APPLE HOSPITALITY REIT INC (APLE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:APLE - US03784Y2000 - REIT
12.09 USD
+0.17 (+1.43%)
12.1733 USD
+0.08 (+0.69%)
We assign a fundamental rating of 5 out of 10 to APLE. APLE was compared to 128 industry peers in the Diversified REITs industry. APLE has an average financial health and profitability rating. 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.
APLE had a positive operating cash flow in the past year.
APLE had positive earnings in 4 of the past 5 years.
Each year in the past 5 years APLE had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.57%, APLE is doing good in the industry, outperforming 78.91% of the companies in the same industry.
The Return On Equity of APLE (5.50%) is better than 67.19% of its industry peers.
The Return On Invested Capital of APLE (4.18%) is better than 80.47% of its industry peers.
The Average Return On Invested Capital over the past 3 years for APLE is in line with the industry average of 3.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 5.5% | ||
| ROIC | 4.18% |
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 Profit Margin of 12.37%. This is comparable to the rest of the industry: APLE outperforms 58.59% of its industry peers.
APLE's Profit Margin has improved in the last couple of years.
APLE's Operating Margin of 17.94% is in line compared to the rest of the industry. APLE outperforms 41.41% of its industry peers.
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 57.63%, APLE is not doing good in the industry: 69.53% of the companies in the same industry are doing better.
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 | 17.94% | ||
| PM (TTM) | 12.37% | ||
| GM | 57.63% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), APLE is destroying value.
The number of shares outstanding for APLE has been reduced compared to 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 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 76.56% of the companies in the same industry.
APLE has a debt to FCF ratio of 5.40. This is a neutral value as APLE would need 5.40 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.40, APLE belongs to the top of the industry, outperforming 97.66% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that APLE is somewhat dependend on debt financing.
The Debt to Equity ratio of APLE (0.51) is better than 88.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 5.4 | ||
| Altman-Z | 1 |
ROIC/WACC0.59
WACC7.08%
2.3 Liquidity
A Current Ratio of 0.99 indicates that APLE may have some problems paying its short term obligations.
APLE's Current ratio of 0.99 is in line compared to the rest of the industry. APLE outperforms 49.22% of its industry peers.
APLE has a Quick Ratio of 0.99. 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 Quick ratio of 0.99. This is comparable to the rest of the industry: APLE outperforms 51.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The earnings per share for APLE have decreased strongly by -14.12% in the last year.
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 0.57%.
APLE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.48% yearly.
EPS 1Y (TTM)-14.12%
EPS 3Y122.4%
EPS 5Y2.71%
EPS Q2Q%-8.7%
Revenue 1Y (TTM)0.57%
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 -8.65% on average per year.
The Revenue is expected to grow by 2.28% on average over the next years.
EPS Next Y-15.97%
EPS Next 2Y-8.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.24%
Revenue Next 2Y0.48%
Revenue Next 3Y2.28%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 16.56 indicates a correct valuation of APLE.
Based on the Price/Earnings ratio, APLE is valued cheaper than 85.94% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.50, APLE is valued a bit cheaper.
APLE is valuated correctly with a Price/Forward Earnings ratio of 16.46.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APLE indicates a rather cheap valuation: APLE is cheaper than 96.09% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.93. APLE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.56 | ||
| Fwd PE | 16.46 |
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 85.16% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, APLE is valued cheaply inside the industry as 89.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.53 | ||
| EV/EBITDA | 9.83 |
4.3 Compensation for Growth
APLE has a very decent profitability rating, which may justify a higher PE ratio.
APLE's earnings are expected to decrease with -8.65% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)6.12
EPS Next 2Y-8.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
APLE has a Yearly Dividend Yield of 7.85%, which is a nice return.
Compared to an average industry Dividend Yield of 6.33, 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 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.85% |
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
137.45% of the earnings are spent on dividend by APLE. This is not a sustainable payout ratio.
