APOLLO GLOBAL MANAGEMENT INC (APO)
US03769M1062 - Common Stock
Taking everything into account, APO scores 4 out of 10 in our fundamental rating. APO was compared to 99 industry peers in the Financial Services industry. APO has a medium profitability rating, but doesn't score so well on its financial health evaluation. APO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
APO had positive earnings in the past year.
APO had a positive operating cash flow in the past year.
APO had positive earnings in 4 of the past 5 years.
APO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of APO (1.51%) is comparable to the rest of the industry.
APO has a better Return On Equity (31.13%) than 90.91% of its industry peers.
APO has a Return On Invested Capital of 1.92%. This is comparable to the rest of the industry: APO outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.51% | ||
| ROE | 31.13% | ||
| ROIC | 1.92% |
ROA(3y)2.06%
ROA(5y)3.23%
ROE(3y)10.97%
ROE(5y)16.97%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 18.74%, APO is doing good in the industry, outperforming 69.70% of the companies in the same industry.
APO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 29.35%, APO is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
In the last couple of years the Operating Margin of APO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.35% | ||
| PM (TTM) | 18.74% | ||
| GM | N/A |
OM growth 3Y-20.74%
OM growth 5Y-2.99%
PM growth 3Y46.16%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
APO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, APO has less shares outstanding
Compared to 5 years ago, APO has more shares outstanding
APO has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.31, we must say that APO is in the distress zone and has some risk of bankruptcy.
APO has a Altman-Z score (0.31) which is comparable to the rest of the industry.
The Debt to FCF ratio of APO is 2.14, which is a good value as it means it would take APO, 2.14 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.14, APO is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
APO has a Debt/Equity ratio of 0.64. This is a neutral value indicating APO is somewhat dependend on debt financing.
APO has a Debt to Equity ratio (0.64) which is comparable to the rest of the industry.
Although APO does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.14 | ||
| Altman-Z | 0.31 |
ROIC/WACC0.21
WACC8.97%
2.3 Liquidity
A Current Ratio of 0.06 indicates that APO may have some problems paying its short term obligations.
APO has a worse Current ratio (0.06) than 81.82% of its industry peers.
A Quick Ratio of 0.06 indicates that APO may have some problems paying its short term obligations.
APO has a worse Quick ratio (0.06) than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.92% over the past year.
APO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 49.43% yearly.
The Revenue has grown by 21.12% in the past year. This is a very strong growth!
Measured over the past years, APO shows a very strong growth in Revenue. The Revenue has been growing by 94.91% on average per year.
EPS 1Y (TTM)13.92%
EPS 3Y49.43%
EPS 5YN/A
EPS Q2Q%8.19%
Revenue 1Y (TTM)21.12%
Revenue growth 3Y134.55%
Revenue growth 5Y94.91%
Sales Q2Q%199.54%
3.2 Future
Based on estimates for the next years, APO will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.14% on average per year.
APO is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -11.56% yearly.
EPS Next Y6.84%
EPS Next 2Y13.14%
EPS Next 3Y14.86%
EPS Next 5Y16.14%
Revenue Next Year20.69%
Revenue Next 2Y18.84%
Revenue Next 3Y18.01%
Revenue Next 5Y-11.56%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
A Price/Earnings ratio of 24.02 indicates a rather expensive valuation of APO.
The rest of the industry has a similar Price/Earnings ratio as APO.
APO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.73.
The Price/Forward Earnings ratio is 19.82, which indicates a rather expensive current valuation of APO.
Based on the Price/Forward Earnings ratio, APO is valued a bit more expensive than the industry average as 65.66% of the companies are valued more cheaply.
APO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.02 | ||
| Fwd PE | 19.82 |
4.2 Price Multiples
76.77% of the companies in the same industry are more expensive than APO, based on the Enterprise Value to EBITDA ratio.
66.67% of the companies in the same industry are more expensive than APO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.19 | ||
| EV/EBITDA | 9.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
APO's earnings are expected to grow with 14.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.51
PEG (5Y)N/A
EPS Next 2Y13.14%
EPS Next 3Y14.86%
5. Dividend
5.1 Amount
APO has a Yearly Dividend Yield of 1.09%. Purely for dividend investing, there may be better candidates out there.
APO's Dividend Yield is a higher than the industry average which is at 3.76.
With a Dividend Yield of 1.09, APO pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
The dividend of APO decreases each year by -3.87%.
