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portfolio's performance is often a mixed bag, with some stocks underperforming while others excel. Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) is one such stock that has seen its share price decline by 52% over the past five years. Let's examine the company's fundamentals to understand what might be driving this trend.

    As Benjamin Graham once said, "In the short term, the market is a voting machine, but in the long term, it's a weighing machine." One way to gauge market sentiment is to look at the relationship between a company's share price and its earnings per share (EPS). Apollo Commercial Real Estate Finance has reported profits in the past, but its trailing twelve months loss suggests inconsistent profitability. Other factors may be contributing to the decline in share price.

    The dividend has decreased over the past five years, which could have contributed to the decline. We can see how earnings and revenue have changed over time by examining the company's financials (click on the image for exact values). The CEO is remunerated modestly compared to peers, but the key question is whether the company can grow its earnings going forward.

    Analysts' forecasts suggest that Apollo Commercial Real Estate Finance may face challenges in the future. To get a more comprehensive view of the company's performance, investors should consider the total shareholder return (TSR), which takes into account dividends and capital raisings. The TSR for Apollo Commercial Real Estate Finance is -10% over the past five years, exceeding its share price return.

    Despite this, shareholders are down 14% for the year, while the market has risen by 26%. Even good stocks can experience downturns, but we want to see improvements in fundamental metrics before getting too interested. Last year's performance may indicate unresolved challenges, and long-term share price weakness can be a bad sign. However, contrarian investors might want to research the stock for potential turnaround opportunities.

    It's essential to consider various factors that impact share prices, such as risks. Apollo Commercial Real Estate Finance has 2 warning signs (and 1 which shouldn't be ignored) that investors should be aware of.