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

COMMON STOCK | REIT-Mortgage | NYE

Last Closing Price

USD 14.98

Change

+0.29 (+1.97)%

Market Cap

USD 0.59B

Volume

0.31M

Average Target Price

USD 13.93 (-7.02%)
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, mezzanine loans, real estate preferred equity investments, 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: 2021-05-05 )

Largest Industry Peers for REIT-Mortgage

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

+0.12 (+0.48%)

USD13.63B 8.09 N/A
NLY-PF Annaly Capital Management, Inc

-0.02 (-0.08%)

USD13.26B 8.19 N/A
NLY-PD Annaly Capital Management, Inc

N/A

USD13.12B N/A N/A
NLY Annaly Capital Management, Inc

+0.07 (+0.77%)

USD12.56B 2.89 N/A
STWD Starwood Property Trust, Inc

-0.08 (-0.31%)

USD7.27B 21.97 N/A
NRZ New Residential Investment Cor..

-0.09 (-0.85%)

USD4.96B 4.37 N/A
BXMT Blackstone Mortgage Trust, Inc

-0.29 (-0.91%)

USD4.68B 16.99 N/A
CIM-PA Chimera Investment Corporation

-0.02 (-0.07%)

USD3.53B 364.29 N/A
CIM-PB Chimera Investment Corporation

+0.15 (+0.58%)

USD3.45B 354.29 N/A
TWO-PA Two Harbors Investment Corp

+0.11 (+0.42%)

USD3.38B 17.73 N/A

ETFs Containing ACRE

Symbol Name Weight Mer Price(Change) Market Cap
SMLV SPDR SSGA US Small Cap Lo.. 0.00 % 0.12 %

-0.52 (-0.45%)

USD0.22B

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 25.78% 83% B 80% B-
Dividend Return 2.77% 76% C 90% A-
Total Return 28.55% 84% B 82% B-
Trailing 12 Months  
Capital Gain 109.22% 79% C+ 82% B-
Dividend Return 18.44% 82% B- 98% A+
Total Return 127.65% 79% C+ 85% B
Trailing 5 Years  
Capital Gain 29.36% 91% A- 49% F
Dividend Return 51.73% 52% F 97% A+
Total Return 81.09% 91% A- 67% D+
Average Annual (5 Year Horizon)  
Capital Gain -0.56% 55% F 30% F
Dividend Return 9.00% 71% C- 96% A
Total Return 8.42% 84% B 62% D-
Risk Return Profile  
Volatility (Standard Deviation) 32.95% 41% F 29% F
Risk Adjusted Return 25.56% 84% B 42% F
Market Capitalization 0.59B 36% F 42% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 87%-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 22.26 24% F 38% F
Price/Book Ratio 1.26 19% F 66% D
Price / Cash Flow Ratio 18.72 26% F 25% F
EV/EBITDA N/A N/A N/A N/A N/A
Management Effectiveness  
Return on Equity 4.86% 60% D- 46% F
Return on Invested Capital 1.78% 89% B+ 37% F
Return on Assets 1.18% 68% D+ 36% F
Debt to Equity Ratio 142.81% 41% F 25% F
Technical Ratios  
Short Ratio 0.62 94% A 76% C
Short Percent 1.41% 88% B+ 78% C+
Beta 1.35 61% D- 32% 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%

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.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

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.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

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.

Highly 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.