ARES COMMERCIAL REAL ESTATE (ACRE) Fundamental Analysis & Valuation

NYSE:ACRE • US04013V1089

Current stock price

4.76 USD
+0.04 (+0.85%)
At close:
4.7508 USD
-0.01 (-0.19%)
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

  • 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.
  • 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 has a Gross Margin (37.50%) which is comparable to the rest of the 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.
  • ACRE has more shares outstanding than it did 1 year ago.
  • ACRE has more shares outstanding than it did 5 years ago.
  • 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.
  • 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.
  • 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.
  • The Debt to Equity ratio of ACRE (2.06) is better than 83.82% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.06
Debt/FCF 53.11
Altman-Z -0.05
ROIC/WACCN/A
WACC5.68%
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.
  • The Current ratio of ACRE (2.34) is better than 94.12% of its industry peers.
  • A Quick Ratio of 2.34 indicates that ACRE has no problem at all paying its short term obligations.
  • With an excellent Quick ratio value of 2.34, ACRE belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
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

  • ACRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 96.92%, which is quite impressive.
  • Looking at the last year, ACRE shows a very negative growth in Revenue. The Revenue has decreased by -31.68% in the last year.
  • 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

  • Based on estimates for the next years, ACRE will show a very strong growth in Earnings Per Share. The EPS will grow by 219.45% on average per year.
  • ACRE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.92% yearly.
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

  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

  • The Price/Earnings Ratio is negative for ACRE. In the last year negative earnings were reported.
  • ACRE is valuated rather expensively with a Price/Forward Earnings ratio of 20.83.
  • 69.12% of the companies in the same industry are cheaper than ACRE, based on the Price/Forward Earnings ratio.
  • ACRE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.84.
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 67.65% of the companies in the same industry.
Industry RankSector Rank
P/FCF 13.36
EV/EBITDA 250.89
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

  • ACRE has a Yearly Dividend Yield of 12.32%, which is a nice return.
  • Compared to an average industry Dividend Yield of 13.43, ACRE is paying slightly less dividend.
  • ACRE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
Industry RankSector Rank
Dividend Yield 12.32%

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

  • 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

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ACRE Fundamentals: All Metrics, Ratios and Statistics

ARES COMMERCIAL REAL ESTATE

NYSE:ACRE (4/2/2026, 7:08:08 PM)

After market: 4.7508 -0.01 (-0.19%)

4.76

+0.04 (+0.85%)

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 %4.24%
Short Ratio4.16
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 250.89
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
WACC5.68%
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.


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%.