APPLE HOSPITALITY REIT INC (APLE) Stock Fundamental Analysis
NYSE:APLE - New York Stock Exchange, Inc. - US03784Y2000 - REIT - Currency: USD
Taking everything into account, APLE scores 5 out of 10 in our fundamental rating. APLE was compared to 129 industry peers in the Diversified REITs industry. APLE has only an average score on both its financial health and profitability. APLE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year APLE was profitable.
In the past year APLE had a positive cash flow from operations.
APLE had positive earnings in 4 of the past 5 years.
Each year in the past 5 years APLE had a positive operating cash flow.
1.2 Ratios
The Return On Assets of APLE (4.08%) is better than 88.10% of its industry peers.
Looking at the Return On Equity, with a value of 6.22%, APLE is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
APLE has a Return On Invested Capital of 4.38%. This is amongst the best in the industry. APLE outperforms 86.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for APLE is in line with the industry average of 3.11%.
The last Return On Invested Capital (4.38%) for APLE is above the 3 year average (3.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.08% | ||
| ROE | 6.22% | ||
| ROIC | 4.38% |
ROA(3y)2.34%
ROA(5y)1.38%
ROE(3y)3.5%
ROE(5y)2%
ROIC(3y)3.22%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 14.53%, APLE is doing good in the industry, outperforming 68.25% of the companies in the same industry.
APLE's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 19.29%, APLE is in line with its industry, outperforming 41.27% of the companies in the same industry.
APLE's Operating Margin has declined in the last couple of years.
The Gross Margin of APLE (58.53%) is worse than 72.22% of its industry peers.
APLE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.29% | ||
| PM (TTM) | 14.53% | ||
| GM | 58.53% |
OM growth 3YN/A
OM growth 5Y-1.7%
PM growth 3YN/A
PM growth 5Y-4.03%
GM growth 3Y3.86%
GM growth 5Y1.52%
2. Health
2.1 Basic Checks
APLE 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 APLE has been increased compared to 1 year ago.
Compared to 5 years ago, APLE has more shares outstanding
The debt/assets ratio for APLE has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.27, we must say that APLE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.27, APLE belongs to the top of the industry, outperforming 82.54% of the companies in the same industry.
The Debt to FCF ratio of APLE is 4.97, which is a neutral value as it means it would take APLE, 4.97 years of fcf income to pay off all of its debts.
APLE has a better Debt to FCF ratio (4.97) than 97.62% of its industry peers.
APLE has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.49, APLE belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.59
WACC7.46%
2.3 Liquidity
APLE has a Current Ratio of 0.57. This is a bad value and indicates that APLE is not financially healthy enough and could expect problems in meeting its short term obligations.
APLE has a worse Current ratio (0.57) than 80.95% of its industry peers.
A Quick Ratio of 0.57 indicates that APLE may have some problems paying its short term obligations.
APLE has a worse Quick ratio (0.57) than 76.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
APLE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.94%.
Measured over the past years, APLE shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.60% on average per year.
APLE shows a small growth in Revenue. In the last year, the Revenue has grown by 6.04%.
Measured over the past years, APLE shows a small growth in Revenue. The Revenue has been growing by 1.13% on average per year.
EPS 1Y (TTM)4.94%
EPS 3YN/A
EPS 5Y-2.6%
EPS Q2Q%-11.54%
Revenue 1Y (TTM)6.04%
Revenue growth 3Y30.7%
Revenue growth 5Y1.13%
Sales Q2Q%5.75%
3.2 Future
APLE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.39% yearly.
APLE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.02% yearly.
EPS Next Y12.46%
EPS Next 2Y4.65%
EPS Next 3Y4.39%
EPS Next 5YN/A
Revenue Next Year7.05%
Revenue Next 2Y4.56%
Revenue Next 3Y4.02%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.36 indicates a rather expensive valuation of APLE.
APLE's Price/Earnings ratio is rather cheap when compared to the industry. APLE is cheaper than 84.92% of the companies in the same industry.
APLE is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.28 indicates a rather expensive valuation of APLE.
Based on the Price/Forward Earnings ratio, APLE is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.68. APLE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.36 | ||
| Fwd PE | 17.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APLE is valued a bit cheaper than 74.60% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, APLE is valued cheaply inside the industry as 89.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.91 | ||
| EV/EBITDA | 11.18 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of APLE may justify a higher PE ratio.
PEG (NY)1.39
PEG (5Y)N/A
EPS Next 2Y4.65%
EPS Next 3Y4.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.29%, APLE is a good candidate for dividend investing.
APLE's Dividend Yield is a higher than the industry average which is at 18.40.
Compared to an average S&P500 Dividend Yield of 2.27, APLE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.29% |
5.2 History
The dividend of APLE decreases each year by -3.56%.
APLE has been paying a dividend for at least 10 years, so it has a reliable track record.
