APPLE HOSPITALITY REIT INC (APLE) Stock Fundamental Analysis
NYSE:APLE - New York Stock Exchange, Inc. - US03784Y2000 - REIT - Currency: USD
APLE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. APLE has an excellent profitability rating, but there are some minor concerns on its financial health. APLE is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
APLE had positive earnings in the past year.
In the past year APLE had a positive cash flow from operations.
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
The Return On Assets of APLE (3.86%) is better than 87.60% of its industry peers.
Looking at the Return On Equity, with a value of 5.95%, APLE is in the better half of the industry, outperforming 75.97% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.38%, APLE belongs to the top of the industry, outperforming 83.72% of the companies in the same industry.
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 3.15%.
The 3 year average ROIC (4.19%) for APLE is below the current ROIC(4.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.86% | ||
| ROE | 5.95% | ||
| ROIC | 4.38% |
ROA(3y)3.65%
ROA(5y)1.55%
ROE(3y)5.48%
ROE(5y)2.27%
ROIC(3y)4.19%
ROIC(5y)N/A
1.3 Margins
APLE has a better Profit Margin (13.38%) than 67.44% of its industry peers.
APLE's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 18.85%, APLE perfoms like the industry average, outperforming 43.41% of the companies in the same industry.
In the last couple of years the Operating Margin of APLE has remained more or less at the same level.
With a Gross Margin value of 58.32%, APLE is not doing good in the industry: 70.54% of the companies in the same industry are doing better.
APLE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.85% | ||
| PM (TTM) | 13.38% | ||
| GM | 58.32% |
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.
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
APLE has an Altman-Z score of 0.97. This is a bad value and indicates that APLE is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.97, APLE is in the better half of the industry, outperforming 73.64% of the companies in the same industry.
APLE has a debt to FCF ratio of 5.09. This is a neutral value as APLE would need 5.09 years to pay back of all of its debts.
APLE has a better Debt to FCF ratio (5.09) than 98.45% of its industry peers.
APLE has a Debt/Equity ratio of 0.51. This is a neutral value indicating APLE is somewhat dependend on debt financing.
APLE's Debt to Equity ratio of 0.51 is amongst the best of the industry. APLE outperforms 88.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 5.09 | ||
| Altman-Z | 0.97 |
ROIC/WACC0.52
WACC8.5%
2.3 Liquidity
A Current Ratio of 0.84 indicates that APLE may have some problems paying its short term obligations.
APLE has a Current ratio (0.84) which is comparable to the rest of the industry.
A Quick Ratio of 0.84 indicates that APLE may have some problems paying its short term obligations.
APLE has a Quick ratio (0.84) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The earnings per share for APLE have decreased by -8.14% in the last year.
The Earnings Per Share has been growing slightly by 2.71% on average over the past years.
APLE shows a small growth in Revenue. In the last year, the Revenue has grown by 4.98%.
APLE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.48% yearly.
EPS 1Y (TTM)-8.14%
EPS 3Y122.4%
EPS 5Y2.71%
EPS Q2Q%-40.91%
Revenue 1Y (TTM)4.98%
Revenue growth 3Y15.3%
Revenue growth 5Y2.48%
Sales Q2Q%-0.55%
3.2 Future
APLE is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.06% yearly.
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-7.85%
EPS Next 2Y-2.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.34%
Revenue Next 2Y0.96%
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
The Price/Earnings ratio is 14.44, which indicates a correct valuation of APLE.
APLE's Price/Earnings ratio is rather cheap when compared to the industry. APLE is cheaper than 89.92% of the companies in the same industry.
APLE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
Based on the Price/Forward Earnings ratio of 13.52, the valuation of APLE can be described as correct.
Based on the Price/Forward Earnings ratio, APLE is valued cheaply inside the industry as 96.12% of the companies are valued more expensively.
APLE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 13.52 |
4.2 Price Multiples
APLE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. APLE is cheaper than 88.37% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, APLE is valued cheaply inside the industry as 93.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.41 | ||
| EV/EBITDA | 9.44 |
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 -2.06% in the coming years.
