ARES COMMERCIAL REAL ESTATE (ACRE) Fundamental Analysis & Valuation

NYSE:ACRE • US04013V1089

5.21 USD
+0.05 (+0.97%)
At close: Mar 4, 2026
5.21 USD
0 (0%)
After Hours: 3/4/2026, 4:13:53 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This ACRE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

4

Overall ACRE gets a fundamental rating of 4 out of 10. We evaluated ACRE against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While ACRE seems to be doing ok healthwise, there are quite some concerns on its profitability. ACRE has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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.
  • The reported net income has been mixed in the past 5 years: ACRE reported negative net income in multiple 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's Return On Assets of -0.06% is on the low side compared to the rest of the industry. ACRE is outperformed by 70.59% 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 70.59% 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

  • Looking at the Gross Margin, with a value of 37.50%, ACRE is in the better half of the industry, outperforming 77.94% 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 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.
  • ACRE has more shares outstanding than it did 1 year ago.
  • ACRE has more shares outstanding than it did 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

  • 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 Altman-Z score of -0.04. This is in the better half of the industry: ACRE outperforms 66.18% of its industry peers.
  • The Debt to FCF ratio of ACRE is 53.11, which is on the high side as it means it would take ACRE, 53.11 years of fcf income to pay off all of its debts.
  • With an excellent Debt to FCF ratio value of 53.11, ACRE belongs to the best of the industry, outperforming 80.88% of the companies in the same industry.
  • ACRE has a Debt/Equity ratio of 2.06. This is a high value indicating a heavy dependency on external 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 -0.04
ROIC/WACCN/A
WACC5.57%
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 has a better Current ratio (2.34) than 92.65% 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 has a better Quick ratio (2.34) than 92.65% 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

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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 532.42% on average over the next years. This is a very strong growth
  • ACRE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.92% yearly.
EPS Next Y1207.41%
EPS Next 2Y532.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.59%
Revenue Next 2Y4.05%
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 0 0.5 -0.5 1 1.5

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4

4. ACRE Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings Ratio is negative for ACRE. In the last year negative earnings were reported.
  • The Price/Forward Earnings ratio is 23.52, which indicates a rather expensive current valuation of ACRE.
  • Based on the Price/Forward Earnings ratio, ACRE is valued a bit more expensive than the industry average as 72.06% of the companies are valued more cheaply.
  • ACRE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.95, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 23.52
ACRE Price Earnings VS Forward Price EarningsACRE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -50 -100 -150 -200 -250

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ACRE is valued a bit cheaper than 67.65% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACRE indicates a somewhat cheap valuation: ACRE is cheaper than 67.65% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 14.54
EV/EBITDA 255.32
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.
  • ACRE's earnings are expected to grow with 532.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y532.42%
EPS Next 3YN/A

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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 11.72%, which is a nice return.
  • ACRE's Dividend Yield is comparable with the industry average which is at 11.21.
  • ACRE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 11.72%

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

  • ACRE has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-4324.94%
EPS Next 2Y532.42%
EPS Next 3YN/A
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 (3/4/2026, 4:13:53 PM)

After market: 5.21 0 (0%)

5.21

+0.05 (+0.97%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)02-10
Earnings (Next)05-05
Inst Owners44.43%
Inst Owner Change4.74%
Ins Owners5.89%
Ins Owner Change7.1%
Market Cap286.71M
Revenue(TTM)119.99M
Net Income(TTM)-902.00K
Analysts50.77
Price Target5.23 (0.38%)
Short Float %3.17%
Short Ratio2.69
Dividend
Industry RankSector Rank
Dividend Yield 11.72%
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)7.89%
PT rev (3m)15.49%
EPS NQ rev (1m)40.91%
EPS NQ rev (3m)38.39%
EPS NY rev (1m)16.03%
EPS NY rev (3m)-17.75%
Revenue NQ rev (1m)6.02%
Revenue NQ rev (3m)4.25%
Revenue NY rev (1m)4.26%
Revenue NY rev (3m)15.57%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 23.52
P/S 2.39
P/FCF 14.54
P/OCF 13.43
P/B 0.56
P/tB 0.56
EV/EBITDA 255.32
EPS(TTM)-0.02
EYN/A
EPS(NY)0.22
Fwd EY4.25%
FCF(TTM)0.36
FCFY6.88%
OCF(TTM)0.39
OCFY7.45%
SpS2.18
BVpS9.26
TBVpS9.26
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 -0.04
F-Score5
WACC5.57%
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 Y1207.41%
EPS Next 2Y532.42%
EPS Next 3YN/A
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-1.59%
Revenue Next 2Y4.05%
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 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%.