APOLLO COMMERCIAL REAL ESTAT (ARI) Stock Fundamental Analysis
USA - NYSE:ARI - US03762U1051 - REIT
10.13 USD
+0.15 (+1.5%)
ARI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 66 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. ARI has a medium profitability rating, but doesn't score so well on its financial health evaluation. ARI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ARI was profitable.
ARI had a positive operating cash flow in the past year.
ARI had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ARI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.19%, ARI is doing worse than 65.15% of the companies in the same industry.
ARI has a Return On Equity of -1.03%. This is in the lower half of the industry: ARI underperforms 65.15% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.26%, ARI belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARI is in line with the industry average of 1.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.19% | ||
| ROE | -1.03% | ||
| ROIC | 1.26% |
ROA(3y)0.48%
ROA(5y)0.78%
ROE(3y)1.75%
ROE(5y)2.86%
ROIC(3y)1.68%
ROIC(5y)2.3%
1.3 Margins
With a decent Operating Margin value of 16.50%, ARI is doing good in the industry, outperforming 78.79% of the companies in the same industry.
In the last couple of years the Operating Margin of ARI has declined.
The Gross Margin of ARI (36.89%) is better than 81.82% of its industry peers.
ARI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.5% | ||
| PM (TTM) | N/A | ||
| GM | 36.89% |
OM growth 3Y-25.68%
OM growth 5Y-20.21%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16.09%
GM growth 5Y-11.34%
2. Health
2.1 Basic Checks
ARI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ARI has less shares outstanding
ARI has less shares outstanding than it did 5 years ago.
ARI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.11, we must say that ARI is in the distress zone and has some risk of bankruptcy.
ARI's Altman-Z score of -0.11 is in line compared to the rest of the industry. ARI outperforms 50.00% of its industry peers.
The Debt to FCF ratio of ARI is 152.71, which is on the high side as it means it would take ARI, 152.71 years of fcf income to pay off all of its debts.
ARI's Debt to FCF ratio of 152.71 is in line compared to the rest of the industry. ARI outperforms 42.42% of its industry peers.
A Debt/Equity ratio of 3.21 is on the high side and indicates that ARI has dependencies on debt financing.
ARI's Debt to Equity ratio of 3.21 is fine compared to the rest of the industry. ARI outperforms 71.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.21 | ||
| Debt/FCF | 152.71 | ||
| Altman-Z | -0.11 |
ROIC/WACC0.18
WACC7.03%
2.3 Liquidity
ARI has a Current Ratio of 0.13. This is a bad value and indicates that ARI is not financially healthy enough and could expect problems in meeting its short term obligations.
ARI has a Current ratio of 0.13. This is comparable to the rest of the industry: ARI outperforms 43.94% of its industry peers.
ARI has a Quick Ratio of 0.13. This is a bad value and indicates that ARI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ARI (0.13) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.13 |
3. Growth
3.1 Past
ARI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.98%.
ARI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.89% yearly.
Looking at the last year, ARI shows a decrease in Revenue. The Revenue has decreased by -8.78% in the last year.
Measured over the past years, ARI shows a quite strong growth in Revenue. The Revenue has been growing by 10.63% on average per year.
EPS 1Y (TTM)-20.98%
EPS 3Y0%
EPS 5Y-6.89%
EPS Q2Q%-25.71%
Revenue 1Y (TTM)-8.78%
Revenue growth 3Y21.79%
Revenue growth 5Y10.63%
Sales Q2Q%-16.79%
3.2 Future
ARI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.29% yearly.
The Revenue is expected to grow by 3.05% on average over the next years.
EPS Next Y-29.98%
EPS Next 2Y-13.18%
EPS Next 3Y8.29%
EPS Next 5YN/A
Revenue Next Year-10.24%
Revenue Next 2Y3.05%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
A Price/Earnings ratio of 8.96 indicates a reasonable valuation of ARI.
ARI's Price/Earnings ratio is a bit cheaper when compared to the industry. ARI is cheaper than 72.73% of the companies in the same industry.
ARI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.42.
With a Price/Forward Earnings ratio of 10.11, the valuation of ARI can be described as very reasonable.
ARI's Price/Forward Earnings is on the same level as the industry average.
ARI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.96 | ||
| Fwd PE | 10.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARI indicates a rather cheap valuation: ARI is cheaper than 81.82% of the companies listed in the same industry.
ARI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.5 | ||
| EV/EBITDA | 67.15 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-13.18%
EPS Next 3Y8.29%
5. Dividend
5.1 Amount
ARI has a Yearly Dividend Yield of 10.12%, which is a nice return.
