ARES MANAGEMENT CORP - A (ARES) Fundamental Analysis & Valuation

NYSE:ARES • US03990B1017

Current stock price

115.23 USD
+0.45 (+0.39%)
At close:
114.1 USD
-1.13 (-0.98%)
After Hours:

This ARES fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. ARES Profitability Analysis

1.1 Basic Checks

  • ARES had positive earnings in the past year.
  • ARES had a positive operating cash flow in the past year.
  • Each year in the past 5 years ARES has been profitable.
  • The reported operating cash flow has been mixed in the past 5 years: ARES reported negative operating cash flow in multiple years.
ARES Yearly Net Income VS EBIT VS OCF VS FCFARES Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B -2B 3B

1.2 Ratios

  • The Return On Assets of ARES (1.34%) is comparable to the rest of the industry.
  • ARES has a Return On Equity (8.97%) which is comparable to the rest of the industry.
  • ARES has a Return On Invested Capital (3.86%) which is in line with its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ARES is below the industry average of 7.30%.
Industry RankSector Rank
ROA 1.34%
ROE 8.97%
ROIC 3.86%
ROA(3y)1.61%
ROA(5y)1.44%
ROE(3y)14.82%
ROE(5y)14.86%
ROIC(3y)4%
ROIC(5y)3.93%
ARES Yearly ROA, ROE, ROICARES Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • ARES has a Profit Margin of 6.85%. This is in the lower half of the industry: ARES underperforms 62.08% of its industry peers.
  • In the last couple of years the Profit Margin of ARES has remained more or less at the same level.
  • ARES's Operating Margin of 17.86% is on the low side compared to the rest of the industry. ARES is outperformed by 60.83% of its industry peers.
  • ARES's Operating Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 17.86%
PM (TTM) 6.85%
GM N/A
OM growth 3Y-7.72%
OM growth 5Y0.09%
PM growth 3Y10.89%
PM growth 5Y0.13%
GM growth 3YN/A
GM growth 5YN/A
ARES Yearly Profit, Operating, Gross MarginsARES Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

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2

2. ARES Health Analysis

2.1 Basic Checks

  • Compared to 1 year ago, ARES has more shares outstanding
  • ARES has more shares outstanding than it did 5 years ago.
  • ARES has a better debt/assets ratio than last year.
ARES Yearly Shares OutstandingARES Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
ARES Yearly Total Debt VS Total AssetsARES Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • Based on the Altman-Z score of 0.98, we must say that ARES is in the distress zone and has some risk of bankruptcy.
  • ARES's Altman-Z score of 0.98 is in line compared to the rest of the industry. ARES outperforms 55.83% of its industry peers.
  • ARES has a debt to FCF ratio of 4.24. This is a neutral value as ARES would need 4.24 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 4.24, ARES is in the better half of the industry, outperforming 73.75% of the companies in the same industry.
  • ARES has a Debt/Equity ratio of 3.17. This is a high value indicating a heavy dependency on external financing.
  • ARES has a worse Debt to Equity ratio (3.17) than 82.08% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.17
Debt/FCF 4.24
Altman-Z 0.98
ROIC/WACCN/A
WACCN/A
ARES Yearly LT Debt VS Equity VS FCFARES Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

2.3 Liquidity

  • ARES has a Current Ratio of 0.27. 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 0.27 is on the low side compared to the rest of the industry. ARES is outperformed by 85.00% of its industry peers.
  • ARES has a Quick Ratio of 0.27. This is a bad value and indicates that ARES is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.27, ARES is not doing good in the industry: 85.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.27
Quick Ratio 0.27
ARES Yearly Current Assets VS Current LiabilitesARES Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. ARES Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 19.90% over the past year.
  • Measured over the past years, ARES shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.68% on average per year.
  • Looking at the last year, ARES shows a very strong growth in Revenue. The Revenue has grown by 44.19%.
  • The Revenue has been growing by 26.00% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)19.9%
EPS 3Y12.42%
EPS 5Y20.68%
EPS Q2Q%17.89%
Revenue 1Y (TTM)44.19%
Revenue growth 3Y22.39%
Revenue growth 5Y26%
Sales Q2Q%19.53%

