55 Mn
P/B 0.87
P/E 14.82
P/S 0.92
ROIC (Qtr) 3.81
Div Yield % 0.00
Rev 1y % (Qtr) 3.75
Total Debt (Qtr) 8.11 Mn
Debt/Equity (Qtr) 0.13
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About

Alpha Pro Tech Ltd., a company known by its ticker symbol APT, operates in the manufacturing and distribution industry, specifically in the cleanroom, industrial, pharmaceutical, medical, and dental markets. The company's main business activities are divided into two segments: Building Supply and Disposable Protective Apparel. The Building Supply segment produces construction weatherization products, while the Disposable Protective Apparel segment manufactures disposable protective garments and face masks. Alpha Pro Tech generates revenue primarily...

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Investment thesis

Bull case

  • Strong operating cash flow of 4.46M provides robust 0.55x coverage of total debt 8.11M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 17.66M provide 18.57x coverage of short-term debt 951000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 73.81M provides 9.11x coverage of total debt 8.11M, indicating robust asset backing and low credit risk.
  • Tangible assets of 73.81M provide robust 74.63x coverage of other current liabilities 989000, indicating strong asset backing.
  • Long-term investments of 5.84M provide solid 0.82x coverage of long-term debt 7.15M, indicating strategic financial planning.

Bear case

  • Operating cash flow of 4.46M barely covers its investment activities of (1.81M), with a coverage ratio of -2.46, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating earnings of 4.76M show weak coverage of depreciation charges of 1.75M, with a 2.72 ratio indicating high capital intensity and potential reinvestment needs.
  • Retained earnings of 48.27M provide limited buffer against comprehensive income items of (1.77M), which is -27.20x, indicating elevated exposure to market risks.
  • Operating cash flow of 4.46M is outpaced by equity issuance of (3.35M) (-1.33 ratio), indicating concerning reliance on equity markets for funding operations.
  • Tangible assets of 73.81M provide limited backing for working capital of 48.08M, which is 1.54x, suggesting increased operational risk in market downturns.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Building Products & Equipment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TT Trane Technologies plc 104.89 Bn 35.94 4.92 4.62 Bn
2 JCI Johnson Controls International plc 91.64 Bn 26.98 3.82 9.71 Bn
3 CARR CARRIER GLOBAL Corp 56.66 Bn 38.18 2.61 12.25 Bn
4 LII Lennox International Inc 19.91 Bn 24.71 3.83 1.77 Bn
5 CSL Carlisle Companies Inc 17.50 Bn 23.63 3.49 2.88 Bn
6 MAS Masco Corp /De/ 15.94 Bn 19.68 2.11 3.17 Bn
7 OC Owens Corning 13.83 Bn 13.90 1.63 5.61 Bn
8 WMS Advanced Drainage Systems, Inc. 13.26 Bn 28.18 4.44 1.45 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.66 2.00
EV to Cash from Ops. EV/CFO 10.85 13.48
EV to Debt EV to Debt 5.97 10.94
EV to EBIT EV/EBIT 10.18 24.16
EV to EBITDA EV/EBITDA 9.12 -11.14
EV to Free Cash Flow [EV/FCF] EV/FCF 18.27 46.78
EV to Market Cap EV to Market Cap 0.89 1.12
EV to Revenue EV/Rev 0.82 2.81
Price to Book Value [P/B] P/B 0.87 4.24
Price to Earnings [P/E] P/E 14.82 47.40
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.80
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 11.22
Dividend per Basic Share Div per Share (Qtr) 0.00 0.71
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 10.90
Interest Coverage Int. cover (Qtr) 0.00 111.58
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 31.20 -24.93
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -4.00 61.26
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.67
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -11.18 -186.82
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -6.05 -57.93
EBIT Growth (1y) % EBIT 1y % (Qtr) -9.63 -102.26
EBT Growth (1y) % EBT 1y % (Qtr) -9.63 -299.15
EPS Growth (1y) % EPS 1y % (Qtr) -8.11 -598.34
FCF Growth (1y) % FCF 1y % (Qtr) -36.54 89.70
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -3.70 -3.62
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.80 0.88
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.13
Cash Ratio Cash Ratio (Qtr) 4.81 1.57
Current Ratio Curr Ratio (Qtr) 14.10 3.42
Debt to Equity Ratio Debt/Equity (Qtr) 0.13 0.79
Interest Cover Ratio Int Coverage (Qtr) 0.00 111.58
Times Interest Earned Times Interest Earned (Qtr) 0.00 111.58
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 11.00 3.54
EBIT Margin % EBIT Margin % (Qtr) 8.05 1.23
EBT Margin % EBT Margin % (Qtr) 8.05 -1.76
Gross Margin % Gross Margin % (Qtr) 38.20 28.65
Net Profit Margin % Net Margin % (Qtr) 6.20 -3.80