Ares Management Corp. (ARES) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ares Management Corp.

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Blackstone, Inc.

Northern Trust Corp.

Why is Ares Management Corp. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 18.63%

Healthy long term growth as Net Sales has grown by an annual rate of 31.03% and Operating profit at 34.18%

With a growth in Net Sales of 67.38%, the company declared Very Positive results in Jun 25

The company has declared positive results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Highest at USD 2,392.2 MM
DIVIDEND PER SHARE(HY) Highest at USD 4.51
INTEREST COVERAGE RATIO(Q) Highest at 221.43

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Ares Management Corp. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Ares Management Corp. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Ares Management Corp.

-7.79%

0.44

41.57%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

31.03%

EBIT Growth (5y)

34.18%

EBIT to Interest (avg)

3.05

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

13.07%

Dividend Payout Ratio

179.61%

Pledged Shares

Institutional Holding

97.55%

ROCE (avg)

361.32%

ROE (avg)

18.63%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

119

Industry P/E

Price to Book Value

12.75

EV to EBIT

41.93

EV to EBITDA

37.15

EV to Capital Employed

20.74

EV to Sales

11.85

PEG Ratio

Dividend Yield

209.68%

ROCE (Latest)

49.45%

ROE (Latest)

10.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 2,392.2 MM

DIVIDEND PER SHARE(HY)

Highest at USD 4.51

INTEREST COVERAGE RATIO(Q)

Highest at 221.43

CASH AND EQV(HY)

Highest at USD 3,334.72 MM

DEBT-EQUITY RATIO (HY)

Lowest at 273.72 %

NET SALES(Q)

Highest at USD 1,490.59 MM

-3What is not working for the Company

ROCE(HY)

Lowest at 13.92%

RAW MATERIAL COST(Y)

Grown by 20.99% (YoY

Here's what is working for Ares Management Corp.

Operating Cash Flow

Highest at USD 2,392.2 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

At USD 1,490.59 MM has Grown at 67.38%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Interest Coverage Ratio

Highest at 221.43

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at USD 4.51 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 1,490.59 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Cash and Eqv

Highest at USD 3,334.72 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 273.72 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

Highest at USD 63.18 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Depreciation

At USD 63.18 MM has Grown at 31%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

Here's what is not working for Ares Management Corp.

Raw Material Cost

Grown by 20.99% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales