APOLLO COMMERCIAL REAL ESTAT (ARI)
US03762U1051 - REIT
ARI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 64 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ARI had positive earnings in the past year.
ARI had a positive operating cash flow in the past year.
ARI had positive earnings in each of the past 5 years.
ARI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ARI has a Return On Assets of 0.45%. This is comparable to the rest of the industry: ARI outperforms 56.25% of its industry peers.
Looking at the Return On Equity, with a value of 1.88%, ARI is in line with its industry, outperforming 48.44% of the companies in the same industry.
With a decent Return On Invested Capital value of 1.64%, ARI is doing good in the industry, outperforming 70.31% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARI is in line with the industry average of 1.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.45% | ||
| ROE | 1.88% | ||
| ROIC | 1.64% |
ROA(3y)1.83%
ROA(5y)1.71%
ROE(3y)7.15%
ROE(5y)5.88%
ROIC(3y)1.95%
ROIC(5y)2.98%
1.3 Margins
Looking at the Profit Margin, with a value of 5.15%, ARI is in line with its industry, outperforming 48.44% of the companies in the same industry.
In the last couple of years the Profit Margin of ARI has declined.
With a decent Operating Margin value of 23.75%, ARI is doing good in the industry, outperforming 73.44% of the companies in the same industry.
In the last couple of years the Operating Margin of ARI has declined.
ARI has a Gross Margin of 42.18%. This is in the better half of the industry: ARI outperforms 62.50% of its industry peers.
In the last couple of years the Gross Margin of ARI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.75% | ||
| PM (TTM) | 5.15% | ||
| GM | 42.18% |
OM growth 3Y-21.29%
OM growth 5Y-15.91%
PM growth 3Y150.06%
PM growth 5Y-35.77%
GM growth 3Y-13.28%
GM growth 5Y-9.91%
2. Health
2.1 Basic Checks
ARI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ARI has been reduced compared to 1 year ago.
Compared to 5 years ago, ARI has more shares outstanding
ARI has a worse debt/assets ratio than last year.
2.2 Solvency
ARI has an Altman-Z score of 0.23. This is a bad value and indicates that ARI is not financially healthy and even has some risk of bankruptcy.
ARI has a Altman-Z score of 0.23. This is in the better half of the industry: ARI outperforms 70.31% of its industry peers.
The Debt to FCF ratio of ARI is 33.71, which is on the high side as it means it would take ARI, 33.71 years of fcf income to pay off all of its debts.
ARI's Debt to FCF ratio of 33.71 is fine compared to the rest of the industry. ARI outperforms 65.63% of its industry peers.
A Debt/Equity ratio of 3.15 is on the high side and indicates that ARI has dependencies on debt financing.
The Debt to Equity ratio of ARI (3.15) is better than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.15 | ||
| Debt/FCF | 33.71 | ||
| Altman-Z | 0.23 |
ROIC/WACC0.24
WACC6.97%
2.3 Liquidity
A Current Ratio of 2.98 indicates that ARI has no problem at all paying its short term obligations.
ARI has a Current ratio of 2.98. This is amongst the best in the industry. ARI outperforms 89.06% of its industry peers.
ARI has a Quick Ratio of 2.98. This indicates that ARI is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of ARI (2.98) is better than 89.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.98 |
3. Growth
3.1 Past
The earnings per share for ARI have decreased strongly by -20.29% in the last year.
The Earnings Per Share has been decreasing by -9.38% on average over the past years.
The Revenue has grown by 40.39% in the past year. This is a very strong growth!
The Revenue has been growing by 14.95% on average over the past years. This is quite good.
EPS 1Y (TTM)-20.29%
EPS 3Y54.2%
EPS 5Y-9.38%
EPS growth Q2Q16.13%
Revenue 1Y (TTM)40.39%
Revenue growth 3Y23.77%
Revenue growth 5Y14.95%
Revenue growth Q2Q12.84%
3.2 Future
The Earnings Per Share is expected to grow by 8.97% on average over the next years. This is quite good.
Based on estimates for the next years, ARI will show a decrease in Revenue. The Revenue will decrease by -6.02% on average per year.
EPS Next Y15.14%
EPS Next 2Y8.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-12.07%
Revenue Next 2Y-6.02%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 9.82 indicates a reasonable valuation of ARI.
The rest of the industry has a similar Price/Earnings ratio as ARI.
ARI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.84.
The Price/Forward Earnings ratio is 8.53, which indicates a very decent valuation of ARI.
ARI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ARI is cheaper than 62.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.35, ARI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.82 | ||
| Fwd PE | 8.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARI is valued cheaply inside the industry as 89.06% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ARI is valued a bit cheaper than the industry average as 70.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.44 | ||
| EV/EBITDA | 41.38 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y8.97%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.05%, ARI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 13.17, ARI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, ARI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.05% |
5.2 History
The dividend of ARI decreases each year by -6.82%.
ARI has been paying a dividend for at least 10 years, so it has a reliable track record.
ARI has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-6.82%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
ARI pays out 516.34% of its income as dividend. This is not a sustainable payout ratio.
DP516.34%
EPS Next 2Y8.97%
EPS Next 3YN/A
APOLLO COMMERCIAL REAL ESTAT
NYSE:ARI (4/26/2024, 7:04:00 PM)
After market: 10.8 0 (0%)10.8
+0.07 (+0.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.53B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.05% |
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)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 9.82 | ||
| Fwd PE | 8.53 | ||
| 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)0.65
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.45% | ||
| ROE | 1.88% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.75% | ||
| PM (TTM) | 5.15% | ||
| GM | 42.18% | ||
| 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 Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.15 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.98 | ||
| 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)-20.29%
EPS 3Y54.2%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)40.39%
Revenue growth 3Y23.77%
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