Is Ares Management Stock a Good Investment?
Ares Management Investment Advice | ARES |
- Examine Ares Management's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Ares Management's leadership team and their track record. Good management can help Ares Management navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Asset Management & Custody Banks space and any emerging trends that could impact Ares Management's business and its evolving consumer preferences.
- Compare Ares Management's performance and market position to its competitors. Analyze how Ares Management is positioned in terms of product offerings, innovation, and market share.
- Check if Ares Management pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Ares Management's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Ares Management LP stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Ares Management LP is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Solid | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Ares Management Stock
Researching Ares Management's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 13.0% of the company shares are held by company insiders. The company has Price/Earnings To Growth (PEG) ratio of 0.63. Ares Management LP last dividend was issued on the 17th of December 2024.
To determine if Ares Management is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Ares Management's research are outlined below:
| Ares Management LP currently holds 15.76 B in liabilities with Debt to Equity (D/E) ratio of 2.65, implying the company greatly relies on financing operations through barrowing. Ares Management LP has a current ratio of 0.46, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Ares Management's use of debt, we should always consider it together with its cash and equity. | |
| Ares Management LP currently holds about 1.08 B in cash with (233.26 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 6.14. | |
| Over 84.0% of Ares Management shares are held by institutions such as insurance companies | |
| Latest headline from finance.yahoo.com: Survey Employee volunteerism on the upswing ahead of GivingTuesday |
Ares Management Quarterly Cost Of Revenue |
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Ares Management uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Ares Management LP. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Ares Management's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 8th of February 2024 Upcoming Quarterly Report | View | |
| 26th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 8th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Ares Management's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Ares Management's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2015-11-10 | 2015-09-30 | 0.17 | 0.2 | 0.03 | 17 | ||
2015-05-12 | 2015-03-31 | 0.39 | 0.35 | -0.04 | 10 | ||
2014-08-13 | 2014-06-30 | 0.37 | 0.33 | -0.04 | 10 | ||
2020-10-28 | 2020-09-30 | 0.43 | 0.48 | 0.05 | 11 | ||
2019-07-31 | 2019-06-30 | 0.37 | 0.32 | -0.05 | 13 | ||
2018-11-01 | 2018-09-30 | 0.35 | 0.3 | -0.05 | 14 | ||
2018-08-02 | 2018-06-30 | 0.4 | 0.34 | -0.06 | 15 | ||
2018-02-15 | 2017-12-31 | 0.48 | 0.54 | 0.06 | 12 |
Know Ares Management's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Ares Management is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Ares Management LP backward and forwards among themselves. Ares Management's institutional investor refers to the entity that pools money to purchase Ares Management's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | State Street Corp | 2024-06-30 | 3.6 M | Brown Advisory Holdings Inc | 2024-09-30 | 3.4 M | Geode Capital Management, Llc | 2024-09-30 | 3 M | Principal Financial Group Inc | 2024-09-30 | 2.8 M | Lri Investments, Llc | 2024-06-30 | 2.8 M | Bank Of America Corp | 2024-06-30 | 2.8 M | Amvescap Plc. | 2024-06-30 | 2.7 M | American Century Companies Inc | 2024-09-30 | 2.5 M | Norges Bank | 2024-06-30 | 2.3 M | Wellington Management Company Llp | 2024-06-30 | 18.7 M | Vanguard Group Inc | 2024-09-30 | 17.9 M |
Ares Management's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 54.72 B.Market Cap |
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Ares Management's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.02 | 0.02 | |
| Return On Capital Employed | 0.04 | 0.04 | |
| Return On Assets | 0.02 | 0.02 | |
| Return On Equity | 0.25 | 0.14 |
Determining Ares Management's profitability involves analyzing its financial statements and using various financial metrics to determine if Ares Management is a good buy. For example, gross profit margin measures Ares Management's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Ares Management's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Ares Management's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Ares Management LP. Check Ares Management's Beneish M Score to see the likelihood of Ares Management's management manipulating its earnings.
Evaluate Ares Management's management efficiency
Ares Management LP has return on total asset (ROA) of 0.0297 % which means that it generated a profit of $0.0297 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.2168 %, meaning that it created $0.2168 on every $100 dollars invested by stockholders. Ares Management's management efficiency ratios could be used to measure how well Ares Management manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Ares Management's Return On Tangible Assets are comparatively stable compared to the past year. Return On Capital Employed is likely to gain to 0.04 in 2024, whereas Return On Equity is likely to drop 0.14 in 2024. At this time, Ares Management's Non Currrent Assets Other are comparatively stable compared to the past year. Intangible Assets is likely to gain to about 1.1 B in 2024, whereas Non Current Assets Total are likely to drop slightly above 11.9 B in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 27.21 | 38.87 | |
| Tangible Book Value Per Share | 15.38 | 14.62 | |
| Enterprise Value Over EBITDA | 31.43 | 33.00 | |
| Price Book Value Ratio | 11.59 | 12.17 | |
| Enterprise Value Multiple | 31.43 | 33.00 | |
| Price Fair Value | 11.59 | 12.17 | |
| Enterprise Value | 36.2 B | 38 B |
Ares Management LP benefits from a proactive management team that anticipates market trends. Our analysis delves into how this proactive stance influences financial metrics and stock valuation.
