Ares Commercial Real Estate Corp. (ACRE) intrinsic value & 10-year financials
Ares Commercial Real Estate Corp. (ACRE) has a Graham intrinsic value of $6.35 per share. At $3.45 on Oct 17, 2026, the stock trades 46% below that value. Over the last 10 fiscal years revenue grew 2.2% a year to $54.8M, with an average return on invested capital of 1.3%.
- Graham intrinsic value
- $6.35
- Share price (Oct 17, 2026)
- $3.45
- Price vs Graham value
- 46% below
- Market cap
- $189.4M
- Revenue (FY2025)
- $54.8M
- Revenue growth (10-yr CAGR)
- 2.2%
- ROIC (10-yr avg)
- 1.3%
- Free cash flow (FY2025)
- —
ACRE 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2025 | $54.8M | -$902.0K | — | — | — | -0.1% |
| FY2024 | $69.7M | -$35.0M | — | — | — | -2.7% |
| FY2023 | $92.9M | -$38.9M | — | — | — | -2.6% |
| FY2022 | $106.8M | $29.8M | — | — | — | 1.8% |
| FY2021 | $102.1M | $60.5M | — | — | — | 4.0% |
| FY2020 | $82.7M | $21.8M | — | — | — | 1.7% |
| FY2019 | $77.3M | $37.0M | — | — | — | 2.8% |
| FY2018 | $55.3M | $38.6M | $1.35 | — | — | 2.8% |
| FY2017 | $46.3M | $30.4M | $1.07 | — | — | 2.2% |
| FY2016 | $45.1M | $44.9M | $1.41 | — | — | 3.4% |
Source: annual 10-K filings on SEC EDGAR. Figures in USD.
Executive summary
Ares Commercial Real Estate Corp has demonstrated mature, steady growth, with revenue compounding at 2.2% annually over the past decade.
Ares Commercial Real Estate Corp has historically struggled to out-earn its cost of capital, averaging just 1.3% ROIC.
Ares Commercial Real Estate Corp has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, Ares Commercial Real Estate Corp is modeled at 2.2% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $6.35 per share.