Apollo Global Management (APO) AI Stock Analysis

• Market Cap: $82.20B
• Dividend Yield: 1.29%
• Average Volume (3M): 4.38M
• Price to Earnings (P/E): 25.4
• Beta (1Y): 1.72
• Revenue Growth: -27.96%
• EPS Growth: -37.13%
• Country: US
• Employees: 5,141
• Sector: Financial
• Sector Strength: 85
• Industry: Asset Management - Global
• EPS (TTM): 1.82
• Shares Outstanding: 571,494,260
• 10 Day Avg. Volume: 3,834,470
• 30 Day Avg. Volume: 4,384,994
• PEG Ratio: -0.91
• Price to Book (P/B): 4.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.27
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 2.92
• Enterprise Value/Ebitda: 2.04
• 1Y Price Target: $154.64
• Price Target Upside: 7.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

Apollo Global Management's strong financial performance and positive earnings call highlights underpin a robust outlook, though tempered by challenges in revenue growth and increased competition. The technical analysis indicates potential short-term volatility, while valuation metrics suggest the stock may be fully valued. Recent corporate leadership changes strengthen governance, supporting strategic initiatives.

Positive Factors

Interest Rates

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.

Market Sentiment

Price target for Apollo Global Management is increased by 3% to $135, reflecting a positive market sentiment.

Strategic Acquisitions

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

Negative Factors

Financial Performance

Earnings per share estimate for the second quarter is revised downwards slightly by 1.1%, pointing to a minor negative adjustment in financial expectations.

Fundraising and Financial Results

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

Growth Expectations

In 2025, APO targets FRE growth of 15-20%, which is below the 5Y guidance of 20%.

Apollo Global Management Business Overview & Revenue Model

Company Description

Apollo Global Management, Inc. is a private equity firm specializing in investments in credit, private equity and real estate markets. The firm's private equity investments include traditional buyouts, recapitalization, distressed buyouts and debt investments in real estate, corporate partner buyouts, distressed asset, corporate carve-outs, middle market, growth capital, turnaround, bridge, corporate restructuring, special situation, acquisition, and industry consolidation transactions. The firm provides its services to endowment and sovereign wealth funds, as well as other institutional and individual investors. It manages client focused portfolios. The firm launches and manages hedge funds for its clients. It also manages real estate funds and private equity funds for its clients. The firm invests in the fixed income and alternative investment markets across the globe. Its fixed income investments include income-oriented senior loans, bonds, collateralized loan obligations, structured credit, opportunistic credit, non-performing loans, distressed debt, mezzanine debt, and value oriented fixed income securities. The firm seeks to invest in chemicals, commodities, consumer and retail, oil and gas, metals, mining, agriculture, commodities, distribution and transportation, financial and business services, manufacturing and industrial, media distribution, cable, entertainment and leisure, telecom, technology, natural resources, energy, packaging and materials, and satellite and wireless industries. It seeks to invest in companies based in across Africa, North America with a focus on United States, and Europe. The firm also makes investments outside North America, primarily in Western Europe and Asia. It employs a combination of contrarian, value, and distressed strategies to make its investments. The firm seeks to make investments in the range of $10 million and $1500 million. The firm seeks to invest in companies with Enterprise value between $750 million to $2500 million. The firm conducts an in-house research to create its investment portfolio. It seeks to acquire minority and majority positions in its portfolio companies. Apollo Global Management, Inc. was founded in 1990 and is headquartered in New York, New York with additional offices in North America, Asia and Europe.

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 displays strong financial health with robust revenue growth and profitability. The balance sheet is stable with high equity levels and no recent debt, though historical leverage needs monitoring. Cash flow is consistent, despite the volatility in investing and financing activities.

