ARES COMMERCIAL REAL ESTATE (ACRE) Stock Fundamental Analysis
USA - NYSE:ACRE - US04013V1089 - REIT
4.64 USD
-0.05 (-1.07%)
4.66 USD
+0.02 (+0.43%)
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. The financial health of ACRE is average, but 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.
1. Profitability
1.1 Basic Checks
In the past year ACRE has reported negative net income.
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.
Each year in the past 5 years ACRE had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -1.27%, ACRE is not doing good in the industry: 77.94% of the companies in the same industry are doing better.
The Return On Equity of ACRE (-3.48%) is worse than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.27% | ||
| ROE | -3.48% | ||
| 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
ACRE has a better Gross Margin (35.33%) than 76.47% of its industry peers.
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 | 35.33% |
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.
The number of shares outstanding for ACRE has been increased compared to 1 year ago.
ACRE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ACRE has been reduced compared to a year ago.
2.2 Solvency
ACRE has an Altman-Z score of 0.01. This is a bad value and indicates that ACRE is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 0.01, ACRE is doing good in the industry, outperforming 63.24% of the companies in the same industry.
ACRE has a debt to FCF ratio of 32.78. This is a negative value and a sign of low solvency as ACRE would need 32.78 years to pay back of all of its debts.
ACRE has a Debt to FCF ratio of 32.78. This is in the better half of the industry: ACRE outperforms 79.41% of its industry peers.
ACRE has a Debt/Equity ratio of 1.70. This is a high value indicating a heavy dependency on external financing.
ACRE's Debt to Equity ratio of 1.70 is amongst the best of the industry. ACRE outperforms 92.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 32.78 | ||
| Altman-Z | 0.01 |
ROIC/WACCN/A
WACC7.02%
2.3 Liquidity
A Current Ratio of 7.19 indicates that ACRE has no problem at all paying its short term obligations.
ACRE has a Current ratio of 7.19. This is amongst the best in the industry. ACRE outperforms 97.06% of its industry peers.
ACRE has a Quick Ratio of 7.19. This indicates that ACRE is financially healthy and has no problem in meeting its short term obligations.
ACRE has a better Quick ratio (7.19) than 97.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.19 | ||
| Quick Ratio | 7.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 62.22% over the past year.
ACRE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -24.51%.
The Revenue has been growing slightly by 4.67% on average over the past years.
EPS 1Y (TTM)62.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-81.82%
Revenue 1Y (TTM)-24.51%
Revenue growth 3Y4.91%
Revenue growth 5Y4.67%
Sales Q2Q%-25.19%
3.2 Future
ACRE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 42.90% yearly.
The Revenue is expected to decrease by -5.83% on average over the next years.
EPS Next Y104.32%
EPS Next 2Y55.38%
EPS Next 3Y42.9%
EPS Next 5YN/A
Revenue Next Year-23.94%
Revenue Next 2Y-18.74%
Revenue Next 3Y-5.83%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
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 17.23 indicates a rather expensive valuation of ACRE.
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 66.18% of the companies listed in the same industry.
ACRE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.23 |
4.2 Price Multiples
ACRE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ACRE is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.42 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
ACRE's 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 42.90% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y55.38%
EPS Next 3Y42.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.79%, ACRE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.70, ACRE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, ACRE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.79% |
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-273.66%
EPS Next 2Y55.38%
EPS Next 3Y42.9%
4.64
-0.05 (-1.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners45.43%
Inst Owner Change-0.38%
Ins Owners5.61%
Ins Owner Change9.61%
Market Cap255.25M
Revenue(TTM)145.65M
Net Income(TTM)-18234000
Analysts48.33
Price Target4.4 (-5.17%)
Short Float %4.11%
Short Ratio5.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.79% |
Yearly Dividend1.1
Dividend Growth(5Y)-3.33%
DP-273.66%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)-2.05%
Min Revenue beat(2)-11.08%
Max Revenue beat(2)6.97%
Revenue beat(4)2
Avg Revenue beat(4)1.01%
Min Revenue beat(4)-11.08%
Max Revenue beat(4)10.61%
Revenue beat(8)3
Avg Revenue beat(8)-6.2%
Revenue beat(12)5
Avg Revenue beat(12)8.57%
Revenue beat(16)9
Avg Revenue beat(16)26.36%
PT rev (1m)0%
PT rev (3m)-15.02%
EPS NQ rev (1m)375%
EPS NQ rev (3m)-45%
EPS NY rev (1m)-50%
EPS NY rev (3m)-87.01%
Revenue NQ rev (1m)4.36%
Revenue NQ rev (3m)-9.64%
Revenue NY rev (1m)1.56%
Revenue NY rev (3m)-7.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.23 | ||
| P/S | 1.75 | ||
| P/FCF | 9.42 | ||
| P/OCF | 8.99 | ||
| P/B | 0.49 | ||
| P/tB | 0.49 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.34
EYN/A
EPS(NY)0.27
Fwd EY5.8%
FCF(TTM)0.49
FCFY10.62%
OCF(TTM)0.52
OCFY11.12%
SpS2.65
BVpS9.52
TBVpS9.52
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.27% | ||
| ROE | -3.48% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 35.33% | ||
| FCFM | 18.61% |
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-Score7
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | 32.78 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 7.19 | ||
| Quick Ratio | 7.19 | ||
| Altman-Z | 0.01 |
F-Score7
WACC7.02%
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)62.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-81.82%
EPS Next Y104.32%
EPS Next 2Y55.38%
EPS Next 3Y42.9%
EPS Next 5YN/A
Revenue 1Y (TTM)-24.51%
Revenue growth 3Y4.91%
Revenue growth 5Y4.67%
Sales Q2Q%-25.19%
Revenue Next Year-23.94%
Revenue Next 2Y-18.74%
Revenue Next 3Y-5.83%
Revenue Next 5YN/A
EBIT growth 1Y67.84%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year14.68%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-47.07%
FCF growth 3Y-10.02%
FCF growth 5Y2.7%
OCF growth 1Y-44.54%
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 104.32% in the next year.