Ares Management Stock Fair Value – Wells Fargo Downgrades Ares Management to Equal Weight
June 25, 2023
☀️Trending News
On Monday, Wells Fargo downgraded Ares Management ($NYSE:ARES) to Equal Weight. The company provides a wide range of investment solutions, including private equity, credit and real estate, to a diverse group of institutional investors. Its alternative asset management strategies focus on delivering attractive risk-adjusted returns. The company also invests directly in public and private companies worldwide. The downgrade from Wells Fargo comes after Ares Management reported its fourth quarter earnings, which missed analysts’ expectations. Analysts noted that the company’s poor performance may have been driven by its lack of diversification and reliance on a single strategy. The downgrade could have a negative impact on the stock, as it could signal decreased investor confidence in the company’s ability to deliver attractive returns.
However, given the company’s long-term track record of success, investors may be willing to see past the recent earnings report and continue to invest in Ares Management.
Stock Price
Despite this news, its stock opened the day at $91.7 and closed at $92.9, which was a 0.8% increase from its previous closing price of 92.2. This suggests that investors remain confident in the company’s performance moving forward. Investors will likely be closely watching the company in the coming days to see if the downgrade will have any further effect on the stock. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ares Management. More…
| Total Revenues | Net Income | Net Margin |
| 3.15k | 199.89 | 5.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ares Management. More…
| Operations | Investing | Financing |
| -250.69 | -36.11 | 213.88 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ares Management. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 21.93k | 17.85k | 9.22 |
Key Ratios Snapshot
Some of the financial key ratios for Ares Management are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 34.3% | 45.5% | 37.0% |
| FCF Margin | ROE | ROA |
| -9.1% | 44.7% | 3.3% |
Analysis – Ares Management Stock Fair Value
At GoodWhale, we have conducted an extensive analysis of ARES MANAGEMENT‘s wellbeing and have arrived at a fair value of $62.6 for the share. This fair value is based off our proprietary Valuation Line, which takes into account multiple factors such as assets, debt, financial statements, and more to arrive at the current market value. Right now, however, ARES MANAGEMENT’s stock is being traded at a price of $92.9 – this is overvalued by 48.5%. This suggests that the current market may be overpricing the stock, and it would be wise to take a closer look at ARES MANAGEMENT before making any investments in it. More…
Peers
The company operates in three segments: Private Equity, Real Estate, and Credit. Ares Management Corp was founded in 1997 and is headquartered in Los Angeles, California.
– Pengana Capital Group Ltd ($ASX:PCG)
Pengana Capital Group Ltd is a publicly listed company on the Australian Securities Exchange with a market capitalisation of $180.58 million as of April 2021. The company is a leading global alternative asset manager with a focus on private equity, hedge funds, real estate and credit strategies. Pengana has a long and successful track record of delivering strong absolute and relative returns to investors across a range of market cycles. The company has a strong commitment to responsible investing and is a signatory to the United Nations Principles for Responsible Investment. Pengana’s responsible investing framework is embedded across all aspects of the business, from investment selection and due diligence through to monitoring and engagement with investee companies.
– Partners Group Holding AG ($OTCPK:PGPHF)
Partners Group Holding AG is a global private markets investment management firm with over EUR 85 billion in assets under management and more than 1,000 professionals across 35 offices worldwide. The firm offers a broad range of private markets investment products and services for institutional investors, family offices and high-net-worth individuals. Partners Group is listed on the SIX Swiss Exchange (symbol: PGHN) and is headquartered in Zug, Switzerland.
– StepStone Group Inc ($NASDAQ:STEP)
The Stone Group Inc. is a leading provider of online employment solutions. Its mission is to empower employers and job seekers with the best technology and services to find the right fit. The company offers a variety of services to its clients, including job search, resume writing, and career advice. The Stone Group Inc. has a market cap of 1.91B as of 2022, a Return on Equity of 13.27%. The company’s strong market position and financial performance make it an attractive investment opportunity.
Summary
Ares Management is an investment management firm that has recently been downgraded to Equal Weight at Wells Fargo. This downgrade indicates that Wells Fargo does not anticipate being able to capitalize on the potential for strong returns from Ares Management’s investments. Investors should be aware of this downgrade as it may indicate that the risk-reward profile of investing in Ares Management may not be favorable. Investors should carefully weigh the risks and rewards of investing in Ares Management before making a decision.
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