| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 5/6 |
| Past Performance | 5/6 |
| Financial Health | 1/6 |
| Dividends | 2/6 |
ARES Overview
Ares Management Corporation operates as an alternative asset manager in the United States, Europe, and Asia.
Ares Management Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$81.02 |
| 52 Week High | US$40.56 |
| 52 Week Low | US$81.16 |
| Beta | 1.03 |
| 1 Month Change | 6.06% |
| 3 Month Change | 21.82% |
| 1 Year Change | 82.56% |
| 3 Year Change | 312.32% |
| 5 Year Change | 371.05% |
| Change since IPO | 335.59% |
Recent News & Updates
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
| ARES | US Capital Markets | US Market | |
|---|---|---|---|
| 7D | 2.8% | 5.4% | 3.8% |
| 1Y | 82.6% | 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
| ARES volatility | |
|---|---|
| ARES Beta | 1.03 |
| Industry Beta | 1.19 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1997 | 1,526 | Mike Arougheti | https://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
| ARES fundamental statistics | |
|---|---|
| Market Cap | US$22.89b |
| Earnings (TTM) | US$279.00m |
| Revenue (TTM) | US$3.10b |
82.6x
P/E Ratio7.4x
P/S RatioIs ARES overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ARES income statement (TTM) | |
|---|---|
| Revenue | US$3.10b |
| Cost of Revenue | US$2.12b |
| Gross Profit | US$984.79m |
| Expenses | US$705.79m |
| Earnings | US$279.00m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Oct 27, 2021
| Earnings per share (EPS) | 0.98 |
| Gross Margin | 31.76% |
| Net Profit Margin | 9.00% |
| Debt/Equity Ratio | 235.7% |
How did ARES perform over the long term?
See historical performance and comparisonDividends
2.3%
Current Dividend Yield94%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/21 23:03 |
| End of Day Share Price | 2021/10/21 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.