APOLLO GLOBAL MANAGEMENT INC (APO) Stock Fundamental Analysis
USA - NYSE:APO - US03769M1062 - Common Stock
126.76 USD
-0.44 (-0.35%)
126.76 USD
0 (0%)
APO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 99 industry peers in the Financial Services industry. Both the profitability and financial health of APO have multiple concerns. APO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
APO had positive earnings in the past year.
In the past year APO had a positive cash flow from operations.
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
APO's Return On Assets of 0.75% is in line compared to the rest of the industry. APO outperforms 42.42% of its industry peers.
APO's Return On Equity of 16.34% is fine compared to the rest of the industry. APO outperforms 78.79% of its industry peers.
APO has a Return On Invested Capital (1.36%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 16.34% | ||
| ROIC | 1.36% |
ROA(3y)0.64%
ROA(5y)1.66%
ROE(3y)9.76%
ROE(5y)17.05%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of APO (13.90%) is comparable to the rest of the industry.
APO's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 28.78%, APO is doing good in the industry, outperforming 73.74% 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 | 28.78% | ||
| PM (TTM) | 13.9% | ||
| GM | N/A |
OM growth 3Y-2.59%
OM growth 5Y-7.21%
PM growth 3Y-15.29%
PM growth 5Y-7.97%
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.
APO has more shares outstanding than it did 5 years ago.
APO has about the same debt/assets ratio as last year.
2.2 Solvency
Based on the Altman-Z score of 0.21, we must say that APO is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.21, APO is in line with its industry, outperforming 46.46% of the companies in the same industry.
APO has a debt to FCF ratio of 3.61. This is a good value and a sign of high solvency as APO would need 3.61 years to pay back of all of its debts.
APO's Debt to FCF ratio of 3.61 is fine compared to the rest of the industry. APO outperforms 70.71% of its industry peers.
APO has a Debt/Equity ratio of 0.77. This is a neutral value indicating APO is somewhat dependend on debt financing.
APO's Debt to Equity ratio of 0.77 is in line compared to the rest of the industry. APO outperforms 51.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.61 | ||
| Altman-Z | 0.21 |
ROIC/WACC0.16
WACC8.3%
2.3 Liquidity
APO has a Current Ratio of 0.09. 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 has a worse Current ratio (0.09) than 80.81% of its industry peers.
A Quick Ratio of 0.09 indicates that APO may have some problems paying its short term obligations.
APO has a worse Quick ratio (0.09) than 80.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.19% over the past year.
Measured over the past years, APO shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.44% on average per year.
The Revenue for APO has decreased by -22.81% in the past year. This is quite bad
Measured over the past years, APO shows a very strong growth in Revenue. The Revenue has been growing by 52.06% on average per year.
EPS 1Y (TTM)14.19%
EPS 3Y17.67%
EPS 5Y22.44%
EPS Q2Q%17.3%
Revenue 1Y (TTM)-22.81%
Revenue growth 3Y58.1%
Revenue growth 5Y52.06%
Sales Q2Q%26.37%
3.2 Future
The Earnings Per Share is expected to grow by 14.11% on average over the next years. This is quite good.
Based on estimates for the next years, APO will show a very negative growth in Revenue. The Revenue will decrease by -12.07% on average per year.
EPS Next Y4.86%
EPS Next 2Y11.34%
EPS Next 3Y14.11%
EPS Next 5YN/A
Revenue Next Year20.71%
Revenue Next 2Y18.44%
Revenue Next 3Y17.33%
Revenue Next 5Y-12.07%
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
With a Price/Earnings ratio of 15.59, APO is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as APO.
APO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.47.
Based on the Price/Forward Earnings ratio of 13.76, the valuation of APO can be described as correct.
APO's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of APO to the average of the S&P500 Index (35.42), we can say APO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.59 | ||
| Fwd PE | 13.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APO is valued a bit cheaper than 69.70% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, APO is valued a bit cheaper than the industry average as 60.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.99 | ||
| EV/EBITDA | 9.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as APO's earnings are expected to grow with 14.11% in the coming years.
PEG (NY)3.21
PEG (5Y)0.69
EPS Next 2Y11.34%
EPS Next 3Y14.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.58%, APO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.68, APO pays a bit more dividend than its industry peers.
APO's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
The dividend of APO decreases each year by -1.16%.
APO has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of APO decreased in the last 3 years.
Dividend Growth(5Y)-1.16%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
APO pays out 39.11% of its income as dividend. This is a sustainable payout ratio.
