ARES FCF Yield Analysis
Higher than 47% of Financial Services sector peers
Updated 2553h ago·SEC filings & market data
Key Takeaway
A FCF Yield of 6.1% means that for every $100 of Ares Management's stock price, the company generates $6.10 in free cash flow — the cash left after operating expenses and capital spending — offering a measure of potential return to investors.
Sector Performance
47th percentileARES
6.1%
Sector Median
6.2%
Sector Avg
4.9%
Deep Analysis
A FCF Yield of 6.1% means that for every $100 of Ares Management's stock price, the company generates $6.10 in free cash flow — the cash left after operating expenses and capital spending — offering a measure of potential return to investors.
This yield sits just below the Financial Services sector median of 6.2%, placing Ares Management in the 47th percentile among its peers, meaning about half the sector has a higher yield and half a lower one. The trend for this metric is not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and no historical values beyond the current 6.1% are provided. With a yield essentially in line with the sector median and no trend data to indicate improvement or deterioration, the combination of average level and absent trend implies neither a clear risk nor a notable opportunity from this metric alone. This metric supports the overall NEUTRAL verdict, as the yield matches the sector norm and lacks any directional signal to tilt the assessment toward bullish or bearish.
Frequently Asked Questions
What does the FCF Yield tell investors about ARES?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
How does ARES's FCF Yield compare to its sector?
ARES's FCF Yield of 6.1% compares to a Financial Services sector median of 6.2%, placing it in the 47th percentile.
Who are ARES's closest peers by FCF Yield?
The closest Financial Services peers by FCF Yield include: AMP (6.2%), RJF (6.6%), AIG (6.9%), AFL (4.4%), AON (4.2%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master ARES's Valuation
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6.1%
Sector Median
6.2%
Sector Avg
4.9%
How ARES's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.