APLE has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-3.56%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
117.59% of the earnings are spent on dividend by APLE. This is not a sustainable payout ratio.
DP117.59%
EPS Next 2Y4.65%
EPS Next 3Y4.39%
14.76
-0.51 (-3.34%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners87.51%
Inst Owner Change-1.26%
Ins Owners6.75%
Ins Owner Change-3.05%
Market Cap3.54B
Analysts78.67
Price Target17.34 (17.48%)
Short Float %3.93%
Short Ratio5.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.29% |
Yearly Dividend1.01
Dividend Growth(5Y)-3.56%
DP117.59%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.25%
Min EPS beat(2)-9.8%
Max EPS beat(2)1.31%
EPS beat(4)2
Avg EPS beat(4)6.58%
Min EPS beat(4)-13.92%
Max EPS beat(4)48.75%
EPS beat(8)5
Avg EPS beat(8)8.22%
EPS beat(12)9
Avg EPS beat(12)13.41%
EPS beat(16)11
Avg EPS beat(16)67.4%
Revenue beat(2)0
Avg Revenue beat(2)-1.8%
Min Revenue beat(2)-2.3%
Max Revenue beat(2)-1.31%
Revenue beat(4)1
Avg Revenue beat(4)-0.84%
Min Revenue beat(4)-2.3%
Max Revenue beat(4)1.28%
Revenue beat(8)4
Avg Revenue beat(8)0%
Revenue beat(12)8
Avg Revenue beat(12)0.4%
Revenue beat(16)11
Avg Revenue beat(16)1.14%
PT rev (1m)-1.45%
PT rev (3m)0.85%
EPS NQ rev (1m)-3.85%
EPS NQ rev (3m)-1.96%
EPS NY rev (1m)-0.58%
EPS NY rev (3m)-3.15%
Revenue NQ rev (1m)0.87%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.36 | ||
| Fwd PE | 17.28 | ||
| P/S | 2.51 | ||
| P/FCF | 10.91 | ||
| P/OCF | 8.7 | ||
| P/B | 1.07 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 11.18 |
EPS(TTM)0.85
EY5.76%
EPS(NY)0.85
Fwd EY5.79%
FCF(TTM)1.35
FCFY9.17%
OCF(TTM)1.7
OCFY11.49%
SpS5.88
BVpS13.74
TBVpS13.74
PEG (NY)1.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.08% | ||
| ROE | 6.22% | ||
| ROCE | 5.54% | ||
| ROIC | 4.38% | ||
| ROICexc | 4.38% | ||
| ROICexgc | 4.43% | ||
| OM | 19.29% | ||
| PM (TTM) | 14.53% | ||
| GM | 58.53% | ||
| FCFM | 23.01% |
ROA(3y)2.34%
ROA(5y)1.38%
ROE(3y)3.5%
ROE(5y)2%
ROIC(3y)3.22%
ROIC(5y)N/A
ROICexc(3y)3.22%
ROICexc(5y)N/A
ROICexgc(3y)3.25%
ROICexgc(5y)N/A
ROCE(3y)4.08%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-0.54%
ROICexc growth 3YN/A
ROICexc growth 5Y-0.5%
OM growth 3YN/A
OM growth 5Y-1.7%
PM growth 3YN/A
PM growth 5Y-4.03%
GM growth 3Y3.86%
GM growth 5Y1.52%
F-Score5
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.97 | ||
| Debt/EBITDA | 3.5 | ||
| Cap/Depr | 43.68% | ||
| Cap/Sales | 5.84% | ||
| Interest Coverage | 3.65 | ||
| Cash Conversion | 88.36% | ||
| Profit Quality | 158.35% | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 1.27 |
F-Score5
WACC7.46%
ROIC/WACC0.59
Cap/Depr(3y)27.31%
Cap/Depr(5y)29.01%
Cap/Sales(3y)4.04%
Cap/Sales(5y)5.22%
Profit Quality(3y)485.91%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.94%
EPS 3YN/A
EPS 5Y-2.6%
EPS Q2Q%-11.54%
EPS Next Y12.46%
EPS Next 2Y4.65%
EPS Next 3Y4.39%
EPS Next 5YN/A
Revenue 1Y (TTM)6.04%
Revenue growth 3Y30.7%
Revenue growth 5Y1.13%
Sales Q2Q%5.75%
Revenue Next Year7.05%
Revenue Next 2Y4.56%
Revenue Next 3Y4.02%
Revenue Next 5YN/A
EBIT growth 1Y7.89%
EBIT growth 3YN/A
EBIT growth 5Y-0.6%
EBIT Next Year85.53%
EBIT Next 3Y24.94%
EBIT Next 5YN/A
FCF growth 1Y8.11%
FCF growth 3YN/A
FCF growth 5Y-0.21%
OCF growth 1Y18.17%
OCF growth 3Y146.32%
OCF growth 5Y-0.29%