APOLLO COMMERCIAL REAL ESTAT (ARI) Stock Fundamental Analysis
NYSE:ARI - US03762U1051 - REIT
10.32 USD
-0.04 (-0.39%)
Taking everything into account, ARI scores 4 out of 10 in our fundamental rating. ARI was compared to 67 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. There are concerns on the financial health of ARI while its profitability can be described as average. ARI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ARI had positive earnings in the past year.
In the past year ARI had a positive cash flow from operations.
ARI had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ARI had a positive operating cash flow.
1.2 Ratios
ARI's Return On Assets of -0.19% is on the low side compared to the rest of the industry. ARI is outperformed by 65.67% of its industry peers.
ARI's Return On Equity of -1.03% is on the low side compared to the rest of the industry. ARI is outperformed by 65.67% of its industry peers.
The Return On Invested Capital of ARI (1.26%) is better than 82.09% of its industry peers.
ARI had an Average Return On Invested Capital over the past 3 years of 1.68%. This is in line with the industry average of 1.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.19% | ||
| ROE | -1.03% | ||
| ROIC | 1.26% |
ROA(3y)0.48%
ROA(5y)0.78%
ROE(3y)1.75%
ROE(5y)2.86%
ROIC(3y)1.68%
ROIC(5y)2.3%
1.3 Margins
The Operating Margin of ARI (16.50%) is better than 79.10% of its industry peers.
ARI's Operating Margin has declined in the last couple of years.
ARI has a Gross Margin of 36.89%. This is amongst the best in the industry. ARI outperforms 82.09% of its industry peers.
ARI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.5% | ||
| PM (TTM) | N/A | ||
| GM | 36.89% |
OM growth 3Y-25.68%
OM growth 5Y-20.21%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16.09%
GM growth 5Y-11.34%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARI is destroying value.
The number of shares outstanding for ARI has been reduced compared to 1 year ago.
ARI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ARI has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.11, we must say that ARI is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ARI (-0.11) is comparable to the rest of the industry.
The Debt to FCF ratio of ARI is 152.71, which is on the high side as it means it would take ARI, 152.71 years of fcf income to pay off all of its debts.
ARI's Debt to FCF ratio of 152.71 is in line compared to the rest of the industry. ARI outperforms 43.28% of its industry peers.
A Debt/Equity ratio of 3.21 is on the high side and indicates that ARI has dependencies on debt financing.
With a decent Debt to Equity ratio value of 3.21, ARI is doing good in the industry, outperforming 70.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.21 | ||
| Debt/FCF | 152.71 | ||
| Altman-Z | -0.11 |
ROIC/WACC0.17
WACC7.21%
2.3 Liquidity
A Current Ratio of 0.13 indicates that ARI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.13, ARI is in line with its industry, outperforming 43.28% of the companies in the same industry.
ARI has a Quick Ratio of 0.13. This is a bad value and indicates that ARI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.13, ARI perfoms like the industry average, outperforming 43.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.13 |
3. Growth
3.1 Past
The earnings per share for ARI have decreased strongly by -20.98% in the last year.
The Earnings Per Share has been decreasing by -6.89% on average over the past years.
Looking at the last year, ARI shows a decrease in Revenue. The Revenue has decreased by -8.78% in the last year.
Measured over the past years, ARI shows a quite strong growth in Revenue. The Revenue has been growing by 10.63% on average per year.
EPS 1Y (TTM)-20.98%
EPS 3Y0%
EPS 5Y-6.89%
EPS Q2Q%-25.71%
Revenue 1Y (TTM)-8.78%
Revenue growth 3Y21.79%
Revenue growth 5Y10.63%
Sales Q2Q%-16.79%
3.2 Future
ARI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.29% yearly.
The Revenue is expected to grow by 3.05% on average over the next years.
EPS Next Y-31.81%
EPS Next 2Y-13.18%
EPS Next 3Y8.29%
EPS Next 5YN/A
Revenue Next Year-10.24%
Revenue Next 2Y3.05%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 9.13, the valuation of ARI can be described as very reasonable.
Based on the Price/Earnings ratio, ARI is valued a bit cheaper than the industry average as 76.12% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.08, ARI is valued rather cheaply.
A Price/Forward Earnings ratio of 10.30 indicates a reasonable valuation of ARI.
The rest of the industry has a similar Price/Forward Earnings ratio as ARI.
When comparing the Price/Forward Earnings ratio of ARI to the average of the S&P500 Index (22.67), we can say ARI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.13 | ||
| Fwd PE | 10.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARI is valued cheaper than 82.09% of the companies in the same industry.
ARI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.02 | ||
| EV/EBITDA | 67.54 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-13.18%
EPS Next 3Y8.29%
5. Dividend
5.1 Amount
ARI has a Yearly Dividend Yield of 9.93%, which is a nice return.
