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. APO has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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
Looking at the Return On Assets, with a value of 0.85%, APO is doing worse than 60.00% of the companies in the same industry.
APO has a Return On Equity of 18.75%. This is amongst the best in the industry. APO outperforms 82.00% of its industry peers.
APO's Return On Invested Capital of 1.56% is in line compared to the rest of the industry. APO outperforms 42.00% of 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
APO's Profit Margin of 15.23% is fine compared to the rest of the industry. APO outperforms 64.00% of its industry peers.
APO's Profit Margin has declined in the last couple of years.
The Operating Margin of APO (31.69%) is better 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
APO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, APO has less shares outstanding
Compared to 5 years ago, APO has more shares outstanding
Compared to 1 year ago, APO has about the same debt to assets ratio.
2.2 Solvency
APO has an Altman-Z score of 0.25. This is a bad value and indicates that APO is not financially healthy and even has some risk of bankruptcy.
APO has a Altman-Z score of 0.25. This is comparable to the rest of the industry: APO outperforms 44.00% of its industry peers.
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 has a Debt to FCF ratio of 3.25. This is in the better half 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.
Looking at the Debt to Equity ratio, with a value of 0.76, APO is in line with its industry, outperforming 49.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | 0.25 |
ROIC/WACC0.18
WACC8.63%
2.3 Liquidity
A Current Ratio of 0.07 indicates that APO may have some problems paying its short term obligations.
APO has a Current ratio of 0.07. This is amonst the worse of the industry: APO underperforms 81.00% of its industry peers.
APO has a Quick 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.
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
APO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.96%.
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.
The Revenue for APO has decreased by -31.66% in the past year. This is quite bad
The Revenue has been growing by 52.06% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, APO will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.89% 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 Y4.85%
EPS Next 2Y12.47%
EPS Next 3Y14.89%
EPS Next 5YN/A
Revenue Next Year16.43%
Revenue Next 2Y17.48%
Revenue Next 3Y16.59%
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 19.73 indicates a rather expensive valuation of APO.
APO's Price/Earnings ratio is in line with the industry average.
APO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.46, which is the current average of the S&P500 Index.
APO is valuated correctly with a Price/Forward Earnings ratio of 15.81.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APO is on the same level as its industry peers.
APO is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.73 | ||
| Fwd PE | 15.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of APO indicates a somewhat cheap valuation: APO is cheaper than 65.00% of the companies listed in the same industry.
63.00% 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 | 20.24 | ||
| EV/EBITDA | 10.46 |
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.
A more expensive valuation may be justified as APO's earnings are expected to grow with 14.89% in the coming years.
PEG (NY)4.07
PEG (5Y)0.88
EPS Next 2Y12.47%
EPS Next 3Y14.89%
5. Dividend
5.1 Amount
APO has a yearly dividend return of 0.90%, which is pretty low.
APO's Dividend Yield is comparable with the industry average which is at 5.06.
With a Dividend Yield of 0.90, APO pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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 35.84% of its income as dividend. This is a sustainable payout ratio.
DP35.84%
EPS Next 2Y12.47%
EPS Next 3Y14.89%
NYSE:APO (7/22/2025, 1:09:09 PM)
148.56
-0.13 (-0.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners65.51%
Inst Owner Change0.13%
Ins Owners3.12%
Ins Owner Change-0.21%
Market Cap84.90B
Analysts80
Price Target165.3 (11.27%)
Short Float %6.8%
Short Ratio9.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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)2.73%
PT rev (3m)-11.54%
EPS NQ rev (1m)-0.89%
EPS NQ rev (3m)-5.7%
EPS NY rev (1m)-0.65%
EPS NY rev (3m)-4.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.73 | ||
| Fwd PE | 15.81 | ||
| P/S | 3.84 | ||
| P/FCF | 20.24 | ||
| P/OCF | 20.24 | ||
| P/B | 4.72 | ||
| P/tB | 6.22 | ||
| EV/EBITDA | 10.46 |
EPS(TTM)7.53
EY5.07%
EPS(NY)9.4
Fwd EY6.33%
FCF(TTM)7.34
FCFY4.94%
OCF(TTM)7.34
OCFY4.94%
SpS38.73
BVpS31.45
TBVpS23.88
PEG (NY)4.07
PEG (5Y)0.88
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 | 0.25 |
F-Score6
WACC8.63%
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 Y4.85%
EPS Next 2Y12.47%
EPS Next 3Y14.89%
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 2Y17.48%
Revenue Next 3Y16.59%
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%