3.2 Future

  • ARES is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.19% yearly.
  • The Revenue is expected to grow by 16.79% on average over the next years. This is quite good.
EPS Next Y36.03%
EPS Next 2Y27.74%
EPS Next 3Y21.54%
EPS Next 5Y22.19%
Revenue Next Year20.46%
Revenue Next 2Y19.02%
Revenue Next 3Y14.76%
Revenue Next 5Y16.79%

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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
ARES Yearly Revenue VS EstimatesARES Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B 10B
ARES Yearly EPS VS EstimatesARES Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15 20

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4

4. ARES Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 24.21 indicates a rather expensive valuation of ARES.
  • Compared to the rest of the industry, the Price/Earnings ratio of ARES indicates a slightly more expensive valuation: ARES is more expensive than 68.75% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.42. ARES is around the same levels.
  • ARES is valuated rather expensively with a Price/Forward Earnings ratio of 17.80.
  • ARES's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.24, ARES is valued at the same level.
Industry RankSector Rank
PE 24.21
Fwd PE 17.8
ARES Price Earnings VS Forward Price EarningsARES Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 62.50% of the companies in the same industry are more expensive than ARES, based on the Enterprise Value to EBITDA ratio.
  • 72.08% of the companies in the same industry are more expensive than ARES, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 11.88
EV/EBITDA 40.15
ARES Per share dataARES EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

  • ARES's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as ARES's earnings are expected to grow with 21.54% in the coming years.
PEG (NY)0.67
PEG (5Y)1.17
EPS Next 2Y27.74%
EPS Next 3Y21.54%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. ARES Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.65%, ARES is a good candidate for dividend investing.
  • In the last 3 months the price of ARES has falen by -26.08%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • ARES's Dividend Yield is comparable with the industry average which is at 6.46.
  • ARES's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 4.65%

5.2 History

  • On average, the dividend of ARES grows each year by 17.03%, which is quite nice.
  • 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)17.03%
Div Incr Years6
Div Non Decr Years6
ARES Yearly Dividends per shareARES Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

5.3 Sustainability

  • 458.00% 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.
DP458%
EPS Next 2Y27.74%
EPS Next 3Y21.54%
ARES Yearly Income VS Free CF VS DividendARES Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B -2B 3B
ARES Dividend Payout.ARES Dividend Payout, showing the Payout Ratio.ARES Dividend Payout.PayoutRetained Earnings

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ARES Fundamentals: All Metrics, Ratios and Statistics

ARES MANAGEMENT CORP - A

NYSE:ARES (4/24/2026, 8:21:38 PM)

After market: 114.1 -1.13 (-0.98%)

