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

NYSE:ARES • US03990B1017

Current stock price

119 USD
+1.6 (+1.36%)
At close:
119 USD
0 (0%)
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.
  • In the past 5 years ARES has always been profitable.
  • In multiple years ARES reported negative operating cash flow during the last 5 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

  • With a Return On Assets value of 1.34%, ARES perfoms like the industry average, outperforming 40.59% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 8.97%, ARES is in line with its industry, outperforming 55.23% of the companies in the same industry.
  • ARES has a Return On Invested Capital of 3.86%. This is comparable to the rest of the industry: ARES outperforms 52.30% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ARES is below the industry average of 7.31%.
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

  • The Profit Margin of ARES (6.85%) is worse than 62.34% of its industry peers.
  • In the last couple of years the Profit Margin of ARES has remained more or less at the same level.
  • ARES has a Operating Margin of 17.86%. This is in the lower half of the industry: ARES underperforms 60.67% of its industry peers.
  • 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

  • Compared to 1 year ago, ARES has more shares outstanding
  • Compared to 5 years ago, ARES has more shares outstanding
  • The debt/assets ratio for ARES has been reduced compared to a year ago.
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

  • Based on the Altman-Z score of 1.00, we must say that ARES is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of ARES (1.00) is comparable to the rest of the industry.
  • The Debt to FCF ratio of ARES is 4.24, which is a neutral value as it means it would take ARES, 4.24 years of fcf income to pay off all of its debts.
  • ARES has a better Debt to FCF ratio (4.24) than 73.64% 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.
  • ARES's Debt to Equity ratio of 3.17 is on the low side compared to the rest of the industry. ARES is outperformed by 82.01% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.17
Debt/FCF 4.24
Altman-Z 1
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 84.52% of its industry peers.
  • A Quick Ratio of 0.27 indicates that ARES may have some problems paying its short term obligations.
  • ARES has a worse Quick ratio (0.27) than 84.52% 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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.
  • 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

  • ARES is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.47% yearly.
  • 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 5Y20.47%
Revenue Next Year20.46%
Revenue Next 2Y19.02%
Revenue Next 3Y14.76%
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.
  • 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

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4

4. ARES Valuation Analysis

4.1 Price/Earnings Ratio

  • ARES is valuated quite expensively with a Price/Earnings ratio of 25.00.
  • ARES's Price/Earnings ratio is a bit more expensive when compared to the industry. ARES is more expensive than 69.04% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.64. ARES is around the same levels.
  • With a Price/Forward Earnings ratio of 18.38, ARES is valued on the expensive side.
  • ARES's Price/Forward Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.36, ARES is valued at the same level.
Industry RankSector Rank
PE 25
Fwd PE 18.38
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

  • ARES's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARES indicates a somewhat cheap valuation: ARES is cheaper than 70.29% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 12.27
EV/EBITDA 40.84
ARES Per share dataARES EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

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)0.69
PEG (5Y)1.21
EPS Next 2Y27.74%
EPS Next 3Y21.54%

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7

5. ARES Dividend Analysis

5.1 Amount

  • ARES has a Yearly Dividend Yield of 4.70%, which is a nice return.
  • The stock price of ARES dropped by -20.49% 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 6.53, 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 1.82.
Industry RankSector Rank
Dividend Yield 4.7%

5.2 History

  • The dividend of ARES is nicely growing with an annual growth rate of 17.03%!
  • 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)17.03%
Div Incr Years6
Div Non Decr Years6
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

  • 458.00% 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.
DP458%
EPS Next 2Y27.74%
EPS Next 3Y21.54%
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 (5/1/2026, 8:09:59 PM)

After market: 119 0 (0%)

119

+1.6 (+1.36%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Industry Strength31.68
Industry Growth53.42
Earnings (Last)05-01
Earnings (Next)N/A
Inst Owners88.95%
Inst Owner Change-0.09%
Ins Owners3.4%
Ins Owner Change9.44%
Market Cap39.21B
Revenue(TTM)5.60B
Net Income(TTM)383.56M
Analysts80
Price Target161.43 (35.66%)
Short Float %7.13%
Short Ratio3.48
Dividend
Industry RankSector Rank
Dividend Yield 4.7%
Yearly Dividend5.49
Dividend Growth(5Y)17.03%
DP458%
Div Incr Years6
Div Non Decr Years6
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)-8.55%
PT rev (3m)-16.61%
EPS NQ rev (1m)-6.4%
EPS NQ rev (3m)-3.65%
EPS NY rev (1m)-1.1%
EPS NY rev (3m)-2.73%
Revenue NQ rev (1m)-2.66%
Revenue NQ rev (3m)0.84%
Revenue NY rev (1m)-1.01%
Revenue NY rev (3m)-1.38%
Valuation
Industry RankSector Rank
PE 25
Fwd PE 18.38
P/S 7
P/FCF 12.27
P/OCF 12
P/B 9.17
P/tB N/A
EV/EBITDA 40.84
EPS(TTM)4.76
EY4%
EPS(NY)6.47
Fwd EY5.44%
FCF(TTM)9.7
FCFY8.15%
OCF(TTM)9.92
OCFY8.33%
SpS17
BVpS12.98
TBVpS-3.93
PEG (NY)0.69
PEG (5Y)1.21
Graham Number37.2802 (-68.67%)
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 1
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 Y36.03%
EPS Next 2Y27.74%
EPS Next 3Y21.54%
EPS Next 5Y20.47%
Revenue 1Y (TTM)44.19%
Revenue growth 3Y22.39%
Revenue growth 5Y26%
Sales Q2Q%19.53%
Revenue Next Year20.46%
Revenue Next 2Y19.02%
Revenue Next 3Y14.76%
Revenue Next 5Y16.79%
EBIT growth 1Y0.71%
EBIT growth 3Y12.95%
EBIT growth 5Y26.11%
EBIT Next Year13.37%
EBIT Next 3Y14.68%
EBIT Next 5Y6.14%
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 4 / 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 25 and the Price/Book (PB) ratio is 9.17.


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%.