APPLE HOSPITALITY REIT INC (APLE) Stock Fundamental Analysis
USA - NYSE:APLE - US03784Y2000 - REIT
11.67 USD
+0.42 (+3.73%)
11.66 USD
-0.01 (-0.09%)
We assign a fundamental rating of 5 out of 10 to APLE. APLE was compared to 127 industry peers in the Diversified REITs industry. Both the profitability and the financial health of APLE get a neutral evaluation. Nothing too spectacular is happening here. APLE has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
APLE had positive earnings in the past year.
APLE had a positive operating cash flow in the past year.
APLE had positive earnings in 4 of the past 5 years.
In the past 5 years APLE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.67%, APLE belongs to the top of the industry, outperforming 84.25% of the companies in the same industry.
The Return On Equity of APLE (5.66%) is better than 67.72% of its industry peers.
APLE has a better Return On Invested Capital (4.27%) than 77.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for APLE is in line with the industry average of 3.07%.
The last Return On Invested Capital (4.27%) for APLE is above the 3 year average (4.19%), which is a sign of increasing profitability.
| 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 64.57% 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 in line with its industry peers.
APLE's Operating Margin has been stable in the last couple of years.
APLE has a worse Gross Margin (57.90%) than 70.08% of its industry peers.
In the last couple of years the Gross Margin of APLE has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so APLE is destroying value.
APLE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for APLE has been increased compared to 5 years ago.
APLE has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that APLE is in the distress zone and has some risk of bankruptcy.
APLE's Altman-Z score of 0.95 is fine compared to the rest of the industry. APLE outperforms 73.23% of its industry peers.
APLE has a debt to FCF ratio of 5.38. This is a neutral value as APLE would need 5.38 years to pay back of all of its debts.
The Debt to FCF ratio of APLE (5.38) is better than 97.64% 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 88.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 5.38 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.61
WACC7.02%
2.3 Liquidity
APLE has a Current Ratio of 0.78. This is a bad value and indicates that APLE is not financially healthy enough and could expect problems in meeting its short term obligations.
APLE has a worse Current ratio (0.78) than 60.63% of its industry peers.
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 in line with its industry, outperforming 40.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
APLE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.59%, which is quite good.
APLE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.71% yearly.
APLE shows a small growth in Revenue. In the last year, the Revenue has grown by 6.52%.
Measured over the past years, APLE shows a small growth in Revenue. The Revenue has been growing by 2.48% on average per year.
EPS 1Y (TTM)10.59%
EPS 3Y122.4%
EPS 5Y2.71%
EPS Q2Q%82.61%
Revenue 1Y (TTM)6.52%
Revenue growth 3Y15.3%
Revenue growth 5Y2.48%
Sales Q2Q%-1.31%
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.
Based on estimates for the next years, APLE will show a small growth in Revenue. The Revenue will grow by 2.28% on average per year.
EPS Next Y-14.23%
EPS Next 2Y-7.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.89%
Revenue Next 2Y0.68%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.41, the valuation of APLE can be described as correct.
Based on the Price/Earnings ratio, APLE is valued cheaply inside the industry as 92.13% of the companies are valued more expensively.
APLE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
A Price/Forward Earnings ratio of 15.36 indicates a correct valuation of APLE.
APLE's Price/Forward Earnings ratio is rather cheap when compared to the industry. APLE is cheaper than 96.85% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.68. APLE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 15.36 |
4.2 Price Multiples
87.40% of the companies in the same industry are more expensive than APLE, based on the Enterprise Value to EBITDA ratio.
APLE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. APLE is cheaper than 89.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.09 | ||
| EV/EBITDA | 9.48 |
4.3 Compensation for Growth
APLE has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as APLE's earnings are expected to decrease with -7.07% in the coming years.
PEG (NY)N/A
PEG (5Y)4.59
EPS Next 2Y-7.07%
EPS Next 3YN/A
5. Dividend
5.1 Amount
APLE has a Yearly Dividend Yield of 8.53%, which is a nice return.
APLE's Dividend Yield is rather good when compared to the industry average which is at 6.21. APLE pays more dividend than 84.25% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, APLE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.53% |
5.2 History
The dividend of APLE decreases each year by -3.33%.
APLE has been paying a dividend for at least 10 years, so it has 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
133.84% of the earnings are spent on dividend by APLE. 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
11.67
+0.42 (+3.73%)
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 Change-2.06%
Ins Owners7.24%
Ins Owner Change0.68%
Market Cap2.77B
Revenue(TTM)1.43B
Net Income(TTM)180.95M
Analysts77.14
Price Target13.77 (17.99%)
Short Float %7.43%
Short Ratio5.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.53% |
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)-0.74%
PT rev (3m)2.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.89%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-0.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 15.36 | ||
| P/S | 1.94 | ||
| P/FCF | 9.09 | ||
| P/OCF | 7.25 | ||
| P/B | 0.86 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | 9.48 |
EPS(TTM)0.94
EY8.05%
EPS(NY)0.76
Fwd EY6.51%
FCF(TTM)1.28
FCFY11.01%
OCF(TTM)1.61
OCFY13.79%
SpS6.01
BVpS13.5
TBVpS13.5
PEG (NY)N/A
PEG (5Y)4.59
Graham Number16.9
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
ROICexgc growth 3Y41.89%
ROICexgc 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 | 0.95 |
F-Score6
WACC7.02%
ROIC/WACC0.61
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)10.59%
EPS 3Y122.4%
EPS 5Y2.71%
EPS Q2Q%82.61%
EPS Next Y-14.23%
EPS Next 2Y-7.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.52%
Revenue growth 3Y15.3%
Revenue growth 5Y2.48%
Sales Q2Q%-1.31%
Revenue Next Year-0.89%
Revenue Next 2Y0.68%
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%
APPLE HOSPITALITY REIT INC / APLE FAQ
Can you provide the ChartMill fundamental rating for APPLE HOSPITALITY REIT INC?
ChartMill assigns a fundamental rating of 5 / 10 to APLE.
What is the valuation status for APLE stock?
ChartMill assigns a valuation rating of 7 / 10 to APPLE HOSPITALITY REIT INC (APLE). This can be considered as Undervalued.
Can you provide the profitability details for APPLE HOSPITALITY REIT INC?
APPLE HOSPITALITY REIT INC (APLE) has a profitability rating of 6 / 10.
How financially healthy is APPLE HOSPITALITY REIT INC?
The financial health rating of APPLE HOSPITALITY REIT INC (APLE) is 4 / 10.
Can you provide the expected EPS growth for APLE stock?
The Earnings per Share (EPS) of APPLE HOSPITALITY REIT INC (APLE) is expected to decline by -14.23% in the next year.