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Fundamental analysis: Apple Hospitality REIT, Inc. (APLE)

Awarener score: 5.7

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Poor) and growth (Poor), and the company's inclination to return cash to the stockholders (Modest).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 3.0

  • Business has been shrinking. It's been substantially worse when measured against peer companies.
  • Apple Hospitality REIT, Inc. business varies, ups and downs are rather normal. Risk is sufficient. It looks better than most rivals.

Margins score: 6.8

  • APLE profit margins -on goods and services sold- are usually sufficient. They stand slightly worse than rival companies.
  • Business profit on sales tends to be very good. It's top tier when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually very good. They remain excellent in relation to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be good in relation to total revenues. They're still top-notch against similar companies.
  • Profits -before income taxes- are usually sufficient considering total sales, and remain top tier when measured against rivals.
  • Total net profit tends to be sufficient when confronted to sales. Company stands top tier when measured against comparable firms.

Growth score: 2.7

  • Apple Hospitality REIT, Inc. profit -on goods and services sold- has been growing at a very good pace. It's been in a weak position compared to competitors.
  • In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a normal pace, which compares below average when measured against peer enterprises.
  • In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
  • In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
  • In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
  • The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 9.0

  • APLE managed to pay no income taxes on profits made in the past years, sometimes even got a credit. It's been somewhat worse than peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 5.5

  • Apple Hospitality REIT, Inc. usually gets sufficient returns on the resources it controls. It proves great when measured against peer firms.
  • The company normally gets hardly sufficient proceeds -on the resources directly invested in the business-. They remain in good shape compared to similar companies.
  • Profitability -in relation to owned resources- is usually modest. It ranks great when measured against competitors.
  • In the past, got sufficient returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's great when measured against comparable enterprises.

Usage of Funds score: 5.2

  • APLE usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. It stands great when measured against rival firms.
  • The company is usually sparsely replacing property, plant, and equipment that gets old, instead using funds in something else. It can't keep forever, which is below average when measured against industry peers.
  • In the past twelve months it paid low dividends, considering the current stock price. It came mediocre against competitors.
  • Has greatly increased dividend payments in the past years. Business prospects are most likely good. The company has behaved excellent in relation to similar firms.
  • The company usually uses a large portion of genuine funds generated to pay dividends. There could be some concerns on sustainability if business takes a dive. Sustainability looks somewhat better than comparable companies.
  • The company usually neither enlarges nor reduces the pool of investors, resulting in approximately the same mouths feeding on the pie of profits. It remains rather normal in relation to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
  • The company uses a large portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn sour. It still looks encouraging in relation to competitors.

Balance Sheet score: 5.4

  • Apple Hospitality REIT, Inc. has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
  • The company has lower short-term resources than short-term obligations. Unless it's part of the business model, there might be liquidity concerns. It turns to be a disappointment compared to similar firms.
  • Very few resources controlled were provided for with financial debt. Financial strength is very solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains somewhat worse than rival firms.
  • Controlled resources might be only very slowly turned into cash and equivalents, which is riskier. It looks last-in-rank when measured against rivals.
  • For every dollar of short-term obligations, the company has few cents of cash and short-term receivables. It's in a very weak position compared to peer firms.
  • For every dollar of short-term obligations, the company has extremely few cents of cash and equivalents, which is bottom tier against similar enterprises.
  • Usually, sales are mostly on cash. It still ranks substantially worse when measured against peers.
  • Normally has no inventories. It comes up as impressive in relation to competitors.
  • On average, it takes less than one month from the purchase to charging customers. It happens to be mediocre against peers.
  • Pays suppliers mostly in cash. It ranks below average when measured against industry peers.
  • The company pays its suppliers almost when charging its customers, so there's very little money invested in working capital. It's in a weak position compared to similar companies.
  • Usual business earnings are mostly consumed by net interest expenses. Creditors may be earning money by assuming risks, but stockholders not so much. Profitability must increase, lest the firm risks only working for creditors' benefit. It stands somewhat better than rival firms.
  • Business earnings have usually been excellent when measured against loans taken. It could take less than two years to repay the obligations with current profitability. It ranks almost average when measured against comparable enterprises.
  • Fixed assets turnover remains undisclosed. It looks we cannot relate it to similar firms.
  • Resource exploitation is low when yearly sales are considered, business volume must be significantly increased. This metric is normally tied to the industry where the firm belongs. It's still slightly worse than peer companies.

Valuation score: 6.1

  • Apple Hospitality REIT, Inc. looks expensive in relation to profits and financial position. It happens to be weak when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a weak position compared to peers.
  • In the past twelve months, the company generated some free funds in relation to the stock price, which stands well ranked against similar companies.
  • The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still great when measured against industry firms.
  • In the past twelve months, the company has slightly enlarged the pool of investors by issuing new shares. The pie of earnings will now be split among a little more stockholders. It came up in a weak position compared to peer ventures.
  • The company has barely more debt than cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks somewhat better than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is high. Substantial improvement expectations are already in the stock price, which is somewhat risky. It ranks weak when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in a very weak position compared to rival firms.
  • The relation between the stock price and accounting book value might be more than reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains mediocre against peer firms.
  • In the past twelve months, the operating business earned some money when compared to the current stock price and financial position. It happens to be great when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a good earnings power ability when measured against the current stock price and financial position. It's still in good shape compared to peer companies.

Total score: 5.5


APLE logos

Company at a glance: Apple Hospitality REIT, Inc. (APLE)

Sector, industry: Real Estate, REIT—Hotel & Motel

Market Cap: 3.41 billions

Revenues TTM: 1.13 billions

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. Apple Hospitality's portfolio consists of 235 hotels with more than 30,000 guest rooms located in 87 markets throughout 34 states. Concentrated with industry-leading brands, the Company's portfolio consists of 104 Marriott-branded hotels, 126 Hilton-branded hotels, three Hyatt-branded hotels and two independent hotels.

Awarener score: 5.7

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Poor) and growth (Poor), and the company's inclination to return cash to the stockholders (Modest).