Ares Management Corporation [NYSE:ARES]: Analyst Rating and Earnings

Equities traders oftentimes stay updated on what leading stock market analysts say about a potential stock purchase. When it comes to Ares Management Corporation [ARES], the most recently available average analyst rating is from the quarter that ends in December. On average, stock market experts give ARES an Outperform rating. The average 12-month price forecast for this stock is $24.91, with the high estimate being $29.00, the low estimate being $20.00 and the median estimate amounting to $25.00. This is compared to its latest closing price of $18.84.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Ares Management Corporation [ARES] is sitting at 1.60. This is compared to 1 month ago, when its average rating was 1.70.

For the quarter ending in Sep-18 Ares Management Corporation [ARES] generated $0.24 billion in sales. That’s 1.85% lower than the average estimate of $0.25 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.

Keep looking out for the next-scheduled quarterly financial results that this company is expected to put out, which is slated to occur on Thu 21 Feb (In 39 Days).

Fundamental Analysis of Ares Management Corporation [ARES]

Now let’s turn to look at profitability: with a current Operating Margin for Ares Management Corporation [ARES] sitting at +12.93 and its Gross Margin at +65.23, this company’s Net Margin is now 5.90%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is 3.43, and its Return on Invested Capital has reached -1.10%. Its Return on Equity is 12.46, and its Return on Assets is 1.01. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates ARES financial performance.

Turning to investigate this organization’s capital structure, Ares Management Corporation [ARES] has generated a Total Debt to Total Equity ratio of 996.76. Similarly, its Total Debt to Total Capital is 90.88, while its Total Debt to Total Assets stands at 66.76. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 2,036.70, and its Long-Term Debt to Total Capital is 88.98. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.

What about valuation? This company’s Enterprise Value to EBITDA is 28.89 and its Total Debt to EBITDA Value is 14.82. The Enterprise Value to Sales for this firm is now 5.85, and its Total Debt to Enterprise Value stands at 0.73.

Shifting the focus to workforce efficiency, Ares Management Corporation [ARES] earns $1,586,147 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 1.37 and its Total Asset Turnover is 0.22.

Performance Indicators

Let’s now turn our attention to trading performance: Ares Management Corporation [ARES] has 214.69M shares outstanding, amounting to a total market cap of $4.14B. Its stock price has been found in the range of 16.18 to 25.95. At its current price, it has moved by -25.63% from its 52-week high, and it has moved 19.25% from its 52-week low.

This stock’s Beta value is currently 1.53, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 49.85. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is Ares Management Corporation [ARES] a Reliable Buy?

Shares of Ares Management Corporation [ARES], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.