APOLLO COMMERCIAL REAL ESTAT (ARI)
US03762U1051 - REIT
Overall ARI gets a fundamental rating of 5 out of 10. We evaluated ARI against 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. ARI has an average financial health and profitability rating. ARI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ARI was profitable.
In the past year ARI had a positive cash flow from operations.
In the past 5 years ARI has always been profitable.
ARI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ARI has a Return On Assets of -1.21%. This is amonst the worse of the industry: ARI underperforms 81.25% of its industry peers.
ARI has a Return On Equity of -5.46%. This is amonst the worse of the industry: ARI underperforms 81.25% of its industry peers.
ARI's Return On Invested Capital of 1.58% is fine compared to the rest of the industry. ARI outperforms 68.75% of its industry peers.
ARI had an Average Return On Invested Capital over the past 3 years of 1.95%. This is in line with the industry average of 1.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.21% | ||
| ROE | -5.46% | ||
| ROIC | 1.58% |
ROA(3y)1.83%
ROA(5y)1.71%
ROE(3y)7.15%
ROE(5y)5.88%
ROIC(3y)1.95%
ROIC(5y)2.98%
1.3 Margins
In the last couple of years the Profit Margin of ARI has declined.
ARI's Operating Margin of 22.09% is fine compared to the rest of the industry. ARI outperforms 60.94% of its industry peers.
In the last couple of years the Operating Margin of ARI has declined.
ARI has a better Gross Margin (40.86%) than 70.31% of its industry peers.
In the last couple of years the Gross Margin of ARI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.09% | ||
| PM (TTM) | N/A | ||
| GM | 40.86% |
OM growth 3Y-21.29%
OM growth 5Y-15.91%
PM growth 3Y150.06%
PM growth 5Y-35.77%
GM growth 3Y-13.28%
GM growth 5Y-9.91%
2. Health
2.1 Basic Checks
ARI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ARI has been increased compared to 1 year ago.
The number of shares outstanding for ARI has been increased compared to 5 years ago.
Compared to 1 year ago, ARI has a worse debt to assets ratio.
2.2 Solvency
ARI has an Altman-Z score of 0.19. This is a bad value and indicates that ARI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.19, ARI is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
ARI has a debt to FCF ratio of 58.41. This is a negative value and a sign of low solvency as ARI would need 58.41 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 58.41, ARI is in line with its industry, outperforming 45.31% of the companies in the same industry.
A Debt/Equity ratio of 3.43 is on the high side and indicates that ARI has dependencies on debt financing.
ARI has a Debt to Equity ratio of 3.43. This is in the better half of the industry: ARI outperforms 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.43 | ||
| Debt/FCF | 58.41 | ||
| Altman-Z | 0.19 |
ROIC/WACC0.23
WACC6.82%
2.3 Liquidity
A Current Ratio of 2.13 indicates that ARI has no problem at all paying its short term obligations.
ARI has a Current ratio of 2.13. This is amongst the best in the industry. ARI outperforms 89.06% of its industry peers.
ARI has a Quick Ratio of 2.13. This indicates that ARI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.13, ARI belongs to the top of the industry, outperforming 89.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 2.13 |
3. Growth
3.1 Past
ARI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.76%.
The Earnings Per Share has been decreasing by -9.38% on average over the past years.
ARI shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.82%.
ARI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.95% yearly.
EPS 1Y (TTM)-35.76%
EPS 3Y54.2%
EPS 5Y-9.38%
EPS Q2Q%-27.08%
Revenue 1Y (TTM)26.82%
Revenue growth 3Y23.77%
Revenue growth 5Y14.95%
Sales Q2Q%-34.94%
3.2 Future
ARI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.93% yearly.
ARI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.12% yearly.
EPS Next Y12.02%
EPS Next 2Y4.97%
EPS Next 3Y9.93%
EPS Next 5YN/A
Revenue Next Year-11.92%
Revenue Next 2Y-4.21%
Revenue Next 3Y0.12%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.41, which indicates a very decent valuation of ARI.
The rest of the industry has a similar Price/Earnings ratio as ARI.
ARI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.05.
The Price/Forward Earnings ratio is 8.33, which indicates a very decent valuation of ARI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARI is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.07, ARI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.41 | ||
| Fwd PE | 8.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARI is valued cheaply inside the industry as 85.94% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as ARI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.96 | ||
| EV/EBITDA | 43.13 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.87
PEG (5Y)N/A
EPS Next 2Y4.97%
EPS Next 3Y9.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.77%, ARI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 13.26, ARI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, ARI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.77% |
5.2 History
The dividend of ARI decreases each year by -6.37%.
ARI has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of ARI decreased in the last 3 years.
Dividend Growth(5Y)-6.37%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
ARI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-191.81%
EPS Next 2Y4.97%
EPS Next 3Y9.93%
APOLLO COMMERCIAL REAL ESTAT
NYSE:ARI (5/31/2024, 7:23:49 PM)
After market: 10.02 -0.08 (-0.79%)10.1
+0.17 (+1.71%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.77% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.41 | ||
| Fwd PE | 8.33 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.87
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.21% | ||
| ROE | -5.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.09% | ||
| PM (TTM) | N/A | ||
| GM | 40.86% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.43 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.13 | ||
| Quick Ratio | 2.13 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-35.76%
EPS 3Y54.2%
EPS 5Y
EPS Q2Q%
EPS Next Y12.02%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)26.82%
Revenue growth 3Y23.77%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y