ACRE

Ares Commercial Real Estate Corporation

Fundamental data last updated:May 15, 2026

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company profile

SECTOR

Real Estate

industry

REIT - Mortgage

Exchange

NYSE

County of HQ

US

Next Earnings Date

08/04/2026

Business Summary

Ares Commercial Real Estate Corporation, a specialty finance company, originates and invests in commercial real estate (CRE) loans and related investments in the United States. The company provides a range of financing solutions for the owners, operators, and sponsors of CRE properties. It originates senior mortgage loans, subordinate debt products, mezzanine loans, real estate preferred equity investments, and other CRE investments, including commercial mortgage backed securities. The company has elected and qualified to be taxed as a real estate investment trust for the United States federal income tax purposes under the Internal Revenue Code of 1986. Ares Commercial Real Estate Management LLC operates as the manager of the company. The company was incorporated in 2011 and is based in New York, New York.

 


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VALUATION

P/E

-13.31

Market Cap ($M USD)

$264.92M

Forward P/E

9.55

PEG

0.04

PRICE TO SALES

3.32

PRICE TO BOOK

0.54

EV / EBITDA

80.23

5-Year Average P/E

Free Cash Flow Yield

-16.59%

DCF Value

$-8.96

Graham Number

N/A

Price to FCF

-6.03

EV to FCF

-33.01

Earnings Yield

-7.52%

FCF Yield

-16.59%

DIVIDEND

Yield

12.57%

Annual Payout

$0.60

Payout Ratio

-168.89%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$0.36

Next Year EPS Growth Estimate

$0.50

Next Year Revenue Growth Estimate

$5.33B

Return on Equity (ROE)

-3.88%

FREE CASH FLOW

Operating Margin

13.63%

Debt-to-Equity

2.06

Piotroski F-Score

1

Altman Z-Score

-0.15

Return on Invested Capital (ROIC)

0.67%

Current Ratio

0.47

Quick Ratio

0.47

Net Debt to EBITDA

65.58

Interest Coverage

0.17

Gross Profit margin

70.03%

FCF PER SHARE

$-0.79

REVENUE PER SHARE

$1.44

Analyze ACRE on TradingView

Gainseekers Quantitative Analysis

Summary

The market seems to be mispricing ACRE significantly. With a DCF value deeply negative and a Graham Number unavailable, the stock’s valuation is questionable. The Forward P/E of 8.57 suggests some optimism, yet the negative Earnings Yield and Altman Z-score of -0.14 paint a picture of financial distress. The company’s safety and growth prospects appear bleak, with a Return on Equity of -3.88% indicating poor management efficiency. Overall, the financial health is precarious, and the valuation metrics suggest caution.

AI Exposure / Tech Reliance

Operating within the REIT - Mortgage sector, ACRE's ability to adapt to AI and tech shifts is limited. The industry is traditionally slow to integrate cutting-edge technology, focusing more on tangible assets. However, any advancements in AI-driven property valuation or risk assessment could offer future opportunities.

The Bull Case

For the value or GARP investor, ACRE's Forward PEG ratio of 0.03 is a beacon of potential undervaluation. Despite a low ROIC of 0.67%, the company offers an enticing TTM Yield of 11.67%, suggesting strong income potential. The Operating Margin of 13.63% indicates some pricing power, while the low Price/Book ratio of 0.58 hints at a bargain. These factors could attract investors seeking income and potential capital appreciation.

The Bear Case

ACRE's structural risks are glaring. The negative EPS and an alarming Net Debt to EBITDA ratio of 65.58 highlight severe financial strain. With an EV to EBITDA of 81.35, the stock appears overvalued relative to its earnings capacity. The Piotroski F-Score of 1 signals weak financial health, and the Altman Z-score suggests potential distress. These metrics underscore a precarious position, making it a risky bet.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$5.00

Institutional Ownership %

1-Year Beta

1.23

Insider Buying % (6 Mo)

Distance to 52-Week High

23.35%

Distance to 52-Week Low

15.18%

EARNINGS SURPRISE %

-25.00%

50-DAY SMA

$5.03

200-DAY SMA

$4.89

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.