ARES COMMERCIAL REAL ESTATE (ACRE) Fundamental Analysis & Valuation

NYSE:ACRE • US04013V1089

Current stock price

5.29 USD
+0.06 (+1.15%)
At close:
5.29 USD
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This ACRE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. ACRE Profitability Analysis

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.
  • In the past 5 years ACRE always reported a positive cash flow from operatings.
ACRE Yearly Net Income VS EBIT VS OCF VS FCFACRE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20M -20M 40M 60M

1.2 Ratios

  • ACRE has a worse Return On Assets (-0.06%) than 76.47% of its industry peers.
  • With a Return On Equity value of -0.18%, ACRE is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
Industry RankSector Rank
ROA -0.06%
ROE -0.18%
ROIC N/A
ROA(3y)-1.25%
ROA(5y)-0.06%
ROE(3y)-4.29%
ROE(5y)0.01%
ROIC(3y)N/A
ROIC(5y)N/A
ACRE Yearly ROA, ROE, ROICACRE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5

1.3 Margins

  • With a Gross Margin value of 37.50%, ACRE perfoms like the industry average, outperforming 51.47% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ACRE has declined.
  • ACRE does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 37.5%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-10.8%
GM growth 5Y-7.09%
ACRE Yearly Profit, Operating, Gross MarginsACRE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

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6

2. ACRE Health Analysis

2.1 Basic Checks

  • ACRE does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • The number of shares outstanding for ACRE has been increased compared to 1 year ago.
  • The number of shares outstanding for ACRE has been increased compared to 5 years ago.
  • ACRE has a better debt/assets ratio than last year.
ACRE Yearly Shares OutstandingACRE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
ACRE Yearly Total Debt VS Total AssetsACRE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • Based on the Altman-Z score of -0.03, we must say that ACRE is in the distress zone and has some risk of bankruptcy.
  • ACRE has a Altman-Z score of -0.03. This is in the better half of the industry: ACRE outperforms 69.12% of its industry peers.
  • ACRE has a debt to FCF ratio of 53.11. This is a negative value and a sign of low solvency as ACRE would need 53.11 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 53.11, ACRE belongs to the top of the industry, outperforming 80.88% of the companies in the same industry.
  • A Debt/Equity ratio of 2.06 is on the high side and indicates that ACRE has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 2.06, ACRE belongs to the top of the industry, outperforming 83.82% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.06
Debt/FCF 53.11
Altman-Z -0.03
ROIC/WACCN/A
WACC5.73%
ACRE Yearly LT Debt VS Equity VS FCFACRE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 2.85 indicates that ACRE has no problem at all paying its short term obligations.
  • ACRE has a Current ratio of 2.85. This is amongst the best in the industry. ACRE outperforms 95.59% of its industry peers.
  • ACRE has a Quick Ratio of 2.85. This indicates that ACRE is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 2.85, ACRE belongs to the top of the industry, outperforming 95.59% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.85
Quick Ratio 2.85
ACRE Yearly Current Assets VS Current LiabilitesACRE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. ACRE Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 96.92% over the past year.
  • ACRE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -31.68%.
  • The Revenue has been decreasing by -2.27% on average over the past years.
EPS 1Y (TTM)96.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%65%
Revenue 1Y (TTM)-31.68%
Revenue growth 3Y-11.45%
Revenue growth 5Y-2.27%
Sales Q2Q%-24.52%

3.2 Future

  • The Earnings Per Share is expected to grow by 219.45% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 4.92% on average over the next years.
EPS Next Y1109.8%
EPS Next 2Y430.85%
EPS Next 3Y219.45%
EPS Next 5YN/A
Revenue Next Year-3.88%
Revenue Next 2Y5.72%
Revenue Next 3Y4.92%
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 accelerating.
ACRE Yearly Revenue VS EstimatesACRE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 50M 100M 150M 200M
ACRE Yearly EPS VS EstimatesACRE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 0.5 -0.5 1 1.5

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4

4. ACRE Valuation Analysis

4.1 Price/Earnings Ratio

  • ACRE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
  • Based on the Price/Forward Earnings ratio of 26.19, the valuation of ACRE can be described as expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ACRE indicates a rather expensive valuation: ACRE more expensive than 85.29% of the companies listed in the same industry.
  • ACRE's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.36.
Industry RankSector Rank
PE N/A
Fwd PE 26.19
ACRE Price Earnings VS Forward Price EarningsACRE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -100 -200

4.2 Price Multiples

  • ACRE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ACRE is cheaper than 64.71% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ACRE is valued a bit cheaper than 63.24% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.85
EV/EBITDA 256.42
ACRE Per share dataACRE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

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 219.45% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y430.85%
EPS Next 3Y219.45%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. ACRE Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 11.54%, ACRE is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 12.55, ACRE is paying slightly less dividend.
  • ACRE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 11.54%

5.2 History

  • The dividend of ACRE decreases each year by -12.32%.
  • ACRE has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-12.32%
Div Incr Years0
Div Non Decr Years0
ACRE Yearly Dividends per shareACRE Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • ACRE has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-4324.94%
EPS Next 2Y430.85%
EPS Next 3Y219.45%
ACRE Yearly Income VS Free CF VS DividendACRE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20M -20M 40M 60M

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ACRE Fundamentals: All Metrics, Ratios and Statistics

ARES COMMERCIAL REAL ESTATE

NYSE:ACRE (5/1/2026, 8:08:24 PM)

After market: 5.29 0 (0%)

5.29

+0.06 (+1.15%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Industry Strength40.99
Industry Growth80.12
Earnings (Last)02-10
Earnings (Next)05-07
Inst Owners47.05%
Inst Owner Change-0.31%
Ins Owners6.15%
Ins Owner Change7.33%
Market Cap292.91M
Revenue(TTM)119.99M
Net Income(TTM)-902.00K
Analysts50.77
Price Target5.36 (1.32%)
Short Float %3.53%
Short Ratio4.29
Dividend
Industry RankSector Rank
Dividend Yield 11.54%
Yearly Dividend0.71
Dividend Growth(5Y)-12.32%
DP-4324.94%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-31
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-402.33%
Min EPS beat(2)-1061.17%
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)2
Avg Revenue beat(2)11.68%
Min Revenue beat(2)3.01%
Max Revenue beat(2)20.35%
Revenue beat(4)3
Avg Revenue beat(4)4.81%
Min Revenue beat(4)-11.08%
Max Revenue beat(4)20.35%
Revenue beat(8)5
Avg Revenue beat(8)2.77%
Revenue beat(12)5
Avg Revenue beat(12)-3.54%
Revenue beat(16)9
Avg Revenue beat(16)16.16%
PT rev (1m)2.44%
PT rev (3m)10.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.82%
EPS NY rev (1m)-11.61%
EPS NY rev (3m)5.8%
Revenue NQ rev (1m)-1.37%
Revenue NQ rev (3m)-2.22%
Revenue NY rev (1m)5.09%
Revenue NY rev (3m)1.84%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 26.19
P/S 2.44
P/FCF 14.85
P/OCF 13.72
P/B 0.57
P/tB 0.57
EV/EBITDA 256.42
EPS(TTM)-0.02
EYN/A
EPS(NY)0.2
Fwd EY3.82%
FCF(TTM)0.36
FCFY6.73%
OCF(TTM)0.39
OCFY7.29%
SpS2.17
BVpS9.2
TBVpS9.2
PEG (NY)N/A
PEG (5Y)N/A
Graham Number0 (-100%)
Profitability
Industry RankSector Rank
ROA -0.06%
ROE -0.18%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 37.5%
FCFM 16.44%
ROA(3y)-1.25%
ROA(5y)-0.06%
ROE(3y)-4.29%
ROE(5y)0.01%
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-10.8%
GM growth 5Y-7.09%
F-Score5
Asset Turnover0.07
Health
Industry RankSector Rank
Debt/Equity 2.06
Debt/FCF 53.11
Debt/EBITDA 205.38
Cap/Depr 19.25%
Cap/Sales 1.36%
Interest Coverage N/A
Cash Conversion 418.71%
Profit Quality N/A
Current Ratio 2.85
Quick Ratio 2.85
Altman-Z -0.03
F-Score5
WACC5.73%
ROIC/WACCN/A
Cap/Depr(3y)8.92%
Cap/Depr(5y)N/A
Cap/Sales(3y)0.52%
Cap/Sales(5y)0.33%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)96.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%65%
EPS Next Y1109.8%
EPS Next 2Y430.85%
EPS Next 3Y219.45%
EPS Next 5YN/A
Revenue 1Y (TTM)-31.68%
Revenue growth 3Y-11.45%
Revenue growth 5Y-2.27%
Sales Q2Q%-24.52%
Revenue Next Year-3.88%
Revenue Next 2Y5.72%
Revenue Next 3Y4.92%
Revenue Next 5YN/A
EBIT growth 1Y89.69%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year541.05%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-43.95%
FCF growth 3Y-29.88%
FCF growth 5Y-8.94%
OCF growth 1Y-39.93%
OCF growth 3Y-28%
OCF growth 5Y-7.66%

ARES COMMERCIAL REAL ESTATE / ACRE Fundamental Analysis 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 of ARES COMMERCIAL REAL ESTATE (ACRE) stock?

ChartMill assigns a valuation rating of 4 / 10 to ARES COMMERCIAL REAL ESTATE (ACRE). This can be considered as Fairly Valued.


Can you provide the profitability details for ARES COMMERCIAL REAL ESTATE?

ARES COMMERCIAL REAL ESTATE (ACRE) has a profitability rating of 2 / 10.


How financially healthy is ARES COMMERCIAL REAL ESTATE?

The financial health rating of ARES COMMERCIAL REAL ESTATE (ACRE) is 6 / 10.


How sustainable is the dividend of ARES COMMERCIAL REAL ESTATE (ACRE) stock?

The dividend rating of ARES COMMERCIAL REAL ESTATE (ACRE) is 4 / 10 and the dividend payout ratio is -4324.94%.