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Ares Management (ARES) Stock Analysis

This is a peer-relative look at Ares Management (ARES): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Financial Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Ares Management (ARES)
Profile ItemARES
NameAres Management Corp. Class A Common Stock
Country/RegionUnited States
GICS SectorFinancials
GICS Industry GroupFinancial Services
GICS IndustryCapital Markets
GICS Sub-IndustryAsset Management & Custody Banks
Market Capitalization44.45 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateMay 2, 2014
Security TypeCommon Stock

Price Performance

Cumulative Growth

ARES
GSPC
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Ares Management (ARES) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Ares Management (ARES) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Ares Management (ARES) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Ares Management (ARES) metric values compared with Financial Services industry-group medians
MetricCurrent stock: ARESIndustry group median
Total Return (1Y)-5.55%1.90%
Total Return (3Y, Annualized)13.18%12.71%
Total Return (5Y, Annualized)13.38%2.81%

Risk Profile

Drawdown History

ARES
GSPC
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Ares Management (ARES) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Ares Management (ARES) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Ares Management (ARES) metric values compared with Financial Services industry-group medians
MetricCurrent stock: ARESIndustry group median
Volatility (1Y, Annualized)44.09%36.24%
Beta (5Y)1.451.04
Max Drawdown (5Y)-49.97%-48.56%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. ARES is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Ares Management (ARES) metric values compared with Financial Services industry-group medians
MetricCurrent stock: ARESIndustry group median
Sharpe Ratio (1Y)-0.22-0.09
Sortino Ratio (1Y)-0.31-0.13

Profitability

ROE (TTM)

No usable ROE is available for Ares Management (ARES) this period, so the shareholder-equity return read is skipped.

ARES

Financial Services industry group

--

Group distribution
Max
44.78%
Q3
21.85%
Median
12.91%
Q1
4.48%
Min
-18.71%
ARES
--
Largest peers
MA
231.37%
V
63.51%
MS
18.04%
GS
17.71%
BRK.A
12.12%
BRK.B
12.12%
ARES
--
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Ares Management (ARES) doesn’t report ROE this period; the box shows the Financial Services group’s distribution and the dots its largest members.

Net Margin (TTM)

Ares Management (ARES) keeps 8.69% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

ARES

Financial Services industry group

8.69%

Group distribution
Max
62.84%
Q3
28.05%
Median
15.36%
ARES
8.69%
Q1
4.82%
Min
-28.52%
Largest peers
V
51.20%
MA
46.73%
GS
31.21%
MS
25.63%
BRK.A
22.30%
BRK.B
22.30%
ARES
8.69%
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Where Ares Management (ARES) stands on net margin within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Ares Management (ARES) turns 2.89% of revenue into operating profit, in the lower peer quartile for operating margin. Operating costs are taking a larger share of sales than they do at most peers.

ARES

Financial Services industry group

2.89%

Group distribution
Max
107.33%
Q3
55.90%
Median
30.09%
Q1
14.60%
ARES
2.89%
Min
-44.34%
Largest peers
V
63.73%
MA
60.53%
MS
39.00%
GS
38.37%
BRK.A
32.56%
BRK.B
32.56%
ARES
2.89%
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Where Ares Management (ARES) stands on operating margin within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Ares Management (ARES) metric values compared with Financial Services industry-group medians
MetricCurrent stock: ARESIndustry group median
ROE (TTM)--12.91%
ROA (TTM)--3.60%
Net Margin (TTM)8.69%15.36%
Operating Margin (TTM)2.89%30.09%
Gross Margin (TTM)----

Growth

Revenue Growth

Ares Management (ARES) grew revenue 44.19%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.

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Ares Management (ARES): Revenue Growth across different time periods, set against Financial Services industry-group medians.

EPS Growth

Ares Management (ARES) grew earnings per share -16.67%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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Ares Management (ARES): EPS Growth across different time periods, set against Financial Services industry-group medians.