DP39.11%
EPS Next 2Y11.34%
EPS Next 3Y14.11%
126.76
-0.44 (-0.35%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners63.13%
Inst Owner Change-0.45%
Ins Owners2.57%
Ins Owner Change-0.66%
Market Cap74.20B
Revenue(TTM)23.74B
Net Income(TTM)3.16B
Analysts79.2
Price Target157.46 (24.22%)
Short Float %7.45%
Short Ratio8.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Yearly Dividend2.1
Dividend Growth(5Y)-1.16%
DP39.11%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.17%
Min EPS beat(2)-3.45%
Max EPS beat(2)3.12%
EPS beat(4)3
Avg EPS beat(4)5.55%
Min EPS beat(4)-3.45%
Max EPS beat(4)16.32%
EPS beat(8)4
Avg EPS beat(8)1.98%
EPS beat(12)6
Avg EPS beat(12)1.18%
EPS beat(16)8
Avg EPS beat(16)4.89%
Revenue beat(2)2
Avg Revenue beat(2)34.43%
Min Revenue beat(2)22.26%
Max Revenue beat(2)46.6%
Revenue beat(4)4
Avg Revenue beat(4)43.77%
Min Revenue beat(4)19.9%
Max Revenue beat(4)86.31%
Revenue beat(8)7
Avg Revenue beat(8)60.79%
Revenue beat(12)11
Avg Revenue beat(12)98.96%
Revenue beat(16)14
Avg Revenue beat(16)84.23%
PT rev (1m)-6.59%
PT rev (3m)-5.14%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-1.37%
EPS NY rev (1m)-0.93%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.21%
Revenue NY rev (1m)-0.8%
Revenue NY rev (3m)4.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.59 | ||
| Fwd PE | 13.76 | ||
| P/S | 3.27 | ||
| P/FCF | 17.99 | ||
| P/OCF | 17.99 | ||
| P/B | 3.84 | ||
| P/tB | 4.95 | ||
| EV/EBITDA | 9.81 |
EPS(TTM)8.13
EY6.41%
EPS(NY)9.21
Fwd EY7.27%
FCF(TTM)7.05
FCFY5.56%
OCF(TTM)7.05
OCFY5.56%
SpS38.8
BVpS33.01
TBVpS25.59
PEG (NY)3.21
PEG (5Y)0.69
Graham Number77.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 16.34% | ||
| ROCE | 1.59% | ||
| ROIC | 1.36% | ||
| ROICexc | 1.41% | ||
| ROICexgc | 1.56% | ||
| OM | 28.78% | ||
| PM (TTM) | 13.9% | ||
| GM | N/A | ||
| FCFM | 18.16% |
ROA(3y)0.64%
ROA(5y)1.66%
ROE(3y)9.76%
ROE(5y)17.05%
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
ROICexgc growth 3Y-33.79%
ROICexgc growth 5Y-38.36%
ROICexc growth 3Y-35.62%
ROICexc growth 5Y-38.99%
OM growth 3Y-2.59%
OM growth 5Y-7.21%
PM growth 3Y-15.29%
PM growth 5Y-7.97%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.61 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 6.27 | ||
| Cash Conversion | 53.19% | ||
| Profit Quality | 130.59% | ||
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 | ||
| Altman-Z | 0.21 |
F-Score5
WACC8.3%
ROIC/WACC0.16
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)14.19%
EPS 3Y17.67%
EPS 5Y22.44%
EPS Q2Q%17.3%
EPS Next Y4.86%
EPS Next 2Y11.34%
EPS Next 3Y14.11%
EPS Next 5YN/A
Revenue 1Y (TTM)-22.81%
Revenue growth 3Y58.1%
Revenue growth 5Y52.06%
Sales Q2Q%26.37%
Revenue Next Year20.71%
Revenue Next 2Y18.44%
Revenue Next 3Y17.33%
Revenue Next 5Y-12.07%
EBIT growth 1Y-1.42%
EBIT growth 3Y54.01%
EBIT growth 5Y41.09%
EBIT Next Year17.67%
EBIT Next 3Y16.47%
EBIT Next 5YN/A
FCF growth 1Y-51.09%
FCF growth 3Y48.2%
FCF growth 5Y25.54%
OCF growth 1Y-51.09%
OCF growth 3Y45.14%
OCF growth 5Y24.61%
APOLLO GLOBAL MANAGEMENT INC / APO FAQ
Can you provide the ChartMill fundamental rating for APOLLO GLOBAL MANAGEMENT INC?
ChartMill assigns a fundamental rating of 4 / 10 to APO.
What is the valuation status of APOLLO GLOBAL MANAGEMENT INC (APO) stock?
ChartMill assigns a valuation rating of 4 / 10 to APOLLO GLOBAL MANAGEMENT INC (APO). This can be considered as Fairly Valued.
What is the profitability of APO stock?
APOLLO GLOBAL MANAGEMENT INC (APO) has a profitability rating of 3 / 10.
How financially healthy is APOLLO GLOBAL MANAGEMENT INC?
The financial health rating of APOLLO GLOBAL MANAGEMENT INC (APO) is 3 / 10.
Can you provide the dividend sustainability for APO stock?
The dividend rating of APOLLO GLOBAL MANAGEMENT INC (APO) is 4 / 10 and the dividend payout ratio is 39.11%.