ARES MANAGEMENT CORP - A (ARES) Stock Fundamental Analysis
USA - NYSE:ARES - US03990B1017 - Common Stock
140.935 USD
-5.47 (-3.73%)
Overall ARES gets a fundamental rating of 5 out of 10. We evaluated ARES against 237 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 growing strongly while it is still valued neutral. This is a good combination!
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
With a Return On Assets value of 1.89%, ARES perfoms like the industry average, outperforming 43.04% of the companies in the same industry.
With a decent Return On Equity value of 11.44%, ARES is doing good in the industry, outperforming 67.09% of the companies in the same industry.
ARES has a better Return On Invested Capital (4.41%) 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 7.11%.
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
The Profit Margin of ARES (9.56%) is worse than 62.03% of its industry peers.
In the last couple of years the Profit Margin of ARES has grown nicely.
With a Operating Margin value of 19.56%, ARES perfoms like the industry average, outperforming 45.15% of the companies in the same industry.
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
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.
Compared to 1 year ago, ARES has an improved debt to assets ratio.
2.2 Solvency
ARES has an Altman-Z score of 1.33. This is a bad value and indicates that ARES is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.33, ARES is in the better half of the industry, outperforming 62.87% of the companies in the same industry.
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 Debt to FCF ratio of 2.68. This is amongst the best in the industry. ARES outperforms 83.12% 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.
Looking at the Debt to Equity ratio, with a value of 2.69, ARES is doing worse than 82.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 2.68 | ||
| Altman-Z | 1.33 |
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 worse Current ratio (0.26) than 84.39% 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.
With a Quick ratio value of 0.26, ARES is not doing good in the industry: 83.97% of the companies in the same industry are doing better.
| 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.
Measured over the past years, ARES shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.77% on average per year.
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%46.73%
3.2 Future
The Earnings Per Share is expected to grow by 23.49% on average over the next years. This is a very strong growth
Based on estimates for the next years, ARES will show a quite strong growth in Revenue. The Revenue will grow by 15.17% on average per year.
EPS Next Y28.76%
EPS Next 2Y28.05%
EPS Next 3Y25.42%
EPS Next 5Y23.49%
Revenue Next Year26.95%
Revenue Next 2Y23%
Revenue Next 3Y22.11%
Revenue Next 5Y15.17%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 31.04, which means the current valuation is very expensive for 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 74.26% of the companies listed in the same industry.
ARES is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.65, which indicates a rather expensive current 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 61.18% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. ARES is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.04 | ||
| Fwd PE | 21.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARES is valued a bit cheaper than 61.60% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ARES is valued a bit cheaper than 68.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.25 | ||
| EV/EBITDA | 48.41 |
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 25.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.08
PEG (5Y)1.65
EPS Next 2Y28.05%
EPS Next 3Y25.42%
5. Dividend
5.1 Amount
ARES has a Yearly Dividend Yield of 3.02%.
The stock price of ARES dropped by -22.04% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
ARES's Dividend Yield is comparable with the industry average which is at 8.53.
ARES's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
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.
ARES's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP320.11%
EPS Next 2Y28.05%
EPS Next 3Y25.42%
NYSE:ARES (11/17/2025, 2:56:48 PM)
140.935
-5.47 (-3.73%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners88.15%
Inst Owner Change3.38%
Ins Owners2.97%
Ins Owner Change-1.05%
Market Cap46.04B
Revenue(TTM)5.36B
Net Income(TTM)511.84M
Analysts78.33
Price Target188.06 (33.44%)
Short Float %3.66%
Short Ratio3.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
Yearly Dividend4.22
Dividend Growth(5Y)5.8%
DP320.11%
Div Incr Years5
Div Non Decr Years5
Ex-Date
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)45.64%
Min Revenue beat(2)36.08%
Max Revenue beat(2)55.21%
Revenue beat(4)3
Avg Revenue beat(4)23.35%
Min Revenue beat(4)-4.32%
Max Revenue beat(4)55.21%
Revenue beat(8)5
Avg Revenue beat(8)17.01%
Revenue beat(12)7
Avg Revenue beat(12)15.89%
Revenue beat(16)10
Avg Revenue beat(16)20.09%
PT rev (1m)-5.71%
PT rev (3m)-2.78%
EPS NQ rev (1m)-0.84%
EPS NQ rev (3m)-1.2%
EPS NY rev (1m)0.16%
EPS NY rev (3m)-2.11%
Revenue NQ rev (1m)-2.9%
Revenue NQ rev (3m)-2.68%
Revenue NY rev (1m)-1.01%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.04 | ||
| Fwd PE | 21.65 | ||
| P/S | 8.6 | ||
| P/FCF | 10.25 | ||
| P/OCF | 10.1 | ||
| P/B | 10.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 48.41 |
EPS(TTM)4.54
EY3.22%
EPS(NY)6.51
Fwd EY4.62%
FCF(TTM)13.75
FCFY9.76%
OCF(TTM)13.95
OCFY9.9%
SpS16.39
BVpS13.69
TBVpS-3.46
PEG (NY)1.08
PEG (5Y)1.65
Graham Number37.4
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 | 1.33 |
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 Y28.76%
EPS Next 2Y28.05%
EPS Next 3Y25.42%
EPS Next 5Y23.49%
Revenue 1Y (TTM)45.54%
Revenue growth 3Y-2.66%
Revenue growth 5Y17.09%
Sales Q2Q%46.73%
Revenue Next Year26.95%
Revenue Next 2Y23%
Revenue Next 3Y22.11%
Revenue Next 5Y15.17%
EBIT growth 1Y6.65%
EBIT growth 3Y4.56%
EBIT growth 5Y26.83%
EBIT Next Year44.29%
EBIT Next 3Y31.79%
EBIT Next 5YN/A
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.
What is the valuation status of ARES MANAGEMENT CORP - A (ARES) stock?
ChartMill assigns a valuation rating of 3 / 10 to ARES MANAGEMENT CORP - A (ARES). This can be considered as Overvalued.
How profitable is ARES MANAGEMENT CORP - A (ARES) stock?
ARES MANAGEMENT CORP - A (ARES) has a profitability rating of 4 / 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 31.04 and the Price/Book (PB) ratio is 10.29.
What is the earnings growth outlook for ARES MANAGEMENT CORP - A?
The Earnings per Share (EPS) of ARES MANAGEMENT CORP - A (ARES) is expected to grow by 28.76% in the next year.