APOLLO GLOBAL MANAGEMENT INC (APO) Stock Fundamental Analysis
USA - NYSE:APO - US03769M1062 - Common Stock
126.53 USD
+0.55 (+0.44%)
125 USD
-1.53 (-1.21%)
Taking everything into account, APO scores 4 out of 10 in our fundamental rating. APO was compared to 99 industry peers in the Financial Services industry. There are concerns on the financial health of APO while its profitability can be described as average. APO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year APO was profitable.
APO had a positive operating cash flow in the past year.
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 has a Return On Assets (0.75%) which is in line with its industry peers.
APO has a Return On Equity of 16.34%. This is in the better half of the industry: APO outperforms 78.79% of its industry peers.
APO's Return On Invested Capital of 1.36% is in line compared to the rest of the industry. APO outperforms 42.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 16.34% | ||
| ROIC | 1.36% |
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
Looking at the Profit Margin, with a value of 13.90%, APO is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
APO's Profit Margin has declined in the last couple of years.
APO's Operating Margin of 28.78% is fine compared to the rest of the industry. APO outperforms 72.73% of its industry peers.
In the last couple of years the Operating Margin of APO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.78% | ||
| PM (TTM) | 13.9% | ||
| 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.
APO has less shares outstanding than it did 1 year ago.
APO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for APO has remained at the same level compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.21, we must say that APO is in the distress zone and has some risk of bankruptcy.
APO has a Altman-Z score (0.21) which is comparable to the rest of the industry.
The Debt to FCF ratio of APO is 3.61, which is a good value as it means it would take APO, 3.61 years of fcf income to pay off all of its debts.
APO's Debt to FCF ratio of 3.61 is fine compared to the rest of the industry. APO outperforms 71.72% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that APO is somewhat dependend on debt financing.
APO has a Debt to Equity ratio (0.77) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.61 | ||
| Altman-Z | 0.21 |
ROIC/WACC0.17
WACC8.18%
2.3 Liquidity
A Current Ratio of 0.09 indicates that APO may have some problems paying its short term obligations.
APO has a Current ratio of 0.09. This is amonst the worse of the industry: APO underperforms 81.82% of its industry peers.
APO has a Quick Ratio of 0.09. This is a bad value and indicates that APO is not financially healthy enough and could expect problems in meeting its short term obligations.
APO's Quick ratio of 0.09 is on the low side compared to the rest of the industry. APO is outperformed by 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 |
3. Growth
3.1 Past
APO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.89%, which is quite good.
APO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.44% yearly.
Looking at the last year, APO shows a decrease in Revenue. The Revenue has decreased by -7.68% 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)11.89%
EPS 3Y17.67%
EPS 5Y22.44%
EPS Q2Q%17.07%
Revenue 1Y (TTM)-7.68%
Revenue growth 3Y58.1%
Revenue growth 5Y52.06%
Sales Q2Q%13.23%
3.2 Future
Based on estimates for the next years, APO will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.73% on average per year.
APO is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -12.07% yearly.
EPS Next Y5.85%
EPS Next 2Y12.34%
EPS Next 3Y14.73%
EPS Next 5YN/A
Revenue Next Year21.69%
Revenue Next 2Y20.84%
Revenue Next 3Y21.81%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
APO is valuated correctly with a Price/Earnings ratio of 16.20.
APO's Price/Earnings is on the same level as the industry average.
APO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.57, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.49, the valuation of APO can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as APO.
APO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.2 | ||
| Fwd PE | 13.49 |
4.2 Price Multiples
72.73% 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 ratio is a bit cheaper when compared to the industry. APO is cheaper than 62.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.96 | ||
| EV/EBITDA | 9.72 |
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 14.73% in the coming years.
PEG (NY)2.77
PEG (5Y)0.72
EPS Next 2Y12.34%
EPS Next 3Y14.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.69%, APO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.15, APO pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.32, APO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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.
The dividend of APO decreased in the last 3 years.
