APPLE HOSPITALITY REIT INC (APLE) Stock Fundamental Analysis
USA - NYSE:APLE - US03784Y2000 - REIT
11.94 USD
-0.13 (-1.08%)
11.94 USD
0 (0%)
APLE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. APLE has a medium profitability rating, but doesn't score so well on its financial health evaluation. APLE is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year APLE was profitable.
In the past year APLE had a positive cash flow from operations.
Of the past 5 years APLE 4 years were profitable.
APLE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.67%, APLE belongs to the top of the industry, outperforming 84.50% of the companies in the same industry.
With a decent Return On Equity value of 5.66%, APLE is doing good in the industry, outperforming 68.99% of the companies in the same industry.
APLE's Return On Invested Capital of 4.27% is fine compared to the rest of the industry. APLE outperforms 78.29% of its industry peers.
APLE had an Average Return On Invested Capital over the past 3 years of 4.19%. This is in line with the industry average of 3.02%.
The 3 year average ROIC (4.19%) for APLE is below the current ROIC(4.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 5.66% | ||
| ROIC | 4.27% |
ROA(3y)3.65%
ROA(5y)1.55%
ROE(3y)5.48%
ROE(5y)2.27%
ROIC(3y)4.19%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 12.71%, APLE is doing good in the industry, outperforming 65.12% of the companies in the same industry.
In the last couple of years the Profit Margin of APLE has grown nicely.
APLE has a Operating Margin (18.35%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of APLE has remained more or less at the same level.
APLE has a Gross Margin of 57.90%. This is in the lower half of the industry: APLE underperforms 71.32% of its industry peers.
APLE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.35% | ||
| PM (TTM) | 12.71% | ||
| GM | 57.9% |
OM growth 3Y24.12%
OM growth 5Y0.76%
PM growth 3Y95.12%
PM growth 5Y1.96%
GM growth 3Y-0.28%
GM growth 5Y1.12%
2. Health
2.1 Basic Checks
APLE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for APLE has been reduced compared to 1 year ago.
Compared to 5 years ago, APLE has more shares outstanding
Compared to 1 year ago, APLE has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.00, we must say that APLE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.00, APLE is in the better half of the industry, outperforming 73.64% of the companies in the same industry.
The Debt to FCF ratio of APLE is 5.38, which is a neutral value as it means it would take APLE, 5.38 years of fcf income to pay off all of its debts.
APLE has a better Debt to FCF ratio (5.38) than 97.67% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that APLE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.51, APLE belongs to the top of the industry, outperforming 88.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 5.38 | ||
| Altman-Z | 1 |
ROIC/WACC0.6
WACC7.06%
2.3 Liquidity
A Current Ratio of 0.78 indicates that APLE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.78, APLE is doing worse than 62.02% of the companies in the same industry.
A Quick Ratio of 0.78 indicates that APLE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.78, APLE is doing worse than 61.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The earnings per share for APLE have decreased strongly by -14.77% in the last year.
Measured over the past 5 years, APLE shows a small growth in Earnings Per Share. The EPS has been growing by 2.71% on average per year.
The Revenue has been growing slightly by 2.42% in the past year.
APLE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.48% yearly.
EPS 1Y (TTM)-14.77%
EPS 3Y122.4%
EPS 5Y2.71%
EPS Q2Q%-12.9%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y15.3%
Revenue growth 5Y2.48%
Sales Q2Q%-1.46%
3.2 Future
Based on estimates for the next years, APLE will show a decrease in Earnings Per Share. The EPS will decrease by -7.07% on average per year.
The Revenue is expected to grow by 2.28% on average over the next years.
EPS Next Y-14.23%
EPS Next 2Y-7.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.82%
Revenue Next 2Y0.65%
Revenue Next 3Y2.28%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.92, the valuation of APLE can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of APLE indicates a rather cheap valuation: APLE is cheaper than 91.47% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of APLE to the average of the S&P500 Index (27.86), we can say APLE is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.71, the valuation of APLE can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APLE indicates a rather cheap valuation: APLE is cheaper than 96.12% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of APLE to the average of the S&P500 Index (23.32), we can say APLE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.92 | ||
| Fwd PE | 15.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of APLE indicates a rather cheap valuation: APLE is cheaper than 85.27% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, APLE is valued cheaply inside the industry as 90.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.3 | ||
| EV/EBITDA | 9.84 |
4.3 Compensation for Growth
The decent profitability rating of APLE may justify a higher PE ratio.
APLE's earnings are expected to decrease with -7.07% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)5.88
EPS Next 2Y-7.07%
EPS Next 3YN/A
5. Dividend
5.1 Amount
APLE has a Yearly Dividend Yield of 7.95%, which is a nice return.
Compared to an average industry Dividend Yield of 6.68, APLE pays a bit more dividend than its industry peers.
APLE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.95% |
5.2 History
The dividend of APLE decreases each year by -3.33%.
