ARES MANAGEMENT CORP - A (ARES) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARES - US03990B1017 - Common Stock
176.02 USD
+0.27 (+0.15%)
Taking everything into account, ARES scores 4 out of 10 in our fundamental rating. ARES was compared to 235 industry peers in the Capital Markets industry. While ARES is still in line with the averages on profitability rating, there are concerns on its financial health. ARES shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year ARES was profitable.
ARES had a positive operating cash flow in the past year.
Each year in the past 5 years ARES has been profitable.
ARES had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
ARES's Return On Assets of 1.89% is in line compared to the rest of the industry. ARES outperforms 44.68% of its industry peers.
ARES has a Return On Equity of 11.44%. This is in the better half of the industry: ARES outperforms 68.09% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.41%, ARES is in the better half of the industry, outperforming 62.55% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARES is below the industry average of 7.14%.
The 3 year average ROIC (3.87%) for ARES is below the current ROIC(4.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 11.44% | ||
| ROIC | 4.41% |
ROA(3y)1.39%
ROA(5y)1.33%
ROE(3y)15.05%
ROE(5y)15.08%
ROIC(3y)3.87%
ROIC(5y)3.61%
1.3 Margins
Looking at the Profit Margin, with a value of 9.56%, ARES is doing worse than 62.13% of the companies in the same industry.
In the last couple of years the Profit Margin of ARES has grown nicely.
ARES has a Operating Margin (19.56%) which is in line with its industry peers.
ARES's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.56% | ||
| PM (TTM) | 9.56% | ||
| GM | N/A |
OM growth 3Y7.41%
OM growth 5Y8.32%
PM growth 3Y6.46%
PM growth 5Y9.3%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, ARES has more shares outstanding
Compared to 5 years ago, ARES has more shares outstanding
ARES has a better debt/assets ratio than last year.
2.2 Solvency
ARES has an Altman-Z score of 1.58. This is a bad value and indicates that ARES is not financially healthy and even has some risk of bankruptcy.
ARES has a Altman-Z score of 1.58. This is in the better half of the industry: ARES outperforms 65.11% of its industry peers.
The Debt to FCF ratio of ARES is 2.68, which is a good value as it means it would take ARES, 2.68 years of fcf income to pay off all of its debts.
ARES's Debt to FCF ratio of 2.68 is fine compared to the rest of the industry. ARES outperforms 80.00% of its industry peers.
A Debt/Equity ratio of 2.69 is on the high side and indicates that ARES has dependencies on debt financing.
ARES has a worse Debt to Equity ratio (2.69) than 80.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 2.68 | ||
| Altman-Z | 1.58 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.26 indicates that ARES may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.26, ARES is doing worse than 84.26% of the companies in the same industry.
ARES has a Quick Ratio of 0.26. This is a bad value and indicates that ARES is not financially healthy enough and could expect problems in meeting its short term obligations.
ARES has a Quick ratio of 0.26. This is amonst the worse of the industry: ARES underperforms 84.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.94% over the past year.
Measured over the past years, ARES shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.77% on average per year.
The Revenue has grown by 45.54% in the past year. This is a very strong growth!
The Revenue has been growing by 17.09% on average over the past years. This is quite good.
EPS 1Y (TTM)14.94%
EPS 3Y15.6%
EPS 5Y18.77%
EPS Q2Q%25.26%
Revenue 1Y (TTM)45.54%
Revenue growth 3Y-2.66%
Revenue growth 5Y17.09%
Sales Q2Q%0.64%
3.2 Future
ARES is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.70% yearly.
ARES is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.07% yearly.
EPS Next Y29.59%
EPS Next 2Y29.36%
EPS Next 3Y26.11%
EPS Next 5Y21.7%
Revenue Next Year28.93%
Revenue Next 2Y24.74%
Revenue Next 3Y23.05%
Revenue Next 5Y20.07%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 38.77, ARES can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ARES indicates a slightly more expensive valuation: ARES is more expensive than 74.47% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.00, ARES is valued a bit more expensive.
A Price/Forward Earnings ratio of 26.49 indicates a quite expensive valuation of ARES.
63.83% of the companies in the same industry are cheaper than ARES, based on the Price/Forward Earnings ratio.
ARES's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.77 | ||
| Fwd PE | 26.49 |
4.2 Price Multiples
ARES's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ARES is cheaper than 61.28% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ARES is valued a bit cheaper than 72.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.81 | ||
| EV/EBITDA | 56.38 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as ARES's earnings are expected to grow with 26.11% in the coming years.
PEG (NY)1.31
PEG (5Y)2.07
EPS Next 2Y29.36%
EPS Next 3Y26.11%
5. Dividend
5.1 Amount
ARES has a Yearly Dividend Yield of 2.77%. Purely for dividend investing, there may be better candidates out there.
ARES's Dividend Yield is comparable with the industry average which is at 6.39.
Compared to an average S&P500 Dividend Yield of 1.94, ARES pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
5.2 History
The dividend of ARES has a limited annual growth rate of 5.80%.
ARES has paid a dividend for at least 10 years, which is a reliable track record.
ARES has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)5.8%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
ARES pays out 320.11% of its income as dividend. This is not a sustainable payout ratio.