115.23

+0.45 (+0.39%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-05
Earnings (Next)05-01
Inst Owners88.95%
Inst Owner Change-0.11%
Ins Owners3.4%
Ins Owner Change9.44%
Market Cap37.96B
Revenue(TTM)5.60B
Net Income(TTM)383.56M
Analysts80
Price Target161.43 (40.09%)
Short Float %7.07%
Short Ratio3.07
Dividend
Industry RankSector Rank
Dividend Yield 4.65%
Yearly Dividend5.49
Dividend Growth(5Y)17.03%
DP458%
Div Incr Years6
Div Non Decr Years6
Ex-Date03-17
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.55%
Min EPS beat(2)-16.01%
Max EPS beat(2)0.92%
EPS beat(4)2
Avg EPS beat(4)-2.28%
Min EPS beat(4)-16.01%
Max EPS beat(4)12.95%
EPS beat(8)2
Avg EPS beat(8)-4.18%
EPS beat(12)4
Avg EPS beat(12)-3.51%
EPS beat(16)6
Avg EPS beat(16)-1.95%
Revenue beat(2)2
Avg Revenue beat(2)9.51%
Min Revenue beat(2)6.46%
Max Revenue beat(2)12.56%
Revenue beat(4)3
Avg Revenue beat(4)3.7%
Min Revenue beat(4)-4.32%
Max Revenue beat(4)12.56%
Revenue beat(8)5
Avg Revenue beat(8)5.55%
Revenue beat(12)8
Avg Revenue beat(12)10.28%
Revenue beat(16)10
Avg Revenue beat(16)9.96%
PT rev (1m)-8.55%
PT rev (3m)-16.61%
EPS NQ rev (1m)-6.4%
EPS NQ rev (3m)-2.78%
EPS NY rev (1m)-1.1%
EPS NY rev (3m)-2.54%
Revenue NQ rev (1m)-2.66%
Revenue NQ rev (3m)0.84%
Revenue NY rev (1m)-1.01%
Revenue NY rev (3m)-1.2%
Valuation
Industry RankSector Rank
PE 24.21
Fwd PE 17.8
P/S 6.78
P/FCF 11.88
P/OCF 11.62
P/B 8.88
P/tB N/A
EV/EBITDA 40.15
EPS(TTM)4.76
EY4.13%
EPS(NY)6.47
Fwd EY5.62%
FCF(TTM)9.7
FCFY8.42%
OCF(TTM)9.92
OCFY8.61%
SpS17
BVpS12.98
TBVpS-3.93
PEG (NY)0.67
PEG (5Y)1.17
Graham Number37.2802 (-67.65%)
Profitability
Industry RankSector Rank
ROA 1.34%
ROE 8.97%
ROCE 4.49%
ROIC 3.86%
ROICexc 4.13%
ROICexgc 6.04%
OM 17.86%
PM (TTM) 6.85%
GM N/A
FCFM 57.03%
ROA(3y)1.61%
ROA(5y)1.44%
ROE(3y)14.82%
ROE(5y)14.86%
ROIC(3y)4%
ROIC(5y)3.93%
ROICexc(3y)4.42%
ROICexc(5y)4.3%
ROICexgc(3y)5.41%
ROICexgc(5y)5.16%
ROCE(3y)4.66%
ROCE(5y)4.58%
ROICexgc growth 3Y12.04%
ROICexgc growth 5Y19.69%
ROICexc growth 3Y5.45%
ROICexc growth 5Y13.41%
OM growth 3Y-7.72%
OM growth 5Y0.09%
PM growth 3Y10.89%
PM growth 5Y0.13%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.2
Health
Industry RankSector Rank
Debt/Equity 3.17
Debt/FCF 4.24
Debt/EBITDA 10.9
Cap/Depr 29.68%
Cap/Sales 1.29%
Interest Coverage 1.48
Cash Conversion 262.75%
Profit Quality 832.94%
Current Ratio 0.27
Quick Ratio 0.27
Altman-Z 0.98
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)38.79%
Cap/Depr(5y)30.18%
Cap/Sales(3y)1.83%
Cap/Sales(5y)1.46%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.9%
EPS 3Y12.42%
EPS 5Y20.68%
EPS Q2Q%17.89%
EPS Next Y36.03%
EPS Next 2Y27.74%
EPS Next 3Y21.54%
EPS Next 5Y22.19%
Revenue 1Y (TTM)44.19%
Revenue growth 3Y22.39%
Revenue growth 5Y26%
Sales Q2Q%19.53%
Revenue Next Year20.46%
Revenue Next 2Y19.02%
Revenue Next 3Y14.76%
Revenue Next 5Y16.79%
EBIT growth 1Y0.71%
EBIT growth 3Y12.95%
EBIT growth 5Y26.11%
EBIT Next Year13.37%
EBIT Next 3Y14.68%
EBIT Next 5Y14.18%
FCF growth 1Y18.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y17.05%
OCF growth 3YN/A
OCF growth 5YN/A

ARES MANAGEMENT CORP - A / ARES Fundamental Analysis 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 4 / 10 to ARES MANAGEMENT CORP - A (ARES). This can be considered as Fairly Valued.


Can you provide the profitability details for ARES MANAGEMENT CORP - A?

ARES MANAGEMENT CORP - A (ARES) has a profitability rating of 3 / 10.


What are the PE and PB ratios of ARES MANAGEMENT CORP - A (ARES) stock?

The Price/Earnings (PE) ratio for ARES MANAGEMENT CORP - A (ARES) is 24.21 and the Price/Book (PB) ratio is 8.88.


Can you provide the dividend sustainability for ARES stock?

The dividend rating of ARES MANAGEMENT CORP - A (ARES) is 7 / 10 and the dividend payout ratio is 458%.