APLE has paid a dividend for at least 10 years, which is a reliable track record.
APLE has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-3.33%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
APLE pays out 133.84% of its income as dividend. This is not a sustainable payout ratio.
APLE's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP133.84%
EPS Next 2Y-7.07%
EPS Next 3YN/A
11.94
-0.13 (-1.08%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners86.88%
Inst Owner Change0%
Ins Owners7.24%
Ins Owner Change0.68%
Market Cap2.83B
Analysts77.14
Price Target13.87 (16.16%)
Short Float %6.8%
Short Ratio5.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.95% |
Yearly Dividend1.01
Dividend Growth(5Y)-3.33%
DP133.84%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.04%
Min EPS beat(2)-1.96%
Max EPS beat(2)-0.11%
EPS beat(4)1
Avg EPS beat(4)1.44%
Min EPS beat(4)-9.8%
Max EPS beat(4)17.65%
EPS beat(8)4
Avg EPS beat(8)5.83%
EPS beat(12)7
Avg EPS beat(12)7.42%
EPS beat(16)11
Avg EPS beat(16)13.58%
Revenue beat(2)0
Avg Revenue beat(2)-1.76%
Min Revenue beat(2)-2.39%
Max Revenue beat(2)-1.14%
Revenue beat(4)0
Avg Revenue beat(4)-1.71%
Min Revenue beat(4)-2.39%
Max Revenue beat(4)-1.02%
Revenue beat(8)1
Avg Revenue beat(8)-1.04%
Revenue beat(12)5
Avg Revenue beat(12)-0.29%
Revenue beat(16)9
Avg Revenue beat(16)0.51%
PT rev (1m)1.49%
PT rev (3m)3.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.57%
EPS NY rev (1m)0.68%
EPS NY rev (3m)-1.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.92 | ||
| Fwd PE | 15.71 | ||
| P/S | 1.99 | ||
| P/FCF | 9.3 | ||
| P/OCF | 7.42 | ||
| P/B | 0.88 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 9.84 |
EPS(TTM)0.75
EY6.28%
EPS(NY)0.76
Fwd EY6.36%
FCF(TTM)1.28
FCFY10.76%
OCF(TTM)1.61
OCFY13.48%
SpS6.01
BVpS13.5
TBVpS13.5
PEG (NY)N/A
PEG (5Y)5.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 5.66% | ||
| ROCE | 5.4% | ||
| ROIC | 4.27% | ||
| ROICexc | 4.28% | ||
| ROICexgc | 4.32% | ||
| OM | 18.35% | ||
| PM (TTM) | 12.71% | ||
| GM | 57.9% | ||
| FCFM | 21.38% |
ROA(3y)3.65%
ROA(5y)1.55%
ROE(3y)5.48%
ROE(5y)2.27%
ROIC(3y)4.19%
ROIC(5y)N/A
ROICexc(3y)4.2%
ROICexc(5y)N/A
ROICexgc(3y)4.23%
ROICexgc(5y)N/A
ROCE(3y)5.31%
ROCE(5y)N/A
ROICexcg growth 3Y41.89%
ROICexcg growth 5Y3.27%
ROICexc growth 3Y41.67%
ROICexc growth 5Y3.21%
OM growth 3Y24.12%
OM growth 5Y0.76%
PM growth 3Y95.12%
PM growth 5Y1.96%
GM growth 3Y-0.28%
GM growth 5Y1.12%
F-Score6
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 5.38 | ||
| Debt/EBITDA | 3.61 | ||
| Cap/Depr | 40.05% | ||
| Cap/Sales | 5.4% | ||
| Interest Coverage | 3.33 | ||
| Cash Conversion | 84.12% | ||
| Profit Quality | 168.23% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 1 |
F-Score6
WACC7.06%
ROIC/WACC0.6
Cap/Depr(3y)38.06%
Cap/Depr(5y)29.68%
Cap/Sales(3y)5.26%
Cap/Sales(5y)5.16%
Profit Quality(3y)183.15%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-14.77%
EPS 3Y122.4%
EPS 5Y2.71%
EPS Q2Q%-12.9%
EPS Next Y-14.23%
EPS Next 2Y-7.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.42%
Revenue growth 3Y15.3%
Revenue growth 5Y2.48%
Sales Q2Q%-1.46%
Revenue Next Year-0.82%
Revenue Next 2Y0.65%
Revenue Next 3Y2.28%
Revenue Next 5YN/A
EBIT growth 1Y-2.41%
EBIT growth 3Y43.11%
EBIT growth 5Y3.26%
EBIT Next Year63.85%
EBIT Next 3Y20.75%
EBIT Next 5YN/A
FCF growth 1Y-4.06%
FCF growth 3Y17.71%
FCF growth 5Y1.16%
OCF growth 1Y-1.41%
OCF growth 3Y23.04%
OCF growth 5Y1.21%