ARES MANAGEMENT CORP - A (ARES) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARES - US03990B1017 - Common Stock
169.69 USD
+0.12 (+0.07%)
169.69 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ARES. ARES was compared to 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 valued quite expensive, but it does show an excellent growth.
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 better Return On Equity (11.44%) than 67.66% of its industry peers.
- ARES's Return On Invested Capital of 4.41% is fine compared to the rest of the industry. ARES outperforms 62.98% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ARES is below the industry average of 7.16%.
- 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
- Looking at the Profit Margin, with a value of 9.56%, ARES is doing worse than 61.70% of the companies in the same industry.
- In the last couple of years the Profit Margin of ARES has grown nicely.
- The Operating Margin of ARES (19.56%) is comparable to the rest of the industry.
- 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
- The number of shares outstanding for ARES has been increased compared to 1 year ago.
- ARES has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for ARES has been reduced compared to a year ago.
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.
- With a decent Altman-Z score value of 1.53, ARES is doing good in the industry, outperforming 65.53% 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's Debt to FCF ratio of 2.68 is fine compared to the rest of the industry. ARES outperforms 80.00% of its industry peers.
- 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.
- The Current ratio of ARES (0.26) is worse than 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.
- The Quick ratio of ARES (0.26) is worse 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.
- The Revenue has grown by 45.54% in the past year. This is a very strong growth!
- The Revenue has been growing by 17.09% on average over the past years. This is quite good.
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 Y29.59%
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
- 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.
- 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 37.38, which means the current valuation is very expensive for ARES.
- ARES's Price/Earnings ratio is a bit more expensive when compared to the industry. ARES is more expensive than 73.62% of the companies in the same industry.
- ARES is valuated rather expensively when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 25.54 indicates a quite expensive valuation of ARES.
- 62.98% of the companies in the same industry are cheaper than ARES, based on the Price/Forward Earnings ratio.
- ARES's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.38 | ||
| Fwd PE | 25.54 |
4.2 Price Multiples
- 62.13% of the companies in the same industry are more expensive than ARES, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARES indicates a somewhat cheap valuation: ARES is cheaper than 74.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.35 | ||
| EV/EBITDA | 54.7 |
4.3 Compensation for Growth
- ARES's 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 26.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)1.99
EPS Next 2Y29.36%
EPS Next 3Y26.11%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.64%, ARES has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 6.12, ARES has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.87, ARES pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
5.2 History
- The dividend of ARES has a limited annual growth rate of 5.80%.
- ARES has paid a dividend for at least 10 years, which is 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
- 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 2Y29.36%
EPS Next 3Y26.11%
169.69
+0.12 (+0.07%)
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 Cap55.47B
Revenue(TTM)5.36B
Net Income(TTM)511.84M
Analysts77.39
Price Target193.6 (14.09%)
Short Float %5.37%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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 | 37.38 | ||
| Fwd PE | 25.54 | ||
| P/S | 10.36 | ||
| P/FCF | 12.35 | ||
| P/OCF | 12.17 | ||
| P/B | 12.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 54.7 |
EPS(TTM)4.54
EY2.68%
EPS(NY)6.64
Fwd EY3.92%
FCF(TTM)13.74
FCFY8.1%
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 37.38 and the Price/Book (PB) ratio is 12.4.
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.