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

NYSE:ARES • US03990B1017

Current stock price

106.04 USD
-1.08 (-1.01%)
At close:
106 USD
-0.04 (-0.04%)
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

  • ARES had positive earnings in the past year.
  • In the past year ARES had a positive cash flow from operations.
  • 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

  • The Return On Assets of ARES (1.34%) is comparable to the rest of the industry.
  • The Return On Equity of ARES (8.97%) is comparable to the rest of the industry.
  • ARES has a Return On Invested Capital of 3.86%. This is comparable to the rest of the industry: ARES outperforms 56.49% of its industry peers.
  • ARES had an Average Return On Invested Capital over the past 3 years of 4.00%. This 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

  • ARES has a Profit Margin of 6.85%. This is in the lower half of the industry: ARES underperforms 62.76% of its industry peers.
  • ARES's Profit Margin has been stable in the last couple of years.
  • ARES has a Operating Margin of 17.86%. This is comparable to the rest of the industry: ARES outperforms 40.17% of its industry peers.
  • 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

  • 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 0.91. 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 (0.91) is comparable to the rest of the industry.
  • 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.
  • With a decent Debt to FCF ratio value of 4.24, ARES is doing good in the industry, outperforming 73.22% of the companies in the same industry.
  • ARES has a Debt/Equity ratio of 3.17. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 3.17, ARES is doing worse than 82.01% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 3.17
Debt/FCF 4.24
Altman-Z 0.91
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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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.
  • The Revenue has grown by 44.19% in the past year. This is a very strong growth!
  • 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.
  • 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

  • A Price/Earnings ratio of 22.28 indicates a rather expensive valuation of ARES.
  • Based on the Price/Earnings ratio, ARES is valued a bit more expensive than the industry average as 68.20% of the companies are valued more cheaply.
  • ARES's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.50.
  • With a Price/Forward Earnings ratio of 16.20, ARES is valued correctly.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ARES is on the same level as its industry peers.
  • ARES's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.67.
Industry RankSector Rank
PE 22.28
Fwd PE 16.2
ARES Price Earnings VS Forward Price EarningsARES Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ARES is valued a bit cheaper than the industry average as 63.18% of the companies are valued more expensively.
  • 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 10.94
EV/EBITDA 38.12
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)0.59
PEG (5Y)1.08
EPS Next 2Y28.99%
EPS Next 3Y24.55%

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7

5. ARES Dividend Analysis

5.1 Amount

  • ARES has a Yearly Dividend Yield of 5.00%, which is a nice return.
  • In the last 3 months the price of ARES has falen by -37.15%. 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.
  • Compared to an average S&P500 Dividend Yield of 1.89, ARES pays a better dividend.
Industry RankSector Rank
Dividend Yield 5%

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 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

  • 458.00% of the earnings are spent on dividend by ARES. 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 (3/24/2026, 8:14:17 PM)

After market: 106 -0.04 (-0.04%)

106.04

-1.08 (-1.01%)

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 Cap34.94B
Revenue(TTM)5.60B
Net Income(TTM)383.56M
Analysts80
Price Target176.53 (66.47%)
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 22.28
Fwd PE 16.2
P/S 6.24
P/FCF 10.94
P/OCF 10.69
P/B 8.17
P/tB N/A
EV/EBITDA 38.12
EPS(TTM)4.76
EY4.49%
EPS(NY)6.55
Fwd EY6.17%
FCF(TTM)9.7
FCFY9.14%
OCF(TTM)9.92
OCFY9.35%
SpS17
BVpS12.98
TBVpS-3.93
PEG (NY)0.59
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 0.91
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 22.28 and the Price/Book (PB) ratio is 8.17.


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.