Apollo Commercial Real Estate Finance, Inc. More Details
Reasonable growth potential and slightly overvalued.
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: ARI has not had significant price volatility in the past 3 months.
7 Day Return
US Mortgage REITs
1 Year Return
US Mortgage REITs
Return vs Industry: ARI underperformed the US Mortgage REITs industry which returned -38.5% over the past year.
Return vs Market: ARI underperformed the US Market which returned 18.5% over the past year.
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
3 days ago | Simply Wall StShould You Take Comfort From Insider Transactions At Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI)?
1 month ago | Simply Wall StApollo Commercial Real Estate Finance's (NYSE:ARI) Stock Price Has Reduced 55% In The Past Year
2 months ago | Simply Wall StWhat Kind Of Shareholders Own Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI)?
Is Apollo Commercial Real Estate Finance undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ARI ($8.89) is trading below our estimate of fair value ($10.44)
Significantly Below Fair Value: ARI is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: ARI is poor value based on its PE Ratio (84.5x) compared to the US Mortgage REITs industry average (18.6x).
PE vs Market: ARI is poor value based on its PE Ratio (84.5x) compared to the US market (19x).
Price to Earnings Growth Ratio
PEG Ratio: ARI is poor value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: ARI is good value based on its PB Ratio (0.6x) compared to the US Mortgage REITs industry average (0.8x).
How is Apollo Commercial Real Estate Finance forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ARI's forecast earnings growth (84.2% per year) is above the savings rate (2.2%).
Earnings vs Market: ARI's earnings (84.2% per year) are forecast to grow faster than the US market (22.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ARI's revenue (16.8% per year) is forecast to grow faster than the US market (10.1% per year).
High Growth Revenue: ARI's revenue (16.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ARI's Return on Equity is forecast to be low in 3 years time (8.7%).
How has Apollo Commercial Real Estate Finance performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ARI has a large one-off loss of $16.4M impacting its June 30 2020 financial results.
Growing Profit Margin: ARI's current net profit margins (20.7%) are lower than last year (69.5%).
Past Earnings Growth Analysis
Earnings Trend: ARI's earnings have grown by 8.4% per year over the past 5 years.
Accelerating Growth: ARI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ARI had negative earnings growth (-92.5%) over the past year, making it difficult to compare to the Mortgage REITs industry average (-36.7%).
Return on Equity
High ROE: ARI's Return on Equity (1.4%) is considered low.
How is Apollo Commercial Real Estate Finance's financial position?
Financial Position Analysis
Short Term Liabilities: ARI's short term assets ($7.0B) exceed its short term liabilities ($126.0M).
Long Term Liabilities: ARI's short term assets ($7.0B) exceed its long term liabilities ($4.5B).
Debt to Equity History and Analysis
Debt Level: ARI's debt to equity ratio (189.1%) is considered high.
Reducing Debt: ARI's debt to equity ratio has increased from 118.4% to 189.1% over the past 5 years.
Debt Coverage: ARI's debt is not well covered by operating cash flow (4.8%).
Interest Coverage: Insufficient data to determine if ARI's interest payments on its debt are well covered by EBIT.
What is Apollo Commercial Real Estate Finance current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ARI's dividend (15.75%) is higher than the bottom 25% of dividend payers in the US market (1.64%).
High Dividend: ARI's dividend (15.75%) is in the top 25% of dividend payers in the US market (4.68%)
Stability and Growth of Payments
Stable Dividend: ARI's dividend payments have been volatile in the past 10 years.
Growing Dividend: ARI's dividend payments have not increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (1586.8%), ARI's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ARI's dividends in 3 years are not forecast to be well covered by earnings (111.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Stuart Rothstein (54 yo)
Mr. Stuart A. Rothstein is the Chief Operating Officer of Real Assets and Partner at Apollo Global Management, Inc. since 2009. Mr. Rothstein is responsible for managing the day-to-day operations of Apollo ...
CEO Compensation Analysis
Compensation vs Market: Stuart's total compensation ($USD2.14M) is below average for companies of similar size in the US market ($USD4.48M).
Compensation vs Earnings: Stuart's compensation has been consistent with company performance over the past year.
|Independent Director||9.92yrs||US$197.50k||0.046% |
|Independent Chairman of the Board||1.33yrs||US$211.02k||0.073% |
|Director||11.33yrs||no data||0.21% |
|Independent Director||6.5yrs||US$181.86k||0.051% |
|Independent Director||6.92yrs||US$195.93k||0.035% |
|Independent Director||0.67yr||no data||no data|
|Director||0.75yr||no data||0.0014% |
Experienced Board: ARI's board of directors are considered experienced (6.7 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Apollo Commercial Real Estate Finance, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Apollo Commercial Real Estate Finance, Inc.
- Ticker: ARI
- Exchange: NYSE
- Founded: 2009
- Industry: Mortgage REITs
- Sector: Diversified Financials
- Market Cap: US$1.313b
- Shares outstanding: 147.66m
- Website: https://www.apolloreit.com
- Apollo Commercial Real Estate Finance, Inc.
- 9 West 57th Street
- 43rd Floor
- New York
- New York
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ARI||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Sep 2009|
|9A1||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Sep 2009|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/10/22 00:56|
|End of Day Share Price||2020/10/21 00:00|
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.