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 101 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 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.
APO had a positive operating cash flow in the past year.
APO had positive earnings in 4 of the past 5 years.
APO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
APO has a Return On Assets (0.75%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 16.34%, APO belongs to the top of the industry, outperforming 81.19% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.36%, APO is in line with its industry, outperforming 40.59% of the companies in the same 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
Looking at the Profit Margin, with a value of 13.90%, APO is in the better half of the industry, outperforming 60.40% of the companies in the same industry.
In the last couple of years the Profit Margin of APO has declined.
With a decent Operating Margin value of 28.78%, APO is doing good in the industry, outperforming 72.28% of the companies in the same industry.
APO's Operating Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, APO has less shares outstanding
Compared to 5 years ago, APO has more shares outstanding
The debt/assets ratio for APO has remained at the same level compared to a year ago.
2.2 Solvency
APO has an Altman-Z score of 0.23. 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 0.23, APO is in line with its industry, outperforming 45.54% 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.
Looking at the Debt to FCF ratio, with a value of 3.61, APO is in the better half of the industry, outperforming 73.27% of the companies in the same industry.
APO has a Debt/Equity ratio of 0.77. This is a neutral value indicating APO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.77, APO is in line with its industry, outperforming 49.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.61 | ||
| Altman-Z | 0.23 |
ROIC/WACC0.16
WACC8.47%
2.3 Liquidity
APO has a Current 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 Current ratio of 0.09 is on the low side compared to the rest of the industry. APO is outperformed by 80.20% of its industry peers.
A Quick Ratio of 0.09 indicates that APO may have some problems paying its short term obligations.
The Quick ratio of APO (0.09) is worse than 80.20% 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.
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.
APO shows a decrease in Revenue. In the last year, the revenue decreased by -7.68%.
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)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 14.89% yearly.
The Revenue is expected to decrease by -12.07% on average over the next years. This is quite bad
EPS Next Y4.85%
EPS Next 2Y12.47%
EPS Next 3Y14.89%
EPS Next 5YN/A
Revenue Next Year15.68%
Revenue Next 2Y17.21%
Revenue Next 3Y16.56%
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 18.51, the valuation of APO can be described as rather expensive.
APO's Price/Earnings is on the same level as the industry average.
APO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.73.
The Price/Forward Earnings ratio is 15.39, which indicates a correct valuation of APO.
APO's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.61, APO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.51 | ||
| Fwd PE | 15.39 |
4.2 Price Multiples
APO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. APO is cheaper than 66.34% of the companies in the same industry.
62.38% 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 | 20.04 | ||
| EV/EBITDA | 10.87 |
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 14.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.82
PEG (5Y)0.83
EPS Next 2Y12.47%
EPS Next 3Y14.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.44%, APO has a reasonable but not impressive dividend return.
APO's Dividend Yield is a higher than the industry average which is at 4.84.
With a Dividend Yield of 1.44, APO pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
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 39.11% of its income as dividend. This is a sustainable payout ratio.
DP39.11%
EPS Next 2Y12.47%
EPS Next 3Y14.89%
144.6
+2.48 (+1.75%)
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-0.93%
Market Cap82.64B
Analysts80
Price Target165.99 (14.79%)
Short Float %6.93%
Short Ratio10.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
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)3.16%
PT rev (3m)5.33%
EPS NQ rev (1m)-0.83%
EPS NQ rev (3m)-3.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.39%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-1.04%
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.51 | ||
| Fwd PE | 15.39 | ||
| P/S | 3.64 | ||
| P/FCF | 20.04 | ||
| P/OCF | 20.04 | ||
| P/B | 4.28 | ||
| P/tB | 5.52 | ||
| EV/EBITDA | 10.87 |
EPS(TTM)7.81
EY5.4%
EPS(NY)9.4
Fwd EY6.5%
FCF(TTM)7.22
FCFY4.99%
OCF(TTM)7.22
OCFY4.99%
SpS39.75
BVpS33.81
TBVpS26.22
PEG (NY)3.82
PEG (5Y)0.83
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 | 0.23 |
F-Score5
WACC8.47%
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 Y4.85%
EPS Next 2Y12.47%
EPS Next 3Y14.89%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.68%
Revenue growth 3Y58.1%
Revenue growth 5Y52.06%
Sales Q2Q%13.23%
Revenue Next Year15.68%
Revenue Next 2Y17.21%
Revenue Next 3Y16.56%
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%