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Market Cap

US$15.4b

Last Updated

2021/04/15 23:20 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


Snowflake Analysis

High growth potential with questionable track record.


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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 +/- 5% a week.

Volatility Over Time: ARES's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.9%

ARES

1.8%

US Capital Markets

1.1%

US Market


1 Year Return

74.9%

ARES

68.8%

US Capital Markets

56.6%

US Market

Return vs Industry: ARES exceeded the US Capital Markets industry which returned 63% over the past year.

Return vs Market: ARES exceeded the US Market which returned 53.9% over the past year.


Shareholder returns

ARESIndustryMarket
7 Day0.9%1.8%1.1%
30 Day2.2%1.4%1.7%
90 Day23.7%10.3%6.0%
1 Year81.6%74.9%72.7%68.8%59.3%56.6%
3 Year183.5%147.7%55.0%43.7%62.6%52.2%
5 Year376.3%268.7%148.2%117.4%120.6%96.1%

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

Valuation

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

62.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ARES ($56.22) is trading above our estimate of fair value ($55.11)

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 (63.3x) compared to the US Capital Markets industry average (25x).

PE vs Market: ARES is poor value based on its PE Ratio (63.3x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: ARES is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: ARES is good value based on its PB Ratio (9.2x) compared to the US Capital Markets industry average (68.2x).


Future Growth

How is Ares Management forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

59.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARES's forecast earnings growth (58.3% per year) is above the savings rate (2%).

Earnings vs Market: ARES's earnings (58.3% per year) are forecast to grow faster than the US market (18.5% per year).

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

Revenue vs Market: ARES's revenue (14.9% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: ARES's revenue (14.9% 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 (40.9%).


Past Performance

How has Ares Management performed over the past 5 years?

17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARES has a large one-off loss of $103.4M impacting its December 31 2020 financial results.

Growing Profit Margin: ARES's current net profit margins (6.8%) are higher than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: ARES's earnings have grown by 17.4% per year over the past 5 years.

Accelerating Growth: ARES's earnings growth over the past year (1.1%) is below its 5-year average (17.4% per year).

Earnings vs Industry: ARES earnings growth over the past year (1.1%) underperformed the Capital Markets industry 10.4%.


Return on Equity

High ROE: ARES's Return on Equity (12.6%) is considered low.


Financial Health

How is Ares Management's financial position?


Financial Position Analysis

Short Term Liabilities: ARES's short term assets ($1.7B) do not cover its short term liabilities ($1.8B).

Long Term Liabilities: ARES's short term assets ($1.7B) do not cover its long term liabilities ($10.8B).


Debt to Equity History and Analysis

Debt Level: ARES's debt to equity ratio (416.9%) is considered high.

Reducing Debt: ARES's debt to equity ratio has increased from 260% to 416.9% 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?

3.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARES's dividend (3.34%) is higher than the bottom 25% of dividend payers in the US market (1.26%).

High Dividend: ARES's dividend (3.34%) is low compared to the top 25% of dividend payers in the US market (3.5%).


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 (180.1%), 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 (72.8% payout ratio).


Next Steps

Management

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

2.3yrs

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. He serves as a Senior Advisor at Volery Capital Partners since joinin...


Leadership Team

Experienced Management: ARES's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: ARES's board of directors are considered experienced (6.9 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 15.7%.


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$15.356b
  • Market Cap: US$9.050b
  • Shares outstanding: 274.18m
  • 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


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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/15 23:20
End of Day Share Price2021/04/15 00:00
Earnings2020/12/31
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.