Investment Thesis
Apollo demonstrates strong revenue growth of 62.9% YoY and exceptional operating margins at 45.1%, but is severely hampered by critically unsustainable debt metrics. Interest coverage of 0.1x indicates the company cannot service debt obligations from operations, while the sharp divergence between revenue growth and net income growth (10.7%) suggests deteriorating asset quality or rising funding costs.
Strengths
- Strong revenue growth of 62.9% year-over-year demonstrates active market participation
- Excellent operating margin of 45.1% shows effective cost management at operational level
- Positive free cash flow generation of $12.6M with 21.4% FCF margin indicates operational liquidity
Risks
- Critically low interest coverage ratio of 0.1x indicates inability to service debt from operations - fundamental solvency concern
- Extremely poor returns on capital (ROE 1.4%, ROA 0.3%) despite significant leverage suggest capital is not efficiently deployed
- Massive divergence between revenue growth (62.9%) and net income growth (10.7%) indicates margin compression or rising funding costs
Key Metrics to Watch
- Interest coverage ratio - critical indicator of debt service sustainability
- Net interest margin and funding cost trends - will determine future profitability trajectory
- Liquidity ratio of cash ($126.8M) to debt obligations ($773.4M) - current position is dangerously tight
Financial Metrics
Revenue
58.6M
Net Income
26.2M
EPS (Diluted)
$0.16
Free Cash Flow
12.6M
Total Assets
10.1B
Cash
126.8M
Profitability Ratios
Gross Margin
N/A
Operating Margin
45.1%
Net Margin
44.7%
ROE
1.4%
ROA
0.3%
FCF Margin
21.4%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.43x
Debt/Assets
82.0%
Interest Coverage
0.10x
Long-term Debt
773.4M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-06T12:43:03.943205 |
Data as of: 2026-03-31 |
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