APOLLO GLOBAL MANAGEMENT INC (APO) Stock Fundamental Analysis
NYSE:APO - US03769M1062 - Common Stock
131.31 USD
-4.53 (-3.33%)
Taking everything into account, APO scores 4 out of 10 in our fundamental rating. APO was compared to 102 industry peers in the Financial Services industry. Both the profitability and financial health of APO have multiple concerns. 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 has a Return On Assets (0.75%) which is in line with its industry peers.
APO's Return On Equity of 16.34% is fine compared to the rest of the industry. APO outperforms 79.41% of its industry peers.
The Return On Invested Capital of APO (1.36%) is comparable to the rest of the industry.
| 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
APO has a Profit Margin of 13.90%. This is comparable to the rest of the industry: APO outperforms 58.82% of its industry peers.
In the last couple of years the Profit Margin of APO has declined.
Looking at the Operating Margin, with a value of 28.78%, APO is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), APO is destroying value.
The number of shares outstanding for APO has been reduced compared to 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 0.22, we must say that APO is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.22, APO perfoms like the industry average, outperforming 46.08% of the companies in the same 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.
The Debt to FCF ratio of APO (3.61) is better than 72.55% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that APO is somewhat dependend on debt financing.
APO's Debt to Equity ratio of 0.77 is in line compared to the rest of the industry. APO outperforms 47.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.61 | ||
| Altman-Z | 0.22 |
ROIC/WACC0.16
WACC8.41%
2.3 Liquidity
A Current Ratio of 0.09 indicates that APO may have some problems paying its short term obligations.
APO has a worse Current ratio (0.09) than 80.39% 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.
The Quick ratio of APO (0.09) is worse than 80.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.89% over the past year.
The Earnings Per Share has been growing by 22.44% on average over the past years. This is a very strong growth
The Revenue has decreased by -7.68% in the past 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
APO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.52% yearly.
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 Y5.8%
EPS Next 2Y12.32%
EPS Next 3Y14.52%
EPS Next 5YN/A
Revenue Next Year21.61%
Revenue Next 2Y19.22%
Revenue Next 3Y22.97%
Revenue Next 5Y-12.07%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 16.81 indicates a correct valuation of APO.
APO's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.90. APO is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.01, the valuation of APO can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APO is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.52. APO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.81 | ||
| Fwd PE | 14.01 |
4.2 Price Multiples
APO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. APO is cheaper than 70.59% of the companies in the same industry.
APO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. APO is cheaper than 63.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.21 | ||
| EV/EBITDA | 10.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates APO does not grow enough to justify the current Price/Earnings ratio.
APO's earnings are expected to grow with 14.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.9
PEG (5Y)0.75
EPS Next 2Y12.32%
EPS Next 3Y14.52%
5. Dividend
5.1 Amount
APO has a Yearly Dividend Yield of 1.50%.
APO's Dividend Yield is a higher than the industry average which is at 4.24.
Compared to the average S&P500 Dividend Yield of 2.32, APO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
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.
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 2Y12.32%
EPS Next 3Y14.52%
NYSE:APO (9/3/2025, 1:31:00 PM)
131.31
-4.53 (-3.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners65.58%
Inst Owner Change0.09%
Ins Owners3.12%
Ins Owner Change-0.8%
Market Cap75.11B
Analysts80
Price Target168.57 (28.38%)
Short Float %7.36%
Short Ratio9.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
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)1.98%
PT rev (3m)6.97%
EPS NQ rev (1m)1.44%
EPS NQ rev (3m)-8.96%
EPS NY rev (1m)0.91%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)6.21%
Revenue NQ rev (3m)7.35%
Revenue NY rev (1m)5.12%
Revenue NY rev (3m)4.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.81 | ||
| Fwd PE | 14.01 | ||
| P/S | 3.31 | ||
| P/FCF | 18.21 | ||
| P/OCF | 18.21 | ||
| P/B | 3.89 | ||
| P/tB | 5.01 | ||
| EV/EBITDA | 10.23 |
EPS(TTM)7.81
EY5.95%
EPS(NY)9.37
Fwd EY7.14%
FCF(TTM)7.21
FCFY5.49%
OCF(TTM)7.21
OCFY5.49%
SpS39.71
BVpS33.78
TBVpS26.19
PEG (NY)2.9
PEG (5Y)0.75
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
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-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 | 0.22 |
F-Score5
WACC8.41%
ROIC/WACC0.16
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 Y5.8%
EPS Next 2Y12.32%
EPS Next 3Y14.52%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.68%
Revenue growth 3Y58.1%
Revenue growth 5Y52.06%
Sales Q2Q%13.23%
Revenue Next Year21.61%
Revenue Next 2Y19.22%
Revenue Next 3Y22.97%
Revenue Next 5Y-12.07%
EBIT growth 1Y-1.42%
EBIT growth 3Y54.01%
EBIT growth 5Y41.09%
EBIT Next Year9.6%
EBIT Next 3Y13.3%
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%