Ares Commercial Real Estate Corp. (ACRE) 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

Dynex Capital, Inc.

CBL & Associates Properties, Inc.

Universal Health Realty Income Trust

TPG RE Finance Trust, Inc.

Global Medical REIT, Inc.

Farmland Partners, Inc.

Ares Commercial Real Estate Corp.

Piedmont Office Realty Trust, Inc.

Gladstone Land Corp.

Summit Hotel Properties, Inc.

Peakstone Realty Trust

Why is Ares Commercial Real Estate Corp. ?

Poor long term growth as Net Sales has grown by an annual rate of -8.13%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -24.61%, its profits have risen by 70.2%
At the current price, the company has a high dividend yield of 1544.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -24.61% 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Ares Commercial Real Estate Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ares Commercial Real Estate Corp.

-27.26%

-0.55

44.37%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.13%

EBIT Growth (5y)

-13.07%

EBIT to Interest (avg)

1.60

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

2.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

50.05%

ROCE (avg)

21.50%

ROE (avg)

3.87%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.49

EV to EBIT

1.61

EV to EBITDA

1.49

EV to Capital Employed

0.33

EV to Sales

1.09

PEG Ratio

Dividend Yield

1544.15%

ROCE (Latest)

20.18%

ROE (Latest)

-2.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

9What is working for the Company

NET PROFIT(HY)

Higher at USD -1.69 MM

DEBT-EQUITY RATIO (HY)

Lowest at 151.63 %

DEBTORS TURNOVER RATIO(HY)

Highest at 65.19 times

-18What is not working for the Company

NET SALES(9M)

At USD 52.88 MM has Grown at -31.49%

OPERATING CASH FLOW(Y)

Lowest at USD 28.39 MM

RAW MATERIAL COST(Y)

Grown by 101.23% (YoY

DIVIDEND PER SHARE(HY)

Lowest at USD 65.19

PRE-TAX PROFIT(Q)

Lowest at USD -11.04 MM

NET PROFIT(Q)

Lowest at USD -11.04 MM

EPS(Q)

Lowest at USD -0.2

Here's what is working for Ares Commercial Real Estate Corp.

Debt-Equity Ratio

Lowest at 151.63 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 65.19 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at USD 2.24 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Ares Commercial Real Estate Corp.

Net Sales

At USD 52.88 MM has Grown at -31.49%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Pre-Tax Profit

At USD -11.04 MM has Fallen at -237.9%

over average net sales of the previous four periods of USD -3.27 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -11.04 MM has Fallen at -231.28%

over average net sales of the previous four periods of USD -3.33 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 28.39 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Pre-Tax Profit

Lowest at USD -11.04 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -11.04 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD -0.2

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Dividend per share

Lowest at USD 65.19

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)

Raw Material Cost

Grown by 101.23% (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