APOLLO COMMERCIAL REAL ESTAT (ARI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARI - US03762U1051 - REIT
10.15 USD
+0.06 (+0.59%)
10.1455 USD
0 (-0.04%)
Taking everything into account, ARI scores 5 out of 10 in our fundamental rating. ARI was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and the financial health of ARI get a neutral evaluation. Nothing too spectacular is happening here. ARI has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year ARI was profitable.
- In the past year ARI had a positive cash flow from operations.
- ARI had positive earnings in 4 of the past 5 years.
- ARI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of ARI (1.29%) is better than 89.71% of its industry peers.
- ARI's Return On Equity of 6.61% is amongst the best of the industry. ARI outperforms 88.24% of its industry peers.
- The Return On Invested Capital of ARI (1.06%) is better than 83.82% of its industry peers.
- ARI had an Average Return On Invested Capital over the past 3 years of 1.68%. This is in line with the industry average of 1.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.29% | ||
| ROE | 6.61% | ||
| ROIC | 1.06% |
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
- ARI has a better Profit Margin (16.94%) than 72.06% of its industry peers.
- The Operating Margin of ARI (15.93%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of ARI has declined.
- With a decent Gross Margin value of 36.98%, ARI is doing good in the industry, outperforming 76.47% of the companies in the same industry.
- ARI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.93% | ||
| PM (TTM) | 16.94% | ||
| GM | 36.98% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARI is destroying value.
- ARI has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for ARI has been reduced compared to 5 years ago.
- Compared to 1 year ago, ARI has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.03, we must say that ARI is in the distress zone and has some risk of bankruptcy.
- ARI's Altman-Z score of 0.03 is fine compared to the rest of the industry. ARI outperforms 63.24% of its industry peers.
- The Debt to FCF ratio of ARI is 134.05, which is on the high side as it means it would take ARI, 134.05 years of fcf income to pay off all of its debts.
- ARI has a better Debt to FCF ratio (134.05) than 63.24% of its industry peers.
- ARI has a Debt/Equity ratio of 3.61. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of ARI (3.61) is better than 63.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.61 | ||
| Debt/FCF | 134.05 | ||
| Altman-Z | 0.03 |
ROIC/WACC0.15
WACC7%
2.3 Liquidity
- ARI has a Current Ratio of 0.35. 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 0.35. This is in the better half of the industry: ARI outperforms 61.76% of its industry peers.
- ARI has a Quick Ratio of 0.35. 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 (0.35) is better than 61.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
- ARI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.25%.
- ARI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.89% yearly.
- ARI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.52%.
- 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)-18.25%
EPS 3Y0%
EPS 5Y-6.89%
EPS Q2Q%-3.23%
Revenue 1Y (TTM)-12.52%
Revenue growth 3Y21.79%
Revenue growth 5Y10.63%
Sales Q2Q%-14.9%
3.2 Future
- Based on estimates for the next years, ARI will show a decrease in Earnings Per Share. The EPS will decrease by -3.59% on average per year.
- The Revenue is expected to grow by 3.65% on average over the next years.
EPS Next Y-32.11%
EPS Next 2Y-15.62%
EPS Next 3Y-3.59%
EPS Next 5YN/A
Revenue Next Year-12.1%
Revenue Next 2Y0.99%
Revenue Next 3Y3.65%
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
- Based on the Price/Earnings ratio of 9.06, the valuation of ARI can be described as reasonable.
- ARI's Price/Earnings ratio is a bit cheaper when compared to the industry. ARI is cheaper than 75.00% 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 27.38.
- Based on the Price/Forward Earnings ratio of 10.72, the valuation of ARI can be described as reasonable.
- ARI's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. ARI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 10.72 |
4.2 Price Multiples
- ARI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ARI is cheaper than 77.94% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ARI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.12 | ||
| EV/EBITDA | 69 |
4.3 Compensation for Growth
- The decent profitability rating of ARI may justify a higher PE ratio.
- A cheap valuation may be justified as ARI's earnings are expected to decrease with -3.59% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.62%
EPS Next 3Y-3.59%
5. Dividend
5.1 Amount
- ARI has a Yearly Dividend Yield of 9.91%, which is a nice return.
- ARI's Dividend Yield is slightly below the industry average, which is at 11.01.
- ARI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.91% |
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
- 124.11% of the earnings are spent on dividend by ARI. This is not a sustainable payout ratio.
