NYSE
ACRE
Last Price
US $4.52
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Ares Commercial Real Estate Corporation cash flow to debt ratio of 2.04% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial risk - Healthy cash flow growth.
Ares Commercial Real Estate Corporation's free cash flow has decreased -44.52% from $35.55M last year to $19.72M, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
Ares Commercial Real Estate Corporation's debt to equity ratio is 2.58, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
Ares Commercial Real Estate Corporation's debt has increased relative to shareholder equity from 2.17 last year to 2.58 today, signaling weakened financials
Financial risk - Net debt/EBITDA.
Ares Commercial Real Estate Corporation has a net debt to EBITDA ratio of 14.51x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
Ares Commercial Real Estate Corporation earns at least as much interest as it pays. Interest obligations are fully covered.
Financial stability - Profit margin growth.
Ares Commercial Real Estate Corporation's profit margin has increased (-37.50%) in the last year from -39.85% to -24.91%, signaling increasing performance
Financial risk - Short term assets vs short term liabilities.
Ares Commercial Real Estate Corporation's short-term liabilities of $870.94M exceed its short-term assets of $67.23M, signaling financial risk
Decreasing performance - ROA.
Ares Commercial Real Estate Corporation's return on assets of 0.00% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
Ares Commercial Real Estate Corporation's return on equity of -3.88%, is lower than 15.00%, indicating bad performance
Decreasing performance - Earnings quality.
Ares Commercial Real Estate Corporation's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation
Decreasing performance - Earnings stability.
Ares Commercial Real Estate Corporation had positive net income in only 2.00 out of 5 years, indicating unstable earnings
Increasing performance - Free cash flow.
Ares Commercial Real Estate Corporation has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Ares Commercial Real Estate Corporation has a free cash flow yield of 7.88%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Ares Commercial Real Estate Corporation's yearly earnings has increased -97.42% since last year from $-34.99M to $-902.00K, signaling increasing performance
Increasing performance - Healthy revenue growth.
Ares Commercial Real Estate Corporation's yearly revenue has increased -660.29% since last year from $-15.23M to $85.35M, signaling increasing performance
Increasing performance - ROIC.
ROIC 10.34% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Decreasing performance - 3-year revenue CAGR.
Ares Commercial Real Estate Corporation's 3-year revenue CAGR of -7.84% is negative, indicating declining revenue over the past 3 years
Increasing performance - Revenue consistency.
Ares Commercial Real Estate Corporation had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance
Decreasing performance - ROE consistency.
Ares Commercial Real Estate Corporation had positive ROE in only 2.00 out of 5 years, indicating inconsistent returns on equity
Overvalued - DCF valuation.
Ares Commercial Real Estate Corporation has insufficient data to evaluate this check.
Overvalued - Earnings yield.
Ares Commercial Real Estate Corporation has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails
Overvalued - EBITDA valuation.
Ares Commercial Real Estate Corporation is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model
Overvalued - EV/EBITDA.
Ares Commercial Real Estate Corporation has an EV/EBITDA ratio of 79.42x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings
Overvalued - PEG ratio value.
Ares Commercial Real Estate Corporation has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails
Undervalued - P/B ratio.
Ares Commercial Real Estate Corporation has a price-to-book ratio of 0.51x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Ares Commercial Real Estate Corporation has a price-to-sales ratio of 3.14x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
-3.88%
Return on equity
ROIC: 10.34%
Valuation History
-12.7X
Price to Earnings
EV/EBITDA: 79.4X
Cash flow
Profit margin
0.00%
(FY vs FY)
Cash flow Y/Y
-8.93%
(FY vs FY)
Fair Value
Market $4.52
141.81%
Default assumptions
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