Ares Commercial Real Estate Corp
NYSE:ACRE
Intrinsic Value
Ares Commercial Real Estate Corp. engages in originating and investing in commercial real estate loans and related investments. [ Read More ]
The intrinsic value of one
ACRE
stock under the Base Case scenario is
29.14
USD.
Compared to the current market price of 6.41 USD,
Ares Commercial Real Estate Corp
is
Undervalued by 78%.
ACRE could be a value trap.A value trap occurs when a stock looks inexpensive based on fundamental analysis but fails to reach its intrinsic valuation over time, often due to underlying issues not reflected in quantitative data.
Scrutinize beyond numbers; assess long-term potential.
Ares Commercial Real Estate Corp's market capitalization is 347.1m USD.
ACRE stock price is 6.41 USD.
ACRE stock price (6.41 USD) is 78% less than its Intrinsic Value (29.14 USD).
ACRE stock price (6.41 USD) is 87% less than its Relative Value (47.81 USD). Open Relative Valuation
ACRE has upside potential of 19% compared to the average analyst price target.
Open Wall St Estimates
ACRE's ROIC (Return on Invested Capital) has decreased in the last 3 years from 3% to -2%.
ACRE's Revenue has grown by 17% over the past 12 months.
ACRE's long-term assets (2B USD) exceed its long-term liabilties (2B USD).
ACRE has positive three-year average ROE (Return on Equity): 5%. The company is efficient at transforming stockholders' equity into net income.
ACRE's ROIC (Return on Invested Capital) for the past 12 months is negative and is equal to -2%.
ACRE has negative Operating Income for the last twelve months.
ACRE has negative Net Income for the last twelve months.
ACRE's Revenue has been growing by 15% per year for the last 3 years.
ACRE's ROE (Return on Equity) for the past 12 months is negative and is equal to -6%.
ACRE's ROE (Return on Equity) has significantly decreased in the last 3 years from 11% to -6%.
ACRE has a very low three-year average ROIC (Return on Invested Capital): 1%. The company is not efficient at using invested capital to generate operating income.
ACRE has positive Gross Profit for the last twelve months.
ACRE's Revenue is forecast to fall at a rate of 27% per year over the next 3 years.
ACRE's D/E (Debt to Equity) is very high and is equal to 2.58.
ACRE has positive Free Cash Flow for the last twelve months.
ACRE has positive Net Debt. This means that the company has more debt (2B USD) than cash and short-term investments (110m USD).
ACRE's short-term assets (110m USD) exceed its short-term liabilties (22m USD).
ACRE's Altman Z-Score is very low and is equal to 0.11.
ACRE doesn't generate enough operating income (-39m USD) to safely cover interest payments on its debt (104m USD).
Valuation Backtest
Ares Commercial Real Estate Corp
Run backtest to discover the historical profit from buying and selling
ACRE
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Ares Commercial Real Estate Corp
Balance Sheet Decomposition
Ares Commercial Real Estate Corp
| Current Assets | 110.5m |
| Cash & Short-Term Investments | 110.5m |
| Non-Current Assets | 2.2B |
| Long-Term Investments | 28.1m |
| PP&E | 83.3m |
| Other Non-Current Assets | 2.1B |
| Current Liabilities | 22.4m |
| Other Current Liabilities | 22.4m |
| Non-Current Liabilities | 1.6B |
| Long-Term Debt | 1.6B |
| Other Non-Current Liabilities | 14.6m |
Earnings Waterfall
Ares Commercial Real Estate Corp
|
Revenue
|
202.6m
USD
|
|
Cost of Revenue
|
-121.9m
USD
|
|
Gross Profit
|
80.7m
USD
|
|
Operating Expenses
|
-119.6m
USD
|
|
Operating Income
|
-38.9m
USD
|
|
Other Expenses
|
39k
USD
|
|
Net Income
|
-38.9m
USD
|
Free Cash Flow Analysis
Ares Commercial Real Estate Corp
What is Free Cash Flow?
ACRE Profitability Score
Profitability Due Diligence
Ares Commercial Real Estate Corp's profitability score is 50/100. The higher the profitability score, the more profitable the company is.
Score
Ares Commercial Real Estate Corp's profitability score is 50/100. The higher the profitability score, the more profitable the company is.
ACRE Solvency Score
Solvency Due Diligence
Ares Commercial Real Estate Corp's solvency score is 27/100. The higher the solvency score, the more solvent the company is.
Score
Ares Commercial Real Estate Corp's solvency score is 27/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
ACRE Price Targets Summary
Ares Commercial Real Estate Corp
According to Wall Street analysts, the average 1-year price target for
ACRE
is 7.65 USD
with a low forecast of 7.07 USD and a high forecast of 8.4 USD.
Ownership
ACRE Insider Trading
Buy and sell transactions by insiders
| Period | Sold | Bought | Net |
|---|---|---|---|
| 3 Months |
|
|
|
| 6 Months |
|
|
|
| 9 Months |
|
|
|
| 12 Months |
|
|
|
Shareholder Return
ACRE Price
Ares Commercial Real Estate Corp
| Average Annual Return | 3.17% |
| Standard Deviation of Annual Returns | 28.5% |
| Max Drawdown | -76% |
| Market Capitalization | 347.1m USD |
| Shares Outstanding | 54 422 600 |
| Percentage of Shares Shorted | 3.35% |
Company Profile
Ares Commercial Real Estate Corp
Country
Industry
Market Cap
Dividend Yield
Description
Ares Commercial Real Estate Corp. engages in originating and investing in commercial real estate loans and related investments. The company is headquartered in New York City, New York and currently employs 2,100 full-time employees. The company went IPO on 2012-04-26. The firm is primarily engaged in originating and investing in commercial real estate loans and related investments. The firm operates through an operating segment primarily focused on directly originating and managing a diversified portfolio of commercial real estate (CRE) debt-related investments for the Company’s own account. The Company’s investments include senior mortgage loans, subordinated debt, preferred equity, mezzanine loans and other CRE investments, including commercial mortgage-backed securities. These investments are generally held for investment and are secured, directly or indirectly, by office, multifamily, retail, industrial, lodging, self-storage, student housing, residential and other commercial real estate properties, or by ownership interests therein. The Company’s portfolio is externally managed by Ares Commercial Real Estate Management LLC (the Manager).
Contact
IPO
Employees
Officers
The intrinsic value of one
ACRE
stock under the Base Case scenario is
29.14
USD.
Compared to the current market price of 6.41 USD,
Ares Commercial Real Estate Corp
is
Undervalued by 78%.
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