Overall Fundamental outlook

Business Operations:

Sector: Financial Services
Industry: Asset Management

Ares Management Corporation operates as an alternative asset manager. Its Direct Lending Group segment provides financing solutions to small-to-medium sized companies. The company's Private Equity Group segment specializes in growth capital, middle market, mezzanine, distressed and growth buyouts. The firm seeks to invest in healthcare, services, energy, industrials and consumer. The firm seeks to takes majority, minority and shared-control investments primarily in under-capitalized companies in North America, Europe, Asia Pacific, Southeast Asia and Australia. Its Real Estate Group segment invests in new developments and the repositioning of assets, with a focus on control or majority-control investments; and originates and invests in a range of self-originated financing opportunities for middle-market owners and operators of commercial real estate. The firm prefers to invest between $1 million and $500 million in companies having EBITDA between $10 million and $250 million and debt investment value between $10 million and $100 million. Ares Management Corporation was founded in 1997 and is headquartered in Los Angeles, California with additional offices in the United States, Europe and Asia.

Revenue projections:

Revenue projections for ARES
Revenue projections for ARES

With ARES's revenues expected to fall below the previous year's, investors are likely to approach the stock with caution. Declining revenues can negatively affect profitability, which makes it harder for the company to maintain investor confidence and perform well in the market.

Financial Ratios:

currentRatio 0.472000
forwardPE 14.975112
debtToEquity 163.448000
earningsGrowth -0.814000
revenueGrowth 0.195000
grossMargins 0.365390
operatingMargins 0.135370
trailingEps 1.710000
forwardEps 7.402950

ARES's current ratio of 0.472 signals that the company may not have sufficient cash reserves and current assets to cover short-term debt. This suggests potential liquidity problems and could raise concerns about the company's ability to meet its immediate financial commitments.
ARES's Forward PE being in a good range indicates that the stock is valued appropriately based on its earnings. This suggests the stock is not overpriced and leaves room for growth, providing investors with an opportunity for potential appreciation in value.
Ares Management Corporation's elevated debt-to-equity ratio reflects substantial leverage, meaning the company relies heavily on borrowed funds. This could increase financial risk, particularly in times of economic uncertainty or if the company's profitability declines.
ARES's low growth in both earnings and revenue indicates potential profit shrinkage. This downward trend could be a sign of weakening financial health, signaling challenges for the company's future profitability.
Ares Management Corporation's negative gross and operating margins suggest the company is not generating profit from either its production process or day-to-day operations. This could signal cost overruns or difficulties in maintaining revenue levels.
With Ares Management Corporation's forward EPS higher than its trailing EPS, the company is expected to be more profitable in the current financial year. This signals confidence in Ares Management Corporation's growth potential, as improved earnings are forecasted compared to the prior year's performance.

Price projections:

Price projections for ARES
Price projections for ARES

Over time, ARES's price projections have steadily declined, reflecting reduced confidence in the company's future performance. The downward revisions suggest analysts are becoming more conservative in their assessments.

Insider Transactions:

Insider Transactions for ARES
Insider Transactions for ARES


22 ARES shares were sold in recent transactions, with market price at 167.70999908447266.ARES stock was bought in 3 transactions, while the market price was at 132.21000162760416.The list of insider trades lacks a strong directional signal, offering no compelling insights into the company's current or future state.

Recommendation changes over time:

Recommendations trend for ARES
Recommendations trend for ARES


ARES has received a favorable buy bias from analysts recently, positioning it as a solid investment opportunity. This sentiment may attract more investors, who view ARES as a stable option to park their money and potentially benefit from the company's continued growth and profitability.