Ares Commercial Real Estate Corporation Common Stock (ACRE)

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach a lender by asking what the assets are really worth and whether the capital structure can survive mistakes. Ares Commercial Real Estate originates and invests in commercial mortgage loans. At the close on 2026-10-13, the price was $3.55, market cap $197.0M, and FairStock's price-to-book calculation is 0.40. That says the market trusts only about forty cents of each stated book dollar. FairStock's P/E is negative 44.37, so trailing earnings offer no valuation anchor. The full-year record is poor: in FY2025 revenue was $54.8M and net loss $902,000; FY2024 revenue was $69.7M with a $35.0M net loss; FY2023 revenue was $92.9M with a $38.9M net loss. Recent quarters are volatile: fiscal Q3 2025 net income $4.7M, fiscal Q4 2025 net loss $3.9M, fiscal Q1 2026 net loss $9.6M, then fiscal Q2 2026 net income $4.4M on $14.4M revenue. FairStock's ROE is -0.88% and ROCE -0.27%; D/E is 2.58. The 13.70% dividend yield is attractive only if earnings and book value hold. A Piotroski F-score of 5/9 is middling. There is no wide moat in commercial mortgage lending; it is capital-intensive and credit-cycle dependent. CET1, net interest margin and combined ratio are not in the data, nor are nonaccruals, reserves or loan marks. The Lynch category is TURNAROUND — Loss in the latest year after earlier profits. At 0.40 times book, a lot of bad news is priced in, but without proof that book value is real and earnings are durable, this remains a speculative asset play, not a comfortable compounding machine.

In plain English: Ares Commercial Real Estate lends money to owners of commercial property. The business has been weak: it lost money in each of the last three full years, though it made a profit in the latest quarter. At $3.55, the stock looks cheap compared with the value of its assets on its books, but that low price may reflect real worries about its loans and heavy borrowing.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer