Value
6.6/10data confidence 83%| Component | Sub-score |
|---|---|
| P/E | 2.5 |
| P/S | 8.7 |
| Fwd P/E | 8.6 |
| PEG | 9.1 |
| Analyst target | 4.0 |
- ▸Forward P/E: 13.1x
- ▸PEG: 0.65
APO · Why this verdict
Why Apollo Global Management, Inc. (APO) is rated HOLD
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictHOLD
Overall score6.3/10
ConfidenceMEDIUM
MacroNEUTRAL
TrendMatrix Research · core thesis
Engine thesis — one sentence
A perfect four-quarter earnings beat record and an attractively priced forward multiple cannot overcome a business quality score that sits just below the minimum acceptable floor, a 9% revenue decline, and a stock that leaves less than 1% of upside to its near-term target — the setup does not support new investment at current levels.
Falsifiable statement — pillar-level invalidators below. Engine-derived; not personalized advice.
Thesis pillars
| Pillar | Expectation | Trend |
|---|---|---|
A forward price-to-earnings of 12.8 times and a price/earnings-to-growth ratio of 0.72 indicate the stock screens as attractively valued relative to its anticipated earnings trajectory, offering a potential margin of safety on the earnings side despite the thin upside to the near-term price target. Valuation breakdown | Forward earnings per share grows enough to keep the forward price-to-earnings ratio below 15 times over the next 12 months, validating the low-multiple entry. | Tripped↓Deteriorating |
| CounterThe dividend may be unsafe relative to underlying cash generation — a cut would remove a key income-seeking buyer base and likely re-rate the multiple downward even if reported earnings hold; credit-strategy concentration also creates cyclical earnings risk that can rapidly invalidate a forward multiple that appeared cheap. | ||
Business quality registers at 3.9, just at the boundary of the 4.0 minimum floor, with no identified competitive moat and below-average returns on both assets and equity — the franchise lacks the durability characteristics that would support a confident long-term hold. Quality breakdown | Business quality rises above 4.5 for two consecutive reporting periods, driven by measurable improvement in operating margins or return on assets. | ↓Deteriorating |
| CounterAsset managers can generate durable fee income from assets under management scale without scoring well on traditional balance-sheet quality metrics; the quality framework may systematically understate earnings power that comes from fee-based recurring revenue. | ||
Revenue declined 9% year-over-year, meaning the top line is contracting even as the market has re-rated the stock on forward estimates — a gap between current business trajectory and forward expectations that must close for the thesis to hold. Growth breakdown | Revenue growth turns positive and exceeds 5% year-over-year for two consecutive quarters, confirming a genuine top-line inflection. | →Stable |
| CounterA low price/earnings-to-growth ratio of 0.72 and a forward price-to-earnings of 12.8 times suggest the market already anticipates a recovery in earnings; if forward estimates prove accurate, the revenue decline may be fully in the price. | ||
The company has beaten consensus earnings estimates in each of the last four quarters, with an average positive surprise of roughly 10.6%, suggesting management consistently guides below what it ultimately delivers. Catalyst track record | Earnings beats continue for the next two quarters, extending the streak to six consecutive quarters and sustaining analyst confidence. | →Stable |
| CounterWith revenue declining, the beat streak may reflect cost reductions or one-time items rather than organic earnings growth; a streak built on a contracting top line is structurally fragile and may be interrupted once the cost efficiency gains are exhausted. | ||
A forward price-to-earnings of 12.8 times and a price/earnings-to-growth ratio of 0.72 indicate the stock screens as attractively valued relative to its anticipated earnings trajectory, offering a potential margin of safety on the earnings side despite the thin upside to the near-term price target.
Tripped↓DeterioratingValuation breakdown
- Expectation
- Forward earnings per share grows enough to keep the forward price-to-earnings ratio below 15 times over the next 12 months, validating the low-multiple entry.
CounterThe dividend may be unsafe relative to underlying cash generation — a cut would remove a key income-seeking buyer base and likely re-rate the multiple downward even if reported earnings hold; credit-strategy concentration also creates cyclical earnings risk that can rapidly invalidate a forward multiple that appeared cheap.
Business quality registers at 3.9, just at the boundary of the 4.0 minimum floor, with no identified competitive moat and below-average returns on both assets and equity — the franchise lacks the durability characteristics that would support a confident long-term hold.
↓DeterioratingQuality breakdown
- Expectation
- Business quality rises above 4.5 for two consecutive reporting periods, driven by measurable improvement in operating margins or return on assets.
CounterAsset managers can generate durable fee income from assets under management scale without scoring well on traditional balance-sheet quality metrics; the quality framework may systematically understate earnings power that comes from fee-based recurring revenue.
Revenue declined 9% year-over-year, meaning the top line is contracting even as the market has re-rated the stock on forward estimates — a gap between current business trajectory and forward expectations that must close for the thesis to hold.
