APPLE HOSPITALITY REIT INC (APLE) Stock Fundamental Analysis
NYSE:APLE - New York Stock Exchange, Inc. - US03784Y2000 - REIT - Currency: USD
Overall APLE gets a fundamental rating of 5 out of 10. We evaluated APLE against 129 industry peers in the Diversified REITs industry. While APLE has a great profitability rating, there are some minor concerns on its financial health. APLE has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
In the past 5 years APLE always reported a positive cash flow from operatings.
1.2 Ratios
APLE has a Return On Assets of 3.86%. This is amongst the best in the industry. APLE outperforms 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.
With an excellent Return On Invested Capital value of 4.38%, APLE belongs to the best 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 last Return On Invested Capital (4.38%) for APLE is above the 3 year average (4.19%), which is a sign of increasing profitability.
| 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's Profit Margin of 13.38% is fine compared to the rest of the industry. APLE outperforms 67.44% of its industry peers.
In the last couple of years the Profit Margin of APLE has grown nicely.
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.
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
Based on the Altman-Z score of 0.97, we must say that APLE is in the distress zone and has some risk of bankruptcy.
APLE has a better Altman-Z score (0.97) than 74.42% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 5.09, APLE belongs to the top of the industry, outperforming 98.45% of the companies in the same industry.
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 | 5.09 | ||
| Altman-Z | 0.97 |
ROIC/WACC0.6
WACC7.29%
2.3 Liquidity
APLE has a Current Ratio of 0.84. This is a bad value and indicates that APLE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.84, APLE perfoms like the industry average, outperforming 45.74% of the companies in the same industry.
APLE has a Quick Ratio of 0.84. 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 (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
APLE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.14%.
APLE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.71% yearly.
Looking at the last year, APLE shows a small growth in Revenue. The Revenue has grown by 4.98% in the last 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)-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
Based on estimates for the next years, APLE will show a decrease in Earnings Per Share. The EPS will decrease by -2.06% on average per year.
The Revenue is expected to grow by 2.28% on average over the next years.
EPS Next Y-7.85%
EPS Next 2Y-2.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.07%
Revenue Next 2Y1.3%
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.
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 14.52, the valuation of APLE can be described as correct.
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.
The average S&P500 Price/Earnings ratio is at 25.82. APLE is valued slightly cheaper when compared to this.
APLE is valuated correctly with a Price/Forward Earnings ratio of 13.59.
APLE's Price/Forward Earnings ratio is rather cheap when compared to the industry. APLE is cheaper than 96.12% of the companies in the same industry.
APLE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 13.59 |
4.2 Price Multiples
APLE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. APLE is cheaper than 86.82% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, APLE is valued cheaply inside the industry as 92.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.45 | ||
| EV/EBITDA | 9.47 |
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 -2.06% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)5.36
EPS Next 2Y-2.06%
EPS Next 3YN/A
5. Dividend
5.1 Amount
APLE has a Yearly Dividend Yield of 8.28%, which is a nice return.
The stock price of APLE dropped by -22.29% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
APLE's Dividend Yield is a higher than the industry average which is at 6.80.
APLE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| 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 decreased its dividend in the last 3 years.
Dividend Growth(5Y)-3.33%
Div Incr Years2
Div Non Decr Years2
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
11.47
-0.11 (-0.95%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners87.51%
Inst Owner Change0.23%
Ins Owners6.75%
Ins Owner Change5.24%
Market Cap2.73B
Analysts77.14
Price Target14.45 (25.98%)
Short Float %5.51%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.28% |
Yearly Dividend1.01
Dividend Growth(5Y)-3.33%
DP127.16%
Div Incr Years2
Div Non Decr Years2
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)-13.26%
PT rev (3m)-16.67%
EPS NQ rev (1m)1.75%
EPS NQ rev (3m)-6.45%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.07%
Revenue NQ rev (1m)-1.61%
Revenue NQ rev (3m)-2.84%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 13.59 | ||
| P/S | 1.91 | ||
| P/FCF | 8.45 | ||
| P/OCF | 6.84 | ||
| P/B | 0.85 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 9.47 |
EPS(TTM)0.79
EY6.89%
EPS(NY)0.84
Fwd EY7.36%
FCF(TTM)1.36
FCFY11.83%
OCF(TTM)1.68
OCFY14.62%
SpS6
BVpS13.48
TBVpS13.48
PEG (NY)N/A
PEG (5Y)5.36
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
WACC7.29%
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)-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 Year0.07%
Revenue Next 2Y1.3%
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%