APOLLO GLOBAL MANAGEMENT INC (APO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:APO - US03769M1062 - Common Stock
131.945 USD
+0.38 (+0.29%)
Taking everything into account, APO scores 4 out of 10 in our fundamental rating. APO was compared to 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year APO was profitable.
- APO had a positive operating cash flow in the past year.
- APO had positive earnings in 4 of the past 5 years.
- Of the past 5 years APO 4 years had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 0.90%, APO perfoms like the industry average, outperforming 42.27% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 17.56%, APO belongs to the top of the industry, outperforming 83.51% of the companies in the same industry.
- The Return On Invested Capital of APO (1.37%) 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
- The Profit Margin of APO (16.63%) is better than 62.89% of its industry peers.
- In the last couple of years the Profit Margin of APO has declined.
- With a decent Operating Margin value of 28.40%, APO is doing good in the industry, outperforming 74.23% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
- The debt/assets ratio for APO has remained at the same level compared to a year ago.
2.2 Solvency
- APO has an Altman-Z score of 0.20. 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 0.20, APO perfoms like the industry average, outperforming 43.30% of the companies in the same industry.
- The Debt to FCF ratio of APO is 4.91, which is a neutral value as it means it would take APO, 4.91 years of fcf income to pay off all of its debts.
- APO's Debt to FCF ratio of 4.91 is fine compared to the rest of the industry. APO outperforms 63.92% of its industry peers.
- A Debt/Equity ratio of 0.55 indicates that APO is somewhat dependend on debt financing.
- APO has a Debt to Equity ratio (0.55) which 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.
- Looking at the Current ratio, with a value of 0.06, APO is doing worse than 80.41% 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 has a worse Quick ratio (0.06) than 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%.
- APO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 52.06% yearly.
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
- APO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.64% yearly.
- The Revenue is expected to decrease by -12.07% on average over the next years. This is quite bad
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
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- APO is valuated correctly with a Price/Earnings ratio of 16.23.
- APO's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.25. APO is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 14.17 indicates a correct valuation of APO.
- APO's Price/Forward Earnings is on the same level as the industry average.
- APO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.23 | ||
| Fwd PE | 14.17 |
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 72.16% of the companies listed 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 | 29.76 | ||
| EV/EBITDA | 8.7 |
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)1.99
PEG (5Y)0.72
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.
- Compared to an average industry Dividend Yield of 2.09, APO pays a bit more dividend than its industry peers.
- 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 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)-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 16.23 and the Price/Book (PB) ratio is 3.31.
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.