APOLLO GLOBAL MANAGEMENT INC (APO) Stock Fundamental Analysis
NYSE:APO - New York Stock Exchange, Inc. - US03769M1062 - Common Stock - Currency: USD
Taking everything into account, APO scores 4 out of 10 in our fundamental rating. APO was compared to 100 industry peers in the Financial Services industry. There are concerns on the financial health of APO while its profitability can be described as average. APO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
APO had positive earnings in the past year.
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
With a Return On Assets value of 0.85%, APO is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
APO's Return On Equity of 18.75% is amongst the best of the industry. APO outperforms 82.00% of its industry peers.
APO has a Return On Invested Capital (1.56%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 18.75% | ||
| ROIC | 1.56% |
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 better Profit Margin (15.23%) than 64.00% of its industry peers.
APO's Profit Margin has declined in the last couple of years.
The Operating Margin of APO (31.69%) is better than 74.00% of its industry peers.
APO's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.69% | ||
| PM (TTM) | 15.23% | ||
| 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.
The number of shares outstanding for APO has been reduced compared to 1 year ago.
Compared to 5 years ago, APO has more shares outstanding
APO has about the same debt/assets ratio as last year.
2.2 Solvency
APO has an Altman-Z score of 0.24. 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 (0.24) which is in line with its industry peers.
The Debt to FCF ratio of APO is 3.25, which is a good value as it means it would take APO, 3.25 years of fcf income to pay off all of its debts.
APO has a better Debt to FCF ratio (3.25) than 74.00% of its industry peers.
APO has a Debt/Equity ratio of 0.76. This is a neutral value indicating APO is somewhat dependend on debt financing.
APO's Debt to Equity ratio of 0.76 is in line compared to the rest of the industry. APO outperforms 49.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | 0.24 |
ROIC/WACC0.18
WACC8.62%
2.3 Liquidity
A Current Ratio of 0.07 indicates that APO may have some problems paying its short term obligations.
With a Current ratio value of 0.07, APO is not doing good in the industry: 81.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.07 indicates that APO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.07, APO is doing worse than 81.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 |
3. Growth
3.1 Past
APO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.96%.
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 very negative growth in Revenue. The Revenue has decreased by -31.66% in the last year.
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)6.96%
EPS 3Y17.67%
EPS 5Y22.44%
EPS Q2Q%5.81%
Revenue 1Y (TTM)-31.66%
Revenue growth 3Y58.1%
Revenue growth 5Y52.06%
Sales Q2Q%-21.19%
3.2 Future
The Earnings Per Share is expected to grow by 14.89% 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 Y4.85%
EPS Next 2Y12.47%
EPS Next 3Y14.89%
EPS Next 5YN/A
Revenue Next Year16.43%
Revenue Next 2Y17.48%
Revenue Next 3Y16.59%
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.
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 19.73, the valuation of APO can be described as rather expensive.
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 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.80, APO is valued correctly.
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 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.73 | ||
| Fwd PE | 15.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APO is valued a bit cheaper than 65.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, APO is valued a bit cheaper than 63.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.24 | ||
| EV/EBITDA | 10.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates APO does not grow enough to justify the current Price/Earnings ratio.
APO's earnings are expected to grow with 14.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.07
PEG (5Y)0.88
EPS Next 2Y12.47%
EPS Next 3Y14.89%
5. Dividend
5.1 Amount
APO has a Yearly Dividend Yield of 1.38%.
APO's Dividend Yield is a higher than the industry average which is at 4.86.
Compared to an average S&P500 Dividend Yield of 2.35, APO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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
35.84% of the earnings are spent on dividend by APO. This is a low number and sustainable payout ratio.
DP35.84%
EPS Next 2Y12.47%
EPS Next 3Y14.89%
NYSE:APO (7/14/2025, 3:49:10 PM)
148.54
+1.36 (+0.92%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners65.51%
Inst Owner Change0%
Ins Owners3.12%
Ins Owner Change-0.21%
Market Cap84.89B
Analysts80
Price Target160.91 (8.33%)
Short Float %6.77%
Short Ratio8.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Yearly Dividend2.1
Dividend Growth(5Y)-1.16%
DP35.84%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.44%
Min EPS beat(2)-3.45%
Max EPS beat(2)16.32%
EPS beat(4)2
Avg EPS beat(4)2.87%
Min EPS beat(4)-7.59%
Max EPS beat(4)16.32%
EPS beat(8)4
Avg EPS beat(8)1.84%
EPS beat(12)5
Avg EPS beat(12)0.19%
EPS beat(16)8
Avg EPS beat(16)8.44%
Revenue beat(2)2
Avg Revenue beat(2)21.08%
Min Revenue beat(2)19.9%
Max Revenue beat(2)22.26%
Revenue beat(4)4
Avg Revenue beat(4)45.54%
Min Revenue beat(4)19.9%
Max Revenue beat(4)86.31%
Revenue beat(8)7
Avg Revenue beat(8)93.22%
Revenue beat(12)11
Avg Revenue beat(12)107.55%
Revenue beat(16)14
Avg Revenue beat(16)87.65%
PT rev (1m)0%
PT rev (3m)-13.89%
EPS NQ rev (1m)-0.89%
EPS NQ rev (3m)-5.7%
EPS NY rev (1m)-0.63%
EPS NY rev (3m)-7.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.04%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.73 | ||
| Fwd PE | 15.8 | ||
| P/S | 3.84 | ||
| P/FCF | 20.24 | ||
| P/OCF | 20.24 | ||
| P/B | 4.72 | ||
| P/tB | 6.22 | ||
| EV/EBITDA | 10.35 |
EPS(TTM)7.53
EY5.07%
EPS(NY)9.4
Fwd EY6.33%
FCF(TTM)7.34
FCFY4.94%
OCF(TTM)7.34
OCFY4.94%
SpS38.73
BVpS31.45
TBVpS23.88
PEG (NY)4.07
PEG (5Y)0.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 18.75% | ||
| ROCE | 1.82% | ||
| ROIC | 1.56% | ||
| ROICexc | 1.61% | ||
| ROICexgc | 1.78% | ||
| OM | 31.69% | ||
| PM (TTM) | 15.23% | ||
| GM | N/A | ||
| FCFM | 18.95% |
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
ROICexcg growth 3Y-33.79%
ROICexcg 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-Score6
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 3.25 | ||
| Debt/EBITDA | 1.67 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 7.31 | ||
| Cash Conversion | 51.41% | ||
| Profit Quality | 124.44% | ||
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 | ||
| Altman-Z | 0.24 |
F-Score6
WACC8.62%
ROIC/WACC0.18
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)6.96%
EPS 3Y17.67%
EPS 5Y22.44%
EPS Q2Q%5.81%
EPS Next Y4.85%
EPS Next 2Y12.47%
EPS Next 3Y14.89%
EPS Next 5YN/A
Revenue 1Y (TTM)-31.66%
Revenue growth 3Y58.1%
Revenue growth 5Y52.06%
Sales Q2Q%-21.19%
Revenue Next Year16.43%
Revenue Next 2Y17.48%
Revenue Next 3Y16.59%
Revenue Next 5Y-12.07%
EBIT growth 1Y17.58%
EBIT growth 3Y54.01%
EBIT growth 5Y41.09%
EBIT Next Year10.94%
EBIT Next 3Y13.27%
EBIT Next 5YN/A
FCF growth 1Y-52.61%
FCF growth 3Y48.2%
FCF growth 5Y25.54%
OCF growth 1Y-52.61%
OCF growth 3Y45.14%
OCF growth 5Y24.61%