APOLLO GLOBAL MANAGEMENT INC (APO) Stock Fundamental Analysis
USA - NYSE:APO - US03769M1062 - Common Stock
143.49 USD
+4.67 (+3.36%)
142.45 USD
-1.04 (-0.72%)
Overall APO gets a fundamental rating of 4 out of 10. We evaluated APO against 101 industry peers in the Financial Services industry. Both the profitability and financial health of APO have multiple concerns. APO has a decent growth rate and is not valued too expensively.
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.
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 of 0.75%. This is comparable to the rest of the industry: APO outperforms 41.58% of its industry peers.
Looking at the Return On Equity, with a value of 16.34%, APO is in the better half of the industry, outperforming 79.21% of the companies in the same industry.
The Return On Invested Capital of APO (1.36%) is comparable to the rest of the industry.
| 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
APO has a Profit Margin (13.90%) which is in line with its industry peers.
In the last couple of years the Profit Margin of APO has declined.
The Operating Margin of APO (28.78%) is better than 71.29% of its industry peers.
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
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 about the same debt/assets ratio as last year.
2.2 Solvency
Based on the Altman-Z score of 0.22, we must say that APO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of APO (0.22) is comparable to the rest of the 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.
Looking at the Debt to FCF ratio, with a value of 3.61, APO is in the better half of the industry, outperforming 73.27% of the companies in the same industry.
APO has a Debt/Equity ratio of 0.77. This is a neutral value indicating APO is somewhat dependend on debt financing.
The Debt to Equity ratio of APO (0.77) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.61 | ||
| Altman-Z | 0.22 |
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.
With a Current ratio value of 0.09, APO is not doing good in the industry: 80.20% of the companies in the same industry are doing better.
APO has a Quick 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.
With a Quick ratio value of 0.09, APO is not doing good in the industry: 80.20% of the companies in the same industry are doing better.
| 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 11.89% over the past year.
The Earnings Per Share has been growing by 22.44% on average over the past years. This is a very strong growth
APO shows a decrease in Revenue. In the last year, the revenue decreased by -7.68%.
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)11.89%
EPS 3Y17.67%
EPS 5Y22.44%
EPS Q2Q%17.07%
Revenue 1Y (TTM)-7.68%
Revenue growth 3Y58.1%
Revenue growth 5Y52.06%
Sales Q2Q%13.23%
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 14.52% on average per year.
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 Y5.8%
EPS Next 2Y12.32%
EPS Next 3Y14.52%
EPS Next 5YN/A
Revenue Next Year21.69%
Revenue Next 2Y20.84%
Revenue Next 3Y21.95%
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
The Price/Earnings ratio is 18.37, which indicates a rather expensive current valuation of APO.
The rest of the industry has a similar Price/Earnings ratio as APO.
When comparing the Price/Earnings ratio of APO to the average of the S&P500 Index (27.41), we can say APO is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.31, the valuation of APO can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APO is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, APO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.37 | ||
| Fwd PE | 15.31 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of APO indicates a somewhat cheap valuation: APO is cheaper than 70.30% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, APO is valued a bit cheaper than 61.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.37 | ||
| EV/EBITDA | 10.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates APO does not grow enough to justify the current Price/Earnings ratio.
APO's earnings are expected to grow with 14.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.17
PEG (5Y)0.82
EPS Next 2Y12.32%
EPS Next 3Y14.52%
5. Dividend
5.1 Amount
APO has a Yearly Dividend Yield of 1.50%.
APO's Dividend Yield is a higher than the industry average which is at 4.86.
APO's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
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
39.11% of the earnings are spent on dividend by APO. This is a low number and sustainable payout ratio.
DP39.11%
EPS Next 2Y12.32%
EPS Next 3Y14.52%
143.49
+4.67 (+3.36%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners65.58%
Inst Owner Change0.09%
Ins Owners3.12%
Ins Owner Change-0.8%
Market Cap84.00B
Analysts80
Price Target168.57 (17.48%)
Short Float %7.02%
Short Ratio9.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
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)1.56%
PT rev (3m)4.76%
EPS NQ rev (1m)0.98%
EPS NQ rev (3m)-0.36%
EPS NY rev (1m)0.91%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)5.4%
Revenue NQ rev (3m)4.5%
Revenue NY rev (1m)5.19%
Revenue NY rev (3m)4.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.37 | ||
| Fwd PE | 15.31 | ||
| P/S | 3.7 | ||
| P/FCF | 20.37 | ||
| P/OCF | 20.37 | ||
| P/B | 4.35 | ||
| P/tB | 5.61 | ||
| EV/EBITDA | 10.69 |
EPS(TTM)7.81
EY5.44%
EPS(NY)9.37
Fwd EY6.53%
FCF(TTM)7.05
FCFY4.91%
OCF(TTM)7.05
OCFY4.91%
SpS38.8
BVpS33.01
TBVpS25.59
PEG (NY)3.17
PEG (5Y)0.82
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
ROICexcg growth 3Y-33.79%
ROICexcg 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 | 0.22 |
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)11.89%
EPS 3Y17.67%
EPS 5Y22.44%
EPS Q2Q%17.07%
EPS Next Y5.8%
EPS Next 2Y12.32%
EPS Next 3Y14.52%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.68%
Revenue growth 3Y58.1%
Revenue growth 5Y52.06%
Sales Q2Q%13.23%
Revenue Next Year21.69%
Revenue Next 2Y20.84%
Revenue Next 3Y21.95%
Revenue Next 5Y-12.07%
EBIT growth 1Y-1.42%
EBIT growth 3Y54.01%
EBIT growth 5Y41.09%
EBIT Next Year9.6%
EBIT Next 3Y13.3%
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%