APOLLO COMMERCIAL REAL ESTAT (ARI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARI - US03762U1051 - REIT
10.15 USD
+0.06 (+0.59%)
10.1455 USD
0 (-0.04%)
ARI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and the financial health of ARI get a neutral evaluation. Nothing too spectacular is happening here. ARI has a valuation in line with the averages, but it does not seem to be growing.
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.
- In the past 5 years ARI always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of ARI (1.29%) is better than 89.71% of its industry peers.
- ARI's Return On Equity of 6.61% is amongst the best of the industry. ARI outperforms 88.24% of its industry peers.
- ARI has a better Return On Invested Capital (1.06%) than 83.82% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ARI is in line with the industry average of 1.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.29% | ||
| ROE | 6.61% | ||
| ROIC | 1.06% |
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
- ARI has a better Profit Margin (16.94%) than 72.06% of its industry peers.
- With a Operating Margin value of 15.93%, ARI perfoms like the industry average, outperforming 57.35% of the companies in the same industry.
- ARI's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 36.98%, ARI is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
- ARI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.93% | ||
| PM (TTM) | 16.94% | ||
| GM | 36.98% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARI is destroying value.
- ARI has less shares outstanding than it did 1 year ago.
- ARI has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for ARI is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.03, we must say that ARI is in the distress zone and has some risk of bankruptcy.
- ARI has a Altman-Z score of 0.03. This is in the better half of the industry: ARI outperforms 63.24% of its industry peers.
- ARI has a debt to FCF ratio of 134.05. This is a negative value and a sign of low solvency as ARI would need 134.05 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 134.05, ARI is in the better half of the industry, outperforming 63.24% of the companies in the same industry.
- ARI has a Debt/Equity ratio of 3.61. This is a high value indicating a heavy dependency on external financing.
- ARI has a Debt to Equity ratio of 3.61. This is in the better half of the industry: ARI outperforms 63.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.61 | ||
| Debt/FCF | 134.05 | ||
| Altman-Z | 0.03 |
ROIC/WACC0.15
WACC7.04%
2.3 Liquidity
- A Current Ratio of 0.35 indicates that ARI may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.35, ARI is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
- ARI has a Quick Ratio of 0.35. This is a bad value and indicates that ARI is not financially healthy enough and could expect problems in meeting its short term obligations.
- ARI's Quick ratio of 0.35 is fine compared to the rest of the industry. ARI outperforms 61.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
- ARI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.25%.
- The Earnings Per Share has been decreasing by -6.89% on average over the past years.
- ARI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.52%.
- ARI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.63% yearly.
EPS 1Y (TTM)-18.25%
EPS 3Y0%
EPS 5Y-6.89%
EPS Q2Q%-3.23%
Revenue 1Y (TTM)-12.52%
Revenue growth 3Y21.79%
Revenue growth 5Y10.63%
Sales Q2Q%-14.9%
3.2 Future
- Based on estimates for the next years, ARI will show a decrease in Earnings Per Share. The EPS will decrease by -3.59% on average per year.
- ARI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.65% yearly.
EPS Next Y-32.11%
EPS Next 2Y-15.62%
EPS Next 3Y-3.59%
EPS Next 5YN/A
Revenue Next Year-12.1%
Revenue Next 2Y0.99%
Revenue Next 3Y3.65%
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
- Based on the Price/Earnings ratio of 9.06, the valuation of ARI can be described as reasonable.
- ARI's Price/Earnings ratio is a bit cheaper when compared to the industry. ARI is cheaper than 75.00% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.38. ARI is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 10.72 indicates a reasonable valuation of ARI.
- The rest of the industry has a similar Price/Forward Earnings ratio as ARI.
- ARI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 10.72 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ARI is valued a bit cheaper than 77.94% of the companies in the same industry.
- ARI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.12 | ||
| EV/EBITDA | 69 |
4.3 Compensation for Growth
- The decent profitability rating of ARI may justify a higher PE ratio.
- ARI's earnings are expected to decrease with -3.59% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.62%
EPS Next 3Y-3.59%
5. Dividend
5.1 Amount
- ARI has a Yearly Dividend Yield of 9.91%, which is a nice return.
- ARI's Dividend Yield is slightly below the industry average, which is at 11.01.
- ARI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.91% |
5.2 History
- The dividend of ARI decreases each year by -6.89%.
- ARI has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-6.89%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- ARI pays out 124.11% of its income as dividend. This is not a sustainable payout ratio.
