ARES MANAGEMENT CORP - A (ARES) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARES - US03990B1017 - Common Stock
163.16 USD
-6.53 (-3.85%)
163.16 USD
0 (0%)
Taking everything into account, ARES scores 5 out of 10 in our fundamental rating. ARES was compared to 238 industry peers in the Capital Markets industry. There are concerns on the financial health of ARES while its profitability can be described as average. ARES is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
- ARES had positive earnings in the past year.
- In the past year ARES had a positive cash flow from operations.
- In the past 5 years ARES has always been profitable.
- In the past 5 years ARES reported 4 times negative operating cash flow.
1.2 Ratios
- ARES has a Return On Assets (1.89%) which is in line with its industry peers.
- ARES's Return On Equity of 11.44% is fine compared to the rest of the industry. ARES outperforms 67.65% of its industry peers.
- ARES has a Return On Invested Capital of 4.41%. This is in the better half of the industry: ARES outperforms 62.60% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ARES is below the industry average of 7.27%.
- The last Return On Invested Capital (4.41%) for ARES is above the 3 year average (3.87%), which is a sign of increasing profitability.
| 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
- ARES's Profit Margin of 9.56% is on the low side compared to the rest of the industry. ARES is outperformed by 65.13% of its industry peers.
- ARES's Profit Margin has improved in the last couple of years.
- ARES has a Operating Margin of 19.56%. This is comparable to the rest of the industry: ARES outperforms 44.96% of 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
- The number of shares outstanding for ARES has been increased compared to 1 year ago.
- The number of shares outstanding for ARES has been increased compared to 5 years ago.
- ARES has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.53, we must say that ARES is in the distress zone and has some risk of bankruptcy.
- ARES's Altman-Z score of 1.53 is fine compared to the rest of the industry. ARES outperforms 63.87% 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 has a better Debt to FCF ratio (2.68) than 80.25% 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.
- The Debt to Equity ratio of ARES (2.69) is worse than 81.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 2.68 | ||
| Altman-Z | 1.53 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- ARES has a Current 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's Current ratio of 0.26 is on the low side compared to the rest of the industry. ARES is outperformed by 84.03% of its industry peers.
- A Quick Ratio of 0.26 indicates that ARES may have some problems paying its short term obligations.
- ARES's Quick ratio of 0.26 is on the low side compared to the rest of the industry. ARES is outperformed by 84.03% 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.
- The Earnings Per Share has been growing by 18.77% on average over the past years. This is quite good.
- The Revenue has grown by 45.54% in the past year. This is a very strong growth!
- Measured over the past years, ARES shows a quite strong growth in Revenue. The Revenue has been growing by 17.09% on average per year.
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 20.69% yearly.
- Based on estimates for the next years, ARES will show a very strong growth in Revenue. The Revenue will grow by 20.07% on average per year.
EPS Next Y29.59%
EPS Next 2Y29.36%
EPS Next 3Y26.11%
EPS Next 5Y20.69%
Revenue Next Year28.65%
Revenue Next 2Y24.71%
Revenue Next 3Y22.51%
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 35.94, the valuation of ARES can be described as expensive.
- ARES's Price/Earnings ratio is a bit more expensive when compared to the industry. ARES is more expensive than 77.31% of the companies in the same industry.
- ARES is valuated rather expensively when we compare the Price/Earnings ratio to 26.94, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 24.56 indicates a rather expensive valuation of ARES.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ARES indicates a slightly more expensive valuation: ARES is more expensive than 62.18% of the companies listed in the same industry.
- ARES's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.94 | ||
| Fwd PE | 24.56 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ARES is valued a bit cheaper than the industry average as 61.76% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, ARES is valued a bit cheaper than 75.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.87 | ||
| EV/EBITDA | 54.74 |
4.3 Compensation for Growth
- ARES's 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)1.21
PEG (5Y)1.91
EPS Next 2Y29.36%
EPS Next 3Y26.11%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.64%, ARES has a reasonable but not impressive dividend return.
- ARES's Dividend Yield is comparable with the industry average which is at 6.10.
- Compared to an average S&P500 Dividend Yield of 1.83, ARES pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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.
- As ARES did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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.
- The dividend of ARES is growing, but earnings are growing more, so the dividend growth is sustainable.
DP320.11%
EPS Next 2Y29.36%
EPS Next 3Y26.11%
163.16
-6.53 (-3.85%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)11-03 2025-11-03/bmo
Earnings (Next)02-05 2026-02-05/bmo
Inst Owners84.1%
Inst Owner Change0.11%
Ins Owners2.95%
Ins Owner Change-0.8%
Market Cap53.33B
Revenue(TTM)5.36B
Net Income(TTM)511.84M
Analysts77.39
Price Target193.6 (18.66%)
Short Float %4.97%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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)1.97%
PT rev (3m)-2.93%
EPS NQ rev (1m)-0.66%
EPS NQ rev (3m)-2.01%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)-1.11%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)3.36%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.94 | ||
| Fwd PE | 24.56 | ||
| P/S | 9.96 | ||
| P/FCF | 11.87 | ||
| P/OCF | 11.7 | ||
| P/B | 11.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 54.74 |
EPS(TTM)4.54
EY2.78%
EPS(NY)6.64
Fwd EY4.07%
FCF(TTM)13.74
FCFY8.42%
OCF(TTM)13.95
OCFY8.55%
SpS16.38
BVpS13.69
TBVpS-3.46
PEG (NY)1.21
PEG (5Y)1.91
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 | 1.53 |
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 5Y20.69%
Revenue 1Y (TTM)45.54%
Revenue growth 3Y-2.66%
Revenue growth 5Y17.09%
Sales Q2Q%0.64%
Revenue Next Year28.65%
Revenue Next 2Y24.71%
Revenue Next 3Y22.51%
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 5 / 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 35.94 and the Price/Book (PB) ratio is 11.92.
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.