Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) has seen its share price decline by 45% over the past five years, leaving some shareholders unsure about their investment. To determine the reason for this performance, it is important to analyze the company’s fundamentals and identify any discrepancies.
While share price return is an important factor to consider, investors should also consider total shareholder return (TSR), which includes the value of dividends and spin-offs. Apollo Commercial Real Estate Finance has a TSR of -0.7% over the past five years, outperforming its share price return. This is largely due to the company’s dividend payout.
Although Apollo Commercial Real Estate Finance shareholders earned a total return of 8.0% last year, it fell short of the market average. For five years, the TSR decreased by 0.1% per year. However, this may indicate that the business is stabilizing.
While tracking share price performance is important, understanding Apollo Commercial Real Estate Finance requires consideration of other factors. Investors should examine factors such as earnings, revenue, and cash flow trends to get a comprehensive understanding of the company’s financial health.
It should be noted that the analysis provided here is general and should not be considered financial advice. For a more detailed evaluation of Apollo Commercial Real Estate Finance and its investment potential, investors should conduct thorough research and consider various factors.