Ares Management
Market Cap
US$12.0b
Last Updated
2021/01/21 23:18 UTC
Data Sources
Company Financials +
Executive Summary
Ares Management Corporation operates as an alternative asset manager in the United States, Europe, and Asia. More Details
Rewards
Risk Analysis
Snowflake Analysis
High growth potential unattractive dividend payer.
Similar Companies
Share Price & News
How has Ares Management's share price performed over time and what events caused price changes?
Latest Share Price and Events
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.
Market Performance
7 Day Return
-0.04%
ARES
-0.5%
US Capital Markets
1.5%
US Market
1 Year Return
20.7%
ARES
16.2%
US Capital Markets
22.8%
US Market
Return vs Industry: ARES exceeded the US Capital Markets industry which returned 16.2% over the past year.
Return vs Market: ARES underperformed the US Market which returned 22.8% over the past year.
Shareholder returns
| ARES | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.04% | -0.5% | 1.5% |
| 30 Day | -7.0% | 7.5% | 5.0% |
| 90 Day | 2.1% | 22.3% | 15.2% |
| 1 Year | 25.8%20.7% | 19.2%16.2% | 25.6%22.8% |
| 3 Year | 116.5%86.8% | 29.9%19.9% | 47.3%37.5% |
| 5 Year | 410.5%292.5% | 149.5%118.4% | 133.4%107.3% |
Long-Term Price Volatility Vs. Market
How volatile is Ares Management's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
Should You Buy Ares Management Corporation (NYSE:ARES) For Its Dividend?1 month ago | Simply Wall St
Are Insiders Selling Ares Management Corporation (NYSE:ARES) Stock?2 months ago | Simply Wall St
Did You Participate In Any Of Ares Management's (NYSE:ARES) Fantastic 249% Return ?Valuation
Is Ares Management undervalued compared to its fair value and its price relative to the market?
73.12x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ARES ($45.76) is trading above our estimate of fair value ($11.24)
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 (73.1x) compared to the US Capital Markets industry average (27.5x).
PE vs Market: ARES is poor value based on its PE Ratio (73.1x) compared to the US market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: ARES is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: ARES is overvalued based on its PB Ratio (7.8x) compared to the US Capital Markets industry average (5.1x).
Next Steps
Future Growth
How is Ares Management forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
44.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ARES's forecast earnings growth (44.3% per year) is above the savings rate (2%).
Earnings vs Market: ARES's earnings (44.3% per year) are forecast to grow faster than the US market (21.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ARES's revenue (19.5% per year) is forecast to grow faster than the US market (10.5% per year).
High Growth Revenue: ARES's revenue (19.5% 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 very high in 3 years time (54.3%).
Next Steps
Past Performance
How has Ares Management performed over the past 5 years?
17.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ARES has a large one-off loss of $149.0M impacting its September 30 2020 financial results.
Growing Profit Margin: ARES's current net profit margins (5.2%) are lower than last year (6%).
Past Earnings Growth Analysis
Earnings Trend: ARES's earnings have grown by 17.1% per year over the past 5 years.
Accelerating Growth: ARES's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ARES had negative earnings growth (-15%) over the past year, making it difficult to compare to the Capital Markets industry average (4.9%).
Return on Equity
High ROE: ARES's Return on Equity (6.7%) is considered low.
Next Steps
Financial Health
How is Ares Management's financial position?
Financial Position Analysis
Short Term Liabilities: ARES's short term assets ($1.8B) do not cover its short term liabilities ($2.0B).
Long Term Liabilities: ARES's short term assets ($1.8B) do not cover its long term liabilities ($10.5B).
Debt to Equity History and Analysis
Debt Level: ARES's debt to equity ratio (421.5%) is considered high.
Reducing Debt: ARES's debt to equity ratio has increased from 291.8% to 421.5% 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
Next Steps
Dividend
What is Ares Management current dividend yield, its reliability and sustainability?
3.50%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ARES's dividend (3.5%) is higher than the bottom 25% of dividend payers in the US market (1.37%).
High Dividend: ARES's dividend (3.5%) is low compared to the top 25% of dividend payers in the US market (3.86%).
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 6 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (242.9%), 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 (82.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.0yrs
Average management tenure
CEO
Mike Arougheti (48 yo)
no data
Tenure
US$12,665,722
Compensation
Mr. Michael J. Arougheti, also known as Mike, is a Director, Co-Founder, Chief Executive Officer, and President of Ares Management LLC. Mr. Arougheti is Co-Founder, Chief Executive Officer and President of...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-founder & Executive Chairman | no data | US$31.46m | no data | |
| Co-Founder | no data | US$12.67m | 0.061% $ 7.3m | |
| Director | 6.83yrs | US$30.93m | 0% $ 0 | |
| Co-Founder | 6.83yrs | US$30.93m | 0.28% $ 33.4m | |
| Partner | 5.83yrs | US$7.03m | 0.042% $ 5.0m | |
| Partner of Finance | 1.75yrs | no data | no data | |
| Partner | 2yrs | no data | no data | |
| Partner and Head of Public Investor Relations & Communications | no data | no data | no data | |
| Secretary | 1yr | no data | 0.017% $ 2.0m | |
| Partner & Global Chief Compliance Officer | no data | no data | no data | |
| Partner and Chief Marketing & Strategy Officer | 3yrs | no data | 0.10% $ 12.2m | |
| Partner & Global Head of Human Resources | no data | no data | no data |
2.0yrs
Average Tenure
48yo
Average Age
Experienced Management: ARES's management team is considered experienced (2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-founder & Executive Chairman | no data | US$31.46m | no data | |
| Co-Founder | no data | US$12.67m | 0.061% $ 7.3m | |
| Director | 6.83yrs | US$30.93m | 0% $ 0 | |
| Co-Founder | 6.83yrs | US$30.93m | 0.28% $ 33.4m | |
| Partner | 0.92yr | no data | 0.11% $ 13.2m | |
| Independent Director | 6.67yrs | US$179.24k | 0.0098% $ 1.2m | |
| Independent Director | 2yrs | US$175.08k | 0.0016% $ 189.6k | |
| Independent Director | 6.67yrs | US$194.24k | 0.017% $ 2.0m | |
| Independent Director | 6.67yrs | US$179.24k | 0.011% $ 1.3m |
6.7yrs
Average Tenure
59yo
Average Age
Experienced Board: ARES's board of directors are considered experienced (6.7 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 11.7%.
Top Shareholders
Company Information
Ares Management Corporation's company bio, 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$11.997b
- Market Cap: US$6.582b
- Shares outstanding: 258.45m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ARES | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | May 2014 |
| ARES.PRA | NYSE (New York Stock Exchange) | 7% SER A PFD STK | US | USD | Jun 2016 |
Biography
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 c...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/21 23:18 |
| End of Day Share Price | 2021/01/21 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.