PEG (NY)N/A
PEG (5Y)5.34
EPS Next 2Y-2.06%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.28%, APLE is a good candidate for dividend investing.
APLE's Dividend Yield is rather good when compared to the industry average which is at 6.68. APLE pays more dividend than 83.72% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, APLE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.28% |
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
127.16% 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.
DP127.16%
EPS Next 2Y-2.06%
EPS Next 3YN/A
11.41
-0.19 (-1.64%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners86.18%
Inst Owner Change0.28%
Ins Owners7.19%
Ins Owner Change5.45%
Market Cap2.72B
Analysts77.14
Price Target13.77 (20.68%)
Short Float %6.67%
Short Ratio4.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.28% |
Yearly Dividend1.01
Dividend Growth(5Y)-3.33%
DP127.16%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.84%
Min EPS beat(2)-1.96%
Max EPS beat(2)17.65%
EPS beat(4)2
Avg EPS beat(4)1.8%
Min EPS beat(4)-9.8%
Max EPS beat(4)17.65%
EPS beat(8)5
Avg EPS beat(8)9.5%
EPS beat(12)8
Avg EPS beat(12)9.39%
EPS beat(16)12
Avg EPS beat(16)74.98%
Revenue beat(2)0
Avg Revenue beat(2)-1.7%
Min Revenue beat(2)-2.39%
Max Revenue beat(2)-1.02%
Revenue beat(4)0
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-2.39%
Max Revenue beat(4)-1.02%
Revenue beat(8)2
Avg Revenue beat(8)-0.79%
Revenue beat(12)6
Avg Revenue beat(12)0.01%
Revenue beat(16)10
Avg Revenue beat(16)1.45%
PT rev (1m)-4.71%
PT rev (3m)-19.8%
EPS NQ rev (1m)-0.59%
EPS NQ rev (3m)-2.3%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.07%
Revenue NQ rev (1m)-0.83%
Revenue NQ rev (3m)-2.68%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 13.52 | ||
| P/S | 1.9 | ||
| P/FCF | 8.41 | ||
| P/OCF | 6.8 | ||
| P/B | 0.85 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 9.44 |
EPS(TTM)0.79
EY6.92%
EPS(NY)0.84
Fwd EY7.4%
FCF(TTM)1.36
FCFY11.89%
OCF(TTM)1.68
OCFY14.7%
SpS6
BVpS13.48
TBVpS13.48
PEG (NY)N/A
PEG (5Y)5.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.86% | ||
| ROE | 5.95% | ||
| ROCE | 5.55% | ||
| ROIC | 4.38% | ||
| ROICexc | 4.39% | ||
| ROICexgc | 4.44% | ||
| OM | 18.85% | ||
| PM (TTM) | 13.38% | ||
| GM | 58.32% | ||
| FCFM | 22.63% |
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 | 5.09 | ||
| Debt/EBITDA | 3.57 | ||
| Cap/Depr | 39.81% | ||
| Cap/Sales | 5.34% | ||
| Interest Coverage | 3.48 | ||
| Cash Conversion | 86.69% | ||
| Profit Quality | 169.17% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 0.97 |
F-Score6
WACC8.5%
ROIC/WACC0.52
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)-8.14%
EPS 3Y122.4%
EPS 5Y2.71%
EPS Q2Q%-40.91%
EPS Next Y-7.85%
EPS Next 2Y-2.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.98%
Revenue growth 3Y15.3%
Revenue growth 5Y2.48%
Sales Q2Q%-0.55%
Revenue Next Year-0.34%
Revenue Next 2Y0.96%
Revenue Next 3Y2.28%
Revenue Next 5YN/A
EBIT growth 1Y4.59%
EBIT growth 3Y43.11%
EBIT growth 5Y3.26%
EBIT Next Year65.31%
EBIT Next 3Y20.75%
EBIT Next 5YN/A
FCF growth 1Y3.92%
FCF growth 3Y17.71%
FCF growth 5Y1.16%
OCF growth 1Y4.94%
OCF growth 3Y23.04%
OCF growth 5Y1.21%