Ares Commercial Real Estate (FRA:41I) Moat Score: 4/10 (As of Aug. 26, 2026)

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FRA:41I Ares Commercial Real Estate Corp FRA:41I
43 GF Score
Price €4.06
GF Value €9.98
Valuation Possible Value Trap
! 4 Warning Signs
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What is Ares Commercial Real Estate Moat Score?

Ares Commercial Real Estate FRA:41I -0.49% 43 Moat Score is 4 as of Aug. 26, 2026. GuruFocus rates FRA:41I with a GF Score™ of 43/100 and a GF Value™ of €9.98 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 964 REITs companies, Ares Commercial Real Estate ranks better than 86.93% on this metric.

Ares Commercial Real Estate has the Moat Score of 4, which implies that the company might have Narrow Moat - Discernible but modest moat.

Ares Commercial Real Estate has Narrow Moat: Ares Commercial Real Estate Corp has a discernible but modest moat due to its established market presence and some economies of scale. However, it lacks strong brand strength, significant customer switching costs, or unique intellectual property.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Ares Commercial Real Estate might have Narrow Moat - Discernible but modest moat.

Ares Commercial Real Estate  (FRA:41I) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Ares Commercial Real Estate Moat Score Related Terms

FRA:41I vs REFI, RC, MITT: Moat Score Comparison

For the REIT - Mortgage subindustry, Ares Commercial Real Estate's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Ares Commercial Real Estate Moat Score vs REITs Industry

For the REITs industry and Real Estate sector, Ares Commercial Real Estate's Moat Score distribution charts can be found below:

* The bar in red indicates where Ares Commercial Real Estate's Moat Score falls into.


FRA:41I
43GF Score
Ares Commercial Real Estate Corp FRA:41I
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 4 mean?
Ares Commercial Real Estate (FRA:41I) has a Moat Score of 4 as of Aug. 26, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Ares Commercial Real Estate ranks #126 out of 964 companies in the REITs industry, placing it in the top 13.1%.
Is Ares Commercial Real Estate's Moat Score too high?
Ares Commercial Real Estate's current Moat Score is 4. Based on the distribution chart, Ares Commercial Real Estate ranks #126 out of 964 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Ares Commercial Real Estate has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ares Commercial Real Estate's Moat Score compare to REFI and RC?
According to the REITs industry distribution chart, Ares Commercial Real Estate ranks #126 out of 964 companies for Moat Score. This places Ares Commercial Real Estate in the top 13% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a REITs company?
A good Moat Score depends on the REITs industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Ares Commercial Real Estate's current Moat Score is 4. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ares Commercial Real Estate stock overvalued right now?
Based on GuruFocus' analysis, Ares Commercial Real Estate (FRA:41I) is currently considered Possible Value Trap. The stock's GF Value™ is €9.98, compared to a current price of €4.06 — trading 59.4% below its estimated fair value. The current Moat Score is 4. Ares Commercial Real Estate's overall GF Score™ is 43/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Ares Commercial Real Estate (FRA:41I), the current Moat Score is 4 as of Aug. 26, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Ares Commercial Real Estate (FRA:41I) Overvalued in 2026?

Based on GuruFocus' analysis, Ares Commercial Real Estate stock appears to be undervalued. The current stock price of €4.06 is trading 59.4% below its estimated GF Value™ of €9.98. GuruFocus considers Ares Commercial Real Estate to be Possible Value Trap.

Key valuation signals for FRA:41I:

  • Moat Score: 4
  • GF Value™: €9.98 vs. price of €4.06 (59.4% below fair value)
  • GF Score™: 43/100 with 4 warning signs

No single metric tells the full story. See the FRA:41I stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Ares Commercial Real Estate Business Description

Industry Real EstateREITs
Other Exchanges ACRE:USA
Address 245 Park Avenue, 42nd Floor, New York, NY, USA, 10167
Ares Commercial Real Estate Corp is a specialty finance company and a real estate investment trust mainly engaged in originating and investing in commercial real estate (CRE) loans and related investments. It operates in one segment, namely originating and managing a diversified portfolio of CRE debt-related investments. The company recognizes the majority of its revenues in the form of interest income, which it receives from loans.
43GF Score

Get the complete analysis for FRA:41I

Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€4.06
Price
€9.98
GF Value