ARES COMMERCIAL REAL ESTATE (ACRE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ACRE - US04013V1089 - REIT
5.32 USD
-0.03 (-0.56%)
5.3399 USD
+0.02 (+0.37%)
We assign a fundamental rating of 4 out of 10 to ACRE. ACRE was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. ACRE scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ACRE has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ACRE had negative earnings in the past year.
ACRE had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ACRE reported negative net income in multiple years.
ACRE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ACRE has a worse Return On Assets (-0.55%) than 76.47% of its industry peers.
With a Return On Equity value of -1.48%, ACRE is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.55% | ||
| ROE | -1.48% | ||
| ROIC | N/A |
ROA(3y)-0.84%
ROA(5y)0.18%
ROE(3y)-2.9%
ROE(5y)0.96%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 37.66%, ACRE is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
ACRE's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for ACRE so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 37.66% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16.69%
GM growth 5Y-7.42%
2. Health
2.1 Basic Checks
ACRE does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, ACRE has more shares outstanding
Compared to 5 years ago, ACRE has more shares outstanding
ACRE has a better debt/assets ratio than last year.
2.2 Solvency
ACRE has an Altman-Z score of 0.04. This is a bad value and indicates that ACRE is not financially healthy and even has some risk of bankruptcy.
ACRE has a better Altman-Z score (0.04) than 69.12% of its industry peers.
The Debt to FCF ratio of ACRE is 36.63, which is on the high side as it means it would take ACRE, 36.63 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 36.63, ACRE belongs to the top of the industry, outperforming 80.88% of the companies in the same industry.
ACRE has a Debt/Equity ratio of 1.55. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ACRE (1.55) is better than 92.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | 36.63 | ||
| Altman-Z | 0.04 |
ROIC/WACCN/A
WACC7%
2.3 Liquidity
A Current Ratio of 6.88 indicates that ACRE has no problem at all paying its short term obligations.
ACRE's Current ratio of 6.88 is amongst the best of the industry. ACRE outperforms 97.06% of its industry peers.
A Quick Ratio of 6.88 indicates that ACRE has no problem at all paying its short term obligations.
ACRE has a Quick ratio of 6.88. This is amongst the best in the industry. ACRE outperforms 97.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.88 | ||
| Quick Ratio | 6.88 |
3. Growth
3.1 Past
ACRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 87.29%, which is quite impressive.
Looking at the last year, ACRE shows a very negative growth in Revenue. The Revenue has decreased by -28.83% in the last year.
ACRE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.67% yearly.
EPS 1Y (TTM)87.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%172.73%
Revenue 1Y (TTM)-28.83%
Revenue growth 3Y4.91%
Revenue growth 5Y4.67%
Sales Q2Q%-15.3%
3.2 Future
Based on estimates for the next years, ACRE will show a very strong growth in Earnings Per Share. The EPS will grow by 42.64% on average per year.
The Revenue is expected to decrease by -5.20% on average over the next years.
EPS Next Y110.59%
EPS Next 2Y53.91%
EPS Next 3Y42.64%
EPS Next 5YN/A
Revenue Next Year-22.91%
Revenue Next 2Y-16.8%
Revenue Next 3Y-5.2%
Revenue Next 5YN/A
3.3 Evolution
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
ACRE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 22.19, ACRE is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACRE indicates a slightly more expensive valuation: ACRE is more expensive than 72.06% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, ACRE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 22.19 |
4.2 Price Multiples
ACRE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ACRE is cheaper than 67.65% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACRE is valued a bit cheaper than the industry average as 67.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.24 | ||
| EV/EBITDA | 282.87 |
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.
A more expensive valuation may be justified as ACRE's earnings are expected to grow with 42.64% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y53.91%
EPS Next 3Y42.64%
5. Dividend
5.1 Amount
ACRE has a Yearly Dividend Yield of 11.21%, which is a nice return.
ACRE's Dividend Yield is slightly below the industry average, which is at 12.23.
Compared to an average S&P500 Dividend Yield of 1.87, ACRE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.21% |
5.2 History
The dividend of ACRE decreases each year by -3.33%.
