Ares Commercial Real Estate (ACRE) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Ares Commercial Real Estate stock (ACRE) is currently trading at $4.73. Ares Commercial Real Estate PS ratio (Price-to-Sales) is 3.58. Analyst consensus price target for ACRE is $5.50. WallStSmart rates ACRE as Sell.
- ACRE PE ratio analysis and historical PE chart
- ACRE PS ratio (Price-to-Sales) history and trend
- ACRE intrinsic value — DCF, Graham Number, EPV models
- ACRE stock price prediction 2025 2026 2027 2028 2029 2030
- ACRE fair value vs current price
- ACRE insider transactions and insider buying
- Is ACRE undervalued or overvalued?
- Ares Commercial Real Estate financial analysis — revenue, earnings, cash flow
- ACRE Piotroski F-Score and Altman Z-Score
- ACRE analyst price target and Smart Rating
Ares Commercial Real Estate
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Smart Analysis
Ares Commercial Real Estate (ACRE) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in price/book, eps growth. Concerns around market cap and return on equity. Mixed signals suggest waiting for clearer direction before acting.
Ares Commercial Real Estate (ACRE) Key Strengths (2)
Trading below book value, meaning the market prices it less than net assets
Earnings per share surging 1598.00% year-over-year
Supporting Valuation Data
Ares Commercial Real Estate (ACRE) Areas to Watch (8)
Company is destroying shareholder value
Losing money on operations
Revenue declining -81.70%, a shrinking business
Company is losing money with a negative profit margin
Micro-cap company with very limited liquidity and high volatility
Paying a premium for growth, expensive relative to earnings expansion
Revenue is fairly priced at 3.58x sales
Moderate institutional interest at 47.17%
Supporting Valuation Data
Ares Commercial Real Estate (ACRE) Detailed Analysis Report
Overall Assessment
This company scores 41/100 in our Smart Analysis, earning a D grade. Out of 10 metrics analyzed, 2 register as strengths (avg 10.0/10) while 8 fall into concern territory (avg 2.4/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Price/Book, EPS Growth. Valuation metrics including Price/Book (0.51) suggest the stock is attractively priced. Growth metrics are encouraging with EPS Growth at 1598.00%.
The Bear Case
The primary concerns are Return on Equity, Operating Margin, Revenue Growth. Some valuation metrics including PEG Ratio (2.57), Price/Sales (3.58) suggest expensive pricing. Growth concerns include Revenue Growth at -81.70%, which may limit upside. Profitability pressure is visible in Return on Equity at -0.17%, Operating Margin at -195.80%, Profit Margin at -1.24%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at -0.17% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at -81.70% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. Return on Equity and Operating Margin are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
ACRE Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
ACRE's Price-to-Sales ratio of 3.58x trades at a deep discount to its historical average of 44.72x (9th percentile). The current valuation is 99% below its historical high of 524.01x set in Jan 2024, and 48% above its historical low of 2.42x in Apr 2025. Over the past 12 months, the PS ratio has expanded from ~3.0x, reflecting growing market expectations outpacing revenue growth.
WallStSmart Analysis Synopsis
Data-driven financial summary for Ares Commercial Real Estate (ACRE) · REAL ESTATE › REIT - MORTGAGE
The Big Picture
Ares Commercial Real Estate is in a turnaround phase, with management focused on restoring profitability. Revenue reached 73M with 82% decline year-over-year. The company is currently unprofitable, posting a -124.0% profit margin.
Key Findings
Generating 4M in free cash flow and 5M in operating cash flow. Earnings are translating into actual cash generation.
Revenue contracted 82% YoY. Worth determining whether this is cyclical or structural.
The company is unprofitable with a -124.0% profit margin. The path to breakeven will be the key catalyst.
What to Watch Next
Dividend sustainability with a current yield of 12.4%. Watch payout ratio and free cash flow coverage.
Debt management: total debt of 1.0B is significantly higher than cash (29M). Monitor refinancing risk.
Sector dynamics: monitor REIT - MORTGAGE industry trends, competitive moves, and regulatory changes that could impact Ares Commercial Real Estate.
Bottom Line
Ares Commercial Real Estate is in turnaround mode. The path to profitability remains the critical question. Speculative investors may see opportunity in the recovery story, but conservative investors should wait for consistent positive earnings before committing capital.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Ares Commercial Real Estate(ACRE)
NYSE
REAL ESTATE
REIT - MORTGAGE
USA
Ares Commercial Real Estate Corporation, a specialized finance company, originates and invests in commercial real estate loans (CRE) and related investments in the United States. The company is headquartered in New York, New York.