Fundamental analysis: Apollo Global Management, Inc. (APO)

Awarener score: 4.9

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 (Modest), the business stability (Very poor) and growth (Superb), and the company's inclination to return cash to the stockholders (Bottom).

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: 6.0

Business has been growing at an extremely fast pace. It's been great when measured against peer companies.
Apollo Global Management, Inc. business varies frequently, ups and downs are normal. It's risky. It looks slightly worse than rivals.

Margins score: 6.5

APO profit margins -on goods and services sold- are usually very good. They stand somewhat better than rival companies.
Business profit on sales tends to be good. It's weak when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually hardly sufficient. They remain in a very weak position compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be sufficient in relation to total revenues. They're still worse than most similar companies.
Profits -before income taxes- are usually very good considering total sales, and remain substantially worse when measured against rivals.
Total net profit tends to be hardly sufficient when confronted to sales. Company stands last-in-rank when measured against comparable firms.

Growth score: 2.1

Apollo Global Management, Inc. profit -on goods and services sold- has been growing at an excellent pace. It's been in good shape 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.
In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank 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: 10.0

APO managed to get a credit on income taxes in the past years, even though it earned money. It's been top-notch against 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: 3.5

Apollo Global Management, Inc. usually gets low returns on the resources it controls. It proves last-in-rank when measured against peer firms.
The company normally gets meagre proceeds -on the resources directly invested in the business-. They remain a disappointment compared to similar companies.
There's usually little profitability -in relation to owned resources-. It ranks last-in-rank when measured against competitors.
In the past, got low 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 last-in-rank when measured against comparable enterprises.

Usage of Funds score: 4.8

APO usually uses a slight portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is light. It stands last-in-rank when measured against rival firms.
The company is usually investing in new property, plant, and equipment, to improve its operating capabilities, which is top tier when measured against industry peers.
In the past twelve months it paid some dividends, considering the current stock price. It came mediocre against competitors.
In recent years, has cut back dividend payments. It could be traversing challenging times. The company has behaved in a weak position compared 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 worse than comparable companies.
The company has heavily enlarged the pool of investors in previous years, resulting in more mouths feeding on the pie of profits. It remains in a very weak position compared 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 lot more funds to reward investors than it can genuinely generate, so they're paid out of existing cash or by borrowing money, both of which will eventually reach a limit. Either business improves, or rewards won't keep at current pace. It still looks substantially worse when measured against competitors.

Balance Sheet score: 5.7

Apollo Global Management, Inc. intangible assets (like brands and goodwill) represent a small portion of resources controlled, according to accounting books. It isn't that a significant risk of liquidating them if the company ever gets in financial distress. It happens to be weak when measured against peer companies.
The company has somewhat lower short-term resources than short-term obligations. Unless it's part of the business model, there might some liquidity concerns. It turns to be in a weak position compared to similar firms.
Roughly a third of resources controlled were provided for with financial debt. Creditors have claims on the company. It remains somewhat worse than rival firms.
Controlled resources might be turned into cash and equivalents neither fast nor too slow. Liquidity and risk might be run-of-the-mill. It looks encouraging in relation to rivals.
For every dollar of short-term obligations, the company has almost another 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 roughly half of cash and equivalents, which is mediocre against similar enterprises.
Usually, sales are on a month and a half credit. It still ranks encouraging in relation to peers.
Normally has no inventories. It comes up as impressive in relation to competitors.
On average, it takes approximately two months from the purchase to charging customers. It happens to be slightly better than peers.
On average pays suppliers after a month and a half from the purchase. It ranks encouraging in relation to industry peers.
The company pays its suppliers almost when charging its customers, so there's very little money invested in working capital. It's rather normal in relation to similar companies.
Company earns net interest income on its investments and therefore is in a quite comfortable financial position. It stands top-notch against rival firms.
Business has usually been operated at a loss. Unless prospects improve, the company is no position to decrease loans taken levels but by additional shareholders' funding. Profitability must improve. It ranks last-in-rank when measured against comparable enterprises.
Revenues are very good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements allows the company to keep more money to reward stockholders in the long run. It looks a slight improvement compared to similar firms.
Resource exploitation is reasonable when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still well ranked against peer companies.

Valuation score: 3.4

Apollo Global Management, Inc. reported losses, so valuating it in relation to earnings is meaningless. It happens to be last-in-rank 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 very weak position compared to peers.
In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands somewhat better than similar companies.
The company usually generates somewhat 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, the current valuation might be reasonable. It's still below average when measured against industry firms.
In the past twelve months, the company has greatly enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among plenty more stockholders. It came up in a very weak position compared to peer ventures.
The company has neither net debt nor net cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks slightly worse than similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation has been negative, as the company lost money. It ranks last-in-rank when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a very large relationship. The stock price might rely more on expectations and resources controlled than on anything else. It looks close to average when compared to rival firms.
The relation between the stock price and accounting book value is extremely high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains worse than most peer firms.
In the past twelve months, the operating business lost significant money. It happens to be last-in-rank when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown a somewhat low earnings power ability when measured against the current stock price and financial position. It's still a disappointment compared to peer companies.

Total score: 5.2

Company at a glance: Apollo Global Management, Inc. (APO)

Sector, industry: Financial Services, Asset Management

Market Cap: 39.55 billions

Revenues TTM: 6.80 billions

Apollo Global Management, Inc. is a private equity firm specializing in investments in credit, private equity and real estate markets. The firm's private equity investments include traditional buyouts, recapitalization, distressed buyouts and debt investments in real estate, corporate partner buyouts, distressed asset, corporate carve-outs, middle market, growth capital, turnaround, bridge, corporate restructuring, special situation, acquisition, and industry consolidation transactions. The firm provides its services to endowment and sovereign wealth funds, as well as other institutional and individual investors. It manages client focused portfolios. The firm launches and manages hedge funds for its clients. It also manages real estate funds and private equity funds for its clients. The firm invests in the fixed income and alternative investment markets across the globe. Its fixed income investments include income-oriented senior loans, bonds, collateralized loan obligations, structured credit, opportunistic credit, non-performing loans, distressed debt, mezzanine debt, and value oriented fixed income securities. The firm seeks to invest in chemicals, commodities, consumer and retail, oil and gas, metals, mining, agriculture, commodities, distribution and transportation, financial and business services, manufacturing and industrial, media distribution, cable, entertainment and leisure, telecom, technology, natural resources, energy, packaging and materials, and satellite and wireless industries. It seeks to invest in companies based in across Africa, North America with a focus on United States, and Europe. The firm also makes investments outside North America, primarily in Western Europe and Asia. It employs a combination of contrarian, value, and distressed strategies to make its investments. The firm seeks to make investments in the range of $10 million and $1500 million. The firm seeks to invest in companies with Enterprise value between $750 million to $2500 million. The firm conducts an in-house research to create its investment portfolio. It seeks to acquire minority and majority positions in its portfolio companies. Apollo Global Management, Inc. was founded in 1990 and is headquartered in New York, New York with additional offices in North America, Asia and Europe.