Dividend Yield 0.0213 | Forward Dividend Yield 0.0213 | Forward Dividend Rate 3.72 | Beta 1.224 |
Basic technical analysis of Ares Stock
As of the 30th of November, Ares Management shows the mean deviation of 1.28, and Risk Adjusted Performance of 0.1516. Ares Management LP technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm Ares Management LP standard deviation, as well as the relationship between the maximum drawdown and expected short fall to decide if Ares Management LP is priced correctly, providing market reflects its regular price of 176.73 per share. Given that Ares Management has jensen alpha of 0.1473, we suggest you to validate Ares Management LP's prevailing market performance to make sure the company can sustain itself at a future point.Ares Management's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Ares Management insiders, such as employees or executives, is commonly permitted as long as it does not rely on Ares Management's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Ares Management insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Ares Management's Outstanding Corporate Bonds
Ares Management issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Ares Management LP uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Ares bonds can be classified according to their maturity, which is the date when Ares Management LP has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View | |
| ARES 365 01 FEB 52 Corp BondUS039936AA70 | View |
Understand Ares Management's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Ares Management's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1516 | |||
| Market Risk Adjusted Performance | 0.2518 | |||
| Mean Deviation | 1.28 | |||
| Semi Deviation | 1.34 | |||
| Downside Deviation | 1.7 | |||
| Coefficient Of Variation | 523.21 | |||
| Standard Deviation | 1.68 | |||
| Variance | 2.84 | |||
| Information Ratio | 0.1094 | |||
| Jensen Alpha | 0.1473 | |||
| Total Risk Alpha | 0.0308 | |||
| Sortino Ratio | 0.1087 | |||
| Treynor Ratio | 0.2418 | |||
| Maximum Drawdown | 7.35 | |||
| Value At Risk | (2.55) | |||
| Potential Upside | 2.98 | |||
| Downside Variance | 2.87 | |||
| Semi Variance | 1.79 | |||
| Expected Short fall | (1.37) | |||
| Skewness | (0.19) | |||
| Kurtosis | 0.7326 |
| Risk Adjusted Performance | 0.1516 | |||
| Market Risk Adjusted Performance | 0.2518 | |||
| Mean Deviation | 1.28 | |||
| Semi Deviation | 1.34 | |||
| Downside Deviation | 1.7 | |||
| Coefficient Of Variation | 523.21 | |||
| Standard Deviation | 1.68 | |||
| Variance | 2.84 | |||
| Information Ratio | 0.1094 | |||
| Jensen Alpha | 0.1473 | |||
| Total Risk Alpha | 0.0308 | |||
| Sortino Ratio | 0.1087 | |||
| Treynor Ratio | 0.2418 | |||
| Maximum Drawdown | 7.35 | |||
| Value At Risk | (2.55) | |||
| Potential Upside | 2.98 | |||
| Downside Variance | 2.87 | |||
| Semi Variance | 1.79 | |||
| Expected Short fall | (1.37) | |||
| Skewness | (0.19) | |||
| Kurtosis | 0.7326 |
Consider Ares Management's intraday indicators
Ares Management intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Ares Management stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 4433.8 | |||
| Daily Balance Of Power | 1.127168 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 176.77 | |||
| Day Typical Price | 176.76 | |||
| Price Action Indicator | 0.93 | |||
| Period Momentum Indicator | 1.95 | |||
| Relative Strength Index | 58.02 |
Ares Management Corporate Filings
F4 | 29th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 14th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
10Q | 8th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 1st of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Ares Stock media impact
Far too much social signal, news, headlines, and media speculation about Ares Management that are available to investors today. That information is available publicly through Ares media outlets and privately through word of mouth or via Ares internal channels. However, regardless of the origin, that massive amount of Ares data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Ares Management news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Ares Management relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Ares Management's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Ares Management alpha.
Ares Management LP Historical Investor Sentiment
Investor biases related to Ares Management's public news can be used to forecast risks associated with an investment in Ares. The trend in average sentiment can be used to explain how an investor holding Ares can time the market purely based on public headlines and social activities around Ares Management LP. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Ares Management's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Ares Management and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Ares Management news discussions. The higher the estimate score, the more favorable the investor's outlook on Ares Management.
Ares Management Corporate Directors
| Bennett Rosenthal | Co-Founder, Sr. Partner, Co-Head of Private Equity Group, Sr. Partner of Ares Management GP LLC, Director of Ares Management GP LLC and Member of The Management Committee | Profile | |
| Robert III | Partner, Director | Profile | |
| Antoinette Bush | Independent Director | Profile | |
| Paul Joubert | Independent Director of Ares Management GP LLC | Profile |
Already Invested in Ares Management LP?
The danger of trading Ares Management LP is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Ares Management is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Ares Management. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Ares Management LP is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Additional Tools for Ares Stock Analysis
When running Ares Management's price analysis, check to measure Ares Management's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ares Management is operating at the current time. Most of Ares Management's value examination focuses on studying past and present price action to predict the probability of Ares Management's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ares Management's price. Additionally, you may evaluate how the addition of Ares Management to your portfolios can decrease your overall portfolio volatility.