APOLLO GLOBAL MANAGEMENT INC (APO)
US03769M1062 - Common Stock
Overall APO gets a fundamental rating of 4 out of 10. We evaluated APO against 100 industry peers in the Financial Services industry. There are concerns on the financial health of APO while its profitability can be described as average. APO is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year APO was profitable.
APO had a positive operating cash flow in the past year.
Of the past 5 years APO 4 years were profitable.
APO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
APO has a Return On Assets (1.51%) which is in line with its industry peers.
APO has a Return On Equity of 31.13%. This is amongst the best in the industry. APO outperforms 92.00% 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 44.00% 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
APO has a Profit Margin of 18.74%. This is in the better half of the industry: APO outperforms 70.00% of its industry peers.
In the last couple of years the Profit Margin of APO has grown nicely.
Looking at the Operating Margin, with a value of 29.35%, APO is in the better half of the industry, outperforming 73.00% of the companies in the same industry.
APO's Operating Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so APO is destroying value.
APO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, APO has more shares outstanding
Compared to 1 year ago, APO has a worse debt to assets ratio.
2.2 Solvency
APO has an Altman-Z score of 0.30. This is a bad value and indicates that APO is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.30, APO perfoms like the industry average, outperforming 42.00% of the companies in the same industry.
APO has a debt to FCF ratio of 2.14. This is a good value and a sign of high solvency as APO would need 2.14 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.14, APO is doing good in the industry, outperforming 71.00% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that APO is somewhat dependend on debt financing.
APO has a Debt to Equity ratio of 0.64. This is comparable to the rest of the industry: APO outperforms 51.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for APO, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.14 | ||
| Altman-Z | 0.3 |
ROIC/WACC0.22
WACC8.8%
2.3 Liquidity
APO has a Current Ratio of 0.06. This is a bad value and indicates that APO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.06, APO is doing worse than 81.00% of the companies in the same industry.
APO has a Quick Ratio of 0.06. This is a bad value and indicates that APO is not financially healthy enough and could expect problems in meeting its short term obligations.
APO's Quick ratio of 0.06 is on the low side compared to the rest of the industry. APO is outperformed by 81.00% 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!
APO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 94.91% yearly.
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
The Earnings Per Share is expected to grow by 14.57% on average over the next years. This is quite good.
Based on estimates for the next years, APO will show a quite strong growth in Revenue. The Revenue will grow by 15.95% on average per year.
EPS Next Y5.47%
EPS Next 2Y12.65%
EPS Next 3Y14.57%
EPS Next 5YN/A
Revenue Next Year18.22%
Revenue Next 2Y16.48%
Revenue Next 3Y15.95%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.88, the valuation of APO can be described as rather expensive.
APO's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of APO to the average of the S&P500 Index (28.65), we can say APO is valued slightly cheaper.
A Price/Forward Earnings ratio of 19.05 indicates a rather expensive valuation of APO.
Based on the Price/Forward Earnings ratio, APO is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, APO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.88 | ||
| Fwd PE | 19.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APO is valued a bit cheaper than 79.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, APO is valued a bit cheaper than 63.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.32 | ||
| EV/EBITDA | 8.95 |
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 14.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.18
PEG (5Y)N/A
EPS Next 2Y12.65%
EPS Next 3Y14.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.13%, APO has a reasonable but not impressive dividend return.
APO's Dividend Yield is a higher than the industry average which is at 3.55.
With a Dividend Yield of 1.13, APO pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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.
The dividend of APO decreased recently.
Dividend Growth(5Y)-3.87%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
APO pays out 21.02% of its income as dividend. This is a sustainable payout ratio.
DP21.02%
EPS Next 2Y12.65%
EPS Next 3Y14.57%
APOLLO GLOBAL MANAGEMENT INC
NYSE:APO (11/20/2024, 8:07:01 PM)
After market: 162.89 0 (0%)162.89
-5.36 (-3.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap92.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 22.88 | ||
| Fwd PE | 19.05 | ||
| 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)4.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.51% | ||
| ROE | 31.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.35% | ||
| PM (TTM) | 18.74% | ||
| GM | N/A | ||
| 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 Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)13.92%
EPS 3Y49.43%
EPS 5Y
EPS Q2Q%
EPS Next Y5.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)21.12%
Revenue growth 3Y134.55%
Revenue growth 5Y
Sales 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