APOLLO GLOBAL MANAGEMENT INC (APO) Stock Fundamental Analysis
NYSE:APO - New York Stock Exchange, Inc. - US03769M1062 - Common Stock
Taking everything into account, APO scores 4 out of 10 in our fundamental rating. APO was compared to 101 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 quite expensive at the moment. It does show 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.
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 has a Return On Assets of 1.51%. This is comparable to the rest of the industry: APO outperforms 47.52% of its industry peers.
APO has a Return On Equity of 31.13%. This is amongst the best in the industry. APO outperforms 91.09% of its industry peers.
APO's Return On Invested Capital of 1.92% is in line compared 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
APO has a better Profit Margin (18.74%) than 70.30% of its industry peers.
APO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 29.35%, APO is in the better half of the industry, outperforming 73.27% of the companies in the same industry.
APO's Operating Margin has declined in the last couple of years.
| 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
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.
Compared to 5 years ago, APO has more shares outstanding
The debt/assets ratio for APO is higher compared to a year ago.
2.2 Solvency
APO has an Altman-Z score of 0.31. 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 0.31 is in line compared to the rest of the industry. APO outperforms 44.55% 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.
APO has a Debt to FCF ratio of 2.14. This is in the better half of the industry: APO outperforms 70.30% of its industry peers.
APO has a Debt/Equity ratio of 0.64. This is a neutral value indicating APO is somewhat dependend on debt financing.
APO has a Debt to Equity ratio of 0.64. This is comparable to the rest of the industry: APO outperforms 51.49% 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 | 0.31 |
ROIC/WACC0.21
WACC9.01%
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 81.19% 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.
Looking at the Quick ratio, with a value of 0.06, APO is doing worse than 81.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.92% over the past year.
APO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 49.43% yearly.
APO shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.12%.
APO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 94.91% yearly.
EPS 1Y (TTM)13.92%
EPS 3Y49.43%
EPS 5YN/A
EPS Q2Q%8.19%
Revenue 1Y (TTM)21.12%
Revenue growth 3Y134.55%
Revenue growth 5Y94.91%
Sales Q2Q%199.54%
3.2 Future
The Earnings Per Share is expected to grow by 16.14% on average over the next years. This is quite good.
APO is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -11.56% yearly.
EPS Next Y6.84%
EPS Next 2Y13.14%
EPS Next 3Y14.86%
EPS Next 5Y16.14%
Revenue Next Year20.69%
Revenue Next 2Y18.84%
Revenue Next 3Y18.01%
Revenue Next 5Y-11.56%
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.
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
Based on the Price/Earnings ratio of 23.77, the valuation of APO can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of APO is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.29. APO is around the same levels.
The Price/Forward Earnings ratio is 19.62, which indicates a rather expensive current valuation of APO.
61.39% of the companies in the same industry are cheaper than APO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.44. APO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.77 | ||
| Fwd PE | 19.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APO is valued a bit cheaper than 76.24% of the companies in the same industry.
66.34% of the companies in the same industry are more expensive than APO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18 | ||
| EV/EBITDA | 9.32 |
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 14.86% in the coming years.
PEG (NY)3.47
PEG (5Y)N/A
EPS Next 2Y13.14%
EPS Next 3Y14.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.11%, APO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.66, APO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, APO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
The dividend of APO decreases each year by -3.87%.
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)-3.87%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
APO pays out 21.02% of its income as dividend. This is a sustainable payout ratio.
DP21.02%
EPS Next 2Y13.14%
EPS Next 3Y14.86%
APOLLO GLOBAL MANAGEMENT INC
NYSE:APO (1/21/2025, 8:04:00 PM)
Premarket: 169.56 +0.32 (+0.19%)169.24
+2.25 (+1.35%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners62.18%
Inst Owner Change0%
Ins Owners2.39%
Ins Owner Change-0.53%
Market Cap95.76B
Analysts79.2
Price Target184.8 (9.19%)
Short Float %8.86%
Short Ratio6.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Yearly Dividend1.82
Dividend Growth(5Y)-3.87%
DP21.02%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)6.76%
PT rev (3m)42.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.08%
EPS NY rev (1m)0%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.77 | ||
| Fwd PE | 19.62 | ||
| P/S | 3.23 | ||
| P/FCF | 18 | ||
| P/OCF | 18 | ||
| P/B | 5.36 | ||
| P/tB | 7.08 | ||
| EV/EBITDA | 9.32 |
EPS(TTM)7.12
EY4.21%
EPS(NY)8.63
Fwd EY5.1%
FCF(TTM)9.4
FCFY5.56%
OCF(TTM)9.4
OCFY5.56%
SpS52.46
BVpS31.57
TBVpS23.91
PEG (NY)3.47
PEG (5Y)N/A
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 | 0.31 |
F-Score6
WACC9.01%
ROIC/WACC0.21
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)13.92%
EPS 3Y49.43%
EPS 5YN/A
EPS Q2Q%8.19%
EPS Next Y6.84%
EPS Next 2Y13.14%
EPS Next 3Y14.86%
EPS Next 5Y16.14%
Revenue 1Y (TTM)21.12%
Revenue growth 3Y134.55%
Revenue growth 5Y94.91%
Sales Q2Q%199.54%
Revenue Next Year20.69%
Revenue Next 2Y18.84%
Revenue Next 3Y18.01%
Revenue Next 5Y-11.56%
EBIT growth 1Y81.84%
EBIT growth 3Y85.9%
EBIT growth 5Y89.08%
EBIT Next Year20.27%
EBIT Next 3Y15.05%
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%