APOLLO GLOBAL MANAGEMENT INC (APO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:APO - US03769M1062 - Common Stock
130.02 USD
+3.26 (+2.57%)
130.617 USD
+0.6 (+0.46%)
APO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 98 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.
In the past year APO had a positive cash flow from operations.
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 40.40% of the companies in the same industry.
The Return On Equity of APO (17.56%) is better than 83.84% of its industry peers.
With a Return On Invested Capital value of 1.37%, APO perfoms like the industry average, outperforming 40.40% of the companies in the same 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
APO has a Profit Margin of 16.63%. This is in the better half of the industry: APO outperforms 62.63% of its industry peers.
In the last couple of years the Profit Margin of APO has declined.
APO's Operating Margin of 28.40% is fine compared to the rest of the industry. APO outperforms 71.72% 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
APO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, APO has about the same debt to assets ratio.
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.
APO has a Altman-Z score of 0.20. This is comparable to the rest of the industry: APO outperforms 43.43% 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.
APO has a Debt to FCF ratio of 4.91. This is in the better half of the industry: APO outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that APO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.55, APO is in line with its industry, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 4.91 | ||
| Altman-Z | 0.2 |
ROIC/WACC0.17
WACC8.26%
2.3 Liquidity
A Current Ratio of 0.06 indicates that APO may have some problems paying its short term obligations.
With a Current ratio value of 0.06, APO is not doing good in the industry: 82.83% of the companies in the same industry are doing better.
A Quick Ratio of 0.06 indicates that APO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.06, APO is doing worse than 82.83% of the companies in the same industry.
| 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
The Earnings Per Share is expected to grow by 14.11% 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 -12.07% yearly.
EPS Next Y4.86%
EPS Next 2Y11.34%
EPS Next 3Y14.11%
EPS Next 5YN/A
Revenue Next Year20.71%
Revenue Next 2Y18.44%
Revenue Next 3Y17.33%
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.
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
Based on the Price/Earnings ratio of 15.99, the valuation of APO can be described as correct.
APO's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of APO to the average of the S&P500 Index (25.47), we can say APO is valued slightly cheaper.
APO is valuated correctly with a Price/Forward Earnings ratio of 14.12.
APO's Price/Forward Earnings ratio is in line with the industry average.
APO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.99 | ||
| Fwd PE | 14.12 |
4.2 Price Multiples
APO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. APO is cheaper than 70.71% of the companies in the same industry.
APO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.58 | ||
| EV/EBITDA | 8.67 |
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 14.11% in the coming years.
PEG (NY)3.29
PEG (5Y)0.71
EPS Next 2Y11.34%
EPS Next 3Y14.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.61%, APO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.20, APO pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.41, APO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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
APO pays out 31.10% of its income as dividend. This is a sustainable payout ratio.
DP31.1%
EPS Next 2Y11.34%
EPS Next 3Y14.11%
130.02
+3.26 (+2.57%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners63.13%
Inst Owner Change-0.45%
Ins Owners2.57%
Ins Owner Change-0.64%
Market Cap76.11B
Revenue(TTM)24.43B
Net Income(TTM)4.06B
Analysts79.2
Price Target162.18 (24.73%)
Short Float %7.45%
Short Ratio8.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend2.1
Dividend Growth(5Y)-1.16%
DP31.1%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.76%
Min EPS beat(2)3.12%
Max EPS beat(2)12.41%
EPS beat(4)3
Avg EPS beat(4)7.1%
Min EPS beat(4)-3.45%
Max EPS beat(4)16.32%
EPS beat(8)5
Avg EPS beat(8)4.05%
EPS beat(12)6
Avg EPS beat(12)1.66%
EPS beat(16)8
Avg EPS beat(16)2.26%
Revenue beat(2)2
Avg Revenue beat(2)70.14%
Min Revenue beat(2)46.6%
Max Revenue beat(2)93.67%
Revenue beat(4)4
Avg Revenue beat(4)45.61%
Min Revenue beat(4)19.9%
Max Revenue beat(4)93.67%
Revenue beat(8)8
Avg Revenue beat(8)75.82%
Revenue beat(12)11
Avg Revenue beat(12)90.55%
Revenue beat(16)14
Avg Revenue beat(16)89.82%
PT rev (1m)-3.79%
PT rev (3m)-3.79%
EPS NQ rev (1m)0.4%
EPS NQ rev (3m)-1.32%
EPS NY rev (1m)0.05%
EPS NY rev (3m)-0.89%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)-0.54%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.99 | ||
| Fwd PE | 14.12 | ||
| P/S | 3.12 | ||
| P/FCF | 29.58 | ||
| P/OCF | 29.58 | ||
| P/B | 3.29 | ||
| P/tB | 4.42 | ||
| EV/EBITDA | 8.67 |
EPS(TTM)8.13
EY6.25%
EPS(NY)9.21
Fwd EY7.08%
FCF(TTM)4.4
FCFY3.38%
OCF(TTM)4.4
OCFY3.38%
SpS41.74
BVpS39.52
TBVpS29.45
PEG (NY)3.29
PEG (5Y)0.71
Graham Number85.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.9% | ||
| ROE | 17.56% | ||
| ROCE | 1.6% | ||
| ROIC | 1.37% | ||
| ROICexc | 1.42% | ||
| ROICexgc | 1.7% | ||
| OM | 28.4% | ||
| PM (TTM) | 16.63% | ||
| GM | N/A | ||
| FCFM | 10.53% |
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 | 0.55 | ||
| Debt/FCF | 4.91 | ||
| Debt/EBITDA | 1.53 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 6.95 | ||
| Cash Conversion | 31.09% | ||
| Profit Quality | 63.31% | ||
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 | ||
| Altman-Z | 0.2 |
F-Score5
WACC8.26%
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)14.19%
EPS 3Y17.67%
EPS 5Y22.44%
EPS Q2Q%17.3%
EPS Next Y4.86%
EPS Next 2Y11.34%
EPS Next 3Y14.11%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.68%
Revenue growth 3Y58.1%
Revenue growth 5Y52.06%
Sales Q2Q%26.37%
Revenue Next Year20.71%
Revenue Next 2Y18.44%
Revenue Next 3Y17.33%
Revenue Next 5Y-12.07%
EBIT growth 1Y-20.34%
EBIT growth 3Y54.01%
EBIT growth 5Y41.09%
EBIT Next Year17.67%
EBIT Next 3Y16.47%
EBIT Next 5YN/A
FCF growth 1Y-55.04%
FCF growth 3Y48.2%
FCF growth 5Y25.54%
OCF growth 1Y-55.04%
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 3 / 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 31.1%.