Apple Hospitality REIT, Inc. (APLE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kilroy Realty Corp.

ARMOUR Residential REIT, Inc.

PotlatchDeltic Corp.

Rayonier, Inc.

Vornado Realty Trust

Blackstone Mortgage Trust, Inc.

Apple Hospitality REIT, Inc.

Rithm Capital Corp.

Apartment Income REIT Corp.

Phillips Edison & Co., Inc.

Kite Realty Group Trust

Why is Apple Hospitality REIT, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of 8.64% and Operating profit at 33.99%

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 381.33 MM
NET PROFIT(HY) At USD 94.87 MM has Grown at -25.87%
RAW MATERIAL COST(Y) Grown by 9.81% (YoY)

With ROE of 6.05%, it has a very attractive valuation with a 0.87 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -26.66%, its profits have fallen by -2.2%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -26.66% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Apple Hospitality REIT, Inc. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Apple Hospitality REIT, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Apple Hospitality REIT, Inc.

-19.8%

-0.56

29.85%

S&P 500

11.09%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.64%

EBIT Growth (5y)

33.99%

EBIT to Interest (avg)

2.07

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

0.48%

Dividend Payout Ratio

108.19%

Pledged Shares

Institutional Holding

94.62%

ROCE (avg)

6.18%

ROE (avg)

4.09%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.87

EV to EBIT

10.20

EV to EBITDA

5.96

EV to Capital Employed

0.87

EV to Sales

1.92

PEG Ratio

Dividend Yield

ROCE (Latest)

8.52%

ROE (Latest)

6.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 571.67

DIVIDEND PAYOUT RATIO(Y)

Highest at 89.62%

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 381.33 MM

NET PROFIT(HY)

At USD 94.87 MM has Grown at -25.87%

RAW MATERIAL COST(Y)

Grown by 9.81% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 49.88 %

Here's what is working for Apple Hospitality REIT, Inc.

Interest Coverage Ratio

Highest at 571.67

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend Payout Ratio

Highest at 89.62%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Apple Hospitality REIT, Inc.

Net Profit

At USD 94.87 MM has Grown at -25.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 381.33 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Highest at 49.88 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 9.81% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales