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 130 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.
Of the past 5 years APLE 4 years were profitable.
In the past 5 years APLE always reported a positive cash flow from operatings.
1.2 Ratios
APLE's Return On Assets of 4.31% is amongst the best of the industry. APLE outperforms 90.77% of its industry peers.
APLE has a better Return On Equity (6.55%) than 80.00% of its industry peers.
The Return On Invested Capital of APLE (4.50%) is better than 83.08% 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 3.17%.
The last Return On Invested Capital (4.50%) for APLE is above the 3 year average (4.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.31% | ||
| ROE | 6.55% | ||
| ROIC | 4.5% |
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 (14.95%) than 69.23% of its industry peers.
APLE's Profit Margin has improved in the last couple of years.
APLE has a Operating Margin (19.29%) which is in line with its industry peers.
In the last couple of years the Operating Margin of APLE has remained more or less at the same level.
APLE has a worse Gross Margin (58.47%) than 70.77% 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 | 19.29% | ||
| PM (TTM) | 14.95% | ||
| GM | 58.47% |
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.
APLE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for APLE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.01, we must say that APLE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of APLE (1.01) is better than 75.38% of its industry peers.
APLE has a debt to FCF ratio of 4.87. This is a neutral value as APLE would need 4.87 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.87, APLE belongs to the top of the industry, outperforming 97.69% of the companies in the same industry.
A Debt/Equity ratio of 0.48 indicates that APLE is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.48, APLE belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 4.87 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.63
WACC7.09%
2.3 Liquidity
A Current Ratio of 0.37 indicates that APLE may have some problems paying its short term obligations.
With a Current ratio value of 0.37, APLE is not doing good in the industry: 85.38% of the companies in the same industry are doing better.
APLE has a Quick Ratio of 0.37. 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 0.37, APLE is doing worse than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
APLE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.82%, which is quite good.
Measured over the past 5 years, APLE shows a small growth in Earnings Per Share. The EPS has been growing by 2.71% on average per year.
Looking at the last year, APLE shows a small growth in Revenue. The Revenue has grown by 6.52% in the last year.
The Revenue has been growing slightly by 2.48% on average over the past years.
EPS 1Y (TTM)12.82%
EPS 3Y122.4%
EPS 5Y2.71%
EPS Q2Q%33.33%
Revenue 1Y (TTM)6.52%
Revenue growth 3Y15.3%
Revenue growth 5Y2.48%
Sales Q2Q%6.59%
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.
APLE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.28% yearly.
EPS Next Y-7.85%
EPS Next 2Y-2.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.41%
Revenue Next 2Y1.57%
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 13.32, which indicates a correct valuation of APLE.
Based on the Price/Earnings ratio, APLE is valued cheaply inside the industry as 87.69% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.88. APLE is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 14.45, the valuation of APLE can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APLE indicates a rather cheap valuation: APLE is cheaper than 96.15% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of APLE to the average of the S&P500 Index (21.20), we can say APLE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.32 | ||
| Fwd PE | 14.45 |
4.2 Price Multiples
APLE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. APLE is cheaper than 86.92% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, APLE is valued cheaply inside the industry as 89.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.61 | ||
| EV/EBITDA | 9.39 |
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 -2.06% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)4.92
EPS Next 2Y-2.06%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.05%, APLE is a good candidate for dividend investing.
The stock price of APLE dropped by -24.09% 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.
Compared to an average industry Dividend Yield of 16.29, 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 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.05% |
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
APLE pays out 113.85% of its income as dividend. 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.
DP113.85%
EPS Next 2Y-2.06%
EPS Next 3YN/A
11.72
-0.05 (-0.42%)
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 Change0.02%
Ins Owners6.75%
Ins Owner Change5%
Market Cap2.80B
Analysts77.14
Price Target14.96 (27.65%)
Short Float %5.25%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.05% |
Yearly Dividend1.01
Dividend Growth(5Y)-3.33%
DP113.85%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.92%
Min EPS beat(2)-9.8%
Max EPS beat(2)17.65%
EPS beat(4)3
Avg EPS beat(4)14.47%
Min EPS beat(4)-9.8%
Max EPS beat(4)48.75%
EPS beat(8)6
Avg EPS beat(8)11.16%
EPS beat(12)9
Avg EPS beat(12)14.3%
EPS beat(16)12
Avg EPS beat(16)72.32%
Revenue beat(2)0
Avg Revenue beat(2)-1.66%
Min Revenue beat(2)-2.3%
Max Revenue beat(2)-1.02%
Revenue beat(4)0
Avg Revenue beat(4)-1.42%
Min Revenue beat(4)-2.3%
Max Revenue beat(4)-1.02%
Revenue beat(8)3
Avg Revenue beat(8)-0.13%
Revenue beat(12)7
Avg Revenue beat(12)0.24%
Revenue beat(16)11
Avg Revenue beat(16)1.67%
PT rev (1m)-12.87%
PT rev (3m)-14.98%
EPS NQ rev (1m)-3.7%
EPS NQ rev (3m)-11.37%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)-6.1%
Revenue NQ rev (1m)-0.8%
Revenue NQ rev (3m)-2.08%
Revenue NY rev (1m)-1.48%
Revenue NY rev (3m)-1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.32 | ||
| Fwd PE | 14.45 | ||
| P/S | 1.96 | ||
| P/FCF | 8.61 | ||
| P/OCF | 6.91 | ||
| P/B | 0.86 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | 9.39 |
EPS(TTM)0.88
EY7.51%
EPS(NY)0.81
Fwd EY6.92%
FCF(TTM)1.36
FCFY11.61%
OCF(TTM)1.7
OCFY14.48%
SpS5.99
BVpS13.67
TBVpS13.67
PEG (NY)N/A
PEG (5Y)4.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.31% | ||
| ROE | 6.55% | ||
| ROCE | 5.69% | ||
| ROIC | 4.5% | ||
| ROICexc | 4.51% | ||
| ROICexgc | 4.56% | ||
| OM | 19.29% | ||
| PM (TTM) | 14.95% | ||
| GM | 58.47% | ||
| FCFM | 22.7% |
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-Score7
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 4.87 | ||
| Debt/EBITDA | 3.39 | ||
| Cap/Depr | 42.15% | ||
| Cap/Sales | 5.61% | ||
| Interest Coverage | 3.65 | ||
| Cash Conversion | 86.86% | ||
| Profit Quality | 151.83% | ||
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 1.01 |
F-Score7
WACC7.09%
ROIC/WACC0.63
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)12.82%
EPS 3Y122.4%
EPS 5Y2.71%
EPS Q2Q%33.33%
EPS Next Y-7.85%
EPS Next 2Y-2.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.52%
Revenue growth 3Y15.3%
Revenue growth 5Y2.48%
Sales Q2Q%6.59%
Revenue Next Year0.41%
Revenue Next 2Y1.57%
Revenue Next 3Y2.28%
Revenue Next 5YN/A
EBIT growth 1Y9.1%
EBIT growth 3Y43.11%
EBIT growth 5Y3.26%
EBIT Next Year71%
EBIT Next 3Y20.75%
EBIT Next 5YN/A
FCF growth 1Y-0.6%
FCF growth 3Y17.71%
FCF growth 5Y1.16%
OCF growth 1Y1.58%
OCF growth 3Y23.04%
OCF growth 5Y1.21%