Fundamentals for Ares Management Corporation
ARES's forward EPS exceeding its trailing EPS implies that the company is projected to be more profitable this year. This suggests an improvement in financial performance, ...
Business Operations:
Sector: Financial ServicesIndustry: 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:
Financial Ratios:
| currentRatio | 0.62000 |
|---|---|
| forwardPE | 16.21690 |
| debtToEquity | 172.37800 |
| earningsGrowth | 0.06500 |
| revenueGrowth | 0.09600 |
| grossMargins | 1.00000 |
| operatingMargins | 0.09473 |
| trailingEps | 2.19000 |
| forwardEps | 7.18818 |
Ares Management Corporation's current ratio of 0.62 indicates potential liquidity issues, as the company's cash reserves and current assets may not be enough to cover short-term debts. This raises concerns about Ares Management Corporation's ability to meet its near-term financial obligations.
Ares Management Corporation'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's high debt-to-equity ratio indicates the company is using significant leverage, relying more on debt to finance its operations. This can lead to higher risk, especially if profitability falters or economic conditions worsen.
ARES's forward EPS exceeding its trailing EPS implies that the company is projected to be more profitable this year. This suggests an improvement in financial performance, with analysts expecting ARES to generate stronger earnings compared to the previous financial year.
Price projections:
Insider Transactions:
Ares Management Corporation stock was sold in 14 transactions, with market price at 169.6671425955636.2 separate purchases of Ares Management Corporation stock were made, while market price was at 126.81000518798828 per share.Investors have been purchasing ARES more than selling it at current price levels, which may reflect optimism. This pattern suggests that the market expects favorable outcomes for the stock, leading to increased buying interest.
Recommendation changes over time:
ARES has recently received a buy bias from analysts, indicating that the stock is being perceived as a favorable investment. This positive sentiment could encourage investors to see ARES as a wise place to allocate their funds, potentially leading to increased interest in the company's stock.