APOLLO GLOBAL MANAGEMENT INC (APO) Stock Fundamental Analysis
NYSE:APO - New York Stock Exchange, Inc. - US03769M1062 - Common Stock - Currency: USD
APO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 100 industry peers in the Financial Services industry. While APO is still in line with the averages on profitability rating, there are concerns on its financial health. APO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
APO had positive earnings in the past year.
APO had a positive operating cash flow in the past year.
Of the past 5 years APO 4 years were profitable.
Of the past 5 years APO 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.85%, APO is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
APO has a better Return On Equity (18.75%) than 82.00% of its industry peers.
APO has a Return On Invested Capital (1.56%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 18.75% | ||
| ROIC | 1.56% |
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
With a decent Profit Margin value of 15.23%, APO is doing good in the industry, outperforming 64.00% of the companies in the same industry.
APO's Profit Margin has declined in the last couple of years.
APO has a better Operating Margin (31.69%) than 74.00% of its industry peers.
In the last couple of years the Operating Margin of APO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.69% | ||
| PM (TTM) | 15.23% | ||
| 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.
The number of shares outstanding for APO has been reduced compared to 1 year ago.
The number of shares outstanding for APO has been increased compared to 5 years ago.
APO has about the same debt/assets ratio as last year.
2.2 Solvency
Based on the Altman-Z score of 0.24, we must say that APO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of APO (0.24) is comparable to the rest of the industry.
APO has a debt to FCF ratio of 3.25. This is a good value and a sign of high solvency as APO would need 3.25 years to pay back of all of its debts.
APO's Debt to FCF ratio of 3.25 is fine compared to the rest of the industry. APO outperforms 74.00% of its industry peers.
APO has a Debt/Equity ratio of 0.76. This is a neutral value indicating APO is somewhat dependend on debt financing.
APO has a Debt to Equity ratio (0.76) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | 0.24 |
ROIC/WACC0.18
WACC8.49%
2.3 Liquidity
APO has a Current Ratio of 0.07. This is a bad value and indicates that APO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.07, APO is doing worse than 81.00% of the companies in the same industry.
A Quick Ratio of 0.07 indicates that APO may have some problems paying its short term obligations.
APO has a Quick ratio of 0.07. This is amonst the worse of the industry: APO underperforms 81.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.96% 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 -31.66% in the last year.
Measured over the past years, APO shows a very strong growth in Revenue. The Revenue has been growing by 52.06% on average per year.
EPS 1Y (TTM)6.96%
EPS 3Y17.67%
EPS 5Y22.44%
EPS Q2Q%5.81%
Revenue 1Y (TTM)-31.66%
Revenue growth 3Y58.1%
Revenue growth 5Y52.06%
Sales Q2Q%-21.19%
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 15.04% yearly.
The Revenue is expected to decrease by -12.07% on average over the next years. This is quite bad
EPS Next Y5.54%
EPS Next 2Y12.81%
EPS Next 3Y15.04%
EPS Next 5YN/A
Revenue Next Year16.43%
Revenue Next 2Y17.49%
Revenue Next 3Y16.65%
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 18.81, the valuation of APO can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as APO.
The average S&P500 Price/Earnings ratio is at 27.21. APO is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.98, APO is valued correctly.
APO's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, APO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.81 | ||
| Fwd PE | 14.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APO is valued a bit cheaper than 69.00% of the companies in the same industry.
62.00% of the companies in the same industry are more expensive than APO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.29 | ||
| EV/EBITDA | 9.96 |
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 15.04% in the coming years.
PEG (NY)3.4
PEG (5Y)0.84
EPS Next 2Y12.81%
EPS Next 3Y15.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.46%, APO has a reasonable but not impressive dividend return.
APO's Dividend Yield is a higher than the industry average which is at 4.97.
Compared to the average S&P500 Dividend Yield of 2.42, APO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
The dividend of APO decreases each year by -1.16%.
APO has paid a dividend for at least 10 years, which is 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
APO pays out 35.84% of its income as dividend. This is a sustainable payout ratio.
