ARES COMMERCIAL REAL ESTATE (ACRE) Stock Fundamental Analysis
USA - NYSE:ACRE - US04013V1089 - REIT
4.39 USD
-0.07 (-1.57%)
4.39 USD
0 (0%)
Taking everything into account, ACRE scores 4 out of 10 in our fundamental rating. 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
In the past year ACRE has reported negative net income.
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.
In the past 5 years ACRE always reported a positive cash flow from operatings.
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.
ACRE has a Return On Equity of -3.48%. This is in the lower half of the industry: ACRE underperforms 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
Looking at the Gross Margin, with a value of 35.33%, ACRE is in the better half of the industry, outperforming 73.53% 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 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.
ACRE has more shares outstanding than it did 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
Based on the Altman-Z score of 0.00, we must say that ACRE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.00, ACRE is in the better half of the industry, outperforming 61.76% 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.
With a decent Debt to FCF ratio value of 32.78, ACRE is doing good in the industry, outperforming 79.41% of the companies in the same industry.
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 |
ROIC/WACCN/A
WACC7.03%
2.3 Liquidity
A Current Ratio of 7.19 indicates that ACRE has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 7.19, ACRE belongs to the top of the industry, outperforming 97.06% of the companies in the same industry.
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.
The Quick ratio of ACRE (7.19) is better 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.
Looking at the last year, ACRE shows a very negative growth in Revenue. The Revenue has decreased by -24.51% in the last year.
Measured over the past years, ACRE shows a small growth in Revenue. The Revenue has been growing by 4.67% on average per year.
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
Based on estimates for the next years, ACRE will show a very strong growth in Earnings Per Share. The EPS will grow by 42.90% on average per year.
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
The Price/Earnings Ratio is negative for ACRE. In the last year negative earnings were reported.
ACRE is valuated correctly with a Price/Forward Earnings ratio of 16.30.
Based on the Price/Forward Earnings ratio, ACRE is valued a bit more expensive than the industry average as 66.18% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.53. ACRE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 16.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACRE indicates a somewhat cheap valuation: ACRE is cheaper than 76.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.91 | ||
| 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.
ACRE's earnings are expected to grow with 42.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y55.38%
EPS Next 3Y42.9%
5. Dividend
5.1 Amount
ACRE has a Yearly Dividend Yield of 13.61%, which is a nice return.
ACRE's Dividend Yield is comparable with the industry average which is at 12.83.
Compared to an average S&P500 Dividend Yield of 2.38, ACRE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.61% |
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%
4.39
-0.07 (-1.57%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners45.43%
Inst Owner Change4.45%
Ins Owners5.61%
Ins Owner Change0%
Market Cap241.49M
Revenue(TTM)145.65M
Net Income(TTM)-18234000
Analysts48.33
Price Target4.46 (1.59%)
Short Float %3.48%
Short Ratio4.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.61% |
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)1.45%
PT rev (3m)-13.79%
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 | 16.3 | ||
| P/S | 1.66 | ||
| P/FCF | 8.91 | ||
| P/OCF | 8.51 | ||
| P/B | 0.46 | ||
| P/tB | 0.46 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.34
EYN/A
EPS(NY)0.27
Fwd EY6.13%
FCF(TTM)0.49
FCFY11.22%
OCF(TTM)0.52
OCFY11.76%
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 |
F-Score7
WACC7.03%
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.