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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Dynex Capital, Inc.

Global Medical REIT, Inc.

CBL & Associates Properties, Inc.

Universal Health Realty Income Trust

TPG RE Finance Trust, Inc.

Piedmont Office Realty Trust, Inc.

Ares Commercial Real Estate Corp.

Summit Hotel Properties, Inc.

Farmland Partners, Inc.

Gladstone Land Corp.

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 -27.07%, 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 -27.07% 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.

-11.53%

-0.58

44.43%

S&P 500

15.76%

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)

-8.16%

EBIT Growth (5y)

-17.42%

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

52.30%

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

0.52

EV to EBIT

5.76

EV to EBITDA

4.62

EV to Capital Employed

0.44

EV to Sales

2.30

PEG Ratio

Dividend Yield

12.49%

ROCE (Latest)

7.71%

ROE (Latest)

-0.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

No Trend

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

21What is working for the Company

NET SALES(HY)

At USD 61.02 MM has Grown at 111.85%

NET PROFIT(Q)

At USD 4.38 MM has Grown at 188.31%

ROCE(HY)

Highest at 0%

PRE-TAX PROFIT(Q)

At USD 0 MM has Grown at 100%

DIVIDEND PAYOUT RATIO(Y)

Highest at 192.8%

RAW MATERIAL COST(Y)

Fallen by -8,302% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 751.21 times

-10What is not working for the Company

NET PROFIT(HY)

At USD -5.22 MM has Grown at -208.99%

OPERATING CASH FLOW(Y)

Lowest at USD 15.41 MM

DEBT-EQUITY RATIO (HY)

Highest at 246.14 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 0 times

INTEREST(Q)

Highest at USD 19.18 MM

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

Net Sales

At USD 61.02 MM has Grown at 111.85%

Year on Year (YoY)

MOJO Watch

Sales trend is very positive

Net Sales (USD MM)

Pre-Tax Profit

At USD 4.52 MM has Grown at 191.25%

over average net sales of the previous four periods of USD -4.95 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 4.38 MM has Grown at 188.31%

over average net sales of the previous four periods of USD -4.96 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Pre-Tax Profit

At USD 0 MM has Grown at 100%

over average net sales of the previous four periods of USD -4.95 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Debtors Turnover Ratio

Highest at 751.21 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 192.8%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -8,302% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

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

Operating Cash Flow

Lowest at USD 15.41 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)

Interest

Highest at USD 19.18 MM

in the last five periods and Increased by 10.49% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 246.14 %

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

Debtors Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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