DP35.84%
EPS Next 2Y12.81%
EPS Next 3Y15.04%
141.63
-0.24 (-0.17%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners65.51%
Inst Owner Change4.62%
Ins Owners3.12%
Ins Owner Change-0.23%
Market Cap80.94B
Analysts80
Price Target160.91 (13.61%)
Short Float %6.77%
Short Ratio8.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Yearly Dividend2.1
Dividend Growth(5Y)-1.16%
DP35.84%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.44%
Min EPS beat(2)-3.45%
Max EPS beat(2)16.32%
EPS beat(4)2
Avg EPS beat(4)2.87%
Min EPS beat(4)-7.59%
Max EPS beat(4)16.32%
EPS beat(8)4
Avg EPS beat(8)1.84%
EPS beat(12)5
Avg EPS beat(12)0.19%
EPS beat(16)8
Avg EPS beat(16)8.44%
Revenue beat(2)2
Avg Revenue beat(2)21.08%
Min Revenue beat(2)19.9%
Max Revenue beat(2)22.26%
Revenue beat(4)4
Avg Revenue beat(4)45.54%
Min Revenue beat(4)19.9%
Max Revenue beat(4)86.31%
Revenue beat(8)7
Avg Revenue beat(8)93.22%
Revenue beat(12)11
Avg Revenue beat(12)107.55%
Revenue beat(16)14
Avg Revenue beat(16)87.65%
PT rev (1m)2.1%
PT rev (3m)-14.27%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-7.59%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-7.06%
Revenue NQ rev (1m)-1.02%
Revenue NQ rev (3m)-1.4%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)-0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.81 | ||
| Fwd PE | 14.98 | ||
| P/S | 3.66 | ||
| P/FCF | 19.29 | ||
| P/OCF | 19.29 | ||
| P/B | 4.5 | ||
| P/tB | 5.93 | ||
| EV/EBITDA | 9.96 |
EPS(TTM)7.53
EY5.32%
EPS(NY)9.46
Fwd EY6.68%
FCF(TTM)7.34
FCFY5.18%
OCF(TTM)7.34
OCFY5.18%
SpS38.73
BVpS31.45
TBVpS23.88
PEG (NY)3.4
PEG (5Y)0.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 18.75% | ||
| ROCE | 1.82% | ||
| ROIC | 1.56% | ||
| ROICexc | 1.61% | ||
| ROICexgc | 1.78% | ||
| OM | 31.69% | ||
| PM (TTM) | 15.23% | ||
| GM | N/A | ||
| FCFM | 18.95% |
ROA(3y)0.64%
ROA(5y)1.66%
ROE(3y)9.76%
ROE(5y)17.05%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-33.79%
ROICexcg growth 5Y-38.36%
ROICexc growth 3Y-35.62%
ROICexc growth 5Y-38.99%
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
F-Score6
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 3.25 | ||
| Debt/EBITDA | 1.67 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 7.31 | ||
| Cash Conversion | 51.41% | ||
| Profit Quality | 124.44% | ||
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 | ||
| Altman-Z | 0.24 |
F-Score6
WACC8.49%
ROIC/WACC0.18
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.96%
EPS 3Y17.67%
EPS 5Y22.44%
EPS Q2Q%5.81%
EPS Next Y5.54%
EPS Next 2Y12.81%
EPS Next 3Y15.04%
EPS Next 5YN/A
Revenue 1Y (TTM)-31.66%
Revenue growth 3Y58.1%
Revenue growth 5Y52.06%
Sales Q2Q%-21.19%
Revenue Next Year16.43%
Revenue Next 2Y17.49%
Revenue Next 3Y16.65%
Revenue Next 5Y-12.07%
EBIT growth 1Y17.58%
EBIT growth 3Y54.01%
EBIT growth 5Y41.09%
EBIT Next Year10.94%
EBIT Next 3Y13.27%
EBIT Next 5YN/A
FCF growth 1Y-52.61%
FCF growth 3Y48.2%
FCF growth 5Y25.54%
OCF growth 1Y-52.61%
OCF growth 3Y45.14%
OCF growth 5Y24.61%