NYSE:APLE

Stock Analysis Report

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.

Rewards

Trading at 46.9% below its fair value

Earnings have grown 19.4% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of -1.3% per year for the next 3 years

Unstable dividend track record



Snowflake Analysis

Good value average dividend payer.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

APLE

-0.4%

US REITs

0.03%

US Market


1 Year Return

3.7%

APLE

12.2%

US REITs

18.6%

US Market

Return vs Industry: APLE underperformed the US REITs industry which returned 12.2% over the past year.

Return vs Market: APLE underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

APLEIndustryMarket
7 Day0%-0.4%0.03%
30 Day-2.1%1.2%1.7%
90 Day-2.8%-0.3%5.7%
1 Year11.8%3.7%17.0%12.2%21.1%18.6%
3 Year-0.2%-18.8%35.2%18.3%45.6%36.2%
5 Yearn/a56.0%23.8%71.1%52.3%

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?

46.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: APLE ($16.03) is trading below our estimate of fair value ($30.2)

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


Price To Earnings Ratio

PE vs Industry: APLE is good value based on its PE Ratio (20x) compared to the REITs industry average (38.8x).

PE vs Market: APLE is poor value based on its PE Ratio (20x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: APLE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: APLE is good value based on its PB Ratio (1.1x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Apple Hospitality REIT forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APLE's earnings are forecast to decline over the next 3 years (-1.3% per year).

Earnings vs Market: APLE's earnings are forecast to decline over the next 3 years (-1.3% per year).

High Growth Earnings: APLE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: APLE's revenue (0.08% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: APLE's revenue (0.08% per year) is forecast to grow slower 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


Next Steps

Past Performance

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

19.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APLE has high quality earnings.

Growing Profit Margin: APLE's current net profit margins (14.2%) are higher than last year (13.4%).


Past Earnings Growth Analysis

Earnings Trend: APLE's earnings have grown by 19.4% per year over the past 5 years.

Accelerating Growth: APLE's earnings growth over the past year (6.5%) is below its 5-year average (19.4% per year).

Earnings vs Industry: APLE earnings growth over the past year (6.5%) underperformed the REITs industry 8.3%.


Return on Equity

High ROE: APLE's Return on Equity (5.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Apple Hospitality REIT's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: APLE has a high level of physical assets or inventory.

Debt Coverage by Assets: APLE's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: APLE's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if APLE has a sufficient allowance for bad loans.

Low Risk Liabilities: APLE reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if APLE has an acceptable proportion of non-loan assets held.

Low Risk Deposits: APLE has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if APLE has an appropriate level of bad loans.


Next Steps

Dividend

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

7.49%

Current Dividend Yield


Dividend Yield vs Market

company7.5%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years7.5%

Current dividend yield vs market & industry

Notable Dividend: APLE's dividend (7.49%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: APLE's dividend (7.49%) is in the top 25% of dividend payers in the US market (3.7%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, APLE has been paying a dividend for less than 10 years.

Growing Dividend: APLE has only been paying a dividend for 4 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.5%), APLE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: APLE's dividends in 3 years are forecast to be thoroughly covered by earnings (0.3% payout ratio).


Next Steps

Management

What is the CEO of Apple Hospitality REIT's salary, the management and board of directors tenure and is there insider trading?

5.6yrs

Average management tenure


CEO

Justin Knight (46yo)

5.6yrs

Tenure

US$3,081,399

Compensation

Mr. Justin G. Knight serves as the President of Apple REIT Ten, Inc., Apple Suites, Inc. and Apple Nine Hospitality Ownership, Inc. Mr. Knight serves as the Chief Operating Officer and Senior Vice Presiden ...


CEO Compensation Analysis

Compensation vs Market: Justin's total compensation ($USD3.08M) is below average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

5.6yrs

Average Tenure

50yo

Average Age

Experienced Management: APLE's management team is seasoned and experienced (5.6 years average tenure).


Board Age and Tenure

4.9yrs

Average Tenure

63yo

Average Age

Experienced Board: APLE's board of directors are considered experienced (4.9 years average tenure).


Insider Trading

Insider Buying: APLE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$16,11718 Nov 19
L. Redd
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$16.12
BuyUS$16,05015 Nov 19
L. Redd
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$16.05
BuyUS$81,29708 Nov 19
Glade Knight
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares5,000
Max PriceUS$16.26
BuyUS$31,09314 Aug 19
L. Redd
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$15.55
BuyUS$76,94613 Aug 19
Glade Knight
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares5,000
Max PriceUS$15.39
BuyUS$31,76612 Jun 19
L. Redd
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$15.90
BuyUS$82,08520 May 19
Glade Knight
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares5,000
Max PriceUS$16.42
BuyUS$16,38011 Mar 19
L. Redd
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$16.38
BuyUS$82,70004 Mar 19
Glade Knight
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares5,000
Max PriceUS$16.54
BuyUS$394,59604 Mar 19
Daryl Nickel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares24,000
Max PriceUS$16.44

Ownership Breakdown

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


Management Team

  • Glade Knight (75yo)

    Executive Chairman

    • Tenure: 11.9yrs
    • Compensation: US$891.00k
  • Justin Knight (46yo)

    President

    • Tenure: 5.6yrs
    • Compensation: US$3.08m
  • David McKenney (56yo)

    Senior Advisor

    • Tenure: 5.5yrs
    • Compensation: US$104.80k
  • Krissy Gathright (46yo)

    Executive VP

    • Tenure: 0.8yrs
    • Compensation: US$1.72m
  • Bryan Peery (54yo)

    Executive VP & Chief Accounting Officer

    • Tenure: 0.4yrs
    • Compensation: US$1.73m
  • Rachael Rothman-Ould

    Executive VP & CFO

    • Tenure: 0.4yrs
  • Nelson Knight (37yo)

    Executive VP & Chief Investment Officer

    • Tenure: 5.6yrs
    • Compensation: US$1.16m
  • Kelly Clarke

    Vice President of Investor Relations

    • Tenure: 9.5yrs
  • Matthew Rash

    Secretary

    • Tenure: 0yrs

Board Members

  • Glade Knight (75yo)

    Executive Chairman

    • Tenure: 11.9yrs
    • Compensation: US$891.00k
  • Glenn Bunting (74yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$169.43k
  • Blythe McGarvie (63yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$132.99k
  • Jon Fosheim (69yo)

    Lead Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$169.53k
  • Bruce Matson (61yo)

    Independent Director

    • Tenure: 11.7yrs
    • Compensation: US$170.17k
  • Justin Knight (46yo)

    President

    • Tenure: 5.6yrs
    • Compensation: US$3.08m
  • Krissy Gathright (46yo)

    Executive VP

    • Tenure: 0.8yrs
    • Compensation: US$1.72m
  • Daryl Nickel (74yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$160.76k
  • L. Redd (61yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$178.47k

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$3.579b
  • Shares outstanding: 223.86m
  • Website: https://www.applehospitalityreit.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APLENYSE (New York Stock Exchange)YesCommon SharesUSUSDMay 2015

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 Analysis2019/12/09 00:18
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.