Apple Hospitality REIT, Inc.
Apple Hospitality REIT, Inc. Fundamental Analysis
Apple Hospitality REIT, Inc. (APLE) shows moderate financial fundamentals with a PE ratio of 16.60, profit margin of 12.37%, and ROE of 5.46%. The company generates $1.4B in annual revenue with moderate year-over-year growth of 6.52%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze APLE's fundamental strength across five key dimensions:
Efficiency Score
WeakAPLE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAPLE trades at attractive valuation levels.
Growth Score
ExcellentAPLE delivers strong and consistent growth momentum.
Financial Health Score
ExcellentAPLE maintains a strong and stable balance sheet.
Profitability Score
WeakAPLE struggles to sustain strong margins.
Key Financial Metrics
Is APLE Expensive or Cheap?
P/E Ratio
APLE trades at 16.60 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, APLE's PEG of -6.23 indicates potential undervaluation.
Price to Book
The market values Apple Hospitality REIT, Inc. at 0.91 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.13 times EBITDA. This is generally considered low.
How Well Does APLE Make Money?
Net Profit Margin
For every $100 in sales, Apple Hospitality REIT, Inc. keeps $12.37 as profit after all expenses.
Operating Margin
Core operations generate 18.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.46 in profit for every $100 of shareholder equity.
ROA
Apple Hospitality REIT, Inc. generates $3.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Apple Hospitality REIT, Inc. generates strong operating cash flow of $378.79M, reflecting robust business health.
Free Cash Flow
Apple Hospitality REIT, Inc. generates strong free cash flow of $358.07M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.51 in free cash annually.
FCF Yield
APLE converts 12.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-6.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.91
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.05
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.51
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How APLE Stacks Against Its Sector Peers
| Metric | APLE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.60 | 24.23 | Better (Cheaper) |
| ROE | 5.46% | 659.00% | Weak |
| Net Margin | 12.37% | 4497.00% | Weak |
| Debt/Equity | 0.51 | -22.14 (disorted) | Distorted |
| Current Ratio | 1.62 | 13.87 | Neutral |
| ROA | 3.57% | -1390.00% (disorted) | Weak |
APLE outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Apple Hospitality REIT, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
4.89%
Industry Style: Income, Inflation Hedge, REIT
GrowingEPS CAGR
15.56%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
-1.43%
Industry Style: Income, Inflation Hedge, REIT
Declining