APOLLO GLOBAL MANAGEMENT INC (APO)
US03769M1062 - Common Stock
Taking everything into account, APO scores 5 out of 10 in our fundamental rating. APO was compared to 102 industry peers in the Financial Services industry. APO has an average financial health and profitability rating. APO is growing strongly while it is still valued neutral. This is a good combination!
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 (1.54%) which is comparable to the rest of the industry.
APO has a better Return On Equity (34.44%) than 94.12% of its industry peers.
APO's Return On Invested Capital of 1.58% is in line compared to the rest of the industry. APO outperforms 48.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 34.44% | ||
| ROIC | 1.58% |
ROA(3y)2.06%
ROA(5y)3.23%
ROE(3y)10.97%
ROE(5y)16.97%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 15.73%, APO is doing good in the industry, outperforming 68.63% of the companies in the same industry.
APO's Profit Margin has improved in the last couple of years.
APO's Operating Margin of 19.61% is fine compared to the rest of the industry. APO outperforms 66.67% of its industry peers.
APO's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.61% | ||
| PM (TTM) | 15.73% | ||
| GM | N/A |
OM growth 3Y-20.74%
OM growth 5Y-2.99%
PM growth 3Y46.16%
PM growth 5YN/A
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
APO has more shares outstanding than it did 5 years ago.
APO has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.26, we must say that APO is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.26, APO perfoms like the industry average, outperforming 42.16% of the companies in the same industry.
The Debt to FCF ratio of APO is 1.28, which is an excellent value as it means it would take APO, only 1.28 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of APO (1.28) is better than 80.39% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that APO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.58, APO perfoms like the industry average, outperforming 50.98% of the companies in the same industry.
Although APO does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 1.28 | ||
| Altman-Z | 0.26 |
ROIC/WACC0.17
WACC9.1%
2.3 Liquidity
A Current Ratio of 0.04 indicates that APO may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.04, APO is doing worse than 83.33% of the companies in the same industry.
A Quick Ratio of 0.04 indicates that APO may have some problems paying its short term obligations.
APO has a Quick ratio of 0.04. This is amonst the worse of the industry: APO underperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 |
3. Growth
3.1 Past
APO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.61%, which is quite impressive.
Measured over the past years, APO shows a very strong growth in Earnings Per Share. The EPS has been growing by 49.43% on average per year.
The Revenue has grown by 215.91% in the past year. This is a very strong growth!
Measured over the past years, APO shows a very strong growth in Revenue. The Revenue has been growing by 94.91% on average per year.
EPS 1Y (TTM)35.61%
EPS 3Y49.43%
EPS 5YN/A
EPS growth Q2Q34.51%
Revenue 1Y (TTM)215.91%
Revenue growth 3Y134.55%
Revenue growth 5Y94.91%
Revenue growth Q2Q143.39%
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 16.24% on average per year.
Based on estimates for the next years, APO will show a quite strong growth in Revenue. The Revenue will grow by 11.64% on average per year.
EPS Next Y16.42%
EPS Next 2Y16.54%
EPS Next 3Y16.24%
EPS Next 5YN/A
Revenue Next Year20.07%
Revenue Next 2Y17.39%
Revenue Next 3Y11.64%
Revenue Next 5YN/A
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
APO is valuated correctly with a Price/Earnings ratio of 16.63.
The rest of the industry has a similar Price/Earnings ratio as APO.
APO is valuated rather cheaply when we compare the Price/Earnings ratio to 25.25, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.28 indicates a correct valuation of APO.
APO's Price/Forward Earnings ratio is in line with the industry average.
APO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.63 | ||
| Fwd PE | 14.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APO is valued cheaper than 81.37% 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 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.07 | ||
| EV/EBITDA | 8.23 |
4.3 Compensation for Growth
APO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as APO's earnings are expected to grow with 16.24% in the coming years.
PEG (NY)1.01
PEG (5Y)N/A
EPS Next 2Y16.54%
EPS Next 3Y16.24%
5. Dividend
5.1 Amount
APO has a Yearly Dividend Yield of 1.60%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.64, APO pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.45, APO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
The dividend of APO decreases each year by -3.87%.
APO has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of APO decreased recently.
Dividend Growth(5Y)-3.87%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
21.38% of the earnings are spent on dividend by APO. This is a low number and sustainable payout ratio.
DP21.38%
EPS Next 2Y16.54%
EPS Next 3Y16.24%
APOLLO GLOBAL MANAGEMENT INC
NYSE:APO (4/25/2024, 11:26:49 AM)
112.085
-0.64 (-0.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap63.68B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.63 | ||
| Fwd PE | 14.28 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 34.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.61% | ||
| PM (TTM) | 15.73% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.04 | ||
| Quick Ratio | 0.04 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)35.61%
EPS 3Y49.43%
EPS 5Y
EPS growth Q2Q
EPS Next Y16.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)215.91%
Revenue growth 3Y134.55%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y