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Ares Commercial Real EstateACRE -2.11%43 Net Margin % is 30.53% as of Jun. 2026, which is 43% below its 10-year median of 53.56. GuruFocus rates ACRE with a GF Score™ of 43/100 and a GF Value™ of $11.64 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 914 REITs companies, Ares Commercial Real Estate ranks worse than 86% on this metric.
Ares Commercial Real Estate (NYSE:ACRE) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Ares Commercial Real Estate Net Margin % Related Terms
Ares Commercial Real Estate Net Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the REIT - Mortgage subindustry, Ares Commercial Real Estate's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Ares Commercial Real Estate's Net Margin % distribution charts can be found below:
* The bar in red indicates where Ares Commercial Real Estate's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ares Commercial Real Estate (ACRE) has a Net Margin % of 30.53% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Ares Commercial Real Estate and its competitors. This is 43% below median its historical median of 53.56. According to the industry distribution chart, Ares Commercial Real Estate ranks #786 out of 914 companies in the REITs industry, placing it in the top 86%.
Is Ares Commercial Real Estate's Net Margin % too high?
Ares Commercial Real Estate's current Net Margin % of 30.53% is 43% below median its 10-year median of 53.56. The REITs industry median Net Margin % is 45.38. Ares Commercial Real Estate's value of 30.53% is 32.7% below this industry median. Based on the distribution chart, Ares Commercial Real Estate ranks #786 out of 914 companies in the REITs industry, which is in the bottom quartile 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 Net Margin % compare to REFI and RC?
According to the REITs industry distribution chart, Ares Commercial Real Estate ranks #786 out of 914 companies for Net Margin %. This places Ares Commercial Real Estate in the lower half of its industry. The industry median Net Margin % is 45.38. Ares Commercial Real Estate's value of 30.53% is 32.7% below this benchmark. While the company's 10-year median is 53.56 vs. the industry median of 45.38, Ares Commercial Real Estate has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a REITs company?
The median Net Margin % among REITs companies is 45.38, based on 914 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ares Commercial Real Estate's current Net Margin % of 30.53% is 32.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Ares Commercial Real Estate and its competitors. For the REITs industry, the median Net Margin % is 45.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ares Commercial Real Estate's current Net Margin % is 30.53%, which is 43% below median its own 10-year median of 53.56. 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 (ACRE) is currently considered Possible Value Trap. The stock's GF Value™ is $11.64, compared to a current price of $4.63 — trading 60.2% below its estimated fair value. The current Net Margin % is 30.53%, which is 43% below median its 10-year median of 53.56 and 32.7% below the REITs industry median of 45.38. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Ares Commercial Real Estate (ACRE), the current Net Margin % is 30.53% as of Jun. 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 (ACRE) Overvalued in 2026?
Based on GuruFocus' analysis, Ares Commercial Real Estate stock appears to be undervalued.
The current stock price of $4.63 is trading 60.2% below its estimated GF Value™ of $11.64.
GuruFocus considers Ares Commercial Real Estate to be Possible Value Trap.
Key valuation signals for ACRE:
Net Margin %: 30.53% (43% below median its 10-year median of 53.56)
GF Value™: $11.64 vs. price of $4.63 (60.2% below fair value)
Industry Position: 32.7% below the REITs median (#786 of 914)
No single metric tells the full story. See the ACRE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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
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Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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