- ARI's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP124.11%
EPS Next 2Y-15.62%
EPS Next 3Y-3.59%
10.15
+0.06 (+0.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)02-09 2026-02-09/amc
Inst Owners69.07%
Inst Owner Change0.1%
Ins Owners0.56%
Ins Owner Change3.15%
Market Cap1.41B
Revenue(TTM)726.90M
Net Income(TTM)123.16M
Analysts74
Price Target11.01 (8.47%)
Short Float %2.33%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.91% |
Yearly Dividend1.42
Dividend Growth(5Y)-6.89%
DP124.11%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.72%
Min EPS beat(2)4.64%
Max EPS beat(2)38.8%
EPS beat(4)4
Avg EPS beat(4)23.83%
Min EPS beat(4)4.64%
Max EPS beat(4)39.78%
EPS beat(8)8
Avg EPS beat(8)18.47%
EPS beat(12)10
Avg EPS beat(12)2.29%
EPS beat(16)13
Avg EPS beat(16)2.67%
Revenue beat(2)0
Avg Revenue beat(2)-13.05%
Min Revenue beat(2)-16.96%
Max Revenue beat(2)-9.14%
Revenue beat(4)0
Avg Revenue beat(4)-13.84%
Min Revenue beat(4)-20.78%
Max Revenue beat(4)-8.49%
Revenue beat(8)0
Avg Revenue beat(8)-11.35%
Revenue beat(12)1
Avg Revenue beat(12)1.76%
Revenue beat(16)5
Avg Revenue beat(16)23.31%
PT rev (1m)2.29%
PT rev (3m)3.39%
EPS NQ rev (1m)18.34%
EPS NQ rev (3m)10.59%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.04%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)-1.95%
Revenue NY rev (3m)-2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 10.72 | ||
| P/S | 1.94 | ||
| P/FCF | 25.12 | ||
| P/OCF | 7.66 | ||
| P/B | 0.76 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | 69 |
EPS(TTM)1.12
EY11.03%
EPS(NY)0.95
Fwd EY9.33%
FCF(TTM)0.4
FCFY3.98%
OCF(TTM)1.33
OCFY13.06%
SpS5.23
BVpS13.4
TBVpS13.4
PEG (NY)N/A
PEG (5Y)N/A
Graham Number18.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.29% | ||
| ROE | 6.61% | ||
| ROCE | 1.34% | ||
| ROIC | 1.06% | ||
| ROICexc | 1.09% | ||
| ROICexgc | 1.1% | ||
| OM | 15.93% | ||
| PM (TTM) | 16.94% | ||
| GM | 36.98% | ||
| FCFM | 7.72% |
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%
ROICexgc growth 3Y-15.06%
ROICexgc 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-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.61 | ||
| Debt/FCF | 134.05 | ||
| Debt/EBITDA | 53.41 | ||
| Cap/Depr | 1261.5% | ||
| Cap/Sales | 17.62% | ||
| Interest Coverage | 0.25 | ||
| Cash Conversion | 146.28% | ||
| Profit Quality | 45.58% | ||
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 0.03 |
F-Score6
WACC7.04%
ROIC/WACC0.15
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)-18.25%
EPS 3Y0%
EPS 5Y-6.89%
EPS Q2Q%-3.23%
EPS Next Y-32.11%
EPS Next 2Y-15.62%
EPS Next 3Y-3.59%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.52%
Revenue growth 3Y21.79%
Revenue growth 5Y10.63%
Sales Q2Q%-14.9%
Revenue Next Year-12.1%
Revenue Next 2Y0.99%
Revenue Next 3Y3.65%
Revenue Next 5YN/A
EBIT growth 1Y-27.16%
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-75.61%
FCF growth 3Y-46.03%
FCF growth 5Y-35.16%
OCF growth 1Y-36.29%
OCF growth 3Y0.24%
OCF growth 5Y-5.98%
APOLLO COMMERCIAL REAL ESTAT / ARI FAQ
What is the fundamental rating for ARI stock?
ChartMill assigns a fundamental rating of 5 / 10 to ARI.
What is the valuation status for ARI stock?
ChartMill assigns a valuation rating of 5 / 10 to APOLLO COMMERCIAL REAL ESTAT (ARI). This can be considered as Fairly Valued.
How profitable is APOLLO COMMERCIAL REAL ESTAT (ARI) stock?
APOLLO COMMERCIAL REAL ESTAT (ARI) has a profitability rating of 6 / 10.
What are the PE and PB ratios of APOLLO COMMERCIAL REAL ESTAT (ARI) stock?
The Price/Earnings (PE) ratio for APOLLO COMMERCIAL REAL ESTAT (ARI) is 9.06 and the Price/Book (PB) ratio is 0.76.
Is the dividend of APOLLO COMMERCIAL REAL ESTAT sustainable?
The dividend rating of APOLLO COMMERCIAL REAL ESTAT (ARI) is 4 / 10 and the dividend payout ratio is 124.11%.