ACRES Commercial Realty (ACR) AI Stock Analysis

• Market Cap: $133.39M
• Dividend Yield: N/A
• Average Volume (3M): 64.34K
• Price to Earnings (P/E): 62.3
• Beta (1Y): 0.42
• Revenue Growth: -13.68%
• EPS Growth: -53.53%
• Country: US
• Employees: 4
• Sector: Real Estate
• Sector Strength: 57
• Industry: REIT - Mortgage
• EPS (TTM): -0.86
• Shares Outstanding: 7,394,194
• 10 Day Avg. Volume: 127,188
• 30 Day Avg. Volume: 64,340
• PEG Ratio: -1.36
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.57
• Enterprise Value/Market Cap: 16.22
• Enterprise Value/Revenue: 4.02
• Enterprise Value/Gross Profit: 24.83
• Enterprise Value/Ebitda: 8.32
• 1Y Price Target: $22.00
• Price Target Upside: 21.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: $19.00 ▲(5.32%Upside)

ACRES Commercial Realty's overall stock score reflects a balance of strong revenue growth and improved net profit margins against significant valuation concerns and mixed technical indicators. The company's financial performance is a positive aspect, but the high P/E ratio and earnings challenges suggest caution. New financing offers growth opportunities, but the stock's overvaluation and technical outlook warrant a conservative stance.

Positive Factors

Analyst Rating

The analyst reiterates a Market Outperform rating and increases the price target for Acres Commercial Realty Corp.

Financial Performance

The book value of ACRES Commercial Realty Corp. increased to $28.87 per share, showing growth in the company's value.

Shareholder Value

The company repurchased 155K shares of its common stock, which increased book value per share, indicating a strategy to enhance shareholder value.

Negative Factors

Loan Origination

The loan portfolio decreased in size and no new loans were originated in the third quarter.

Loan Portfolio

The middle-market CRE loan portfolio decreased by 5.9%, which might be a concern for future growth prospects.

ACRES Commercial Realty Business Overview & Revenue Model

Company Description

ACRES Commercial Realty (ACR) is a real estate investment trust (REIT) that focuses on originating, holding, and managing commercial real estate mortgage loans and other real estate-related debt investments. The company operates within the commercial real estate sector, specializing in the financing of a variety of property types, including office, multifamily, and retail sectors. ACR aims to provide stable returns to its investors through a diversified portfolio of high-quality commercial mortgage assets.

How the Company Makes Money

ACRES Commercial Realty generates revenue primarily through interest income from its portfolio of commercial mortgage loans. The company originates loans to finance commercial properties and earns interest over the term of these loans, which is a significant source of income. Additionally, ACR may generate income through the sale of loans or loan participations from its portfolio, as well as from fees related to loan origination and servicing. The company's earnings are also influenced by factors such as interest rate environments, credit quality of borrowers, and the performance of underlying real estate markets. Strategic partnerships with financial institutions and other investors may enhance its revenue streams by expanding its lending capabilities and market reach.

ACRES Commercial Realty Financial Statement Overview

Summary

ACRES Commercial Realty demonstrates strong revenue growth and improved net profit margins, enhancing profitability. The balance sheet is strengthened by zero debt, although historical equity fluctuations indicate some volatility. Cash flow management shows variability, necessitating careful future planning.

Income Statement

ACRES Commercial Realty has demonstrated consistent revenue growth over the years, with a noticeable increase from $19.5 million in 2020 to $83.5 million in 2024. The gross profit margin has remained stable, showcasing efficient operational management. However, there is fluctuation in EBIT and EBITDA margins, with significant negative EBIT in 2020 impacting historical averages. The net profit margin has improved in recent years, indicating better cost control and profitability.

