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 0.488000
forwardPE 16.707554
debtToEquity 168.762000
earningsGrowth 7.705000
revenueGrowth 0.283000
grossMargins 0.375610
operatingMargins 0.184340
trailingEps 2.170000
forwardEps 7.386480

Ares Management Corporation's current ratio being 0.488 suggests that its cash reserves and current assets may not fully cover its short-term debts. This points to potential liquidity problems and could indicate that the company may need to secure additional funds to meet its obligations.
ARES's Forward PE is at a healthy level, meaning the stock price is aligned favorably with earnings. This suggests that the stock isn't overpriced, providing room for growth and making it an appealing option for investors looking to capitalize on potential future gains.
Ares Management Corporation's elevated debt-to-equity ratio suggests the company is highly leveraged, meaning it has significant debt compared to equity. This can be risky, particularly if Ares Management Corporation's cash flow or profits decrease, making it harder to meet debt obligations.
With positive earnings and revenue growth, ARES is on a path to expand its business. This strong financial performance suggests the company will continue to grow, as increasing profits and revenue highlight a healthy outlook.
ARES's forward EPS exceeding its trailing EPS reflects expectations of increased profitability for the current year. This suggests that the company is projected to achieve higher earnings than in the previous financial year, signaling positive growth and improved financial health.

Price projections:

Price projections for ARES
Price projections for ARES

Ares Management Corporation's price has often been near the lower end of the projected range. This ongoing trend suggests that investor confidence might be waning, and the stock could face challenges in gaining upward momentum.

Insider Transactions:

Insider Transactions for ARES
Insider Transactions for ARES


21 separate sales of ARES shares were executed, with the market price hovering at 167.93428475516183.ARES saw 3 buy transactions, with market price of 132.21000162760416.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:

Recommendations trend for ARES
Recommendations trend for ARES


With analysts showing a buy bias for ARES, investors may be more inclined to see the stock as an attractive investment. The favorable outlook could spur increased interest, positioning ARES as a safe and profitable place for investors to allocate their funds and seek growth.