ARES MANAGEMENT CORP - A (ARES) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:ARES • US03990B1017
149.02 USD
-0.65 (-0.43%)
Last: Feb 2, 2026, 01:27 PM
We assign a fundamental rating of 5 out of 10 to ARES. 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
- 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 has a Return On Assets of 1.89%. This is comparable to the rest of the industry: ARES outperforms 40.76% of its industry peers.
- The Return On Equity of ARES (11.44%) is better than 67.65% of its industry peers.
- With a decent Return On Invested Capital value of 4.41%, ARES is doing good in the industry, outperforming 62.60% 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 7.28%.
- 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 has a worse Profit Margin (9.56%) than 65.13% of its industry peers.
- 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.
- 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.
- Compared to 5 years ago, ARES has more shares outstanding
- Compared to 1 year ago, ARES has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.36, we must say that ARES is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of ARES (1.36) is better than 62.60% 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 80.25% of the companies in the same industry.
- A Debt/Equity ratio of 2.69 is on the high side and indicates that ARES has dependencies on debt financing.
- ARES has a Debt to Equity ratio of 2.69. This is amonst the worse of the industry: ARES underperforms 81.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 2.68 | ||
| Altman-Z | 1.36 |
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.
- ARES has a Current ratio of 0.26. This is amonst the worse of the industry: ARES underperforms 84.03% of its industry peers.
- 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'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.
- ARES shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.77% yearly.
- The Revenue has grown by 45.54% in the past year. This is a very strong growth!
- 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
- The Earnings Per Share is expected to grow by 20.69% on average over the next years. This is a very strong growth
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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
- A Price/Earnings ratio of 32.82 indicates a quite expensive valuation of ARES.
- ARES's Price/Earnings ratio is a bit more expensive when compared to the industry. ARES is more expensive than 75.63% of the companies in the same industry.
- When comparing the Price/Earnings ratio of ARES to the average of the S&P500 Index (28.32), we can say ARES is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 22.39, the valuation of ARES can be described as rather expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as ARES.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, ARES is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.82 | ||
| Fwd PE | 22.39 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARES indicates a somewhat cheap valuation: ARES is cheaper than 76.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.84 | ||
| EV/EBITDA | 49.31 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ARES's earnings are expected to grow with 25.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.13
PEG (5Y)1.75
EPS Next 2Y29.49%
EPS Next 3Y25.97%
5. Dividend
5.1 Amount
- ARES has a Yearly Dividend Yield of 2.95%.
- Compared to an average industry Dividend Yield of 6.02, ARES has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, ARES pays a better dividend.
| 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 been paying a dividend for at least 10 years, so it has 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
- 320.11% of the earnings are spent on dividend by ARES. 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 2Y29.49%
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 32.82 and the Price/Book (PB) ratio is 10.89.
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.