- ARI's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP124.11%
EPS Next 2Y-15.62%
EPS Next 3Y-3.59%
10.15
+0.06 (+0.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)02-09 2026-02-09/amc
Inst Owners69.07%
Inst Owner Change0.1%
Ins Owners0.56%
Ins Owner Change3.15%
Market Cap1.41B
Revenue(TTM)726.90M
Net Income(TTM)123.16M
Analysts74
Price Target11.01 (8.47%)
Short Float %2.33%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.91% |
Yearly Dividend1.42
Dividend Growth(5Y)-6.89%
DP124.11%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.72%
Min EPS beat(2)4.64%
Max EPS beat(2)38.8%
EPS beat(4)4
Avg EPS beat(4)23.83%
Min EPS beat(4)4.64%
Max EPS beat(4)39.78%
EPS beat(8)8
Avg EPS beat(8)18.47%
EPS beat(12)10
Avg EPS beat(12)2.29%
EPS beat(16)13
Avg EPS beat(16)2.67%
Revenue beat(2)0
Avg Revenue beat(2)-13.05%
Min Revenue beat(2)-16.96%
Max Revenue beat(2)-9.14%
Revenue beat(4)0
Avg Revenue beat(4)-13.84%
Min Revenue beat(4)-20.78%
Max Revenue beat(4)-8.49%
Revenue beat(8)0
Avg Revenue beat(8)-11.35%
Revenue beat(12)1
Avg Revenue beat(12)1.76%
Revenue beat(16)5
Avg Revenue beat(16)23.31%
PT rev (1m)2.29%
PT rev (3m)3.39%
EPS NQ rev (1m)18.34%
EPS NQ rev (3m)10.59%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.04%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)-1.95%
Revenue NY rev (3m)-2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 10.72 | ||
| P/S | 1.94 | ||
| P/FCF | 25.12 | ||
| P/OCF | 7.66 | ||
| P/B | 0.76 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | 69 |
EPS(TTM)1.12
EY11.03%
EPS(NY)0.95
Fwd EY9.33%
FCF(TTM)0.4
FCFY3.98%
OCF(TTM)1.33
OCFY13.06%
SpS5.23
BVpS13.4
TBVpS13.4
PEG (NY)N/A
PEG (5Y)N/A
Graham Number18.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.29% | ||
| ROE | 6.61% | ||
| ROCE | 1.34% | ||
| ROIC | 1.06% | ||
| ROICexc | 1.09% | ||
| ROICexgc | 1.1% | ||
| OM | 15.93% | ||
| PM (TTM) | 16.94% | ||
| GM | 36.98% | ||
| FCFM | 7.72% |
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%
ROICexgc growth 3Y-15.06%
ROICexgc 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-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.61 | ||
| Debt/FCF | 134.05 | ||
| Debt/EBITDA | 53.41 | ||
| Cap/Depr | 1261.5% | ||
| Cap/Sales | 17.62% | ||
| Interest Coverage | 0.25 | ||
| Cash Conversion | 146.28% | ||
| Profit Quality | 45.58% | ||
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 0.03 |
F-Score6
WACC7%
ROIC/WACC0.15
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)-18.25%
EPS 3Y0%
EPS 5Y-6.89%
EPS Q2Q%-3.23%
EPS Next Y-32.11%
EPS Next 2Y-15.62%
EPS Next 3Y-3.59%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.52%
Revenue growth 3Y21.79%
Revenue growth 5Y10.63%
Sales Q2Q%-14.9%
Revenue Next Year-12.1%
Revenue Next 2Y0.99%
Revenue Next 3Y3.65%
Revenue Next 5YN/A
EBIT growth 1Y-27.16%
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-75.61%
FCF growth 3Y-46.03%
FCF growth 5Y-35.16%
OCF growth 1Y-36.29%
OCF growth 3Y0.24%
OCF growth 5Y-5.98%
APOLLO COMMERCIAL REAL ESTAT / ARI FAQ
What is the fundamental rating for ARI stock?
ChartMill assigns a fundamental rating of 5 / 10 to ARI.
What is the valuation status for ARI stock?
ChartMill assigns a valuation rating of 5 / 10 to APOLLO COMMERCIAL REAL ESTAT (ARI). This can be considered as Fairly Valued.
How profitable is APOLLO COMMERCIAL REAL ESTAT (ARI) stock?
APOLLO COMMERCIAL REAL ESTAT (ARI) has a profitability rating of 6 / 10.
What are the PE and PB ratios of APOLLO COMMERCIAL REAL ESTAT (ARI) stock?
The Price/Earnings (PE) ratio for APOLLO COMMERCIAL REAL ESTAT (ARI) is 9.06 and the Price/Book (PB) ratio is 0.76.
Is the dividend of APOLLO COMMERCIAL REAL ESTAT sustainable?
The dividend rating of APOLLO COMMERCIAL REAL ESTAT (ARI) is 4 / 10 and the dividend payout ratio is 124.11%.