APOLLO GLOBAL MANAGEMENT INC (APO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:APO - US03769M1062 - Common Stock
136.31 USD
-3.42 (-2.45%)
136 USD
-0.31 (-0.23%)
Taking everything into account, APO scores 4 out of 10 in our fundamental rating. APO was compared to 97 industry peers in the Financial Services industry. APO has a medium profitability rating, but doesn't score so well on its financial health evaluation. APO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year APO was profitable.
- In the past year APO had a positive cash flow from operations.
- APO had positive earnings in 4 of the past 5 years.
- Of the past 5 years APO 4 years had a positive operating cash flow.
1.2 Ratios
- APO's Return On Assets of 0.90% is in line compared to the rest of the industry. APO outperforms 42.27% of its industry peers.
- APO has a Return On Equity of 17.56%. This is amongst the best in the industry. APO outperforms 83.51% of its industry peers.
- APO's Return On Invested Capital of 1.37% is in line compared to the rest of the industry. APO outperforms 42.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.9% | ||
| ROE | 17.56% | ||
| ROIC | 1.37% |
ROA(3y)0.64%
ROA(5y)1.66%
ROE(3y)9.76%
ROE(5y)17.05%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- APO's Profit Margin of 16.63% is fine compared to the rest of the industry. APO outperforms 61.86% of its industry peers.
- APO's Profit Margin has declined in the last couple of years.
- APO's Operating Margin of 28.40% is fine compared to the rest of the industry. APO outperforms 73.20% of its industry peers.
- APO's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.4% | ||
| PM (TTM) | 16.63% | ||
| GM | N/A |
OM growth 3Y-2.59%
OM growth 5Y-7.21%
PM growth 3Y-15.29%
PM growth 5Y-7.97%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so APO is destroying value.
- Compared to 1 year ago, APO has less shares outstanding
- APO has more shares outstanding than it did 5 years ago.
- APO has about the same debt/assets ratio as last year.
2.2 Solvency
- APO has an Altman-Z score of 0.20. This is a bad value and indicates that APO is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.20, APO is in line with its industry, outperforming 44.33% of the companies in the same industry.
- APO has a debt to FCF ratio of 4.91. This is a neutral value as APO would need 4.91 years to pay back of all of its debts.
- APO's Debt to FCF ratio of 4.91 is fine compared to the rest of the industry. APO outperforms 63.92% of its industry peers.
- A Debt/Equity ratio of 0.55 indicates that APO is somewhat dependend on debt financing.
- APO has a Debt to Equity ratio (0.55) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.91 | ||
| Altman-Z | 0.2 |
ROIC/WACC0.16
WACC8.43%
2.3 Liquidity
- A Current Ratio of 0.06 indicates that APO may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.06, APO is doing worse than 80.41% of the companies in the same industry.
- APO has a Quick Ratio of 0.06. This is a bad value and indicates that APO is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of APO (0.06) is worse than 80.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 14.19% over the past year.
- Measured over the past years, APO shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.44% on average per year.
- Looking at the last year, APO shows a very negative growth in Revenue. The Revenue has decreased by -17.68% in the last year.
- APO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 52.06% yearly.
EPS 1Y (TTM)14.19%
EPS 3Y17.67%
EPS 5Y22.44%
EPS Q2Q%17.3%
Revenue 1Y (TTM)-17.68%
Revenue growth 3Y58.1%
Revenue growth 5Y52.06%
Sales Q2Q%26.37%
3.2 Future
- APO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.64% yearly.
- The Revenue is expected to decrease by -12.07% on average over the next years. This is quite bad
EPS Next Y8.17%
EPS Next 2Y11.93%
EPS Next 3Y14.24%
EPS Next 5Y14.64%
Revenue Next Year4.05%
Revenue Next 2Y18.17%
Revenue Next 3Y14.53%
Revenue Next 5Y-12.07%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 16.77, the valuation of APO can be described as correct.
- The rest of the industry has a similar Price/Earnings ratio as APO.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, APO is valued a bit cheaper.
- A Price/Forward Earnings ratio of 14.64 indicates a correct valuation of APO.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of APO is on the same level as its industry peers.
- APO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.77 | ||
| Fwd PE | 14.64 |
4.2 Price Multiples
- 72.16% of the companies in the same industry are more expensive than APO, based on the Enterprise Value to EBITDA ratio.
- APO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.75 | ||
| EV/EBITDA | 9.04 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- A more expensive valuation may be justified as APO's earnings are expected to grow with 14.24% in the coming years.
PEG (NY)2.05
PEG (5Y)0.75
EPS Next 2Y11.93%
EPS Next 3Y14.24%
5. Dividend
5.1 Amount
- APO has a Yearly Dividend Yield of 1.46%.
- Compared to an average industry Dividend Yield of 2.09, APO pays a bit more dividend than its industry peers.
- APO's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
- The dividend of APO decreases each year by -1.16%.
- APO has been paying a dividend for at least 10 years, so it has a reliable track record.
- APO has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-1.16%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 31.10% of the earnings are spent on dividend by APO. This is a low number and sustainable payout ratio.
DP31.1%
EPS Next 2Y11.93%
EPS Next 3Y14.24%
APOLLO GLOBAL MANAGEMENT INC / APO FAQ
Can you provide the ChartMill fundamental rating for APOLLO GLOBAL MANAGEMENT INC?
ChartMill assigns a fundamental rating of 4 / 10 to APO.
Can you provide the valuation status for APOLLO GLOBAL MANAGEMENT INC?
ChartMill assigns a valuation rating of 4 / 10 to APOLLO GLOBAL MANAGEMENT INC (APO). This can be considered as Fairly Valued.
What is the profitability of APO stock?
APOLLO GLOBAL MANAGEMENT INC (APO) has a profitability rating of 4 / 10.
What are the PE and PB ratios of APOLLO GLOBAL MANAGEMENT INC (APO) stock?
The Price/Earnings (PE) ratio for APOLLO GLOBAL MANAGEMENT INC (APO) is 16.77 and the Price/Book (PB) ratio is 3.42.
What is the expected EPS growth for APOLLO GLOBAL MANAGEMENT INC (APO) stock?
The Earnings per Share (EPS) of APOLLO GLOBAL MANAGEMENT INC (APO) is expected to grow by 8.17% in the next year.