ACRE:NYE-Ares Commercial Real Estate Corporation (USD)

COMMON STOCK | REIT—Mortgage | NYE

Last Closing Price

USD 6.99

Change

-0.15 (-2.10)%

Market Cap

USD 0.29B

Volume

0.83M

Average Target Price

USD 16.75 (+139.63%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

Ares Commercial Real Estate Corporation, a specialty finance company, originates and invests in commercial real estate (CRE) loans and related investments in the United States. It provides a range of financing solutions for the owners, operators, and sponsors of CRE properties. The company originates senior mortgage loans, subordinate debt products, real estate preferred equity investments, mezzanine loans, and other CRE investments, including commercial mortgage backed securities. Ares Commercial Real Estate Corporation has elected and qualified to be taxed as a real estate investment trust for the United States federal income tax purposes under the Internal Revenue Code of 1986. Ares Commercial Real Estate Management LLC operates as the manager of the company. The company was founded in 2011 and is headquartered in New York, New York.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-03-31 )

Largest Industry Peers for REIT—Mortgage

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
NLY-PD Annaly Capital Management, Inc

-0.93 (-4.61%)

USD10.98B N/A N/A
NLY-PG Annaly Capital Management, Inc

-0.77 (-4.19%)

USD10.59B N/A N/A
NLY-PF Annaly Capital Management, Inc

-1.30 (-6.82%)

USD10.22B N/A N/A
NLY Annaly Capital Management, Inc

-0.60 (-10.58%)

USD8.77B 64.90 N/A
AGNCM AGNC Investment Corp

-0.82 (-4.18%)

USD7.38B 17.89 N/A
AGNCN AGNC Investment Corp

-0.76 (-3.76%)

USD6.95B 17.46 N/A
STWD Starwood Property Trust, Inc

-0.98 (-8.73%)

USD3.65B 7.22 N/A
BXMT Blackstone Mortgage Trust, Inc

-0.88 (-4.51%)

USD2.83B 8.89 N/A
CIM-PC Chimera Investment Corporation

-0.16 (-1.07%)

USD2.47B 9.61 N/A
CIM-PA Chimera Investment Corporation

+0.88 (+6.06%)

USD2.44B 9.75 N/A

ETFs Containing ACRE

Symbol Name Weight Mer Price(Change) Market Cap

N/A

Market Performance

  Market Performance vs.
Industry/Classification (REIT—Mortgage)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -55.87% 40% F 13% F
Dividend Return 2.08% 33% F 86% B
Total Return -53.79% 40% F 14% F
Trailing 12 Months  
Capital Gain -54.04% 59% F 17% F
Dividend Return 8.68% 41% F 95% A
Total Return -45.36% 53% F 20% F
Trailing 5 Years  
Capital Gain -36.74% 85% B 35% F
Dividend Return 51.40% 58% F 98% A+
Total Return 14.66% 88% B+ 70% C-
Average Annual (5 Year Horizon)  
Capital Gain 7.27% 85% B 68% D+
Dividend Return 8.73% 35% F 94% A
Total Return 15.99% 82% B- 83% B
Risk Return Profile  
Volatility (Standard Deviation) 11.98% 70% C- 67% D+
Risk Adjusted Return 133.43% 88% B+ 95% A
Market Capitalization 0.29B 35% F 41% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(REIT—Mortgage)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 6.87 56% F 81% B-
Price/Book Ratio 0.59 57% F 78% C+
Price / Cash Flow Ratio 9.04 15% F 35% F
EV/EBITDA N/A N/A N/A N/A N/A
Management Effectiveness  
Return on Equity 8.68% 53% F 50% F
Return on Invested Capital 2.28% 59% F 23% F
Return on Assets 2.18% 74% C 44% F
Debt to Equity Ratio 231.00% 34% F 13% F
Technical Ratios  
Short Ratio 2.50 34% F 38% F
Short Percent 3.82% 48% F 63% D
Beta 0.65 52% F 70% C-
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Superior Dividend Growth

This stock has shown top quartile dividend growth in the previous 5 years compared to its sector

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What to not like:
Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Higly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.