APOLLO GLOBAL MANAGEMENT INC (APO) Stock Fundamental Analysis
NYSE:APO - New York Stock Exchange, Inc. - US03769M1062 - Common Stock - Currency: USD
APO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. While APO is still in line with the averages on profitability rating, there are concerns on its financial health. APO has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year APO was profitable.
In the past year APO had a positive cash flow from operations.
In multiple years APO reported negative net income over the last 5 years.
In multiple years APO reported negative operating cash flow during the last 5 years.
1.2 Ratios
APO has a Return On Assets (1.51%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 31.13%, APO belongs to the top of the industry, outperforming 91.09% of the companies in the same industry.
APO has a Return On Invested Capital of 1.92%. This is comparable to the rest of the industry: APO outperforms 46.53% 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
Looking at the Profit Margin, with a value of 18.74%, APO is in the better half of the industry, outperforming 69.31% of the companies in the same industry.
APO's Profit Margin has improved in the last couple of years.
APO's Operating Margin of 29.35% is fine compared to the rest of the industry. APO outperforms 73.27% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), APO is destroying value.
There is no outstanding debt for APO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
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.
APO's Altman-Z score of 0.30 is in line compared to the rest of the industry. APO outperforms 46.53% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 2.14, APO is in the better half of the industry, outperforming 71.29% 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's Debt to Equity ratio of 0.64 is in line compared to the rest of the industry. APO outperforms 52.48% of its industry peers.
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 | 0.3 |
ROIC/WACC0.13
WACC15.18%
2.3 Liquidity
A Current Ratio of 0.06 indicates that APO may have some problems paying its short term obligations.
The Current ratio of APO (0.06) is worse than 80.20% of its industry peers.
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.
The Quick ratio of APO (0.06) is worse than 80.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
APO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.24%, which is quite good.
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.
EPS 1Y (TTM)10.24%
EPS 3Y17.67%
EPS 5Y22.44%
EPS Q2Q%16.23%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-52.17%
3.2 Future
The Earnings Per Share is expected to grow by 16.58% 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 Y13.88%
EPS Next 2Y15.82%
EPS Next 3Y16.58%
EPS Next 5YN/A
Revenue Next Year14.52%
Revenue Next 2Y14.46%
Revenue Next 3Y-26.46%
Revenue Next 5Y-12.07%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.26, which indicates a rather expensive current valuation of APO.
Compared to the rest of the industry, the Price/Earnings ratio of APO is on the same level as its industry peers.
APO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 17.79, which indicates a rather expensive current valuation of APO.
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 (22.68), we can say APO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.26 | ||
| Fwd PE | 17.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APO is valued cheaper than 81.19% 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 67.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.01 | ||
| EV/EBITDA | 8.59 |
4.3 Compensation for Growth
APO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
APO's earnings are expected to grow with 16.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.46
PEG (5Y)0.9
EPS Next 2Y15.82%
EPS Next 3Y16.58%
5. Dividend
5.1 Amount
APO has a Yearly Dividend Yield of 1.17%.
APO's Dividend Yield is a higher than the industry average which is at 3.84.
With a Dividend Yield of 1.17, APO pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
The dividend of APO decreases each year by -3.87%.
APO has paid a dividend for at least 10 years, which is 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 2Y15.82%
EPS Next 3Y16.58%
150.55
-6.24 (-3.98%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners62.18%
Inst Owner Change-69.29%
Ins Owners2.39%
Ins Owner Change-0.3%
Market Cap85.18B
Analysts79.2
Price Target189.4 (25.81%)
Short Float %9.12%
Short Ratio6.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend1.82
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)2.49%
PT rev (3m)27.57%
EPS NQ rev (1m)-2.41%
EPS NQ rev (3m)-0.58%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)2.66%
Revenue NY rev (1m)-0.98%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.26 | ||
| Fwd PE | 17.79 | ||
| P/S | 2.87 | ||
| P/FCF | 16.01 | ||
| P/OCF | 16.01 | ||
| P/B | 4.77 | ||
| P/tB | 6.3 | ||
| EV/EBITDA | 8.59 |
EPS(TTM)7.43
EY4.94%
EPS(NY)8.46
Fwd EY5.62%
FCF(TTM)9.4
FCFY6.25%
OCF(TTM)9.4
OCFY6.25%
SpS52.46
BVpS31.57
TBVpS23.91
PEG (NY)1.46
PEG (5Y)0.9
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 | 0.3 |
F-Score6
WACC15.18%
ROIC/WACC0.13
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)10.24%
EPS 3Y17.67%
EPS 5Y22.44%
EPS Q2Q%16.23%
EPS Next Y13.88%
EPS Next 2Y15.82%
EPS Next 3Y16.58%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-52.17%
Revenue Next Year14.52%
Revenue Next 2Y14.46%
Revenue Next 3Y-26.46%
Revenue Next 5Y-12.07%
EBIT growth 1Y81.84%
EBIT growth 3Y85.9%
EBIT growth 5Y89.08%
EBIT Next Year18.25%
EBIT Next 3Y15.62%
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%