ARES MANAGEMENT CORP - A (ARES) Fundamental Analysis & Valuation
NYSE:ARES • US03990B1017
Current stock price
112.61 USD
+5.93 (+5.56%)
At close:
112.6 USD
-0.01 (-0.01%)
Pre-Market:
This ARES fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- In the past 5 years ARES has always been profitable.
- In multiple years ARES reported negative operating cash flow during the last 5 years.
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 of 8.97%. This is comparable to the rest of the industry: ARES outperforms 55.83% of its industry peers.
- The Return On Invested Capital of ARES (3.86%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ARES is below the industry average of 7.19%.
| Industry Rank | Sector 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%
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.
- The Operating Margin of ARES (17.86%) is worse than 60.42% of its industry peers.
- ARES's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector 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
2. ARES Health Analysis
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
- ARES has a better debt/assets ratio than last year.
2.2 Solvency
- ARES has an Altman-Z score of 0.96. This is a bad value and indicates that ARES is not financially healthy and even has some risk of bankruptcy.
- ARES has a Altman-Z score (0.96) which is comparable to the rest of the industry.
- 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.
- The Debt to FCF ratio of ARES (4.24) is better than 73.75% of its industry peers.
- A Debt/Equity ratio of 3.17 is on the high side and indicates that ARES has dependencies on debt financing.
- ARES has a worse Debt to Equity ratio (3.17) than 82.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.17 | ||
| Debt/FCF | 4.24 | ||
| Altman-Z | 0.96 |
ROIC/WACCN/A
WACCN/A
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.
- Looking at the Current ratio, with a value of 0.27, ARES is doing worse than 85.00% of the companies in the same industry.
- A Quick Ratio of 0.27 indicates that ARES may have some problems paying its short term obligations.
- The Quick ratio of ARES (0.27) is worse than 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 |
3. ARES Growth Analysis
3.1 Past
- ARES shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.90%, which is quite good.
- 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.
- ARES shows a strong growth in Revenue. In the last year, the Revenue has grown by 44.19%.
- Measured over the past years, ARES shows a very strong growth in Revenue. The Revenue has been growing by 26.00% on average per year.
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
- Based on estimates for the next years, ARES will show a very strong growth in Earnings Per Share. The EPS will grow by 22.19% on average per year.
- Based on estimates for the next years, ARES will show a quite strong growth in Revenue. The Revenue will grow by 16.79% on average per year.
EPS Next Y36.03%
EPS Next 2Y27.74%
EPS Next 3Y21.54%
EPS Next 5Y22.19%
Revenue Next Year21.41%
Revenue Next 2Y19.39%
Revenue Next 3Y15.57%
Revenue Next 5Y16.79%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. ARES Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 23.66 indicates a rather expensive valuation of ARES.
- 67.92% 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 27.33. ARES is around the same levels.
- Based on the Price/Forward Earnings ratio of 17.39, the valuation of ARES can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ARES is on the same level as its industry peers.
- ARES's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 38.16.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.66 | ||
| Fwd PE | 17.39 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ARES is valued a bit cheaper than 62.92% of the companies in the same industry.
- 72.08% 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 | 11.61 | ||
| EV/EBITDA | 39.57 |
4.3 Compensation for Growth
- The 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)0.66
PEG (5Y)1.14
EPS Next 2Y27.74%
EPS Next 3Y21.54%
5. ARES Dividend Analysis
5.1 Amount
- ARES has a Yearly Dividend Yield of 5.15%, which is a nice return.
- In the last 3 months the price of ARES has falen by -33.64%. 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 6.64.
- Compared to an average S&P500 Dividend Yield of 1.82, ARES pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
5.2 History
- The dividend of ARES is nicely growing with an annual growth rate of 17.03%!
- 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)17.03%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- ARES pays out 458.00% of its income as dividend. 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 Fundamentals: All Metrics, Ratios and Statistics
112.61
+5.93 (+5.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryCapital Markets
Market Cap37.10B
Analysts80
PE23.66
Fwd PE17.39
ROIC/WACCN/A
Debt/Equity3.17
Debt/FCF4.24
OM17.86%
GMN/A
PM (TTM)6.85%
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
Yearly Dividend5.49
Dividend Growth(5Y)17.03%
DP458%
Div Incr Years6
Div Non Decr Years6
Ex-Date03-17 2026-03-17 (1.35)
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 5 / 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 23.66 and the Price/Book (PB) ratio is 8.68.
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%.