Dividend Growth(5Y)-1.16%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
APO pays out 39.11% of its income as dividend. This is a sustainable payout ratio.
DP39.11%
EPS Next 2Y12.34%
EPS Next 3Y14.73%
126.53
+0.55 (+0.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners63.13%
Inst Owner Change-0.12%
Ins Owners2.57%
Ins Owner Change-0.5%
Market Cap74.07B
Revenue(TTM)22.71B
Net Income(TTM)3.16B
Analysts80
Price Target168.57 (33.23%)
Short Float %7.05%
Short Ratio9.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
Yearly Dividend2.1
Dividend Growth(5Y)-1.16%
DP39.11%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.17%
Min EPS beat(2)-3.45%
Max EPS beat(2)3.12%
EPS beat(4)3
Avg EPS beat(4)5.55%
Min EPS beat(4)-3.45%
Max EPS beat(4)16.32%
EPS beat(8)4
Avg EPS beat(8)1.98%
EPS beat(12)6
Avg EPS beat(12)1.18%
EPS beat(16)8
Avg EPS beat(16)4.89%
Revenue beat(2)2
Avg Revenue beat(2)34.43%
Min Revenue beat(2)22.26%
Max Revenue beat(2)46.6%
Revenue beat(4)4
Avg Revenue beat(4)43.77%
Min Revenue beat(4)19.9%
Max Revenue beat(4)86.31%
Revenue beat(8)7
Avg Revenue beat(8)60.79%
Revenue beat(12)11
Avg Revenue beat(12)98.96%
Revenue beat(16)14
Avg Revenue beat(16)84.23%
PT rev (1m)0%
PT rev (3m)1.98%
EPS NQ rev (1m)-2.42%
EPS NQ rev (3m)-1.84%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.95%
Revenue NQ rev (1m)-1.13%
Revenue NQ rev (3m)3.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.2 | ||
| Fwd PE | 13.49 | ||
| P/S | 3.26 | ||
| P/FCF | 17.96 | ||
| P/OCF | 17.96 | ||
| P/B | 3.83 | ||
| P/tB | 4.94 | ||
| EV/EBITDA | 9.72 |
EPS(TTM)7.81
EY6.17%
EPS(NY)9.38
Fwd EY7.41%
FCF(TTM)7.05
FCFY5.57%
OCF(TTM)7.05
OCFY5.57%
SpS38.8
BVpS33.01
TBVpS25.59
PEG (NY)2.77
PEG (5Y)0.72
Graham Number76.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 16.34% | ||
| ROCE | 1.59% | ||
| ROIC | 1.36% | ||
| ROICexc | 1.41% | ||
| ROICexgc | 1.56% | ||
| OM | 28.78% | ||
| PM (TTM) | 13.9% | ||
| GM | N/A | ||
| FCFM | 18.16% |
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
ROICexgc growth 3Y-33.79%
ROICexgc 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-Score5
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.61 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 6.27 | ||
| Cash Conversion | 53.19% | ||
| Profit Quality | 130.59% | ||
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 | ||
| Altman-Z | 0.21 |
F-Score5
WACC8.18%
ROIC/WACC0.17
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)11.89%
EPS 3Y17.67%
EPS 5Y22.44%
EPS Q2Q%17.07%
EPS Next Y5.85%
EPS Next 2Y12.34%
EPS Next 3Y14.73%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.68%
Revenue growth 3Y58.1%
Revenue growth 5Y52.06%
Sales Q2Q%13.23%
Revenue Next Year21.69%
Revenue Next 2Y20.84%
Revenue Next 3Y21.81%
Revenue Next 5Y-12.07%
EBIT growth 1Y-1.42%
EBIT growth 3Y54.01%
EBIT growth 5Y41.09%
EBIT Next Year17.67%
EBIT Next 3Y16.47%
EBIT Next 5YN/A
FCF growth 1Y-51.09%
FCF growth 3Y48.2%
FCF growth 5Y25.54%
OCF growth 1Y-51.09%
OCF growth 3Y45.14%
OCF growth 5Y24.61%