APO has been paying a dividend for at least 10 years, so it has a reliable track record.
APO has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-3.87%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
21.02% of the earnings are spent on dividend by APO. This is a low number and sustainable payout ratio.
DP21.02%
EPS Next 2Y13.14%
EPS Next 3Y14.86%
APOLLO GLOBAL MANAGEMENT INC
NYSE:APO (12/20/2024, 8:04:00 PM)
After market: 171.03 0 (0%)171.03
+1.4 (+0.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners62.18%
Inst Owner Change-66.14%
Ins Owners2.39%
Ins Owner Change-0.53%
Market Cap96.77B
Analysts79.2
Price Target173.1 (1.21%)
Short Float %6.57%
Short Ratio6.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Dividend Growth(5Y)-3.87%
DP21.02%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.7%
Min EPS beat(2)-7.59%
Max EPS beat(2)6.2%
EPS beat(4)2
Avg EPS beat(4)1%
Min EPS beat(4)-7.59%
Max EPS beat(4)9.67%
EPS beat(8)3
Avg EPS beat(8)-1.07%
EPS beat(12)5
Avg EPS beat(12)0.65%
EPS beat(16)9
Avg EPS beat(16)11.09%
Revenue beat(2)2
Avg Revenue beat(2)70%
Min Revenue beat(2)53.68%
Max Revenue beat(2)86.31%
Revenue beat(4)4
Avg Revenue beat(4)106.03%
Min Revenue beat(4)53.68%
Max Revenue beat(4)202.3%
Revenue beat(8)7
Avg Revenue beat(8)113.02%
Revenue beat(12)10
Avg Revenue beat(12)104.56%
Revenue beat(16)14
Avg Revenue beat(16)108.57%
PT rev (1m)16.59%
PT rev (3m)35.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.08%
EPS NY rev (1m)1.3%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4%
Revenue NY rev (1m)2.09%
Revenue NY rev (3m)2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.02 | ||
| Fwd PE | 19.82 | ||
| P/S | 3.26 | ||
| P/FCF | 18.19 | ||
| P/OCF | 18.19 | ||
| P/B | 5.42 | ||
| P/tB | 7.15 | ||
| EV/EBITDA | 9.42 |
EPS(TTM)7.12
EY4.16%
EPS(NY)8.63
Fwd EY5.04%
FCF(TTM)9.4
FCFY5.5%
OCF(TTM)9.4
OCFY5.5%
SpS52.46
BVpS31.57
TBVpS23.91
PEG (NY)3.51
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.51% | ||
| ROE | 31.13% | ||
| ROCE | 2.43% | ||
| ROIC | 1.92% | ||
| ROICexc | 2.01% | ||
| ROICexgc | 2.24% | ||
| OM | 29.35% | ||
| PM (TTM) | 18.74% | ||
| GM | N/A | ||
| FCFM | 17.93% |
ROA(3y)2.06%
ROA(5y)3.23%
ROE(3y)10.97%
ROE(5y)16.97%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-22.92%
ROICexcg growth 5Y-17.56%
ROICexc growth 3Y-24.72%
ROICexc growth 5Y-18.5%
OM growth 3Y-20.74%
OM growth 5Y-2.99%
PM growth 3Y46.16%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.14 | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 10.92 | ||
| Cash Conversion | 54.81% | ||
| Profit Quality | 95.68% | ||
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 | ||
| Altman-Z | 0.31 |
F-Score6
WACC8.97%
ROIC/WACC0.21
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.92%
EPS 3Y49.43%
EPS 5YN/A
EPS Q2Q%8.19%
EPS Next Y6.84%
EPS Next 2Y13.14%
EPS Next 3Y14.86%
EPS Next 5Y16.14%
Revenue 1Y (TTM)21.12%
Revenue growth 3Y134.55%
Revenue growth 5Y94.91%
Sales Q2Q%199.54%
Revenue Next Year20.69%
Revenue Next 2Y18.84%
Revenue Next 3Y18.01%
Revenue Next 5Y-11.56%
EBIT growth 1Y81.84%
EBIT growth 3Y85.9%
EBIT growth 5Y89.08%
EBIT Next Year20.25%
EBIT Next 3Y15.05%
EBIT Next 5YN/A
FCF growth 1Y338.29%
FCF growth 3YN/A
FCF growth 5Y51.22%
OCF growth 1Y325.32%
OCF growth 3YN/A
OCF growth 5Y50.67%