APPLE HOSPITALITY REIT INC (APLE) Stock Fundamental Analysis
NYSE:APLE - New York Stock Exchange, Inc. - US03784Y2000 - REIT
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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
APLE had positive earnings in the past year.
In the past year APLE had a positive cash flow from operations.
Of the past 5 years APLE 4 years were profitable.
Each year in the past 5 years APLE had a positive operating cash flow.
1.2 Ratios
APLE's Return On Assets of 4.08% is amongst the best of the industry. APLE outperforms 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 77.78% of the companies in the same industry.
APLE has a better Return On Invested Capital (4.38%) than 85.71% 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
Looking at the Profit Margin, with a value of 14.53%, APLE is in the better half of 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 42.06% of the companies in the same industry.
APLE's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 58.53%, APLE is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of APLE has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so APLE is destroying value.
APLE has more shares outstanding than it did 1 year ago.
APLE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for APLE has been reduced compared to a year ago.
2.2 Solvency
APLE has an Altman-Z score of 1.29. This is a bad value and indicates that APLE is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.29, APLE belongs to the best of the industry, outperforming 84.13% of the companies in the same industry.
APLE has a debt to FCF ratio of 4.97. This is a neutral value as APLE would need 4.97 years to pay back of all of its debts.
APLE's Debt to FCF ratio of 4.97 is amongst the best of the industry. APLE outperforms 97.62% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that APLE is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.49, APLE belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.57
WACC7.63%
2.3 Liquidity
A Current Ratio of 0.57 indicates that APLE may have some problems paying its short term obligations.
The Current ratio of APLE (0.57) is worse than 84.13% 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 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.94% over the past year.
The Earnings Per Share has been decreasing by -2.60% on average over the past years.
The Revenue has been growing slightly by 6.04% in the past year.
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
The Earnings Per Share is expected to grow by 5.97% on average over the next years.
The Revenue is expected to grow by 4.02% on average over the next years.
EPS Next Y13.12%
EPS Next 2Y5.22%
EPS Next 3Y5.97%
EPS Next 5YN/A
Revenue Next Year6.83%
Revenue Next 2Y4.53%
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
Based on the Price/Earnings ratio of 17.96, the valuation of APLE can be described as rather expensive.
Based on the Price/Earnings ratio, APLE is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.29, APLE is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.68, APLE is valued on the expensive side.
95.24% of the companies in the same industry are more expensive than APLE, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.44. APLE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.96 | ||
| Fwd PE | 17.68 |
4.2 Price Multiples
76.98% of the companies in the same industry are more expensive than APLE, based on the Enterprise Value to EBITDA ratio.
APLE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. APLE is cheaper than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.29 | ||
| EV/EBITDA | 11.32 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
APLE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.37
PEG (5Y)N/A
EPS Next 2Y5.22%
EPS Next 3Y5.97%
5. Dividend
5.1 Amount
APLE has a Yearly Dividend Yield of 6.36%, which is a nice return.
Compared to an average industry Dividend Yield of 18.51, APLE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, APLE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
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.
The dividend of APLE decreased in the last 3 years.
Dividend Growth(5Y)-3.56%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
APLE pays out 117.59% of its income as dividend. This is not a sustainable payout ratio.
DP117.59%
EPS Next 2Y5.22%
EPS Next 3Y5.97%
APPLE HOSPITALITY REIT INC
NYSE:APLE (1/21/2025, 8:04:00 PM)
After market: 15.27 0 (0%)15.27
+0.23 (+1.53%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners88.89%
Inst Owner Change0.06%
Ins Owners6.82%
Ins Owner Change-2.97%
Market Cap3.66B
Analysts76.25
Price Target17.6 (15.26%)
Short Float %3.78%
Short Ratio4.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
Yearly Dividend1.01
Dividend Growth(5Y)-3.56%
DP117.59%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)0.62%
PT rev (3m)5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.43%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.96 | ||
| Fwd PE | 17.68 | ||
| P/S | 2.6 | ||
| P/FCF | 11.29 | ||
| P/OCF | 9 | ||
| P/B | 1.11 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | 11.32 |
EPS(TTM)0.85
EY5.57%
EPS(NY)0.86
Fwd EY5.66%
FCF(TTM)1.35
FCFY8.86%
OCF(TTM)1.7
OCFY11.11%
SpS5.88
BVpS13.74
TBVpS13.74
PEG (NY)1.37
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 | 1.29 |
F-Score5
WACC7.63%
ROIC/WACC0.57
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 Y13.12%
EPS Next 2Y5.22%
EPS Next 3Y5.97%
EPS Next 5YN/A
Revenue 1Y (TTM)6.04%
Revenue growth 3Y30.7%
Revenue growth 5Y1.13%
Sales Q2Q%5.75%
Revenue Next Year6.83%
Revenue Next 2Y4.53%
Revenue Next 3Y4.02%
Revenue Next 5YN/A
EBIT growth 1Y7.89%
EBIT growth 3YN/A
EBIT growth 5Y-0.6%
EBIT Next Year85.32%
EBIT Next 3Y24.92%
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%