ARES MANAGEMENT CORP - A (ARES) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARES - US03990B1017 - Common Stock
169.57 USD
-0.35 (-0.21%)
169.41 USD
-0.16 (-0.09%)
ARES gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 235 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 expensively, but it does show have an excellent growth rating.
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 has a Return On Assets (1.89%) which is in line with its industry peers.
- ARES has a Return On Equity of 11.44%. This is in the better half of the industry: ARES outperforms 67.66% 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 62.98% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ARES is below the industry average of 7.16%.
- 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
- With a Profit Margin value of 9.56%, ARES is not doing good in the industry: 61.70% of the companies in the same industry are doing better.
- 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 45.11% 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
- ARES has more shares outstanding than it did 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
- ARES has an Altman-Z score of 1.53. This is a bad value and indicates that ARES is not financially healthy and even has some risk of bankruptcy.
- ARES has a better Altman-Z score (1.53) than 65.53% 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.
- Looking at the Debt to FCF ratio, with a value of 2.68, ARES is in the better half of the industry, outperforming 80.00% 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 80.43% 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
- 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 83.83% 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 has a worse Quick ratio (0.26) than 83.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
- ARES shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.94%, which is quite good.
- The Earnings Per Share has been growing by 18.77% on average over the past years. This is quite good.
- Looking at the last year, ARES shows a very strong growth in Revenue. 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
- Based on estimates for the next years, ARES will show a very strong growth in Earnings Per Share. The EPS will grow by 20.69% on average per year.
- The Revenue is expected to grow by 20.07% on average over the next years. This is a very strong growth
EPS Next Y29.59%
EPS Next 2Y29.36%
EPS Next 3Y26.11%
EPS Next 5Y20.69%
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
- ARES is valuated quite expensively with a Price/Earnings ratio of 37.35.
- 74.04% of the companies in the same industry are cheaper than ARES, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.54. ARES is valued slightly more expensive when compared to this.
- The Price/Forward Earnings ratio is 25.52, which means the current valuation is very expensive for ARES.
- ARES's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ARES is more expensive than 62.98% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.31. ARES is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.35 | ||
| Fwd PE | 25.52 |
4.2 Price Multiples
- ARES's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ARES is cheaper than 62.55% of the companies in the same industry.
- 74.89% of the companies in the same industry are more expensive than ARES, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.34 | ||
| EV/EBITDA | 54.8 |
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)1.26
PEG (5Y)1.99
EPS Next 2Y29.36%
EPS Next 3Y26.11%
5. Dividend
5.1 Amount
- ARES has a Yearly Dividend Yield of 2.55%.
- Compared to an average industry Dividend Yield of 6.19, ARES has a dividend in line with its industry peers.
- ARES's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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.
- 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%
169.57
-0.35 (-0.21%)
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 Change0.04%
Ins Owners2.95%
Ins Owner Change-0.8%
Market Cap55.43B
Revenue(TTM)5.36B
Net Income(TTM)511.84M
Analysts77.39
Price Target193.12 (13.89%)
Short Float %5.37%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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 | 37.35 | ||
| Fwd PE | 25.52 | ||
| P/S | 10.35 | ||
| P/FCF | 12.34 | ||
| P/OCF | 12.16 | ||
| P/B | 12.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 54.8 |
EPS(TTM)4.54
EY2.68%
EPS(NY)6.64
Fwd EY3.92%
FCF(TTM)13.74
FCFY8.11%
OCF(TTM)13.95
OCFY8.22%
SpS16.38
BVpS13.69
TBVpS-3.46
PEG (NY)1.26
PEG (5Y)1.99
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 Year28.93%
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 37.35 and the Price/Book (PB) ratio is 12.39.
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.