NYSE:APLE

Stock Analysis Report

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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 not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: APLE's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

4.7%

APLE

0.07%

US REITs

2.8%

US Market


1 Year Return

-17.8%

APLE

-8.6%

US REITs

20.9%

US Market

Return vs Industry: APLE underperformed the US REITs industry which returned -8.7% over the past year.

Return vs Market: APLE underperformed the US Market which returned 20.7% over the past year.


Shareholder returns

APLEIndustryMarket
7 Day4.7%0.07%2.8%
30 Day32.2%9.6%11.1%
90 Day25.1%2.1%6.5%
1 Year-15.6%-17.8%-4.8%-8.6%23.6%20.9%
3 Year-18.7%-30.9%17.8%3.8%47.3%37.6%
5 Year-11.7%-33.9%47.6%17.9%94.3%72.9%

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 ($13.37) is trading below our estimate of fair value ($59.96)

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 (1x) compared to the US REITs industry average (1.6x).


Next Steps

Future Growth

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

111.0%

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 (2.2%).

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 (23.9% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: APLE's revenue (23.9% 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


Next Steps

Past Performance

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

-7.2%

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 7.2% 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 (2%).


Return on Equity

High ROE: APLE has a negative Return on Equity (-3.14%), as it is currently unprofitable.


Next Steps

Financial Health

How is Apple Hospitality REIT's financial position?


Financial Position Analysis

Short Term Liabilities: APLE's short term assets ($85.9M) exceed its short term liabilities ($65.5M).

Long Term Liabilities: APLE's short term assets ($85.9M) do not cover its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: APLE's debt to equity ratio (50.3%) is considered high.

Reducing Debt: APLE's debt to equity ratio has increased from 35.8% to 50.3% over the past 5 years.

Debt Coverage: APLE's debt is not well covered by operating cash flow (7.5%).

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


Balance Sheet


Next Steps

Dividend

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

2.70%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate APLE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate APLE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if APLE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if APLE's dividend payments have been 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?

1.8yrs

Average management tenure


CEO

Justin Knight (47 yo)

6.5yrs

Tenure

US$4,588,609

Compensation

Mr. Justin G. Knight served 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 ($USD4.59M) is about average for companies of similar size in the US market ($USD5.14M).

Compensation vs Earnings: Justin's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Glade Knight
Executive Chairman12.83yrsUS$1.19m4.7%
$ 140.3m
Justin Knight
CEO & Director6.5yrsUS$4.59m0.76%
$ 22.7m
Nelson Knight
President of Real Estate & Investments6.5yrsUS$1.64m0.31%
$ 9.2m
Kristian Gathright
Executive Director1.67yrsUS$2.37m0.48%
$ 14.4m
Bryan Peery
0.67yrUS$2.37m0.20%
$ 6.1m
Elizabeth Perkins
Senior VP & CFO0.58yrno data0.033%
$ 989.3k
Karen Gallagher
Senior VP & COO0.58yrno data0.042%
$ 1.3m
Rachel Labrecque
Senior VP & Chief Accounting Officer1.83yrsno data0.028%
$ 848.4k
Kelly Clarke
Vice President of Investor Relations10.42yrsno datano data
Matthew Rash
Senior VP & Chief Legal Officer1.67yrsno data0.026%
$ 784.5k
Jeanette Clarke
Senior VP & Chief Capital Investment Officer1.67yrsno data0.020%
$ 603.3k
David McKenney
Senior Advisor6.42yrsUS$104.80kno data

1.8yrs

Average Tenure

42yo

Average Age

Experienced Management: APLE's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Glade Knight
Executive Chairman12.83yrsUS$1.19m4.7%
$ 140.3m
Justin Knight
CEO & Director6.5yrsUS$4.59m0.76%
$ 22.7m
Kristian Gathright
Executive Director1.67yrsUS$2.37m0.48%
$ 14.4m
Glenn Bunting
Independent Director6.67yrsUS$175.02k0.017%
$ 513.4k
Blythe McGarvie
Independent Director2.67yrsUS$165.70k0.013%
$ 387.8k
Jon Fosheim
Lead Independent Director3.67yrsUS$185.93k0.011%
$ 331.6k
Daryl Nickel
Independent Director5.83yrsUS$175.83k0.019%
$ 570.1k
L. Redd
Independent Director5.83yrsUS$190.57k0.046%
$ 1.4m

5.8yrs

Average Tenure

67yo

Average Age

Experienced Board: APLE's board of directors are considered experienced (5.8 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$2.985b
  • Shares outstanding: 223.27m
  • 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
48TDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 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 Analysis2020/11/29 00:03
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
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.