The Dividend Rate of APLE has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP137.45%
EPS Next 2Y-8.65%
EPS Next 3YN/A
12.09
+0.17 (+1.43%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners84.54%
Inst Owner Change-0.64%
Ins Owners7.25%
Ins Owner Change-1.13%
Market Cap2.86B
Revenue(TTM)1.42B
Net Income(TTM)175.57M
Analysts74.29
Price Target13.18 (9.02%)
Short Float %8.73%
Short Ratio6.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.85% |
Yearly Dividend1.01
Dividend Growth(5Y)-3.33%
DP137.45%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.3%
Min EPS beat(2)-8.5%
Max EPS beat(2)-0.11%
EPS beat(4)1
Avg EPS beat(4)1.77%
Min EPS beat(4)-8.5%
Max EPS beat(4)17.65%
EPS beat(8)3
Avg EPS beat(8)4.18%
EPS beat(12)6
Avg EPS beat(12)6.07%
EPS beat(16)10
Avg EPS beat(16)10.5%
Revenue beat(2)0
Avg Revenue beat(2)-1.42%
Min Revenue beat(2)-1.69%
Max Revenue beat(2)-1.14%
Revenue beat(4)0
Avg Revenue beat(4)-1.56%
Min Revenue beat(4)-2.39%
Max Revenue beat(4)-1.02%
Revenue beat(8)1
Avg Revenue beat(8)-1.2%
Revenue beat(12)4
Avg Revenue beat(12)-0.52%
Revenue beat(16)8
Avg Revenue beat(16)-0.09%
PT rev (1m)-4.32%
PT rev (3m)-5.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.35%
EPS NY rev (1m)-2.03%
EPS NY rev (3m)-1.36%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-2.06%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.56 | ||
| Fwd PE | 16.46 | ||
| P/S | 2.02 | ||
| P/FCF | 9.53 | ||
| P/OCF | 7.54 | ||
| P/B | 0.9 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | 9.83 |
EPS(TTM)0.73
EY6.04%
EPS(NY)0.73
Fwd EY6.07%
FCF(TTM)1.27
FCFY10.49%
OCF(TTM)1.6
OCFY13.27%
SpS6
BVpS13.48
TBVpS13.48
PEG (NY)N/A
PEG (5Y)6.12
Graham Number14.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 5.5% | ||
| ROCE | 5.29% | ||
| ROIC | 4.18% | ||
| ROICexc | 4.23% | ||
| ROICexgc | 4.27% | ||
| OM | 17.94% | ||
| PM (TTM) | 12.37% | ||
| GM | 57.63% | ||
| FCFM | 21.14% |
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 | 5.4 | ||
| Debt/EBITDA | 3.63 | ||
| Cap/Depr | 41.45% | ||
| Cap/Sales | 5.61% | ||
| Interest Coverage | 3.21 | ||
| Cash Conversion | 85.01% | ||
| Profit Quality | 170.88% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 1 |
F-Score6
WACC7.08%
ROIC/WACC0.59
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)-14.12%
EPS 3Y122.4%
EPS 5Y2.71%
EPS Q2Q%-8.7%
EPS Next Y-15.97%
EPS Next 2Y-8.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.57%
Revenue growth 3Y15.3%
Revenue growth 5Y2.48%
Sales Q2Q%-1.31%
Revenue Next Year-1.24%
Revenue Next 2Y0.48%
Revenue Next 3Y2.28%
Revenue Next 5YN/A
EBIT growth 1Y-6.46%
EBIT growth 3Y43.11%
EBIT growth 5Y3.26%
EBIT Next Year62.42%
EBIT Next 3Y20.75%
EBIT Next 5YN/A
FCF growth 1Y-7.29%
FCF growth 3Y17.71%
FCF growth 5Y1.16%
OCF growth 1Y-4.48%
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 6 / 10 to APPLE HOSPITALITY REIT INC (APLE). This can be considered as Fairly Valued.
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 -15.97% in the next year.