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

NYSE:ARES • US03990B1017

Current stock price

106.5 USD
+0.46 (+0.43%)
At close:
106.5 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.
  • In the past year ARES had a positive cash flow from operations.
  • Each year in the past 5 years ARES has been profitable.
  • 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

  • ARES's Return On Assets of 1.34% is in line compared to the rest of the industry. ARES outperforms 40.17% of its industry peers.
  • Looking at the Return On Equity, with a value of 8.97%, ARES is in line with its industry, outperforming 55.65% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 3.86%, ARES is in line with its industry, outperforming 56.49% 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 7.28%.
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

  • With a Profit Margin value of 6.85%, ARES is not doing good in the industry: 62.76% of the companies in the same industry are doing better.
  • ARES's Profit Margin has been stable in the last couple of years.
  • Looking at the Operating Margin, with a value of 17.86%, ARES is in line with its industry, outperforming 40.17% of the companies in the same industry.
  • ARES's Operating Margin has been stable in the last couple of years.
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
  • The number of shares outstanding for ARES has been increased compared to 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 0.90. This is a bad value and indicates that ARES is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of ARES (0.90) 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.
  • Looking at the Debt to FCF ratio, with a value of 4.24, ARES is in the better half of the industry, outperforming 73.22% of the companies in the same industry.
  • A Debt/Equity ratio of 3.17 is on the high side and indicates that ARES has dependencies on debt financing.
  • ARES has a Debt to Equity ratio of 3.17. This is amonst the worse of the industry: ARES underperforms 82.01% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.17
Debt/FCF 4.24
Altman-Z 0.9
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.
  • ARES has a Current ratio of 0.27. This is amonst the worse of the industry: ARES underperforms 84.52% of its industry peers.
  • 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 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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8

3. ARES Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 19.90% over the past year.
  • 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%.
  • The Revenue has been growing by 26.00% on average over the past years. This is a very strong growth!
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

  • The Earnings Per Share is expected to grow by 22.19% on average over the next years. This is a very strong growth
  • ARES is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.79% yearly.
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

  • 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.
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

  • ARES is valuated rather expensively with a Price/Earnings ratio of 22.37.
  • 68.20% of the companies in the same industry are cheaper than ARES, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 25.61, ARES is valued at the same level.
  • With a Price/Forward Earnings ratio of 16.27, ARES is valued correctly.
  • ARES's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, ARES is valued a bit cheaper.
Industry RankSector Rank
PE 22.37
Fwd PE 16.27
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

  • Based on the Enterprise Value to EBITDA ratio, ARES is valued a bit cheaper than 63.18% of the companies in the same industry.
  • ARES's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ARES is cheaper than 73.22% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.98
EV/EBITDA 37.83
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)0.6
PEG (5Y)1.08
EPS Next 2Y28.99%
EPS Next 3Y24.55%

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7

5. ARES Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 5.00%, ARES is a good candidate for dividend investing.
  • In the last 3 months the price of ARES has falen by -36.88%. 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 6.72.
  • ARES's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 5%

5.2 History

  • On average, the dividend of ARES grows each year by 17.03%, which is quite nice.
  • 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 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 (3/25/2026, 8:10:54 PM)

After market: 106.5 0 (0%)

106.5

+0.46 (+0.43%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-05
Earnings (Next)05-04
Inst Owners89.03%
Inst Owner Change6.08%
Ins Owners3.4%
Ins Owner Change9.09%
Market Cap35.09B
Revenue(TTM)5.60B
Net Income(TTM)383.56M
Analysts80
Price Target176.53 (65.76%)
Short Float %6.27%
Short Ratio3.29
Dividend
Industry RankSector Rank
Dividend Yield 5%
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)-11.57%
PT rev (3m)-7.02%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)3.5%
EPS NY rev (1m)-2.27%
EPS NY rev (3m)-0.88%
Revenue NQ rev (1m)2.99%
Revenue NQ rev (3m)4.64%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)1.38%
Valuation
Industry RankSector Rank
PE 22.37
Fwd PE 16.27
P/S 6.26
P/FCF 10.98
P/OCF 10.74
P/B 8.21
P/tB N/A
EV/EBITDA 37.83
EPS(TTM)4.76
EY4.47%
EPS(NY)6.55
Fwd EY6.15%
FCF(TTM)9.7
FCFY9.1%
OCF(TTM)9.92
OCFY9.31%
SpS17
BVpS12.98
TBVpS-3.93
PEG (NY)0.6
PEG (5Y)1.08
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 0.9
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.


What is the profitability of ARES stock?

ARES MANAGEMENT CORP - A (ARES) has a profitability rating of 3 / 10.


Can you provide the PE and PB ratios for ARES stock?

The Price/Earnings (PE) ratio for ARES MANAGEMENT CORP - A (ARES) is 22.37 and the Price/Book (PB) ratio is 8.21.


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 37.54% in the next year.