APOLLO GLOBAL MANAGEMENT INC (APO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:APO - US03769M1062 - Common Stock
134.66 USD
+1.77 (+1.33%)
Overall APO gets a fundamental rating of 4 out of 10. We evaluated APO against 97 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 not valued too expensively and it also shows a decent growth rate.
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.
- Of the past 5 years APO 4 years had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 0.90%, APO is in line with its industry, outperforming 42.27% of the companies in the same industry.
- APO's Return On Equity of 17.56% is amongst the best of the industry. APO outperforms 83.51% of its industry peers.
- APO has a Return On Invested Capital (1.37%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.9% | ||
| ROE | 17.56% | ||
| ROIC | 1.37% |
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
- Looking at the Profit Margin, with a value of 16.63%, APO is in the better half of the industry, outperforming 62.89% of the companies in the same industry.
- In the last couple of years the Profit Margin of APO has declined.
- APO has a Operating Margin of 28.40%. This is in the better half of the industry: APO outperforms 74.23% of its industry peers.
- APO's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.4% | ||
| PM (TTM) | 16.63% | ||
| 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.
- Compared to 1 year ago, APO has less shares outstanding
- The number of shares outstanding for APO has been increased compared to 5 years ago.
- APO has about the same debt/assets ratio as last year.
2.2 Solvency
- Based on the Altman-Z score of 0.20, we must say that APO is in the distress zone and has some risk of bankruptcy.
- APO has a Altman-Z score of 0.20. This is comparable to the rest of the industry: APO outperforms 43.30% of its industry peers.
- APO has a debt to FCF ratio of 4.91. This is a neutral value as APO would need 4.91 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 4.91, APO is doing good in the industry, outperforming 63.92% of the companies in the same industry.
- A Debt/Equity ratio of 0.55 indicates that APO is somewhat dependend on debt financing.
- The Debt to Equity ratio of APO (0.55) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.91 | ||
| Altman-Z | 0.2 |
ROIC/WACC0.16
WACC8.42%
2.3 Liquidity
- A Current Ratio of 0.06 indicates that APO may have some problems paying its short term obligations.
- APO has a Current ratio of 0.06. This is amonst the worse of the industry: APO underperforms 80.41% 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.
- APO has a Quick ratio of 0.06. This is amonst the worse of the industry: APO underperforms 80.41% 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 14.19%, which is quite good.
- APO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.44% yearly.
- APO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.68%.
- 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)14.19%
EPS 3Y17.67%
EPS 5Y22.44%
EPS Q2Q%17.3%
Revenue 1Y (TTM)-17.68%
Revenue growth 3Y58.1%
Revenue growth 5Y52.06%
Sales Q2Q%26.37%
3.2 Future
- The Earnings Per Share is expected to grow by 14.64% 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 Y8.17%
EPS Next 2Y11.93%
EPS Next 3Y14.24%
EPS Next 5Y14.64%
Revenue Next Year4.05%
Revenue Next 2Y18.17%
Revenue Next 3Y14.53%
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 16.56, which indicates a correct valuation of APO.
- The rest of the industry has a similar Price/Earnings ratio as APO.
- APO is valuated rather cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 14.47, the valuation of APO can be described as correct.
- The rest of the industry has a similar Price/Forward Earnings ratio as APO.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. APO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.56 | ||
| Fwd PE | 14.47 |
4.2 Price Multiples
- APO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. APO is cheaper than 72.16% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as APO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.38 | ||
| EV/EBITDA | 8.8 |
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 14.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.03
PEG (5Y)0.74
EPS Next 2Y11.93%
EPS Next 3Y14.24%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.46%, APO has a reasonable but not impressive dividend return.
- APO's Dividend Yield is a higher than the industry average which is at 2.09.
- APO's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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.
- APO has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-1.16%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 31.10% of the earnings are spent on dividend by APO. This is a low number and sustainable payout ratio.
DP31.1%
EPS Next 2Y11.93%
EPS Next 3Y14.24%
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.
Can you provide the valuation status for APOLLO GLOBAL MANAGEMENT INC?
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 4 / 10.
What are the PE and PB ratios of APOLLO GLOBAL MANAGEMENT INC (APO) stock?
The Price/Earnings (PE) ratio for APOLLO GLOBAL MANAGEMENT INC (APO) is 16.56 and the Price/Book (PB) ratio is 3.38.
What is the expected EPS growth for APOLLO GLOBAL MANAGEMENT INC (APO) stock?
The Earnings per Share (EPS) of APOLLO GLOBAL MANAGEMENT INC (APO) is expected to grow by 8.17% in the next year.