Ares Acquisition Corp. III Class A Fundamental Analysis (NYSE: AAC)
Ares Acquisition Corp. III Class A Fundamental Analysis (NYSE: AAC)
Ares Acquisition Corp. III Class A (NYSE: AAC) shows weak financial fundamentals with a PE ratio of 182.64, profit margin of 0.00%, and ROE of -13.60%. The company generates N/A in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 13.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AAC's fundamental strength across five key dimensions:
Efficiency Score
WeakAAC struggles to generate sufficient returns from assets.
Valuation Score
WeakAAC trades at a premium to fair value.
Growth Score
WeakAAC faces weak or negative growth trends.
Financial Health Score
ModerateAAC shows balanced financial health with some risks.
Profitability Score
WeakAAC struggles to sustain strong margins.
Key Financial Metrics
Is AAC Expensive or Cheap?
P/E Ratio
AAC trades at 182.64 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AAC's PEG of 3.65 indicates potential overvaluation.
Price to Book
The market values Ares Acquisition Corp. III Class A at -26.02 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.00 times EBITDA. This is generally considered low.
How Well Does AAC Make Money?
Net Profit Margin
For every $100 in sales, Ares Acquisition Corp. III Class A keeps $0.00 as profit after all expenses.
Operating Margin
Core operations generate 0.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-13.60 in profit for every $100 of shareholder equity.
ROA
Ares Acquisition Corp. III Class A generates $0.59 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $-0.03 in free cash annually.
FCF Yield
AAC converts -0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
182.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.65
vs 25 benchmark
P/B Ratio
Price to book value ratio
-26.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-0.32
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.14
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How AAC Stacks Against Its Sector Peers
| Metric | AAC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 182.64 | 21.10 | Worse (Expensive) |
| ROE | -13.60% | 647.00% | Weak |
| Net Margin | 0.00% | -1507.00% (disorted) | Weak |
| Debt/Equity | -0.32 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 0.23 | 832.53 | Weak Liquidity |
| ROA | 0.59% | -577.00% (disorted) | Weak |
AAC outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ares Acquisition Corp. III Class A's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical