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

NYSE:ARES • US03990B1017

Current stock price

102.43 USD
-3.37 (-3.19%)
At close:
102.4 USD
-0.03 (-0.03%)
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

  • In the past year ARES was profitable.
  • ARES had a positive operating cash flow in the past year.
  • ARES had positive earnings in each of the past 5 years.
  • 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

  • Looking at the Return On Assets, with a value of 1.34%, ARES is in line with its industry, outperforming 40.42% of the companies in the same industry.
  • ARES's Return On Equity of 8.97% is in line compared to the rest of the industry. ARES outperforms 55.83% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 3.86%, ARES is in line with its industry, outperforming 56.67% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for ARES is below the industry average of 7.25%.
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's Profit Margin of 6.85% is on the low side compared to the rest of the industry. ARES is outperformed by 62.50% of its industry peers.
  • ARES's Profit Margin has been stable in the last couple of years.
  • With a Operating Margin value of 17.86%, ARES is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
  • In the last couple of years the Operating Margin of ARES has remained more or less at the same level.
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

  • ARES has more shares outstanding than it did 1 year ago.
  • ARES has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, ARES has an improved debt to assets ratio.
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

  • ARES has an Altman-Z score of 0.88. 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 of 0.88. This is comparable to the rest of the industry: ARES outperforms 53.75% 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.
  • ARES's Debt to FCF ratio of 4.24 is fine compared to the rest of the industry. ARES outperforms 73.33% of its industry peers.
  • ARES has a Debt/Equity ratio of 3.17. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 3.17, ARES is not doing good in the industry: 82.50% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 3.17
Debt/FCF 4.24
Altman-Z 0.88
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

  • A Current Ratio of 0.27 indicates that ARES may have some problems paying its short term obligations.
  • The Current ratio of ARES (0.27) is worse than 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.
  • The Quick ratio of ARES (0.27) is worse than 85.00% of its industry peers.
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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8

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.
  • The Earnings Per Share has been growing by 20.68% on average over the past years. This is a very strong growth
  • Looking at the last year, ARES shows a very strong growth in Revenue. 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

  • 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 Y37.54%
EPS Next 2Y28.99%
EPS Next 3Y24.55%
EPS Next 5Y22.19%
Revenue Next Year21.69%
Revenue Next 2Y19.53%
Revenue Next 3Y17.45%
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.
  • Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of 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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5

4. ARES Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 21.52 indicates a rather expensive valuation of ARES.
  • 67.50% of the companies in the same industry are cheaper than ARES, based on the Price/Earnings ratio.
  • ARES's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.60.
  • The Price/Forward Earnings ratio is 15.65, which indicates a correct valuation of ARES.
  • The rest of the industry has a similar Price/Forward Earnings ratio as ARES.
  • The average S&P500 Price/Forward Earnings ratio is at 22.84. ARES is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 21.52
Fwd PE 15.65
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

  • 63.75% of the companies in the same industry are more expensive than ARES, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, ARES is valued a bit cheaper than the industry average as 74.58% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 10.56
EV/EBITDA 36.88
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 24.55% in the coming years.
PEG (NY)0.57
PEG (5Y)1.04
EPS Next 2Y28.99%
EPS Next 3Y24.55%

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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 5.08%, ARES is a good candidate for dividend investing.
  • The stock price of ARES dropped by -38.42% 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.
  • Compared to an average industry Dividend Yield of 6.91, ARES has a dividend in line with its industry peers.
  • ARES's Dividend Yield is rather good when compared to the S&P500 average which is at 1.90.
Industry RankSector Rank
Dividend Yield 5.08%

5.2 History

  • On average, the dividend of ARES grows each year by 17.03%, which is quite nice.
  • ARES has paid a dividend for at least 10 years, which is 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 Years5
Div Non Decr Years5
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

  • 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 2Y28.99%
EPS Next 3Y24.55%
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 (4/2/2026, 8:08:21 PM)

After market: 102.4 -0.03 (-0.03%)

102.43

-3.37 (-3.19%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-05
Earnings (Next)05-01
Inst Owners89.03%
Inst Owner Change6.08%
Ins Owners3.4%
Ins Owner Change9.09%
Market Cap33.75B
Revenue(TTM)5.60B
Net Income(TTM)383.56M
Analysts80
Price Target169.12 (65.11%)
Short Float %6.22%
Short Ratio2.85
Dividend
Industry RankSector Rank
Dividend Yield 5.08%
Yearly Dividend5.49
Dividend Growth(5Y)17.03%
DP458%
Div Incr Years5
Div Non Decr Years5
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)-4.2%
PT rev (3m)-12.43%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)3.83%
EPS NY rev (1m)-2.27%
EPS NY rev (3m)-1.46%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)4.64%
Revenue NY rev (1m)-0.63%
Revenue NY rev (3m)-0.25%
Valuation
Industry RankSector Rank
PE 21.52
Fwd PE 15.65
P/S 6.02
P/FCF 10.56
P/OCF 10.33
P/B 7.89
P/tB N/A
EV/EBITDA 36.88
EPS(TTM)4.76
EY4.65%
EPS(NY)6.55
Fwd EY6.39%
FCF(TTM)9.7
FCFY9.47%
OCF(TTM)9.92
OCFY9.68%
SpS17
BVpS12.98
TBVpS-3.93
PEG (NY)0.57
PEG (5Y)1.04
Graham Number37.28
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 0.88
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 Y37.54%
EPS Next 2Y28.99%
EPS Next 3Y24.55%
EPS Next 5Y22.19%
Revenue 1Y (TTM)44.19%
Revenue growth 3Y22.39%
Revenue growth 5Y26%
Sales Q2Q%19.53%
Revenue Next Year21.69%
Revenue Next 2Y19.53%
Revenue Next 3Y17.45%
Revenue Next 5Y16.79%
EBIT growth 1Y0.71%
EBIT growth 3Y12.95%
EBIT growth 5Y26.11%
EBIT Next Year43.64%
EBIT Next 3Y25.8%
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 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 21.52 and the Price/Book (PB) ratio is 7.89.


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%.