Apollo Global Management (APO) AI Stock Analysis

• Market Cap: $78.68B
• Dividend Yield: 1.28%
• Average Volume (3M): 3.41M
• Price to Earnings (P/E): 19.2
• Beta (1Y): 1.69
• Revenue Growth: -20.40%
• EPS Growth: -13.30%
• Country: US
• Employees: 4,879
• Sector: Financial
• Sector Strength: 93
• Industry: Asset Management Services
• EPS (TTM): 7.23
• Shares Outstanding: 570,480,470
• 10 Day Avg. Volume: 4,051,239
• 30 Day Avg. Volume: 3,414,665
• PEG Ratio: 0.17
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.16
• Price to Cash Flow (P/CF): -5155.00
• P/FCF Ratio: 178.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $190.07
• Price Target Upside: 37.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

Apollo Global Management's strong financial performance, highlighted by robust revenue growth and profitability, is a key strength. However, technical analysis indicates bearish momentum, which could pose short-term challenges. The valuation is fair, and recent corporate events and earnings call guidance support long-term growth prospects. Despite interest rate headwinds, Apollo's strategic initiatives and financial stability position it well for future success.

Positive Factors

Acquisition Impact

APO acquiring BRDG for $1.5b in an all equity deal that adds approximately $33b AUM to APO's existing $77b real estate platform.

Interest Rate Environment

Higher interest rates are expected to serve as a relative tailwind for Apollo Global compared to its peers, benefiting its spread and private credit returns.

Negative Factors

Fundraising Challenges

Apollo Global reported mixed results with a miss on fundraising and strategic real estate due to higher liability costs.

Apollo Global Management Business Overview & Revenue Model

Company Description

Apollo Global Management, Inc. engages in the provision of alternative investment management services. It operates through the following segments: Credit, Private Equity, and Real Assets. The Credit segment focuses on the investment in non-control corporate and structured debt instruments including performing, stressed, and distressed instruments across the capital structure. The Private Equity segment consists of investment in control equity and related debt instruments, convertible securities, and distressed debt instruments. The Real Assets segment includes investment in real estate equity and infrastructure equity; and real estate and infrastructure debt. The company was founded by Marc Jeffrey Rowan, Leon David Black, and Joshua Jordan Harris in 1990 and is headquartered in New York, NY.

How the Company Makes Money

Apollo Global Management makes money primarily through management fees and performance-based incentive fees. Management fees are recurring charges based on a percentage of the assets under management (AUM) that Apollo oversees. Performance-based incentive fees, also known as carried interest, are earned when the firm's investments exceed certain performance benchmarks. Additionally, the company generates revenue through its credit and real assets segments by investing in structured credit, direct origination, and real estate markets. Strategic partnerships and joint ventures with other financial institutions and investors also contribute to Apollo's earnings by expanding its investment capabilities and market reach.

Apollo Global Management Financial Statement Overview

Summary

Apollo Global Management presents a solid financial profile with strong revenue growth and profitability. The balance sheet is robust, supported by high equity levels and no recent debt, though historical leverage should be monitored. Cash flow generation is consistent, but strategic investments and financing activities require careful management to sustain long-term growth.

Income Statement

Apollo Global Management has demonstrated strong revenue growth with a significant increase from prior years, indicating a robust business expansion. The net profit margin has been healthy, showcasing effective cost management and profitability. However, the recent dip in revenue and net income suggests potential challenges in maintaining the same growth trajectory.

Balance Sheet

The company's balance sheet reflects a strong equity position with a high equity ratio, signifying financial stability. The absence of debt in the latest year reduces financial risk, but previous years' debt levels indicate historical leverage. The positive ROE highlights efficient use of equity capital, although it has varied significantly over the years.

