Analyzing Ares Management's Fundamentals Before Investing

One of the losers of today's trading session was Ares Management. Shares of the Asset management company plunged -4.0%, and some investors may be wondering if its price of $134.0 would make a good entry point. Here's what you should know if you are considering this investment:

  • Ares Management has moved 51.8% over the last year, and the S&P 500 logged a change of 24.7%

  • ARES has an average analyst rating of buy and is -12.19% away from its mean target price of $152.6 per share

  • Its trailing earnings per share (EPS) is $2.26

  • Ares Management has a trailing 12 month Price to Earnings (P/E) ratio of 59.3 while the S&P 500 average is 27.65

  • Its forward earnings per share (EPS) is $6.08 and its forward P/E ratio is 22.0

  • The company has a Price to Book (P/B) ratio of 14.75 in contrast to the S&P 500's average ratio of 4.59

  • Ares Management is part of the Finance sector, which has an average P/E ratio of 15.89 and an average P/B of 1.76

  • ARES has reported YOY quarterly earnings growth of -32.7% and gross profit margins of 0.4%

  • The company has a free cash flow of $683.34 Million, which refers to the total sum of all its inflows and outflows of cash over the last quarter

  • Ares Management Corporation operates as an alternative asset manager in the United States, Europe, and Asia. The company's Tradable Credit Group segment manages various types of investment funds, such as commingled and separately managed accounts for institutional investors, and publicly traded vehicles and sub-advised funds for retail investors in the tradable and non-investment grade corporate credit markets. Its Direct Lending Group segment provides financing solutions to small-to-medium sized companies. The company's Private Equity Group segment focuses on majority or shared-control investments primarily in under-capitalized companies. 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 was previously known as Ares Management, L.P. Ares Management Corporation was founded in 1997 and is headquartered in Los Angeles, California with additional offices in the United States, Europe and Asia. Ares Management GP LLC is the general partner of the company.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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