Apollo Global Management Stock Beneish M Score

APO Stock  USD 173.85  1.79  1.02%   
This module uses fundamental data of Apollo Global to approximate the value of its Beneish M Score. Apollo Global M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Apollo Global Piotroski F Score and Apollo Global Altman Z Score analysis.
  
At this time, Apollo Global's Long Term Debt is very stable compared to the past year. As of the 28th of November 2024, Interest Debt Per Share is likely to grow to 25.77, while Short and Long Term Debt Total is likely to drop about 5.7 B. At this time, Apollo Global's ROIC is very stable compared to the past year. As of the 28th of November 2024, Net Income Per Share is likely to grow to 9.12, while Dividend Yield is likely to drop 0.02.
At this time, it appears that Apollo Global Management is an unlikely manipulator. The earnings manipulation may begin if Apollo Global's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Apollo Global executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Apollo Global's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.42
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

0.99

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

1.05

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.0

Focus

Apollo Global Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Apollo Global's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables9.2 B8.8 B
Sufficiently Up
Slightly volatile
Total Revenue34.3 B32.6 B
Sufficiently Up
Slightly volatile
Total Assets329.2 B313.5 B
Sufficiently Up
Slightly volatile
Total Current Assets16.7 B15.9 B
Sufficiently Up
Very volatile
Non Current Assets Total143.7 B136.9 B
Sufficiently Up
Slightly volatile
Property Plant Equipment544 M518.1 M
Sufficiently Up
Slightly volatile
Depreciation And Amortization844.2 M804 M
Sufficiently Up
Slightly volatile
Selling General Administrative2.7 B2.6 B
Sufficiently Up
Slightly volatile
Total Current Liabilities227.3 B216.4 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total302.7 B288.2 B
Sufficiently Up
Slightly volatile
Short Term Debt29.4 M31 M
Notably Down
Slightly volatile
Long Term Debt8.5 B8.1 B
Sufficiently Up
Slightly volatile
Short Term Investments2.2 B2.2 B
Slightly Up
Slightly volatile
Long Term Investments112 B106.7 B
Sufficiently Up
Slightly volatile

Apollo Global Management Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Apollo Global's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Apollo Global in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Apollo Global's degree of accounting gimmicks and manipulations.

About Apollo Global Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Other Operating Expenses

26.14 Billion

At this time, Apollo Global's Other Operating Expenses is very stable compared to the past year.

Apollo Global Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Apollo Global. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables417.5M510.6M493.8M4.8B8.8B9.2B
Total Revenue2.9B2.4B6.0B11.0B32.6B34.3B
Total Assets8.5B23.7B30.5B13.8B313.5B329.2B
Total Current Assets2.0B3.0B2.1B3.1B15.9B16.7B
Net Debt1.3B12.2B2.7B2.2B(7.8B)(7.4B)
Short Term Debt54.5M40.5M37.7M35M31M29.5M
Long Term Debt3.5B5.6B5.7B2.9B8.1B8.5B
Operating Income1.3B1.4B2.6B115.9M5.9B6.2B
Investments(264.0M)(211.9M)(1.5B)(561.2M)(39.0B)(37.0B)

Apollo Global ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Apollo Global's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Apollo Global's managers, analysts, and investors.
Environmental
Governance
Social

About Apollo Global Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Apollo Global Management's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Apollo Global using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Apollo Global Management based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Pair Trading with Apollo Global

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Apollo Global position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Apollo Global will appreciate offsetting losses from the drop in the long position's value.

Moving together with Apollo Stock

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Moving against Apollo Stock

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The ability to find closely correlated positions to Apollo Global could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Apollo Global when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Apollo Global - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Apollo Global Management to buy it.
The correlation of Apollo Global is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Apollo Global moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Apollo Global Management moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Apollo Global can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether Apollo Global Management is a strong investment it is important to analyze Apollo Global's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Apollo Global's future performance. For an informed investment choice regarding Apollo Stock, refer to the following important reports:
Check out Apollo Global Piotroski F Score and Apollo Global Altman Z Score analysis.
You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Apollo Global. If investors know Apollo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Apollo Global listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.174
Dividend Share
1.818
Earnings Share
9.47
Revenue Per Share
54.036
Quarterly Revenue Growth
2.851
The market value of Apollo Global Management is measured differently than its book value, which is the value of Apollo that is recorded on the company's balance sheet. Investors also form their own opinion of Apollo Global's value that differs from its market value or its book value, called intrinsic value, which is Apollo Global's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Apollo Global's market value can be influenced by many factors that don't directly affect Apollo Global's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Apollo Global's value and its price as these two are different measures arrived at by different means. Investors typically determine if Apollo Global is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Apollo Global's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.