ARESARES
US • —
$111.31
P/E
39.45
PEG
1.32
FCF Yield
—
Rev Growth YoY
+38.5% YoY
Gross Margin
—
Health Score
5/10
D/E Ratio
3.17
Confidence
MEDIUM
Business Snapshot
ARES is a leading global alternative asset manager, generating revenue through management fees and performance fees from its private equity, credit, and real estate investment strategies. The firm operates in the highly competitive alternative asset management market, positioning itself as a major player with a significant and growing assets under management base. Market cap data is unavailable for this analysis, but TTM revenue is also unavailable, limiting a precise financial scale assessment. One defining characteristic of ARES is its strong presence in the direct lending and credit markets, which has been a significant growth driver.
Financial Health
The company's net margin of 10.5% provides a basis for profitability, though gross margin data is unavailable for trend comparison. The balance sheet shows significant leverage with a Debt/Equity ratio of 3.17x, which is highly elevated and indicates a stretched financial position...
Risk Assessment
- DEBT / LIQUIDITY — Debt/equity of 3.17x and a current ratio of 0.3x indicate a highly leveraged and illiquid financial position.
- VALUATION — P/E ratio of 39.45x is significantly above the sector average of 22x, pointing to elevated market expectations.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- EARNINGS QUALITY — The company has beaten analyst estimates in only 1 of the last 4 quarters, indicating lower guidance credibility.
- INSIDER ACTIVITY — Insiders have been net selling, with 7 sells versus 2 buys over the last 90 days, a cautious signal from those closest to the business....
The company's net margin of 10.5% provides a basis for profitability, though gross margin data is unavailable for trend comparison. The balance sheet shows significant leverage with a Debt/Equity ratio of 3.17x, which is highly elevated and indicates a stretched financial position. Liquidity is a major concern, evidenced by a current ratio of 0.3x, suggesting the company would struggle to meet short-term obligations with its current assets. Return on equity stands at 14.5%, indicating that the company is generating a reasonable return on shareholder equity despite the high leverage. Free cash flow data is unavailable, preventing a full assessment of cash generation strength, which is critical for evaluating dividend capacity or reinvestment ability.
- DEBT / LIQUIDITY — Debt/equity of 3.17x and a current ratio of 0.3x indicate a highly leveraged and illiquid financial position. - VALUATION — P/E ratio of 39.45x is significantly above the sector average of 22x, pointing to elevated market expectations. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - EARNINGS QUALITY — The company has beaten analyst estimates in only 1 of the last 4 quarters, indicating lower guidance credibility. - INSIDER ACTIVITY — Insiders have been net selling, with 7 sells versus 2 buys over the last 90 days, a cautious signal from those closest to the business.
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