Ares Commercial Real Estate Cor (ACRE) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Ares Commercial Real Estate Cor

NYSE•Real Estate•REIT - Mortgage

$4.38+0.05(0.01%)Market open

Market Cap

$239.74M

P/S

4.3x

P/B

0.5x

Ares Commercial Real Estate Corporation, a specialty finance company, engages in the originating and investing in commercial real estate (CRE) loans and related investments in the United States. The company provides loan opportunities for the owners, operators, and sponsors of CRE properties. Its investments includes senior mortgage loans, subordinate debt, preferred equity products, mezzanine loans, and other CRE investments, such as commercial mortgage-backed securities. It has elected and qualified to be taxed as a real estate investment trust for the United States federal income tax purposes under the Internal Revenue Code of 1986. Ares Commercial Real Estate Corporation was incorporated in 2011 and is based in New York, New York.

How this company scores

WeakMetricSide Score: 53/100

Grade capped at D — Interest coverage below 1× (0.3x) — earnings cannot cover interest. Strongest: Profitability (17/25); weakest: Growth (8/25).

Profitability17/25

Growth8/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality13/25

Strengths

Long cash runwayLow leverageProfit converts from growthImproving leverage

Grade capped at D

Interest coverage below 1× (0.3x) — earnings cannot cover interest.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 149.0x5y range 10.2x – 149.0x

Currently above its 8-quarter median.

P/S · 4.3x5y range 3.9x – 7.7x

Currently near its 20-quarter median.

P/B · 0.5x5y range 0.5x – 1.1x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Revenue Decline

Red Flag

TTM revenue has contracted 16.7% — significant decline indicating deteriorating demand.

Price & Volume

Market Cap $239.74M

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $55.14M
Q. Revenue: $14.36M
TTM EBITDA: $23.09M
TTM Op. Income: $17.61M
Q. Op. Income: $5.39M
TTM Net Income: $-4.43M
Q. Net Income: $4.38M
EPS: $0.08
Shares Out.: $55.37M

$55.14M in TTM revenue declined 10.6% YoY, reaching $14.36M last quarter. TTM EBITDA of $23.09M and TTM operating income of $17.61M show growth is flowing through to the bottom line. However, net income is negative at $4.43M — growth is not yet reaching the bottom line. Over the past year, TTM revenue is down 11% — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: 42.7%
Op. Margin: 37.5%
Net Margin: 30.5%

Op. margin of 37.5% is up 23.1% YoY — cost efficiency is improving. Net margin at 30.5% Across the last 8 quarters, operating margin has risen for 2 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: N/A
P/S Ratio: 4.3x
P/B Ratio: 0.5x

P/S of 4.3x and P/B of 0.5x.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $1.82B
Cash: $17.56M
Long-Term Debt: $89.72M
Book Value: $489.23M
D/E Ratio: 0.2
Debt/EBITDA: 14.6

With $1.82B in assets and $89.72M in long-term debt, D/E is 0.2and book value is $489.23M — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is down 12% — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $63.55M
TTM Free Cash Flow: $13.21M
FCF Margin: 24.0%
FCF / Net Income: -3.0

TTM FCF of $13.21M on $63.55M in operating cash flow. The FCF / Net Income ratio of -3.0x means the business consumes cash — it is not yet self-funding. Over the past year, free cash flow is down 51% — an improving trend.