Compared to an average industry Dividend Yield of 12.25, ARI is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, ARI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.93% |
5.2 History
The dividend of ARI decreases each year by -6.89%.
ARI has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-6.89%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of ARI are negative and hence is the payout ratio. ARI will probably not be able to sustain this dividend level.
DP-879.4%
EPS Next 2Y-13.18%
EPS Next 3Y8.29%
NYSE:ARI (8/27/2025, 1:42:41 PM)
10.32
-0.04 (-0.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners68.27%
Inst Owner Change31.07%
Ins Owners0.64%
Ins Owner Change-3.6%
Market Cap1.43B
Analysts72
Price Target10.65 (3.2%)
Short Float %2.61%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.93% |
Yearly Dividend1.42
Dividend Growth(5Y)-6.89%
DP-879.4%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.37%
Min EPS beat(2)4.64%
Max EPS beat(2)12.09%
EPS beat(4)4
Avg EPS beat(4)19.02%
Min EPS beat(4)4.64%
Max EPS beat(4)39.78%
EPS beat(8)8
Avg EPS beat(8)14.21%
EPS beat(12)10
Avg EPS beat(12)-0.49%
EPS beat(16)12
Avg EPS beat(16)0.01%
Revenue beat(2)0
Avg Revenue beat(2)-14.96%
Min Revenue beat(2)-20.78%
Max Revenue beat(2)-9.14%
Revenue beat(4)0
Avg Revenue beat(4)-11.28%
Min Revenue beat(4)-20.78%
Max Revenue beat(4)-6.72%
Revenue beat(8)0
Avg Revenue beat(8)-10.29%
Revenue beat(12)2
Avg Revenue beat(12)12.33%
Revenue beat(16)6
Avg Revenue beat(16)27.87%
PT rev (1m)0%
PT rev (3m)4.38%
EPS NQ rev (1m)10.42%
EPS NQ rev (3m)3.92%
EPS NY rev (1m)3.46%
EPS NY rev (3m)3.46%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)1.41%
Revenue NY rev (1m)-4.57%
Revenue NY rev (3m)-4.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.13 | ||
| Fwd PE | 10.3 | ||
| P/S | 1.9 | ||
| P/FCF | 28.02 | ||
| P/OCF | 7.18 | ||
| P/B | 0.78 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | 67.54 |
EPS(TTM)1.13
EY10.95%
EPS(NY)1
Fwd EY9.71%
FCF(TTM)0.37
FCFY3.57%
OCF(TTM)1.44
OCFY13.93%
SpS5.44
BVpS13.29
TBVpS13.29
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.19% | ||
| ROE | -1.03% | ||
| ROCE | 1.59% | ||
| ROIC | 1.26% | ||
| ROICexc | 1.29% | ||
| ROICexgc | 1.3% | ||
| OM | 16.5% | ||
| PM (TTM) | N/A | ||
| GM | 36.89% | ||
| FCFM | 6.77% |
ROA(3y)0.48%
ROA(5y)0.78%
ROE(3y)1.75%
ROE(5y)2.86%
ROIC(3y)1.68%
ROIC(5y)2.3%
ROICexc(3y)1.74%
ROICexc(5y)2.43%
ROICexgc(3y)1.75%
ROICexgc(5y)2.45%
ROCE(3y)2.13%
ROCE(5y)2.91%
ROICexcg growth 3Y-15.06%
ROICexcg growth 5Y-22.32%
ROICexc growth 3Y-15.31%
ROICexc growth 5Y-22.29%
OM growth 3Y-25.68%
OM growth 5Y-20.21%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16.09%
GM growth 5Y-11.34%
F-Score4
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.21 | ||
| Debt/FCF | 152.71 | ||
| Debt/EBITDA | 44.1 | ||
| Cap/Depr | 1529.33% | ||
| Cap/Sales | 19.66% | ||
| Interest Coverage | 0.27 | ||
| Cash Conversion | 148.6% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.13 | ||
| Altman-Z | -0.11 |
F-Score4
WACC7.21%
ROIC/WACC0.17
Cap/Depr(3y)2341.93%
Cap/Depr(5y)N/A
Cap/Sales(3y)11.9%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-20.98%
EPS 3Y0%
EPS 5Y-6.89%
EPS Q2Q%-25.71%
EPS Next Y-31.81%
EPS Next 2Y-13.18%
EPS Next 3Y8.29%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.78%
Revenue growth 3Y21.79%
Revenue growth 5Y10.63%
Sales Q2Q%-16.79%
Revenue Next Year-10.24%
Revenue Next 2Y3.05%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-26.63%
EBIT growth 3Y-9.49%
EBIT growth 5Y-11.73%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-81.03%
FCF growth 3Y-46.03%
FCF growth 5Y-35.16%
OCF growth 1Y-39.88%
OCF growth 3Y0.24%
OCF growth 5Y-5.98%