Cash Flow

Apollo has shown strong cash flow management with consistent free cash flow generation. The operating cash flow to net income ratio indicates effective cash conversion from operations. However, fluctuations in cash flow from investing and financing activities suggest potential volatility in cash management strategies.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
26.11B	32.64B	10.97B	5.95B	2.35B
	Gross Profit
23.51B	31.62B	10.04B	5.17B	1.73B
	EBIT
22.34B	28.35B	-3.84B	2.63B	1.41B
	EBITDA
8.85B	9.12B	-1.69B	2.66B	1.43B
	Net Income Common Stockholders
4.58B	5.05B	-1.96B	1.84B	157.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
205.98B	170.24B	1.31B	917.18M	2.45B
	Total Assets
377.89B	313.49B	13.79B	30.50B	23.67B
	Total Debt
10.59B	8.09B	3.53B	3.64B	14.62B
	Net Debt
-5.58B	-7.84B	2.22B	2.72B	12.17B
	Total Liabilities
346.92B	288.24B	9.30B	20.31B	17.37B
	Stockholders Equity
17.25B	14.04B	1.85B	3.79B	1.43B
Cash Flow		Free Cash Flow
3.25B	6.32B	3.59B	999.31M	-1.68B
	Operating Cash Flow
3.25B	6.32B	3.79B	1.06B	-1.62B
	Investing Cash Flow
-61.80B	-42.41B	-23.44B	-1.55B	-837.66M
	Financing Cash Flow
57.97B	42.64B	28.71B	109.00M	3.30B

Apollo Global Management Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 137.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APO, the sentiment is Negative. The current price of 137.92 is below the 20-day moving average (MA) of 155.03, below the 50-day MA of 162.21, and above the 200-day MA of 137.83, indicating a neutral trend. The MACD of -5.81 indicates Positive momentum. The RSI at 25.79 is Positive, neither overbought nor oversold. The STOCH value of 22.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APO.

Apollo Global Management Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLNE	77 Outperform	$8.38B	27.43	38.54%	1.25%	41.16%	64.13%
APO	73 Outperform	$78.68B	19.24	26.53%	1.28%	-20.40%	-13.30%
CG	68 Neutral	$16.28B	16.25	16.08%	2.90%	62.87%	―
KKR	67 Neutral	$107.28B	36.86	13.01%	0.53%	42.19%	-18.20%
ARES	66 Neutral	$51.10B	77.73	13.09%	2.19%	6.12%	-15.84%
BX	65 Neutral	$193.19B	43.77	33.81%	2.49%	21.25%	97.42%
Sector *	64 Neutral	$14.34B	10.61	9.28%	4.07%	18.04%	-9.54%

Apollo Global Management Corporate Events

Apollo Global Management CFO Transition Announcement

On February 26, 2025, Apollo Global Management announced that Louis-Jacques Tanguy will resign as the Chief Accounting Officer and Controller, effective March 1, 2025, following his appointment as Executive Vice President and Chief Financial Officer of Athene Holding Ltd. Martin Kelly, the current Chief Financial Officer, will temporarily take over the role of principal accounting officer while the company searches for a replacement, with no changes to his compensation.

Apollo Global Management Issues 8-K Report Disclosure

Apollo Global Management has issued a current report on Form 8-K, emphasizing that the information provided is not considered ‘filed’ under the Securities Exchange Act of 1934. This indicates that the details are not subject to the liabilities of Section 18 of the Exchange Act, impacting how it may be incorporated into future filings.

Apollo Global Management Expands Board and Supports Philanthropy

Apollo Global Management’s board approved a new five-year employment agreement for CEO Marc Rowan, effective January 1, 2025, maintaining his base salary and performance-related compensation structure, which aligns with the company’s financial interests. Additionally, a $200 million donor-advised fund was established as part of Apollo’s commitment to philanthropy. On January 30, 2025, the board increased its size to 17 directors and appointed Brian Leach as an independent director, effective March 1, 2025, highlighting his financial expertise and role in key committees.

Apollo Global Management Announces Key Leadership Changes

On January 9, 2025, Apollo Global Management appointed Jim Zelter as President, marking a strategic move to support the company’s growth plans and operational expansion. This leadership change, along with John Zito’s appointment as Co-President of Apollo Asset Management, is aimed at executing Apollo’s five-year plan, focusing on the convergence of public and private markets and the evolving role of financial institutions. The appointments demonstrate Apollo’s commitment to innovation in alternative asset management and retirement services, strengthening its position in a rapidly changing financial landscape.

Apollo Global Management Reports Preliminary Q4 2024 Estimates

Apollo Global Management and its subsidiary Athene report preliminary estimates of $265 million pre-tax alternative net investment income for Q4 2024, reflecting a 9% annualized return. Despite these estimates, actual results may vary as the figures are unaudited, and adjustments may be needed upon final financial review.

Apollo Global Management Approves Stock Grant for CFO

Apollo Global Management’s Board of Directors has approved a $10 million grant of restricted stock units for CFO Martin Kelly, set to be awarded on December 20, 2024. This measure aims to retain Kelly and align his compensation with industry peers, impacting his annual compensation considerations for the next three years, and includes conditions related to performance and employment terms.