APOLLO GLOBAL MANAGEMENT INC (APO) Stock Fundamental Analysis
USA - NYSE:APO - US03769M1062 - Common Stock
124.88 USD
+0.41 (+0.33%)
124.39 USD
-0.49 (-0.39%)
We assign a fundamental rating of 4 out of 10 to APO. APO was compared to 99 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 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
With a Return On Assets value of 0.75%, APO perfoms like the industry average, outperforming 42.42% of the companies in the same industry.
The Return On Equity of APO (16.34%) is better than 78.79% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.36%, APO is in line with its industry, outperforming 42.42% of the companies in the same 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
The Profit Margin of APO (13.90%) is better than 60.61% of its industry peers.
In the last couple of years the Profit Margin of APO has declined.
Looking at the Operating Margin, with a value of 28.78%, APO is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
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
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.
APO has more shares outstanding than it did 5 years ago.
APO has about the same debt/assets ratio as last year.
2.2 Solvency
Based on the Altman-Z score of 0.21, we must say that APO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of APO (0.21) is comparable to the rest of the industry.
The Debt to FCF ratio of APO is 3.61, which is a good value as it means it would take APO, 3.61 years of fcf income to pay off all of its debts.
APO has a better Debt to FCF ratio (3.61) than 71.72% of its industry peers.
APO has a Debt/Equity ratio of 0.77. This is a neutral value indicating APO is somewhat dependend on debt financing.
APO's Debt to Equity ratio of 0.77 is in line compared to the rest of the industry. APO outperforms 48.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.61 | ||
| Altman-Z | 0.21 |
ROIC/WACC0.17
WACC8.19%
2.3 Liquidity
A Current Ratio of 0.09 indicates that APO may have some problems paying its short term obligations.
APO's Current ratio of 0.09 is on the low side compared to the rest of the industry. APO is outperformed by 81.82% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.09, APO is doing worse than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 |
3. Growth
3.1 Past
APO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.89%, 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.
Looking at the last year, APO shows a decrease in Revenue. The Revenue has decreased by -7.68% in the last year.
The Revenue has been growing by 52.06% on average over the past years. This is a very strong growth!
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
APO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.09% yearly.
APO is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -12.07% yearly.
EPS Next Y4.8%
EPS Next 2Y11.43%
EPS Next 3Y14.09%
EPS Next 5YN/A
Revenue Next Year21.37%
Revenue Next 2Y20.21%
Revenue Next 3Y20.76%
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
APO is valuated correctly with a Price/Earnings ratio of 15.99.
APO's Price/Earnings is on the same level as the industry average.
APO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.76.
APO is valuated correctly with a Price/Forward Earnings ratio of 13.54.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APO is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of APO to the average of the S&P500 Index (22.63), we can say APO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.99 | ||
| Fwd PE | 13.54 |
4.2 Price Multiples
APO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. APO is cheaper than 72.73% of the companies in the same industry.
APO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. APO is cheaper than 62.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.73 | ||
| EV/EBITDA | 9.61 |
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 14.09% in the coming years.
PEG (NY)3.33
PEG (5Y)0.71
EPS Next 2Y11.43%
EPS Next 3Y14.09%
5. Dividend
5.1 Amount
APO has a Yearly Dividend Yield of 1.66%. Purely for dividend investing, there may be better candidates out there.
APO's Dividend Yield is a higher than the industry average which is at 5.10.
APO's Dividend Yield is slightly below the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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.
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 2Y11.43%
EPS Next 3Y14.09%
124.88
+0.41 (+0.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners63.13%
Inst Owner Change-0.12%
Ins Owners2.57%
Ins Owner Change-0.63%
Market Cap73.10B
Revenue(TTM)22.71B
Net Income(TTM)3.16B
Analysts80
Price Target168.57 (34.99%)
Short Float %7.41%
Short Ratio8.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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)0%
PT rev (3m)1.98%
EPS NQ rev (1m)-2.6%
EPS NQ rev (3m)-1.22%
EPS NY rev (1m)-0.99%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)-1.13%
Revenue NQ rev (3m)4.21%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)4.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.99 | ||
| Fwd PE | 13.54 | ||
| P/S | 3.22 | ||
| P/FCF | 17.73 | ||
| P/OCF | 17.73 | ||
| P/B | 3.78 | ||
| P/tB | 4.88 | ||
| EV/EBITDA | 9.61 |
EPS(TTM)7.81
EY6.25%
EPS(NY)9.23
Fwd EY7.39%
FCF(TTM)7.05
FCFY5.64%
OCF(TTM)7.05
OCFY5.64%
SpS38.8
BVpS33.01
TBVpS25.59
PEG (NY)3.33
PEG (5Y)0.71
Graham Number76.16
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
ROICexgc growth 3Y-33.79%
ROICexgc 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 | 0.21 |
F-Score5
WACC8.19%
ROIC/WACC0.17
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 Y4.8%
EPS Next 2Y11.43%
EPS Next 3Y14.09%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.68%
Revenue growth 3Y58.1%
Revenue growth 5Y52.06%
Sales Q2Q%13.23%
Revenue Next Year21.37%
Revenue Next 2Y20.21%
Revenue Next 3Y20.76%
Revenue Next 5Y-12.07%
EBIT growth 1Y-1.42%
EBIT growth 3Y54.01%
EBIT growth 5Y41.09%
EBIT Next Year17.67%
EBIT Next 3Y16.47%
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%
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.
What is the valuation status of APOLLO GLOBAL MANAGEMENT INC (APO) stock?
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.
How financially healthy is APOLLO GLOBAL MANAGEMENT INC?
The financial health rating of APOLLO GLOBAL MANAGEMENT INC (APO) is 3 / 10.
Can you provide the dividend sustainability for APO stock?
The dividend rating of APOLLO GLOBAL MANAGEMENT INC (APO) is 4 / 10 and the dividend payout ratio is 39.11%.