→StableGrowth breakdown
- Expectation
- Revenue growth turns positive and exceeds 5% year-over-year for two consecutive quarters, confirming a genuine top-line inflection.
CounterA low price/earnings-to-growth ratio of 0.72 and a forward price-to-earnings of 12.8 times suggest the market already anticipates a recovery in earnings; if forward estimates prove accurate, the revenue decline may be fully in the price.
The company has beaten consensus earnings estimates in each of the last four quarters, with an average positive surprise of roughly 10.6%, suggesting management consistently guides below what it ultimately delivers.
→StableCatalyst track record
- Expectation
- Earnings beats continue for the next two quarters, extending the streak to six consecutive quarters and sustaining analyst confidence.
CounterWith revenue declining, the beat streak may reflect cost reductions or one-time items rather than organic earnings growth; a streak built on a contracting top line is structurally fragile and may be interrupted once the cost efficiency gains are exhausted.
Per-dimension breakdown
Quality
5.0/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 3.8 |
| ROA | 0.6 |
| Gross margin | 3.2 |
| Op margin | 8.8 |
| Net margin | 2.6 |
| Current ratio | 6.8 |
| Moat | 5.6 |
| Piotroski F | 8.9 |
- ▸Strong Piotroski F-Score: 8/9
Growth
10.0/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 10.0 |
| EPS growth | 10.0 |
- ▸Strong growth: 64% YoY
Momentum
6.8/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 5.0 |
| MACD | 10.0 |
| OBV | 10.0 |
| MA position | 8.0 |
| Volume | 1.1 |
- ▸Volume accumulation (rising OBV)
- ▸Above 200-MA but MA slope flat
Sentiment
6.3/10data confidence 100%| Component | Sub-score |
|---|---|
| LLM sentiment | 4.9 |
| Analyst rating | 7.5 |
| Price target | 6.3 |
Insider
5.7/10data confidence 75%| Component | Sub-score |
|---|---|
| materiality | 5.0 |
| holder change | 5.0 |
| notable moves | 7.0 |
- ▸Insider selling (low materiality) — $6,355,708 (0.008% of mkt cap)
Peer rank
4.9/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 4.6 |
| quality rank | 3.4 |
| growth rank | 9.6 |
- ▸Industry growth leader
Technical
3.5/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 1.0 |
| support resistance | 1.3 |
| 52w position | 8.2 |
Risk (lower is worse)
5.5/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 7.8 |
| days to cover | 5.3 |
| volatility | 3.3 |
| put call | 5.5 |
| implied vol | 6.5 |
| beta | 5.0 |
| debt equity | 5.0 |
| news risk | 5.5 |
- ▸Concentration risks: 1 HIGH, 1 MED (10-K Item 1A — sized via position_sizing, validated via buy_confidence)
Catalyst
5.9/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 6.7 |
| earnings timing | 5.0 |
| surprise avg | 7.0 |
| dividend safety | 3.5 |
| news activity | 8.0 |
- ▸Strong earnings: 3B/1M
How the verdict was assembled
Engine trigger
Maintain position. Not compelling to add more.
Engine technical detail
verdict_path:
L4:PATH_F_HOLDPassed (7)
- MOMENTUM:6.8>=5.5
- INSIDER:OK
- 8K:CLEAN
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:78d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (1)
- ASYMMETRY:-0.1=NEGATIVE
Warning (1)
- DEATH_CROSS:momentum=6.8>=5.0 recovering
Reward-to-Risk
-0.15
Upside
-2.2%
Downside
15.0%
Sizing output
AVOID
SetupMomentum Cont — Trend continuation, RSI 68, MACD bullish
EdgeNo clear edge — No clear edge identified
SuitabilityAggressive — Beta 1.51>1.3
Investment implication
None of the engine's positive-conviction paths (C-quality, D-momentum) triggered — the F-path HOLD reflects balanced signals. Strongest-cleared gate: MOMENTUM:6.8>=5.5. Top dim: Growth at 10.0; weakest: Technical at 3.5. No conviction either direction.
The strongest dimensions are Growth at 10.0, Momentum at 6.8, and Value at 6.6; the weakest are Technical at 3.5, Peer rank at 4.9, and Quality at 5.0. The V9 engine flagged 1 failed gate with 1 warning, producing an asymmetric reward-to-risk of -0.15 and an engine sizing output of AVOID.
What would invalidate the thesis
Falsifying conditions — when triggered, the corresponding pillar's thesis is invalidated.
- P1Quality Below Minimum Floor
Trip ifBusiness quality score rises above 4.5 for 2 consecutive reporting periods.
- P2Declining Revenue Top Line
Trip ifRevenue growth turns positive and exceeds 5% year-over-year for 2 consecutive quarters.
- P3Perfect Earnings Beat Streak
Trip ifEPS surprise falls below 0% for 2 consecutive quarters, breaking the beat streak.
- P4Attractive Forward ValuationTripped
Trip ifForward price-to-earnings ratio rises above 18 times, indicating the valuation opportunity has closed.