Balance Sheet

The company's debt-to-equity ratio has significantly improved due to the reduction of total debt to zero in 2024, enhancing financial stability. The equity ratio remains strong, reflecting a solid capital structure. However, the fluctuations in stockholders’ equity over the years suggest some instability in value retention. The return on equity (ROE) has improved with positive net income in recent periods, highlighting effective use of equity to generate profits.

Cash Flow

ACRES Commercial Realty's operating cash flow has shown variability, though it remains positive, which is crucial for maintaining operational liquidity. The free cash flow experienced volatility, which can impact future growth investments. The recent decrease in operating cash flow to net income ratio suggests growing efficiency challenges. The company has managed significant financing activities, indicating effective capital management but also potential future cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	136.09M	83.49M	91.13M	70.00M	44.86M	19.49M
Gross Profit	87.13M	36.59M	52.22M	36.15M	38.68M	19.19M
EBITDA	91.40M	144.72M	149.96M	88.44M	0.00	-136.79M
Net Income	23.50M	29.27M	22.39M	10.62M	33.92M	-197.71M
Balance Sheet
Total Assets	1.78B	1.88B	2.20B	2.38B	2.28B	1.65B
Cash, Cash Equivalents and Short-Term Investments	0.00	56.71M	83.45M	67.78M	35.50M	31.43M
Total Debt	1.32B	1.41B	1.72B	1.91B	1.82B	1.31B
Total Liabilities	1.34B	1.43B	1.75B	1.94B	1.84B	1.32B
Stockholders Equity	430.10M	439.13M	435.80M	435.47M	448.19M	334.38M
Cash Flow
Free Cash Flow	11.43M	19.38M	45.61M	31.96M	40.53M	31.80M
Operating Cash Flow	11.49M	19.39M	45.61M	32.70M	40.59M	31.81M
Investing Cash Flow	361.93M	299.07M	161.31M	-232.55M	-390.50M	244.89M
Financing Cash Flow	-395.36M	-352.74M	-219.85M	20.74M	566.10M	-303.40M

ACRES Commercial Realty Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACR, the sentiment is Neutral. The current price of 18.04 is above the 20-day moving average (MA) of 17.80, below the 50-day MA of 18.26, and above the 200-day MA of 17.83, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 47.67 is Neutral, neither overbought nor oversold. The STOCH value of 69.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ACR.

ACRES Commercial Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEVN	66 Neutral	$181.40M	10.59	6.27%	11.60%	-11.97%	-27.40%
Sector *	63 Neutral	$6.96B	18.86	-1.16%	6.91%	4.65%	-25.28%
ACR	60 Neutral	$133.39M	62.34	5.47%	―	-13.68%	-53.53%
LFT	56 Neutral	$111.97M	10.75	6.38%	14.95%	-10.98%	-35.75%
CHMI	50 Neutral	$87.52M	43.78	-2.83%	21.98%	0.33%	-37.48%
GPMT	49 Neutral	$124.89M	―	-20.41%	7.75%	-26.87%	-189.15%
ACRE	48 Neutral	$264.03M	―	-2.33%	12.50%	-52.08%	10.36%

ACRES Commercial Realty Corporate Events

ACRES Commercial Realty Holds 2025 Annual Stockholders Meeting

On June 5, 2025, ACRES Commercial Realty Corp. held its 2025 Annual Meeting of Stockholders where nine directors were elected to serve until the next annual meeting in 2026. Additionally, stockholders approved the compensation of the company’s named executive officers and ratified Ernst & Young LLP as the independent registered public accounting firm for the year ending December 31, 2025.

The most recent analyst rating on (ACR) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on ACRES Commercial Realty stock, see the ACR Stock Forecast page.

ACRES Reports Q1 2025 Net Loss, Secures New Financing

On April 30, 2025, ACRES Commercial Realty Corp. reported a GAAP net loss of $5.9 million for the first quarter of 2025. Despite the loss, the company remains optimistic about its ability to create shareholder value, having secured a new financing facility to manage liabilities and actively sourcing high-quality loans to enhance its portfolio.