Growth Metrics

Ares Management (ARES) metric values compared with Financial Services industry-group medians
MetricCurrent stock: ARESIndustry group median
Revenue Growth (YoY)44.19%9.46%
Revenue Growth (3Y CAGR)22.39%10.90%
EPS Growth (YoY)-16.67%7.46%
EPS Growth (3Y CAGR)25.02%13.04%

Financial Strength

Current Ratio (MRQ)

current ratio is set aside for Ares Management (ARES) in Financial Services: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.

Debt / Equity (MRQ)

debt-to-equity ratio is set aside for Ares Management (ARES) in Financial Services: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.

Financial Strength Metrics

Ares Management (ARES) metric values compared with Financial Services industry-group medians
MetricCurrent stock: ARESIndustry group median
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Ares Management (ARES) has dividend yield of 3.87%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

ARES

Financial Services industry group

3.87%

Group distribution
Max
9.77%
Q3
3.92%
ARES
3.87%
Median
1.09%
Q1
0.00%
Min
0.00%
Largest peers
ARES
3.87%
MS
2.40%
GS
2.07%
V
0.66%
MA
0.53%
BRK.A
0.00%
BRK.B
0.00%
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Where Ares Management (ARES) stands on dividend yield within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Ares Management (ARES) has payout ratio of 423.77%, meaning dividends exceeded current-period earnings. The gap would need to be covered by cash, retained earnings, financing, or other sources, so earnings alone do not support the payout.

ARES

Financial Services industry group

423.77%

Group distribution
ARES
423.77%
Max
241.07%
Q3
97.36%
Median
25.77%
Q1
0.00%
Min
0.00%
Largest peers
ARES
423.77%
MS
32.91%
GS
25.88%
V
21.75%
MA
17.63%
BRK.A
0.00%
BRK.B
0.00%
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Where Ares Management (ARES) stands on payout ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Ares Management (ARES) metric values compared with Financial Services industry-group medians
MetricCurrent stock: ARESIndustry group median
Dividend Yield (TTM)3.87%1.09%
Dividend Payout Ratio (TTM)423.77%25.77%

Valuation

P/E Ratio (TTM)

Ares Management (ARES) trades at P/E ratio of 109.82, above the peer range for its industry. The market is paying unusually heavily for TTM earnings relative to comparable companies.

ARES

Financial Services industry group

109.82

Group distribution
ARES
109.82
Max
45.85
Q3
24.64
Median
15.37
Q1
9.68
Min
0.16
Largest peers
ARES
109.82
V
34.31
MA
34.15
MS
14.39
BRK.A
14.36
BRK.B
14.36
GS
12.45
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Where Ares Management (ARES) stands on P/E ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Ares Management (ARES) trades at 8.92 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

ARES

Financial Services industry group

8.92

Group distribution
Max
9.23
ARES
8.92
Q3
4.57
Median
2.72
Q1
1.28
Min
-0.55
Largest peers
V
17.18
MA
15.67
ARES
8.92
MS
3.55
GS
3.52
BRK.A
3.18
BRK.B
3.18
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Where Ares Management (ARES) stands on P/S ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Ares Management (ARES) trades at 12.15 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

ARES

Financial Services industry group

12.15

Group distribution
ARES
12.15
Max
7.79
Q3
3.63
Median
1.57
Q1
0.81
Min
-0.39
Largest peers
MA
84.30
V
22.05
ARES
12.15
MS
2.65
GS
2.36
BRK.A
1.72
BRK.B
0.00
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Where Ares Management (ARES) stands on P/B ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Ares Management (ARES) metric values compared with Financial Services industry-group medians
MetricCurrent stock: ARESIndustry group median
P/E Ratio (TTM)109.8215.37
P/S Ratio (TTM)8.922.72
P/B Ratio (MRQ)12.151.57
Free Cash Flow Yield (TTM)----