Apollo Commercial Real Estate Finance Inc
NYSE:ARI
Intrinsic Value
Apollo Commercial Real Estate Finance, Inc. is a real estate investment trust, which originates, acquires, invests in, and manages performing commercial real estate mortgage loans, subordinate financi... [ Read More ]
The intrinsic value of one
ARI
stock under the Base Case scenario is
25.63
USD.
Compared to the current market price of 10.74 USD,
Apollo Commercial Real Estate Finance Inc
is
Undervalued by 58%.
ARI 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.
Apollo Commercial Real Estate Finance Inc's market capitalization is 1.5B USD.
ARI stock price is 10.74 USD.
ARI stock price (10.74 USD) is 58% less than its Intrinsic Value (25.63 USD).
ARI stock price (10.74 USD) is 71% less than its Relative Value (37.58 USD). Open Relative Valuation
ARI's ROIC (Return on Invested Capital) has decreased in the last 3 years from 3% to 2%.
ARI's ROE (Return on Equity) has decreased in the last 3 years from 8% to 2%.
ARI has positive three-year average ROE (Return on Equity): 7%. The company is efficient at transforming stockholders' equity into net income.
ARI's long-term assets (9B USD) exceed its long-term liabilties (7B USD).
ARI's ROIC (Return on Invested Capital) for the past 12 months is very low and is equal to 2%.
ARI's ROE (Return on Equity) for the past 12 months is very low and is equal to 2%.
ARI's Revenue has grown by an exceptional 41% over the past 12 months.
ARI has a very low three-year average ROIC (Return on Invested Capital): 2%. The company is not efficient at using invested capital to generate operating income.
ARI's Revenue has been growing by an exceptional 24% per year for the last 3 years.
ARI has positive Net Income for the last twelve months.
ARI has positive Operating Income for the last twelve months.
ARI has positive Gross Profit for the last twelve months.
ARI's short-term assets (298m USD) exceed its short-term liabilties (100m USD).
ARI has positive Free Cash Flow for the last twelve months.
ARI's D/E (Debt to Equity) is very high and is equal to 3.15.
ARI has positive Net Debt. This means that the company has more debt (7B USD) than cash and short-term investments (225m USD).
ARI's Altman Z-Score is very low and is equal to 0.22.
ARI doesn't generate enough operating income (196m USD) to safely cover interest payments on its debt (444m USD).
Valuation Backtest
Apollo Commercial Real Estate Finance Inc
Run backtest to discover the historical profit from buying and selling
ARI
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Apollo Commercial Real Estate Finance Inc
Balance Sheet Decomposition
Apollo Commercial Real Estate Finance Inc
| Current Assets | 297.8m |
| Cash & Short-Term Investments | 225.4m |
| Receivables | 72.4m |
| Non-Current Assets | 9B |
| Long-Term Investments | 439m |
| PP&E | 519.5m |
| Other Non-Current Assets | 8B |
| Current Liabilities | 100.1m |
| Accounts Payable | 6.1m |
| Accrued Liabilities | 31m |
| Other Current Liabilities | 63m |
| Non-Current Liabilities | 7B |
| Long-Term Debt | 7B |
| Other Non-Current Liabilities | 33.1m |
Earnings Waterfall
Apollo Commercial Real Estate Finance Inc
|
Revenue
|
810.7m
USD
|
|
Cost of Revenue
|
-466.1m
USD
|
|
Gross Profit
|
344.6m
USD
|
|
Operating Expenses
|
-148.5m
USD
|
|
Operating Income
|
196.1m
USD
|
|
Other Expenses
|
-154.6m
USD
|
|
Net Income
|
41.5m
USD
|
Free Cash Flow Analysis
Apollo Commercial Real Estate Finance Inc
ARI Profitability Score
Profitability Due Diligence
Apollo Commercial Real Estate Finance Inc's profitability score is 62/100. The higher the profitability score, the more profitable the company is.
Score
Apollo Commercial Real Estate Finance Inc's profitability score is 62/100. The higher the profitability score, the more profitable the company is.
ARI Solvency Score
Solvency Due Diligence
Apollo Commercial Real Estate Finance Inc's solvency score is 23/100. The higher the solvency score, the more solvent the company is.
Score
Apollo Commercial Real Estate Finance Inc's solvency score is 23/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
ARI Price Targets Summary
Apollo Commercial Real Estate Finance Inc
According to Wall Street analysts, the average 1-year price target for
ARI
is 11.05 USD
with a low forecast of 10.61 USD and a high forecast of 11.55 USD.
Ownership
ARI Insider Trading
Buy and sell transactions by insiders
| Period | Sold | Bought | Net |
|---|---|---|---|
| 3 Months |
|
|
|
| 6 Months |
|
|
|
| 9 Months |
|
|
|
| 12 Months |
|
|
|
Shareholder Return
ARI Price
Apollo Commercial Real Estate Finance Inc
| Average Annual Return | 0.65% |
| Standard Deviation of Annual Returns | 27.76% |
| Max Drawdown | -77% |
| Market Capitalization | 1.5B USD |
| Shares Outstanding | 142 100 000 |
| Percentage of Shares Shorted | 3.21% |
Company Profile
Apollo Commercial Real Estate Finance Inc
Country
Industry
Market Cap
Dividend Yield
Description
Apollo Commercial Real Estate Finance, Inc. is a real estate investment trust, which originates, acquires, invests in, and manages performing commercial real estate mortgage loans, subordinate financings, and other commercial real estate-related debt investments. The company is headquartered in New York City, New York and currently employs 0 full-time employees. The company went IPO on 2009-09-24. The firm primarily originates, acquires, invests in senior mortgages and mezzanine loans and other commercial real estate-related debt investments collateralized by properties throughout the United States and Europe. Its principal business objective is to acquire its target assets in order to provide risk adjusted returns to its stockholders over the long term, primarily through dividends and secondarily through capital appreciation. Its investment strategy is to identify opportunities within its target assets through its manager and its affiliates as well as their platform, which integrates real estate experience with private equity and capital markets in transaction sourcing, underwriting, execution, asset operation, management and disposition. The firm is externally managed and advised by ACREFI Management, LLC.
Contact
IPO
Employees
Officers
The intrinsic value of one
ARI
stock under the Base Case scenario is
25.63
USD.
Compared to the current market price of 10.74 USD,
Apollo Commercial Real Estate Finance Inc
is
Undervalued by 58%.
You don't have any saved screeners yet
