ARES MANAGEMENT CORP - A (ARES) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ARES • US03990B1017
149.67 USD
-2.02 (-1.33%)
At close: Jan 30, 2026
149.67 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
Taking everything into account, ARES scores 5 out of 10 in our fundamental rating. ARES was compared to 237 industry peers in the Capital Markets industry. ARES has a medium profitability rating, but doesn't score so well on its financial health evaluation. ARES is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- ARES had positive earnings in the past year.
- ARES had a positive operating cash flow in the past year.
- ARES had positive earnings in each of the past 5 years.
- In the past 5 years ARES reported 4 times negative operating cash flow.
1.2 Ratios
- The Return On Assets of ARES (1.89%) is comparable to the rest of the industry.
- ARES's Return On Equity of 11.44% is fine compared to the rest of the industry. ARES outperforms 67.51% of its industry peers.
- The Return On Invested Capital of ARES (4.41%) is better than 62.45% of its industry peers.
- ARES had an Average Return On Invested Capital over the past 3 years of 3.87%. This is below the industry average of 7.27%.
- 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 65.40% of the companies in the same industry.
- 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 44.73% of its industry peers.
- In the last couple of years the Operating Margin of ARES has grown nicely.
| 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
- ARES has more shares outstanding than it did 1 year ago.
- ARES has more shares outstanding than it did 5 years ago.
- ARES has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.37, we must say that ARES is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of ARES (1.37) is better than 62.45% of its industry peers.
- ARES has a debt to FCF ratio of 2.68. This is a good value and a sign of high solvency as ARES would need 2.68 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 2.68, ARES belongs to the best of the industry, outperforming 80.17% of the companies in the same industry.
- ARES has a Debt/Equity ratio of 2.69. This is a high value indicating a heavy dependency on external financing.
- ARES's Debt to Equity ratio of 2.69 is on the low side compared to the rest of the industry. ARES is outperformed by 81.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 2.68 | ||
| Altman-Z | 1.37 |
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.
- Looking at the Current ratio, with a value of 0.26, ARES is doing worse than 83.97% 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 83.97% 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.
- ARES shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.77% yearly.
- ARES shows a strong growth in Revenue. In the last year, the Revenue has grown by 45.54%.
- ARES shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.09% yearly.
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.
- The Revenue is expected to grow by 20.07% on average over the next years. This is a very strong growth
EPS Next Y29.06%
EPS Next 2Y29.49%
EPS Next 3Y25.97%
EPS Next 5Y20.69%
Revenue Next Year28.41%
Revenue Next 2Y24.82%
Revenue Next 3Y22.55%
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
- The Price/Earnings ratio is 32.97, which means the current valuation is very expensive for ARES.
- Based on the Price/Earnings ratio, ARES is valued a bit more expensive than the industry average as 75.53% of the companies are valued more cheaply.
- When comparing the Price/Earnings ratio of ARES to the average of the S&P500 Index (28.30), we can say ARES is valued inline with the index average.
- With a Price/Forward Earnings ratio of 22.48, ARES is valued on the expensive side.
- The rest of the industry has a similar Price/Forward Earnings ratio as ARES.
- ARES is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.97 | ||
| Fwd PE | 22.48 |
4.2 Price Multiples
- ARES's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ARES is cheaper than 61.60% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARES indicates a somewhat cheap valuation: ARES is cheaper than 75.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.89 | ||
| EV/EBITDA | 49.86 |
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 25.97% in the coming years.
PEG (NY)1.13
PEG (5Y)1.76
EPS Next 2Y29.49%
EPS Next 3Y25.97%
5. Dividend
5.1 Amount
- ARES has a Yearly Dividend Yield of 2.95%.
- ARES's Dividend Yield is comparable with the industry average which is at 5.98.
- ARES's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
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
- 320.11% of the earnings are spent on dividend by ARES. 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 2Y29.49%
EPS Next 3Y25.97%
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 4 / 10 to ARES MANAGEMENT CORP - A (ARES). This can be considered as Fairly Valued.
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 32.97 and the Price/Book (PB) ratio is 10.93.
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 29.06% in the next year.