ACRE Ares Commercial Real Estate Corporation - Fundamental Analysis
BEARISH
Sign in to save
Save this symbol to a watchlist or track a position.
ACRE Stock | Fundamental Analysis & Investment Insights
NYSE
Real Estate
REIT - Mortgage
Current Price
Live
$4.85
Analyst Target
$4.75
-2.1%
Downside
52W High
$6.1
52W Low
$3.35
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 24, 2026
Market cap
$266.88M
P/E
N/A
ROE
-1.4%
Profit margin
-8.8%
Debt/Equity
1.55
Dividend yield
12.35%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
85%
Analysis Accuracy
ACRE exhibits severe financial distress with a Piotroski F-Score of 2/9, indicating weak fundamental health. Despite a low Price/Book of 0.51 and a high dividend yield of 12.35%, the company reports negative profit margins (-8.77%) and ROE (-1.42%), with an unsustainable payout ratio of 2,266.67%. Revenue growth is strong at 77.30% YoY, but earnings volatility is extreme, including massive negative surprises, while insider selling and a bearish technical trend reinforce caution. Analysts concur with a 'hold' rating and a target price below current levels, suggesting limited upside.
Key Strengths
High year-over-year revenue growth (77.30%) indicating strong top-line expansion
Attractive dividend yield of 12.35% offering high income potential
Low Price/Book ratio of 0.51 suggesting possible undervaluation relative to book value
Exceptionally high current and quick ratios (22.97 and 22.25) indicating strong short-term liquidity
Recent positive Q/Q and YoY EPS growth (+119.6% and +42.9%) showing recent earnings improvement
Key Risks
Critically low Piotroski F-Score of 2/9 signaling severe financial weakness
Extremely high payout ratio (2,266.67%) indicating dividend is not sustainable from earnings
Negative net income and profit margin (-8.77%) despite revenue growth
Unstable earnings with massive negative surprises (e.g., -22466.4% in Q3 2025)
Insider selling by top executives (CEO, CFO, GC) signaling lack of confidence
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
41
Moderate
58
64
30
18
36
AI Verdict
High risk with speculative income appeal
Key drivers: Low Piotroski F-Score, Unsustainable dividend payout, Negative profitability, Insider selling, High revenue growth
Confidence
88%
Value
58/100
Ref P/E, PEG, Graham Number
Positives
- Price/Book of 0.51 suggests possible undervaluation
- Forward P/E of 33.21 below sector average of 40.89
Watchpoints
- No Graham Number or intrinsic value available
- P/E is N/A due to negative earnings
Future
64/100
Ref Growth rates
Positives
- 77.30% YoY revenue growth well above sector average
- Recent EPS growth of +119.6% Q/Q and +42.9% YoY
Watchpoints
- Earnings growth is highly volatile and unreliable
- No consistent forward earnings guidance
Past
30/100
Ref Historical trends
Positives
- Historically beat estimates in earlier quarters (2020–2023)
Watchpoints
- Recent quarters show extreme negative surprises (e.g., -22466.4%)
- Inconsistent earnings performance over last 4 quarters (2 beats, 2 misses)
- Long-term price performance negative: -38.4% over 3Y
Health
18/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Exceptionally high current and quick ratios (22.97, 22.25)
Watchpoints
- Piotroski F-Score of 2/9 indicates critical financial weakness
- Negative ROE (-1.42%) and ROA (-0.46%)
- No Altman Z-Score reported, increasing uncertainty
Dividend
36/100
Ref Yield, Payout
Positives
- High dividend yield of 12.35% attractive for income investors
Watchpoints
- Payout ratio of 2,266.67% is grossly unsustainable
- Dividend strength score of 40/100 indicates high risk
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$4.85
Analyst Target
$4.75
Upside/Downside
-2.1%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for ACRE and closest competitors.
Updated 2026-01-23
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
ACRE
Ares Commercial Real Estate Corporation
Primary
|
-23.3% | -38.4% | -3.1% | +10.8% | -1.7% | -5.1% |
|
ARL
American Realty Investors, Inc.
Peer
|
+76.1% | -28.3% | +6.2% | +29.1% | +4.3% | +2.6% |
|
BRT
BRT Apartments Corp.
