Stock of the Day

Ares Management (ARES)

$125.44

+$0.01 (+0.0%)

Market Cap: $41.37B

About Ares Management

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.

Ares Management Bull Case

Here are some ways that investors could benefit from investing in Ares Management Co.:

• The current stock price is around $123, which is significantly lower than its twelve-month high of $195.26, indicating potential for price appreciation.
• Ares Management Co. reported a revenue of $1.40 billion in its latest quarter, exceeding analyst expectations, which reflects strong operational performance.
• The company has a return on equity of 22.14%, suggesting effective management and profitability relative to shareholder equity.
• With a market capitalization of approximately $39.01 billion, Ares Management Co. is well-positioned in the asset management industry, providing stability and growth potential.
• The firm has a diverse range of investment strategies, including credit, private equity, and real estate, which can help mitigate risks and enhance returns for investors.

Ares Management Bear Case

Investors should be bearish about investing in Ares Management Co. for these reasons:

• The company has a current ratio of 0.23, indicating potential liquidity issues, as it may struggle to cover short-term liabilities with its current assets.
• Ares Management Co. has a price-to-earnings ratio of 55.00, which may suggest that the stock is overvalued compared to its earnings, potentially limiting future price appreciation.
• The debt-to-equity ratio stands at 0.96, indicating a relatively high level of debt compared to equity, which could pose risks in a rising interest rate environment.
• Recent earnings results showed an EPS of $1.24, missing the consensus estimate, which may raise concerns about the company's ability to meet future earnings expectations.
• With a beta of 1.51, the stock is more volatile than the market, which could lead to larger price swings and increased risk for investors.

Recent News

• Ares Persuades Rivals to Give Up Carried Interest for Charity (bloomberg.com)
• Ares Management Corporation Completes Acquisition of Whitestone REIT (finanznachrichten.de)
• Private credit giant Ares tips $400m-plus into Allegro’s Kiwi fuel bet (afr.com)
• Ares Completes Acquisition of Whitestone REIT (businesswire.com)
• Ares Management: Buy This Cash Cow While It's Undervalued (seekingalpha.com)
• If I Could Only Buy 2 Dividend Growth Stocks Today, They Would Be These (seekingalpha.com)