APPLE HOSPITALITY REIT INC (APLE) Stock Fundamental Analysis
NYSE:APLE - New York Stock Exchange, Inc. - US03784Y2000 - REIT - Currency: USD
Taking everything into account, APLE scores 5 out of 10 in our fundamental rating. APLE was compared to 129 industry peers in the Diversified REITs industry. APLE scores excellent on profitability, 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.
Of the past 5 years APLE 4 years were profitable.
Each year in the past 5 years APLE had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 3.67%, APLE belongs to the best of the industry, outperforming 84.50% of the companies in the same industry.
APLE has a better Return On Equity (5.66%) than 68.99% of its industry peers.
APLE's Return On Invested Capital of 4.27% is amongst the best of the industry. APLE outperforms 80.62% 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 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
APLE has a better Profit Margin (12.71%) than 64.34% of its industry peers.
In the last couple of years the Profit Margin of APLE has grown nicely.
APLE's Operating Margin of 18.35% is in line compared to the rest of the industry. APLE outperforms 43.41% of its industry peers.
In the last couple of years the Operating Margin of APLE has remained more or less at the same level.
Looking at the Gross Margin, with a value of 57.90%, APLE is doing worse than 71.32% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so APLE is destroying value.
Compared to 1 year ago, APLE has less shares outstanding
APLE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, APLE has a worse debt to assets ratio.
2.2 Solvency
APLE has an Altman-Z score of 1.04. 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 1.04, APLE is in the better half of the industry, outperforming 74.42% 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's Debt to FCF ratio of 5.38 is amongst the best of the industry. APLE outperforms 97.67% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that APLE is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.51, APLE belongs to the best 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 | 1.04 |
ROIC/WACC0.59
WACC7.24%
2.3 Liquidity
A Current Ratio of 0.78 indicates that APLE may have some problems paying its short term obligations.
With a Current ratio value of 0.78, APLE perfoms like the industry average, outperforming 40.31% of the companies in the same industry.
APLE has a Quick 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.
Looking at the Quick ratio, with a value of 0.78, APLE is in line with its industry, outperforming 44.19% 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.
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 2.42%.
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)-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
The Earnings Per Share is expected to decrease by -6.35% on average over the next years.
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-13.45%
EPS Next 2Y-6.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.75%
Revenue Next 2Y0.62%
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 16.47 indicates a correct valuation of APLE.
Based on the Price/Earnings ratio, APLE is valued cheaper than 90.70% of the companies in the same industry.
APLE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.85, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.01, the valuation of APLE can be described as correct.
APLE's Price/Forward Earnings ratio is rather cheap when compared to the industry. APLE is cheaper than 96.90% of the companies in the same industry.
APLE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.47 | ||
| Fwd PE | 16.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APLE is valued cheaply inside the industry as 85.27% of the companies are valued more expensively.
APLE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. APLE is cheaper than 89.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.66 | ||
| EV/EBITDA | 10.1 |
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 -6.35% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)6.09
EPS Next 2Y-6.35%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.79%, APLE is a good candidate for dividend investing.
APLE's Dividend Yield is a higher than the industry average which is at 6.54.
Compared to an average S&P500 Dividend Yield of 2.36, APLE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.79% |
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-6.35%
EPS Next 3YN/A
NYSE:APLE (8/20/2025, 3:30:08 PM)
12.355
-0.04 (-0.36%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners87.36%
Inst Owner Change-1.81%
Ins Owners7.2%
Ins Owner Change8.4%
Market Cap2.94B
Analysts76.92
Price Target13.67 (10.64%)
Short Float %7.41%
Short Ratio4.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.79% |
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)1.77%
PT rev (3m)-5.41%
EPS NQ rev (1m)-2.17%
EPS NQ rev (3m)-6.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.08%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-3.36%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.47 | ||
| Fwd PE | 16.01 | ||
| P/S | 2.06 | ||
| P/FCF | 9.66 | ||
| P/OCF | 7.71 | ||
| P/B | 0.92 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | 10.1 |
EPS(TTM)0.75
EY6.07%
EPS(NY)0.77
Fwd EY6.25%
FCF(TTM)1.28
FCFY10.36%
OCF(TTM)1.6
OCFY12.97%
SpS5.99
BVpS13.45
TBVpS13.45
PEG (NY)N/A
PEG (5Y)6.09
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 | 1.04 |
F-Score6
WACC7.24%
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)-14.77%
EPS 3Y122.4%
EPS 5Y2.71%
EPS Q2Q%-12.9%
EPS Next Y-13.45%
EPS Next 2Y-6.35%
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-0.75%
Revenue Next 2Y0.62%
Revenue Next 3Y2.28%
Revenue Next 5YN/A
EBIT growth 1Y-2.41%
EBIT growth 3Y43.11%
EBIT growth 5Y3.26%
EBIT Next Year63.61%
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%