Peer
|
+27.1% | -11.6% | -7.2% | -1.0% | +3.3% | -0.6% |
|
AOMR
Angel Oak Mortgage REIT, Inc.
Peer
|
-15.4% | +78.5% | +3.5% | +1.3% | +4.8% | -1.5% |
|
BHR
Braemar Hotels & Resorts Inc.
Peer
|
-22.4% | -28.9% | +25.3% | +27.1% | +3.2% | +1.0% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
N/A
Forward P/E
33.21
PEG Ratio
N/A
P/B Ratio
0.51
P/S Ratio
3.04
EV/Revenue
11.29
EV/EBITDA
N/A
Market Cap
$266.88M
Profitability
Profit margins and return metrics
Profit Margin
-8.77%
Operating Margin
38.63%
Gross Margin
100.0%
ROE
-1.42%
ROA
-0.46%
Growth
Revenue and earnings growth rates
Revenue Growth
+77.3%
Earnings Growth
N/A
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
N/A
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
1.55
High debt
Current Ratio
22.97
Strong
Quick Ratio
22.25
Excellent
Cash/Share
$1.54
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-12
$N/A
2025-11-07
$0.1
+183.2% surprise
2025-08-05
$-0.51
-22466.4% surprise
2025-05-07
$0.13
+85.7% surprise
Real Estate Sector Comparison
Comparing ACRE against 56 companies in the Real Estate sector
(1 bullish, 9 neutral, 46 bearish)
Return on Equity (ROE)
-1.42%
This Stock
vs
-75.18%
Sector Avg
-98.1%
(Below Avg)
Profit Margin
-8.77%
This Stock
vs
26.43%
Sector Avg
-133.2%
(Weaker)
Debt to Equity
1.55
This Stock
vs
3.27
Sector Avg
-52.5%
(Less Debt)
Revenue Growth
77.3%
This Stock
vs
1431.44%
Sector Avg
-94.6%
(Slower)
Current Ratio
22.97
This Stock
vs
3449.18
Sector Avg
-99.3%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
ACRE
Ares Commercial Real...
|
BEARISH | $266.88M | - | -1.4% | -8.8% | $4.85 | |
|
ARL
American Realty Investors, Inc.
|
BEARISH | $269.09M | 47.6 | 0.9% | 11.7% | $16.66 | |
|
BRT
BRT Apartments Corp.
|
BEARISH | $284.16M | - | -4.8% | -9.9% | $14.94 | |
|
AOMR
Angel Oak Mortgage REIT, Inc.
|
BEARISH | $226.97M | 11.83 | 6.7% | 50.9% | $9.11 | |
|
BHR
Braemar Hotels & Resorts Inc.
|
BEARISH | $223.77M | - | -1.9% | -1.0% | $2.92 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2026-01-14 | FEINGOLD ANTON | General Counsel | Sale | 7,606 | $37,479 |
| 2026-01-14 | DONOHOE BRYAN PATRICK | Chief Executive Officer | Sale | 21,761 | $107,230 |
| 2026-01-14 | GONZALES JEFFREY MICHAEL | Chief Financial Officer | Sale | 6,218 | $30,640 |
| 2025-12-11 | YOON TAE SIK | Chief Operating Officer | Stock Award | 37,400 | - |
| 2025-12-11 | FEINGOLD ANTON | General Counsel | Stock Award | 22,000 | - |
| 2025-12-11 | DONOHOE BRYAN PATRICK | Chief Executive Officer | Stock Award | 49,500 | - |
| 2025-12-11 | GONZALES JEFFREY MICHAEL | Chief Financial Officer | Stock Award | 44,000 | - |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
HOLD
4 analysts
Keefe, Bruyette & Woods
2025-12-15
Market Perform
Outperform
UBS
2025-11-14
Neutral
Neutral
Keefe, Bruyette & Woods
2025-11-11
Market Perform
Market Perform
Keefe, Bruyette & Woods
2025-10-09
Market Perform
Market Perform
Keefe, Bruyette & Woods
2025-08-06
Market Perform
Market Perform
UBS
2025-08-06
Neutral
Neutral
Past News Coverage
Recent headlines mentioning ACRE from our newsroom.
Newest → oldest
No matching news yet.