ARES's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP320.11%
EPS Next 2Y29.36%
EPS Next 3Y26.11%
NYSE:ARES (1/9/2026, 2:49:33 PM)
176.02
+0.27 (+0.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners84.1%
Inst Owner Change0%
Ins Owners2.95%
Ins Owner Change-0.8%
Market Cap57.54B
Revenue(TTM)5.36B
Net Income(TTM)511.84M
Analysts78.33
Price Target193.12 (9.71%)
Short Float %5.37%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
Yearly Dividend4.22
Dividend Growth(5Y)5.8%
DP320.11%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.03%
Min EPS beat(2)-6.98%
Max EPS beat(2)0.92%
EPS beat(4)2
Avg EPS beat(4)-0.05%
Min EPS beat(4)-7.09%
Max EPS beat(4)12.95%
EPS beat(8)3
Avg EPS beat(8)-1.14%
EPS beat(12)5
Avg EPS beat(12)-1.24%
EPS beat(16)7
Avg EPS beat(16)0.06%
Revenue beat(2)2
Avg Revenue beat(2)3.27%
Min Revenue beat(2)0.08%
Max Revenue beat(2)6.46%
Revenue beat(4)3
Avg Revenue beat(4)2.16%
Min Revenue beat(4)-4.32%
Max Revenue beat(4)6.46%
Revenue beat(8)5
Avg Revenue beat(8)6.42%
Revenue beat(12)7
Avg Revenue beat(12)8.82%
Revenue beat(16)10
Avg Revenue beat(16)14.79%
PT rev (1m)1.72%
PT rev (3m)-3.17%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)-0.64%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)1.05%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)3.58%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.77 | ||
| Fwd PE | 26.49 | ||
| P/S | 10.74 | ||
| P/FCF | 12.81 | ||
| P/OCF | 12.62 | ||
| P/B | 12.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 56.38 |
EPS(TTM)4.54
EY2.58%
EPS(NY)6.64
Fwd EY3.77%
FCF(TTM)13.74
FCFY7.81%
OCF(TTM)13.95
OCFY7.92%
SpS16.38
BVpS13.69
TBVpS-3.46
PEG (NY)1.31
PEG (5Y)2.07
Graham Number37.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.89% | ||
| ROE | 11.44% | ||
| ROCE | 5.06% | ||
| ROIC | 4.41% | ||
| ROICexc | 4.75% | ||
| ROICexgc | 7.2% | ||
| OM | 19.56% | ||
| PM (TTM) | 9.56% | ||
| GM | N/A | ||
| FCFM | 83.89% |
ROA(3y)1.39%
ROA(5y)1.33%
ROE(3y)15.05%
ROE(5y)15.08%
ROIC(3y)3.87%
ROIC(5y)3.61%
ROICexc(3y)4.28%
ROICexc(5y)3.97%
ROICexgc(3y)4.93%
ROICexgc(5y)4.55%
ROCE(3y)4.44%
ROCE(5y)4.15%
ROICexgc growth 3Y1.38%
ROICexgc growth 5Y15.46%
ROICexc growth 3Y1.72%
ROICexc growth 5Y12.7%
OM growth 3Y7.41%
OM growth 5Y8.32%
PM growth 3Y6.46%
PM growth 5Y9.3%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 2.68 | ||
| Debt/EBITDA | 9.99 | ||
| Cap/Depr | 41.43% | ||
| Cap/Sales | 1.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 377.94% | ||
| Profit Quality | 877.73% | ||
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | 1.58 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)32.4%
Cap/Depr(5y)31.97%
Cap/Sales(3y)1.79%
Cap/Sales(5y)1.39%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.94%
EPS 3Y15.6%
EPS 5Y18.77%
EPS Q2Q%25.26%
EPS Next Y29.59%
EPS Next 2Y29.36%
EPS Next 3Y26.11%
EPS Next 5Y21.7%
Revenue 1Y (TTM)45.54%
Revenue growth 3Y-2.66%
Revenue growth 5Y17.09%
Sales Q2Q%0.64%
Revenue Next Year28.93%
Revenue Next 2Y24.74%
Revenue Next 3Y23.05%
Revenue Next 5Y20.07%
EBIT growth 1Y6.65%
EBIT growth 3Y4.56%
EBIT growth 5Y26.83%
EBIT Next Year37.85%
EBIT Next 3Y40.67%
EBIT Next 5Y17.23%
FCF growth 1Y5204.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3244.68%
OCF growth 3YN/A
OCF growth 5YN/A
ARES MANAGEMENT CORP - A / ARES FAQ
What is the fundamental rating for ARES stock?
ChartMill assigns a fundamental rating of 4 / 10 to ARES.
Can you provide the valuation status for ARES MANAGEMENT CORP - A?
ChartMill assigns a valuation rating of 3 / 10 to ARES MANAGEMENT CORP - A (ARES). This can be considered as Overvalued.
What is the profitability of ARES stock?
ARES MANAGEMENT CORP - A (ARES) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for ARES stock?
The Price/Earnings (PE) ratio for ARES MANAGEMENT CORP - A (ARES) is 38.77 and the Price/Book (PB) ratio is 12.86.
Can you provide the expected EPS growth for ARES stock?
The Earnings per Share (EPS) of ARES MANAGEMENT CORP - A (ARES) is expected to grow by 29.59% in the next year.