ARES COMMERCIAL REAL ESTATE (ACRE) Fundamental Analysis & Valuation

NYSE:ACRE • US04013V1089

Current stock price

4.76 USD
-0.11 (-2.26%)
At close:
4.76 USD
0 (0%)
After Hours:

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.
  • In the past year ACRE had a positive cash flow from operations.
  • In multiple years ACRE reported negative net income over the last 5 years.
  • Each year in the past 5 years ACRE had a positive operating cash flow.
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.
  • ACRE's Return On Equity of -0.18% is on the low side compared to the rest of the industry. ACRE is outperformed by 76.47% of its industry peers.
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

  • ACRE's Gross Margin of 37.50% is in line compared to the rest of the industry. ACRE outperforms 51.47% of its industry peers.
  • 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • ACRE has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, ACRE has more shares outstanding
  • Compared to 1 year ago, ACRE has an improved debt to assets ratio.
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

  • ACRE has an Altman-Z score of -0.05. 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 (-0.05) than 67.65% 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.
  • ACRE's Debt to FCF ratio of 53.11 is amongst the best of the industry. ACRE outperforms 80.88% of its industry peers.
  • ACRE has a Debt/Equity ratio of 2.06. This is a high value indicating a heavy dependency on external financing.
  • ACRE has a Debt to Equity ratio of 2.06. This is amongst the best in the industry. ACRE outperforms 83.82% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.06
Debt/FCF 53.11
Altman-Z -0.05
ROIC/WACCN/A
WACC5.7%
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 2.34 indicates that ACRE has no problem at all paying its short term obligations.
  • ACRE's Current ratio of 2.34 is amongst the best of the industry. ACRE outperforms 94.12% of its industry peers.
  • ACRE has a Quick Ratio of 2.34. This indicates that ACRE is financially healthy and has no problem in meeting its short term obligations.
  • ACRE's Quick ratio of 2.34 is amongst the best of the industry. ACRE outperforms 94.12% of its industry peers.
Industry RankSector Rank
Current Ratio 2.34
Quick Ratio 2.34
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

More info and screens

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.
  • The Revenue for ACRE has decreased by -31.68% in the past year. This is quite bad
  • Measured over the past years, ACRE shows a decrease in Revenue. The Revenue has been decreasing by -2.27% on average per year.
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

  • ACRE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 219.45% yearly.
  • The Revenue is expected to grow by 4.92% on average over the next years.
EPS Next Y1242.4%
EPS Next 2Y430.85%
EPS Next 3Y219.45%
EPS Next 5YN/A
Revenue Next Year-8.54%
Revenue Next 2Y1.22%
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

More info and screens

Find the best growth stocksShow best growing peers

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.
  • A Price/Forward Earnings ratio of 20.83 indicates a rather expensive valuation of ACRE.
  • Based on the Price/Forward Earnings ratio, ACRE is valued a bit more expensive than 69.12% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, ACRE is valued at the same level.
Industry RankSector Rank
PE N/A
Fwd PE 20.83
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

  • Based on the Enterprise Value to EBITDA ratio, ACRE is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
  • 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 13.36
EV/EBITDA 251.32
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%

More info and screens

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

4

5. ACRE Dividend Analysis

5.1 Amount

  • ACRE has a Yearly Dividend Yield of 12.32%, which is a nice return.
  • Compared to an average industry Dividend Yield of 13.42, ACRE is paying slightly less dividend.
  • ACRE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 12.32%

5.2 History

  • The dividend of ACRE decreases each year by -12.32%.
  • ACRE has paid a dividend for at least 10 years, which is 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

  • The earnings of ACRE are negative and hence is the payout ratio. ACRE will probably not be able to sustain this dividend level.
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

More info and screens

Find the best dividend stocksShow peers with best dividend

ACRE Fundamentals: All Metrics, Ratios and Statistics

ARES COMMERCIAL REAL ESTATE

NYSE:ACRE (3/27/2026, 8:04:00 PM)

After market: 4.76 0 (0%)

4.76

-0.11 (-2.26%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)02-10
Earnings (Next)05-05
Inst Owners46.97%
Inst Owner Change4.74%
Ins Owners5.79%
Ins Owner Change7.33%
Market Cap263.56M
Revenue(TTM)119.99M
Net Income(TTM)-902.00K
Analysts50.77
Price Target5.36 (12.61%)
Short Float %3.05%
Short Ratio2.8
Dividend
Industry RankSector Rank
Dividend Yield 12.32%
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)-27.74%
EPS NQ rev (3m)-17.04%
EPS NY rev (1m)3.16%
EPS NY rev (3m)-4.68%
Revenue NQ rev (1m)-6.48%
Revenue NQ rev (3m)2.75%
Revenue NY rev (1m)-7.05%
Revenue NY rev (3m)2.48%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 20.83
P/S 2.2
P/FCF 13.36
P/OCF 12.34
P/B 0.52
P/tB 0.52
EV/EBITDA 251.32
EPS(TTM)-0.02
EYN/A
EPS(NY)0.23
Fwd EY4.8%
FCF(TTM)0.36
FCFY7.48%
OCF(TTM)0.39
OCFY8.1%
SpS2.17
BVpS9.2
TBVpS9.2
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
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 2.34
Quick Ratio 2.34
Altman-Z -0.05
F-Score5
WACC5.7%
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 Y1242.4%
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-8.54%
Revenue Next 2Y1.22%
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.


How profitable is ARES COMMERCIAL REAL ESTATE (ACRE) stock?

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


Can you provide the dividend sustainability for ACRE stock?

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