Ares Commercial Real Estate (ACRE) Fundamental Analysis: Revenue, Earnings & Valuation

7.40 / 10

Outperform

Fundamental rating is Outperform with a 7.4/10 score. Key strengths include PB‑ROE, Asset‑MV and Cash‑UP, delivering high group returns. Weaknesses lie in Net cash flow YoY, Cost of sales and profit margins, limiting growth potential.

Analysis Checks(6/10)

Revenue-MV

Value-1.25

Score2/3

Weight2.76%

1M Return1.90%

Net cash flow from operating activities per share (YoY growth rate %)

Value-40.46

Score1/3

Weight-1.89%

1M Return-1.48%

Profit-MV

Value0.66

Score2/3

Weight5.52%

1M Return3.89%

Net income-Revenue

Value-0.04

Score1/3

Weight1.77%

1M Return1.19%

PB-ROE

Value-0.90

Score3/3

Weight15.06%

1M Return11.22%

Cash-UP

Value-0.29

Score3/3

Weight11.11%

1M Return7.18%

Cost of sales ratio (%)

Value64.41

Score1/3

Weight-2.97%

1M Return-2.26%

Asset-MV

Value-0.55

Score3/3

Weight61.27%

1M Return36.51%

Net profit / Total operating revenue (%)

Value-1.65

Score1/3

Weight1.85%

1M Return1.36%

Cash-MV

Value-0.85

Score2/3

Weight5.53%

1M Return3.99%

Is ACRE undervalued or overvalued?

ACRE scores 7.40/10 on fundamentals and holds a Discounted valuation at present. Backed by its -0.17% ROE, -1.65% net margin, -294.64 P/E ratio, 0.52 P/B ratio, and 96.88% earnings growth, these metrics solidify its Outperform investment rating.