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
8.30B	28.35B	-3.84B	2.63B	1.41B
	EBITDA
8.41B	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: Positive
• Last Price: 143.84
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APO, the sentiment is Positive. The current price of 143.84 is above the 20-day moving average (MA) of 134.50, above the 50-day MA of 132.95, and above the 200-day MA of 141.71, indicating a bullish trend. The MACD of 3.01 indicates Negative momentum. The RSI at 61.28 is Neutral, neither overbought nor oversold. The STOCH value of 80.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APO.

Apollo Global Management Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NU	78 Outperform	$62.88B	29.08	27.91%	―	33.20%	68.47%
ARES	75 Outperform	$55.57B	98.34	12.97%	2.30%	19.02%	-22.75%
APO	73 Outperform	$82.20B	25.41	21.17%	1.29%	-27.96%	-37.13%
KKR	71 Outperform	$112.13B	54.58	9.03%	0.56%	-27.45%	-46.67%
CG	70 Outperform	$17.13B	16.02	20.38%	2.95%	62.87%	―
OWL	69 Neutral	$30.05B	196.27	4.62%	3.69%	32.99%	8.06%
Sector *	64 Neutral	$12.82B	9.83	7.68%	17000.34%	12.38%	-5.56%

Apollo Global Management Corporate Events

Apollo Global Management Issues Regulatory Clarification

Apollo Global Management has issued a Current Report on Form 8-K, clarifying that the information provided is not considered ‘filed’ under the Securities Exchange Act of 1934. This announcement outlines the legal framework for how the information is to be treated, potentially affecting how stakeholders perceive the company’s regulatory obligations.

The most recent analyst rating on (APO) stock is a Buy with a $129.00 price target. To see the full list of analyst forecasts on Apollo Global Management stock, see the APO Stock Forecast page.

Spark’s Take on APO Stock

According to Spark, TipRanks’ AI Analyst, APO is a Outperform.

Apollo Global Management shows strong financial performance and strategic positioning, backed by robust earnings and AUM growth. While the technical analysis points to short-term challenges, the company’s governance and strategic initiatives provide a positive outlook. Valuation appears fair, though dividend yield may not attract all investors. Overall, the company is well-positioned for growth, albeit with some risks to monitor.

To see Spark’s full report on APO stock, click here.

Apollo Global Management Announces Board Leadership Changes

Apollo Global Management announced significant changes to its Board of Directors, effective April 21, 2025. Gary Cohn, former Vice Chairman of IBM and a seasoned financial services leader, has been appointed as the Lead Independent Director, filling the vacancy left by Jay Clayton, who will become the Interim US Attorney for the Southern District of New York. Additionally, CEO Marc Rowan has been appointed as the Chair of the Board, reflecting Apollo’s commitment to strong governance and strategic leadership. These changes are expected to enhance Apollo’s governance and support its growth strategy in the financial services industry.

Spark’s Take on APO Stock

According to Spark, TipRanks’ AI Analyst, APO is a Outperform.

Apollo Global Management demonstrates a solid financial foundation with strong revenue and profitability metrics. Despite the company’s robust strategic positioning and record achievements, the stock is currently trading below key moving averages, suggesting potential short-term challenges. Valuation metrics indicate a fair market price, but modest dividend yield may limit appeal to some investors. The company’s strategic initiatives and growth plans, as highlighted in the earnings call, offer a positive outlook, though interest rate challenges and increased competition need to be monitored.

To see Spark’s full report on APO stock, click here.

Apollo Global Management Announces Q1 2025 Investment Estimates

Apollo Global Management, Inc. and its subsidiary Athene Holding Ltd. have announced preliminary estimates for their alternative net investment income for the first quarter ending March 31, 2025. The company anticipates approximately $290 million in pre-tax income, translating to an estimated 9% annualized return on alternative net investments. Athene’s investments in a pooled vehicle are expected to yield a 10% return, while other investments, including retirement services platforms, are estimated to return 6%. These figures are preliminary and subject to change, as the financial closing procedures are not yet complete, and the results have not been audited.

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.