NYSE:APLE

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$3.7b

Last Updated

2021/06/12 12:12 UTC

Data Sources

Company Financials +

Executive Summary

Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (“REIT”) that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United States. More Details


Snowflake Analysis

High growth potential and fair value.


Similar Companies

Share Price & News

How has Apple Hospitality REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: APLE is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: APLE's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.9%

APLE

2.7%

US REITs

0.7%

US Market


1 Year Return

45.6%

APLE

30.3%

US REITs

44.2%

US Market

Return vs Industry: APLE exceeded the US REITs industry which returned 30.3% over the past year.

Return vs Market: APLE exceeded the US Market which returned 44.2% over the past year.


Shareholder returns

APLEIndustryMarket
7 Day1.9%2.7%0.7%
30 Day8.7%11.1%5.6%
90 Day9.4%15.1%5.0%
1 Year45.7%45.6%35.5%30.3%46.5%44.2%
3 Year0.6%-11.8%50.0%32.3%60.2%50.3%
5 Year15.3%-11.0%60.3%28.4%128.1%102.6%

Long-Term Price Volatility Vs. Market

How volatile is Apple Hospitality REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Apple Hospitality REIT undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: APLE ($16.37) is trading below our estimate of fair value ($69.13)

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


Price To Earnings Ratio

PE vs Industry: APLE is unprofitable, so we can't compare its PE Ratio to the US REITs industry average.

PE vs Market: APLE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate APLE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: APLE is good value based on its PB Ratio (1.2x) compared to the US REITs industry average (2x).


Future Growth

How is Apple Hospitality REIT forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

90.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APLE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: APLE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: APLE's is expected to become profitable in the next 3 years.

Revenue vs Market: APLE's revenue (25.2% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: APLE's revenue (25.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if APLE's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Apple Hospitality REIT performed over the past 5 years?

-28.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APLE is currently unprofitable.

Growing Profit Margin: APLE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: APLE is unprofitable, and losses have increased over the past 5 years at a rate of 28.4% per year.

Accelerating Growth: Unable to compare APLE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: APLE is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (-10.7%).


Return on Equity

High ROE: APLE has a negative Return on Equity (-7.22%), as it is currently unprofitable.


Financial Health

How is Apple Hospitality REIT's financial position?


Financial Position Analysis

Short Term Liabilities: APLE's short term assets ($80.1M) exceed its short term liabilities ($53.4M).

Long Term Liabilities: APLE's short term assets ($80.1M) do not cover its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: APLE's debt to equity ratio (51.3%) is considered high.

Reducing Debt: APLE's debt to equity ratio has increased from 39.2% to 51.3% over the past 5 years.

Debt Coverage: APLE's operating cash flow is negative, therefore debt is not well covered.

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


Balance Sheet


Dividend

What is Apple Hospitality REIT current dividend yield, its reliability and sustainability?

0.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: APLE's dividend (0.24%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.26%).

High Dividend: APLE's dividend (0.24%) is low compared to the top 25% of dividend payers in the US market (3.35%).


Stability and Growth of Payments

Stable Dividend: APLE is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: APLE is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: APLE is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of APLE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Justin Knight (47 yo)

7.08yrs

Tenure

US$3,914,027

Compensation

Mr. Justin G. Knight has been a Director at Apple Hospitality REIT, Inc. since 2015. He served as the President of Apple REIT Ten, Inc., Apple Suites, Inc. and Apple Nine Hospitality Ownership, Inc. Mr. Kn...


CEO Compensation Analysis

Compensation vs Market: Justin's total compensation ($USD3.91M) is about average for companies of similar size in the US market ($USD5.21M).

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


Leadership Team

Experienced Management: APLE's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: APLE's board of directors are considered experienced (6.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: APLE 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

Apple Hospitality REIT, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Apple Hospitality REIT, Inc.
  • Ticker: APLE
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Market Cap: US$3.661b
  • Shares outstanding: 223.66m
  • Website: https://www.applehospitalityreit.com

Number of Employees


Location

  • Apple Hospitality REIT, Inc.
  • 814 East Main Street
  • Richmond
  • Virginia
  • 23219
  • United States

Listings


Biography

Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (“REIT”) that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/12 12:12
End of Day Share Price2021/06/11 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.