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Apollo Commercial Real Estate Finance

Executive Summary

Apollo Commercial Real Estate Finance, Inc. More Details


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Apollo Commercial Real Estate Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 9A1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

8.1%

9A1

4.7%

DE Mortgage REITs

0.1%

DE Market


1 Year Return

-54.5%

9A1

-35.0%

DE Mortgage REITs

6.2%

DE Market

Return vs Industry: 9A1 underperformed the German Mortgage REITs industry which returned -35% over the past year.

Return vs Market: 9A1 underperformed the German Market which returned 6.2% over the past year.


Shareholder returns

9A1IndustryMarket
7 Day8.1%4.7%0.1%
30 Day4.5%2.9%1.5%
90 Day-9.6%7.6%5.3%
1 Year-48.3%-54.5%-27.5%-35.0%8.7%6.2%
3 Year-26.8%-47.4%-18.1%-41.2%6.4%-2.3%
5 Year-5.9%-45.5%16.3%-33.3%36.6%18.0%

Price Volatility Vs. Market

How volatile is Apollo Commercial Real Estate Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Apollo Commercial Real Estate Finance undervalued compared to its fair value and its price relative to the market?

40.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 9A1 (€8.05) is trading below our estimate of fair value (€13.55)

Significantly Below Fair Value: 9A1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 9A1 is poor value based on its PE Ratio (89.9x) compared to the XX Mortgage REITs industry average (23.4x).

PE vs Market: 9A1 is poor value based on its PE Ratio (89.9x) compared to the German market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: 9A1 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 9A1 is good value based on its PB Ratio (0.6x) compared to the XX Mortgage REITs industry average (0.8x).


Next Steps

Future Growth

How is Apollo Commercial Real Estate Finance forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

74.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 9A1's forecast earnings growth (74.4% per year) is above the savings rate (0.2%).

Earnings vs Market: 9A1's earnings (74.4% per year) are forecast to grow faster than the German market (27.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 9A1's revenue (14.9% per year) is forecast to grow faster than the German market (6.1% per year).

High Growth Revenue: 9A1's revenue (14.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 9A1's Return on Equity is forecast to be low in 3 years time (8.7%).


Next Steps

Past Performance

How has Apollo Commercial Real Estate Finance performed over the past 5 years?

8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 9A1 has a large one-off loss of $16.4M impacting its June 30 2020 financial results.

Growing Profit Margin: 9A1's current net profit margins (20.7%) are lower than last year (69.5%).


Past Earnings Growth Analysis

Earnings Trend: 9A1's earnings have grown by 8.4% per year over the past 5 years.

Accelerating Growth: 9A1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 9A1 had negative earnings growth (-92.5%) over the past year, making it difficult to compare to the Mortgage REITs industry average (-36.3%).


Return on Equity

High ROE: 9A1's Return on Equity (1.4%) is considered low.


Next Steps

Financial Health

How is Apollo Commercial Real Estate Finance's financial position?


Financial Position Analysis

Short Term Liabilities: 9A1's short term assets ($7.0B) exceed its short term liabilities ($126.0M).

Long Term Liabilities: 9A1's short term assets ($7.0B) exceed its long term liabilities ($4.5B).


Debt to Equity History and Analysis

Debt Level: 9A1's debt to equity ratio (189.1%) is considered high.

Reducing Debt: 9A1's debt to equity ratio has increased from 118.4% to 189.1% over the past 5 years.

Debt Coverage: 9A1's debt is not well covered by operating cash flow (4.8%).

Interest Coverage: Insufficient data to determine if 9A1's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Apollo Commercial Real Estate Finance current dividend yield, its reliability and sustainability?

14.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 9A1's dividend (14.8%) is higher than the bottom 25% of dividend payers in the German market (1.17%).

High Dividend: 9A1's dividend (14.8%) is in the top 25% of dividend payers in the German market (3.61%)


Stability and Growth of Payments

Stable Dividend: 9A1's dividend payments have been volatile in the past 10 years.

Growing Dividend: 9A1's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (1586.8%), 9A1's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 9A1's dividends in 3 years are not forecast to be well covered by earnings (105.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.6yrs

Average board tenure


CEO

Stuart Rothstein (54 yo)

8.5yrs

Tenure

US$2,139,860

Compensation

Mr. Stuart A. Rothstein is the Chief Operating Officer of Real Assets and Partner at Apollo Global Management, Inc. since 2009. Mr. Rothstein is responsible for managing the day-to-day operations of Apollo ...


CEO Compensation Analysis

Compensation vs Market: Stuart's total compensation ($USD2.14M) is above average for companies of similar size in the German market ($USD1.55M).

Compensation vs Earnings: Stuart's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Stuart Rothstein
President8.5yrsUS$2.14m0.043%
$ 507.9k
Mark Biderman
Independent Director9.83yrsUS$197.50k0.046%
$ 549.0k
Michael Salvati
Independent Chairman of the Board1.25yrsUS$211.02k0.073%
$ 858.7k
Eric Press
Director11.25yrsno data0.21%
$ 2.5m
Robert Kasdin
Independent Director6.42yrsUS$181.86k0.051%
$ 606.7k
Scott Prince
Independent Director6.83yrsUS$195.93k0.035%
$ 416.2k
Brenna Haysom
Independent Director0.58yrno datano data
Katherine Newman
Director0.67yrno data0.0014%
$ 15.9k

6.6yrs

Average Tenure

55yo

Average Age

Experienced Board: 9A1's board of directors are considered experienced (6.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Apollo Commercial Real Estate Finance, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Apollo Commercial Real Estate Finance, Inc.
  • Ticker: 9A1
  • Exchange: DB
  • Founded: 2009
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$1.397b
  • Listing Market Cap: US$1.181b
  • Shares outstanding: 147.66m
  • Website: https://www.apolloreit.com

Location

  • Apollo Commercial Real Estate Finance, Inc.
  • 9 West 57th Street
  • 43rd Floor
  • New York
  • New York
  • 10019
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARINYSE (New York Stock Exchange)YesCommon StockUSUSDSep 2009
9A1DB (Deutsche Boerse AG)YesCommon StockDEEURSep 2009

Biography

Apollo Commercial Real Estate Finance, Inc. operates as a real estate investment trust (REIT) that primarily originates, acquires, invests in, and manages commercial first mortgage loans, subordinate finan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 05:33
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.