ARES MANAGEMENT CORP - A (ARES)
US03990B1017 - Common Stock
Overall ARES gets a fundamental rating of 3 out of 10. We evaluated ARES against 209 industry peers in the Capital Markets industry. ARES has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year ARES has reported a negative cash flow from operations.
In the past 5 years ARES has always been profitable.
ARES had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ARES (1.83%) is worse than 61.35% of its industry peers.
ARES's Return On Equity of 23.93% is amongst the best of the industry. ARES outperforms 91.30% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.89%, ARES is in line with its industry, outperforming 45.41% of the companies in the same industry.
ARES had an Average Return On Invested Capital over the past 3 years of 3.86%. This is below the industry average of 8.35%.
The 3 year average ROIC (3.86%) for ARES is below the current ROIC(3.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.83% | ||
| ROE | 23.93% | ||
| ROIC | 3.89% |
ROA(3y)1.41%
ROA(5y)1.2%
ROE(3y)17.93%
ROE(5y)15.88%
ROIC(3y)3.86%
ROIC(5y)3.23%
1.3 Margins
Looking at the Profit Margin, with a value of 12.47%, ARES is doing worse than 60.39% 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 (25.33%) 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 | 25.33% | ||
| PM (TTM) | 12.47% | ||
| GM | N/A |
OM growth 3Y12.53%
OM growth 5Y22.48%
PM growth 3Y22.4%
PM growth 5Y33.31%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, ARES has more shares outstanding
Compared to 5 years ago, ARES has more shares outstanding
Compared to 1 year ago, ARES has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.19, we must say that ARES is in the distress zone and has some risk of bankruptcy.
ARES's Altman-Z score of 1.19 is in line compared to the rest of the industry. ARES outperforms 55.07% of its industry peers.
A Debt/Equity ratio of 8.15 is on the high side and indicates that ARES has dependencies on debt financing.
ARES has a Debt to Equity ratio of 8.15. This is amonst the worse of the industry: ARES underperforms 88.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.15 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.19 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
ARES has a Current Ratio of 0.38. 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 Current ratio of ARES (0.38) is worse than 77.29% of its industry peers.
A Quick Ratio of 0.38 indicates that ARES may have some problems paying its short term obligations.
ARES's Quick ratio of 0.38 is on the low side compared to the rest of the industry. ARES is outperformed by 77.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.38 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
ARES shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.96%, which is quite good.
ARES shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.78% yearly.
Looking at the last year, ARES shows a quite strong growth in Revenue. The Revenue has grown by 18.87% in the last year.
The Revenue has been growing by 30.53% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)8.96%
EPS 3Y25.2%
EPS 5Y20.78%
EPS growth Q2Q0%
Revenue 1Y (TTM)18.87%
Revenue growth 3Y27.22%
Revenue growth 5Y30.53%
Revenue growth Q2Q12.4%
3.2 Future
ARES is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.38% yearly.
The Revenue is expected to grow by 28.59% on average over the next years. This is a very strong growth
EPS Next Y28.71%
EPS Next 2Y30.54%
EPS Next 3Y27.38%
EPS Next 5YN/A
Revenue Next Year37.96%
Revenue Next 2Y32.95%
Revenue Next 3Y28.59%
Revenue Next 5YN/A
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 36.08, 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 rather expensive valuation: ARES more expensive than 80.19% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ARES to the average of the S&P500 Index (24.83), we can say ARES is valued slightly more expensively.
ARES is valuated quite expensively with a Price/Forward Earnings ratio of 28.03.
Based on the Price/Forward Earnings ratio, ARES is valued a bit more expensive than 72.95% of the companies in the same industry.
ARES is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.08 | ||
| Fwd PE | 28.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARES is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 47.51 |
4.3 Compensation for Growth
ARES's 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 27.38% in the coming years.
PEG (NY)1.26
PEG (5Y)1.74
EPS Next 2Y30.54%
EPS Next 3Y27.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.77%, ARES has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.52, ARES has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, ARES has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
5.2 History
The dividend of ARES decreases each year by -1.20%.
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 last 3 years.
Dividend Growth(5Y)-1.2%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
227.51% of the earnings are spent on dividend by ARES. This is not a sustainable payout ratio.
DP227.51%
EPS Next 2Y30.54%
EPS Next 3Y27.38%
ARES MANAGEMENT CORP - A
NYSE:ARES (4/17/2024, 7:04:00 PM)
After market: 131.69 -0.01 (-0.01%)131.7
+0.81 (+0.62%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap40.77B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.08 | ||
| Fwd PE | 28.03 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.26
PEG (5Y)1.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.83% | ||
| ROE | 23.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.33% | ||
| PM (TTM) | 12.47% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.15 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.38 | ||
| Quick Ratio | 0.38 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)8.96%
EPS 3Y25.2%
EPS 5Y
EPS growth Q2Q
EPS Next Y28.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)18.87%
Revenue growth 3Y27.22%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y