Buffett Brain · Research note
Score updated 29 Oct 2026
APO· Financial Services
Apollo Global Management
Apollo's asset management business has a strong gross margin of 89.3%, but its low ROIC of 1.3% raises concerns about capital efficiency.
Buffett fit
Partial fit
Owner
58
Durability
23
Management
69
Price
60
Score updated 29 Oct 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Financial Services stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning Apollo would involve managing a diverse portfolio of investments across various asset classes.
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Apollo's durability is questionable given its negative EPS CAGR and at least one unprofitable year in the past five.
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Apollo's management has been aggressive with , as seen in the 26.61% share count CAGR, which is dilutive.
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Apollo's yield of 10.04% is attractive, but the of 35.6 suggests the market expects high growth.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 89.3% is top-quintile in the Financial Services sector.
- 2Revenue CAGR of 50.21% reflects strong growth in recent years.
- 3 growth of 129.08% year-over-year indicates robust cash generation.
- 4Interest coverage ratio of 28.6 shows strong ability to meet financial obligations.
Concerns
5- 1 of 1.3% is below the sector's top-quintile cutoff of 10.6%, indicating poor capital efficiency.
- 2Negative EPS CAGR of -0.03% and a max decline of -146.86% over 5 years highlight earnings volatility.
- 3Share count CAGR of 26.61% indicates significant dilution over the past five years.
- 4 of 31.05% is below the sector's top-quintile cutoff of 58.8%.
Price history
$113+47.4%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Apollo Global Management operates in asset management, focusing on private equity, credit, and real estate investments. It manages portfolios for institutional and individual investors, including hedge funds and real estate funds. Key revenue streams include management fees and performance-based incentives. The firm's stands at a robust 89.3%, indicating strong profitability in its operations.
How this analysis has moved
The call has held across 2 reviews.
Oct 25, 2026 → Oct 29, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
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Questions about Apollo Global Management
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