Apollo Global Management, Inc. Fundamental Analysis
Apollo Global Management, Inc. (APO) shows moderate financial fundamentals with a PE ratio of 35.38, profit margin of 7.24%, and ROE of 10.03%. The company generates $28.8B in annual revenue with strong year-over-year growth of 16.03%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze APO's fundamental strength across five key dimensions:
Efficiency Score
WeakAPO struggles to generate sufficient returns from assets.
Valuation Score
ModerateAPO shows balanced valuation metrics.
Growth Score
ModerateAPO shows steady but slowing expansion.
Financial Health Score
ModerateAPO shows balanced financial health with some risks.
Profitability Score
WeakAPO struggles to sustain strong margins.
Key Financial Metrics
Is APO Expensive or Cheap?
P/E Ratio
APO trades at 35.38 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, APO's PEG of -0.86 indicates potential undervaluation.
Price to Book
The market values Apollo Global Management, Inc. at 3.81 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.94 times EBITDA. This is generally considered low.
How Well Does APO Make Money?
Net Profit Margin
For every $100 in sales, Apollo Global Management, Inc. keeps $7.24 as profit after all expenses.
Operating Margin
Core operations generate 31.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.03 in profit for every $100 of shareholder equity.
ROA
Apollo Global Management, Inc. generates $0.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Apollo Global Management, Inc. produces operating cash flow of $5.82B, showing steady but balanced cash generation.
Free Cash Flow
Apollo Global Management, Inc. generates strong free cash flow of $5.82B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.09 in free cash annually.
FCF Yield
APO converts 8.17% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.86
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.71
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How APO Stacks Against Its Sector Peers
| Metric | APO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.38 | 19.29 | Worse (Expensive) |
| ROE | 10.03% | 802.00% | Weak |
| Net Margin | 7.24% | -9682.00% (disorted) | Weak |
| Debt/Equity | 0.71 | 1.06 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 612.66 | Weak Liquidity |
| ROA | 0.46% | -23949.00% (disorted) | Weak |
APO outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Apollo Global Management, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
381.75%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
968.25%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
272.55%
Industry Style: Value, Dividend, Cyclical
High Growth