Apple Hospitality REIT, Inc. (APLE) stock analysis

P/E above its 5-year median

Apple Hospitality REIT's P/E of 25.1 is above its own 5-year median of 21.2.

P/E below the industry

Apple Hospitality REIT's P/E of 25.1 is below the Miscellaneous Investing median of 26.3.

EV/EBITDA above its 5-year median

Apple Hospitality REIT's EV/EBITDA of 9.9 is above its 5-year median of 8.5.

P/B above the industry

Apple Hospitality REIT's price-to-book of 1.48 is above the Miscellaneous Investing median of 1.20.

Trading above fair value

The share price of $19.80 is above our fair value estimate of $17.55.

Margin of safety under 20%

The price is 12.8% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 4.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 5.5% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 3.2% over the last twelve months; the Miscellaneous Investing median is 4.6%.

Guidance issued

The latest outlook (2026 Net income, May 4, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 40.7% over the last twelve months, against 40.3% a year earlier.

Return on equity under 15%

Return on equity was 5.8% over the last twelve months and averaged 4.5% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 8.5%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Apple Hospitality REIT's return on equity of 5.8% is above the Miscellaneous Investing median of 3.1%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 12.6% over the last twelve months, against a 5-year average of 10.9%.

Net margin above the industry

Apple Hospitality REIT's net margin of 12.6% is above the Miscellaneous Investing median of 10.3%.

No debt

Apple Hospitality REIT has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.11; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Apple Hospitality REIT paid dividends worth 4.4% of the share price over the last twelve months.

Yield above Treasuries

The 4.4% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Apple Hospitality REIT yields 4.4%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Not covered by earnings

Dividends take 123% of net income, leaving little room.

Covered by free cash flow

Dividends take 75.9% of free cash flow.