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ARES

Ares ManagementNYSE:ARES Stock Report

Market Cap

US$22.9b

7D

2.8%

1Y

82.6%

Updated

21 Oct, 2021

Data

Company Financials +
ARES fundamental analysis
Snowflake Score
Valuation1/6
Future Growth5/6
Past Performance5/6
Financial Health1/6
Dividends2/6

ARES Overview

Ares Management Corporation operates as an alternative asset manager in the United States, Europe, and Asia.

Ares Management Competitors

Blackstone

NYSE:BX

US$149.7b

BlackRock

NYSE:BLK

US$137.5b

KKR

NYSE:KKR

US$61.8b

T. Rowe Price Group

NasdaqGS:TROW

US$46.4b

Price History & Performance

Summary of all time highs, changes and price drops for Ares Management
Historical stock prices
Current Share PriceUS$81.02
52 Week HighUS$40.56
52 Week LowUS$81.16
Beta1.03
1 Month Change6.06%
3 Month Change21.82%
1 Year Change82.56%
3 Year Change312.32%
5 Year Change371.05%
Change since IPO335.59%

Recent News & Updates

Aug 16
If You Like EPS Growth Then Check Out Ares Management (NYSE:ARES) Before It's Too Late

If You Like EPS Growth Then Check Out Ares Management (NYSE:ARES) Before It's Too Late

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

ARESUS Capital MarketsUS Market
7D2.8%5.4%3.8%
1Y82.6%61.5%31.5%

Return vs Industry: ARES exceeded the US Capital Markets industry which returned 61.5% over the past year.

Return vs Market: ARES exceeded the US Market which returned 31.5% over the past year.

Price Volatility

Is ARES's price volatile compared to industry and market?
ARES volatility
ARES Beta1.03
Industry Beta1.19
Market Beta1

Stable Share Price: ARES is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ARES's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19971,526Mike Aroughetihttps://www.aresmgmt.com

Ares Management Corporation operates as an alternative asset manager in the United States, Europe, and Asia. The company’s Tradable Credit Group segment manages various types of investment funds, such as commingled and separately managed accounts for institutional investors, and publicly traded vehicles and sub-advised funds for retail investors in the tradable and non-investment grade corporate credit markets. Its Direct Lending Group segment provides financing solutions to small-to-medium sized companies.

Ares Management Fundamentals Summary

How do Ares Management's earnings and revenue compare to its market cap?
ARES fundamental statistics
Market CapUS$22.89b
Earnings (TTM)US$279.00m
Revenue (TTM)US$3.10b

82.6x

P/E Ratio

7.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARES income statement (TTM)
RevenueUS$3.10b
Cost of RevenueUS$2.12b
Gross ProfitUS$984.79m
ExpensesUS$705.79m
EarningsUS$279.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 27, 2021

Earnings per share (EPS)0.98
Gross Margin31.76%
Net Profit Margin9.00%
Debt/Equity Ratio235.7%

How did ARES perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

94%

Payout Ratio

Valuation

Is Ares Management undervalued compared to its fair value and its price relative to the market?

82.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ARES ($81.02) is trading above our estimate of fair value ($23.67)

Significantly Below Fair Value: ARES is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ARES is poor value based on its PE Ratio (82.6x) compared to the US Capital Markets industry average (16.1x).

PE vs Market: ARES is poor value based on its PE Ratio (82.6x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: ARES is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: ARES is good value based on its PB Ratio (14.2x) compared to the US Capital Markets industry average (61.3x).


Future Growth

How is Ares Management forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

30.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARES's forecast earnings growth (30.3% per year) is above the savings rate (2%).

Earnings vs Market: ARES's earnings (30.3% per year) are forecast to grow faster than the US market (15% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ARES's revenue (14.5% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: ARES's revenue (14.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARES's Return on Equity is forecast to be high in 3 years time (34%)


Past Performance

How has Ares Management performed over the past 5 years?

26.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARES has high quality earnings.

Growing Profit Margin: ARES's current net profit margins (9%) are higher than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: ARES's earnings have grown significantly by 26.2% per year over the past 5 years.

Accelerating Growth: ARES's earnings growth over the past year (319.6%) exceeds its 5-year average (26.2% per year).

Earnings vs Industry: ARES earnings growth over the past year (319.6%) exceeded the Capital Markets industry 77.5%.


Return on Equity

High ROE: ARES's Return on Equity (18.4%) is considered low.


Financial Health

How is Ares Management's financial position?


Financial Position Analysis

Short Term Liabilities: ARES's short term assets ($2.1B) do not cover its short term liabilities ($3.6B).

Long Term Liabilities: ARES's short term assets ($2.1B) do not cover its long term liabilities ($10.6B).


Debt to Equity History and Analysis

Debt Level: ARES's debt to equity ratio (235.7%) is considered high.

Reducing Debt: ARES's debt to equity ratio has increased from 187.5% to 235.7% over the past 5 years.

Debt Coverage: ARES's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: ARES earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Ares Management current dividend yield, its reliability and sustainability?

2.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARES's dividend (2.32%) is higher than the bottom 25% of dividend payers in the US market (1.28%).

High Dividend: ARES's dividend (2.32%) is low compared to the top 25% of dividend payers in the US market (3.48%).


Stability and Growth of Payments

Stable Dividend: ARES has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ARES's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (93.9%), ARES's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ARES's dividends in 3 years are forecast to be covered by earnings (69.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.2yrs

Average management tenure


CEO

Mike Arougheti (49 yo)

no data

Tenure

US$7,303,953

Compensation

Mr. Michael J. Arougheti, also known as Mike, is a Director, Co-Founder, Chief Executive Officer and President of Ares Management LLC. He serves as a Senior Advisor at Volery Capital Partners since joining...


Leadership Team

Experienced Management: ARES's management team is not considered experienced ( 0.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: ARES's board of directors are considered experienced (7.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.8%.


Top Shareholders

Company Information

Ares Management Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Ares Management Corporation
  • Ticker: ARES
  • Exchange: NYSE
  • Founded: 1997
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Implied Market Cap: US$22.894b
  • Market Cap: US$13.526b
  • Shares outstanding: 284.53m
  • Website: https://www.aresmgmt.com

Number of Employees


Location

  • Ares Management Corporation
  • 2000 Avenue of the Stars
  • 12th Floor
  • Los Angeles
  • California
  • 90067
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 23:03
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.