Compared to an average industry Dividend Yield of 13.08, ARI is paying slightly less dividend.
ARI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.12% |
5.2 History
The dividend of ARI decreases each year by -6.89%.
ARI has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-6.89%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ARI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-879.4%
EPS Next 2Y-13.18%
EPS Next 3Y8.29%
NYSE:ARI (10/20/2025, 12:12:47 PM)
10.13
+0.15 (+1.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners67.64%
Inst Owner Change-24%
Ins Owners0.6%
Ins Owner Change-9.67%
Market Cap1.41B
Analysts72
Price Target10.65 (5.13%)
Short Float %2.58%
Short Ratio4.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.12% |
Yearly Dividend1.42
Dividend Growth(5Y)-6.89%
DP-879.4%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.37%
Min EPS beat(2)4.64%
Max EPS beat(2)12.09%
EPS beat(4)4
Avg EPS beat(4)19.02%
Min EPS beat(4)4.64%
Max EPS beat(4)39.78%
EPS beat(8)8
Avg EPS beat(8)14.21%
EPS beat(12)10
Avg EPS beat(12)-0.49%
EPS beat(16)12
Avg EPS beat(16)0.01%
Revenue beat(2)0
Avg Revenue beat(2)-14.96%
Min Revenue beat(2)-20.78%
Max Revenue beat(2)-9.14%
Revenue beat(4)0
Avg Revenue beat(4)-11.28%
Min Revenue beat(4)-20.78%
Max Revenue beat(4)-6.72%
Revenue beat(8)0
Avg Revenue beat(8)-10.29%
Revenue beat(12)2
Avg Revenue beat(12)12.33%
Revenue beat(16)6
Avg Revenue beat(16)27.87%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-2.7%
EPS NQ rev (3m)12.5%
EPS NY rev (1m)2.67%
EPS NY rev (3m)6.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.96 | ||
| Fwd PE | 10.11 | ||
| P/S | 1.86 | ||
| P/FCF | 27.5 | ||
| P/OCF | 7.05 | ||
| P/B | 0.76 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | 67.15 |
EPS(TTM)1.13
EY11.15%
EPS(NY)1
Fwd EY9.9%
FCF(TTM)0.37
FCFY3.64%
OCF(TTM)1.44
OCFY14.19%
SpS5.44
BVpS13.29
TBVpS13.29
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.19% | ||
| ROE | -1.03% | ||
| ROCE | 1.59% | ||
| ROIC | 1.26% | ||
| ROICexc | 1.29% | ||
| ROICexgc | 1.3% | ||
| OM | 16.5% | ||
| PM (TTM) | N/A | ||
| GM | 36.89% | ||
| FCFM | 6.77% |
ROA(3y)0.48%
ROA(5y)0.78%
ROE(3y)1.75%
ROE(5y)2.86%
ROIC(3y)1.68%
ROIC(5y)2.3%
ROICexc(3y)1.74%
ROICexc(5y)2.43%
ROICexgc(3y)1.75%
ROICexgc(5y)2.45%
ROCE(3y)2.13%
ROCE(5y)2.91%
ROICexcg growth 3Y-15.06%
ROICexcg growth 5Y-22.32%
ROICexc growth 3Y-15.31%
ROICexc growth 5Y-22.29%
OM growth 3Y-25.68%
OM growth 5Y-20.21%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16.09%
GM growth 5Y-11.34%
F-Score4
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.21 | ||
| Debt/FCF | 152.71 | ||
| Debt/EBITDA | 44.1 | ||
| Cap/Depr | 1529.33% | ||
| Cap/Sales | 19.66% | ||
| Interest Coverage | 0.27 | ||
| Cash Conversion | 148.6% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.13 | ||
| Altman-Z | -0.11 |
F-Score4
WACC7.03%
ROIC/WACC0.18
Cap/Depr(3y)2341.93%
Cap/Depr(5y)N/A
Cap/Sales(3y)11.9%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-20.98%
EPS 3Y0%
EPS 5Y-6.89%
EPS Q2Q%-25.71%
EPS Next Y-29.98%
EPS Next 2Y-13.18%
EPS Next 3Y8.29%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.78%
Revenue growth 3Y21.79%
Revenue growth 5Y10.63%
Sales Q2Q%-16.79%
Revenue Next Year-10.24%
Revenue Next 2Y3.05%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-26.63%
EBIT growth 3Y-9.49%
EBIT growth 5Y-11.73%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-81.03%
FCF growth 3Y-46.03%
FCF growth 5Y-35.16%
OCF growth 1Y-39.88%
OCF growth 3Y0.24%
OCF growth 5Y-5.98%