ARI'
s Pretax Margin % Range Over the Past 10 Years
Min: -60.94 Med: 72.5 Max: 87.07
Current: 48.52
ARI's Pretax Margin % is ranked better than 51.5% of 932
companies
in the REITs industry
Industry Median: 46.815
vs ARI: 48.52
Apollo Commercial Real Estate Finance (NYSE:ARI) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Apollo Commercial Real Estate Finance Pretax Margin % Related Terms
Apollo Commercial Real Estate Finance Pretax 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.
Apollo Commercial Real Estate Finance Pretax Margin % Chart
For the REIT - Mortgage subindustry, Apollo Commercial Real Estate Finance's Pretax Margin %, along with its competitors' market caps and Pretax 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.
Apollo Commercial Real Estate Finance Pretax Margin % vs REITs Industry
* 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.
Apollo Commercial Real Estate Finance (ARI) has a Pretax Margin % of 44.31% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Apollo Commercial Real Estate Finance and its competitors. This is 39% below median its historical median of 72.50. According to the industry distribution chart, Apollo Commercial Real Estate Finance ranks #452 out of 932 companies in the REITs industry, placing it in the top 48.5%.
Is Apollo Commercial Real Estate Finance's Pretax Margin % too high?
Apollo Commercial Real Estate Finance's current Pretax Margin % of 44.31% is 39% below median its 10-year median of 72.50. The REITs industry median Pretax Margin % is 46.82. Apollo Commercial Real Estate Finance's value of 44.31% is 5.4% below this industry median. Based on the distribution chart, Apollo Commercial Real Estate Finance ranks #452 out of 932 companies in the REITs industry, which is above the industry midpoint. Overall, Apollo Commercial Real Estate Finance has a GF Score™ of 56/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Apollo Commercial Real Estate Finance's Pretax Margin % compare to ORC and LADR?
According to the REITs industry distribution chart, Apollo Commercial Real Estate Finance ranks #452 out of 932 companies for Pretax Margin %. This puts Apollo Commercial Real Estate Finance in the upper half of its industry. The industry median Pretax Margin % is 46.82. Apollo Commercial Real Estate Finance's value of 44.31% is 5.4% below this benchmark. While the company's 10-year median is 72.50 vs. the industry median of 46.82, Apollo Commercial Real Estate Finance 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 Pretax Margin % for a REITs company?
The median Pretax Margin % among REITs companies is 46.82, based on 932 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Apollo Commercial Real Estate Finance's current Pretax Margin % of 44.31% is 5.4% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Apollo Commercial Real Estate Finance and its competitors. For the REITs industry, the median Pretax Margin % is 46.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Apollo Commercial Real Estate Finance's current Pretax Margin % is 44.31%, which is 39% below median its own 10-year median of 72.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Apollo Commercial Real Estate Finance stock overvalued right now?
Based on GuruFocus' analysis, Apollo Commercial Real Estate Finance (ARI) is currently considered Modestly Overvalued. The stock's GF Value™ is $9.69, compared to a current price of $10.78 — trading 11.2% above its estimated fair value. The current Pretax Margin % is 44.31%, which is 39% below median its 10-year median of 72.50 and 5.4% below the REITs industry median of 46.82. Apollo Commercial Real Estate Finance's overall GF Score™ is 56/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Apollo Commercial Real Estate Finance (ARI), the current Pretax Margin % is 44.31% as of Mar. 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 Apollo Commercial Real Estate Finance (ARI) Overvalued in 2026?
Based on GuruFocus' analysis, Apollo Commercial Real Estate Finance stock appears to be overvalued.
The current stock price of $10.78 is trading 11.2% above its estimated GF Value™ of $9.69.
GuruFocus considers Apollo Commercial Real Estate Finance to be Modestly Overvalued.
Key valuation signals for ARI:
Pretax Margin %: 44.31% (39% below median its 10-year median of 72.50)
GF Value™: $9.69 vs. price of $10.78 (11.2% above fair value)
Industry Position: 5.4% below the REITs median (#452 of 932)
No single metric tells the full story. See the ARI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Apollo Commercial Real Estate Finance Business Description
Apollo Commercial Real Estate Finance Inc is a real estate investment trust that originates, invests in, acquires, and manages commercial first-mortgage loans, subordinate financings, commercial mortgage-backed securities, and other real estate-related debt investments. The subordinate loans and first-mortgage loans account for the vast majority of the portfolio on a cost basis. Property types include residential, retail, healthcare, office, mixed-use, hotel, industrial, multifamily, securities, and other, with residential properties and hotels representing the highest property value. More than a third of the properties are located in New York City, with the other properties located across other regions of the United States, as well as other countries.
56GF Score
Get the complete analysis for ARI
Pretax Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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