ACRE has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-3.33%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ACRE has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-577.25%
EPS Next 2Y53.91%
EPS Next 3Y42.64%
5.32
-0.03 (-0.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners44.3%
Inst Owner Change1.97%
Ins Owners5.61%
Ins Owner Change9.06%
Market Cap292.76M
Revenue(TTM)130.49M
Net Income(TTM)-7.70M
Analysts48.33
Price Target4.65 (-12.59%)
Short Float %3.82%
Short Ratio4.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.21% |
Yearly Dividend1.1
Dividend Growth(5Y)-3.33%
DP-577.25%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-155.17%
Min EPS beat(2)-566.85%
Max EPS beat(2)256.51%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)4.64%
Min Revenue beat(2)-11.08%
Max Revenue beat(2)20.35%
Revenue beat(4)3
Avg Revenue beat(4)6.71%
Min Revenue beat(4)-11.08%
Max Revenue beat(4)20.35%
Revenue beat(8)4
Avg Revenue beat(8)-2.72%
Revenue beat(12)5
Avg Revenue beat(12)3.57%
Revenue beat(16)9
Avg Revenue beat(16)22.21%
PT rev (1m)4.29%
PT rev (3m)5.8%
EPS NQ rev (1m)199.4%
EPS NQ rev (3m)-68.75%
EPS NY rev (1m)145.46%
EPS NY rev (3m)-65.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)15.94%
Revenue NY rev (1m)1.35%
Revenue NY rev (3m)2.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 22.19 | ||
| P/S | 2.24 | ||
| P/FCF | 13.24 | ||
| P/OCF | 12.3 | ||
| P/B | 0.56 | ||
| P/tB | 0.56 | ||
| EV/EBITDA | 282.87 |
EPS(TTM)-0.15
EYN/A
EPS(NY)0.24
Fwd EY4.51%
FCF(TTM)0.4
FCFY7.55%
OCF(TTM)0.43
OCFY8.13%
SpS2.37
BVpS9.47
TBVpS9.47
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.55% | ||
| ROE | -1.48% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 37.66% | ||
| FCFM | 16.94% |
ROA(3y)-0.84%
ROA(5y)0.18%
ROE(3y)-2.9%
ROE(5y)0.96%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16.69%
GM growth 5Y-7.42%
F-Score6
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | 36.63 | ||
| Debt/EBITDA | 225.1 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 661.45% | ||
| Profit Quality | N/A | ||
| Current Ratio | 6.88 | ||
| Quick Ratio | 6.88 | ||
| Altman-Z | 0.04 |
F-Score6
WACC7%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)0.07%
Cap/Sales(5y)0.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)87.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%172.73%
EPS Next Y110.59%
EPS Next 2Y53.91%
EPS Next 3Y42.64%
EPS Next 5YN/A
Revenue 1Y (TTM)-28.83%
Revenue growth 3Y4.91%
Revenue growth 5Y4.67%
Sales Q2Q%-15.3%
Revenue Next Year-22.91%
Revenue Next 2Y-16.8%
Revenue Next 3Y-5.2%
Revenue Next 5YN/A
EBIT growth 1Y91.93%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year21.62%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-57.31%
FCF growth 3Y-10.02%
FCF growth 5Y2.7%
OCF growth 1Y-54.06%
OCF growth 3Y-9.77%
OCF growth 5Y1.81%
ARES COMMERCIAL REAL ESTATE / ACRE FAQ
Can you provide the ChartMill fundamental rating for ARES COMMERCIAL REAL ESTATE?
ChartMill assigns a fundamental rating of 4 / 10 to ACRE.
What is the valuation status for ACRE stock?
ChartMill assigns a valuation rating of 4 / 10 to ARES COMMERCIAL REAL ESTATE (ACRE). This can be considered as Fairly Valued.
How profitable is ARES COMMERCIAL REAL ESTATE (ACRE) stock?
ARES COMMERCIAL REAL ESTATE (ACRE) has a profitability rating of 2 / 10.
What is the financial health of ARES COMMERCIAL REAL ESTATE (ACRE) stock?
The financial health rating of ARES COMMERCIAL REAL ESTATE (ACRE) is 6 / 10.
What is the earnings growth outlook for ARES COMMERCIAL REAL ESTATE?
The Earnings per Share (EPS) of ARES COMMERCIAL REAL ESTATE (ACRE) is expected to grow by 110.59% in the next year.