Ares Acquisition Corporation II
Ares Acquisition Corporation II Fundamental Analysis
Ares Acquisition Corporation II (AACT) shows weak financial fundamentals with a PE ratio of -5.28, profit margin of -86.72%, and ROE of -2.78%. The company generates $0.0B in annual revenue with weak year-over-year growth of 0.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -6751.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AACT's fundamental strength across five key dimensions:
Efficiency Score
WeakAACT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAACT trades at attractive valuation levels.
Growth Score
ModerateAACT shows steady but slowing expansion.
Financial Health Score
ExcellentAACT maintains a strong and stable balance sheet.
Profitability Score
WeakAACT struggles to sustain strong margins.
Key Financial Metrics
Is AACT Expensive or Cheap?
P/E Ratio
AACT trades at -5.28 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AACT's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Ares Acquisition Corporation II at -73.62 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -8.08 times EBITDA. This is generally considered low.
How Well Does AACT Make Money?
Net Profit Margin
For every $100 in sales, Ares Acquisition Corporation II keeps $-86.72 as profit after all expenses.
Operating Margin
Core operations generate -30.67 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.78 in profit for every $100 of shareholder equity.
ROA
Ares Acquisition Corporation II generates $-2.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ares Acquisition Corporation II generates limited operating cash flow of $-43.36M, signaling weaker underlying cash strength.
Free Cash Flow
Ares Acquisition Corporation II generates weak or negative free cash flow of $-53.03M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.86 in free cash annually.
FCF Yield
AACT converts -25.75% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-5.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.005
vs 25 benchmark
P/B Ratio
Price to book value ratio
-73.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
160.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-0.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.69
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-2.78
vs 25 benchmark
ROA
Return on assets percentage
-2.42
vs 25 benchmark
ROCE
Return on capital employed
-1.07
vs 25 benchmark
How AACT Stacks Against Its Sector Peers
| Metric | AACT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -5.28 | 19.14 | Better (Cheaper) |
| ROE | -278.47% | 804.00% | Weak |
| Net Margin | -8672.25% | -7764.00% (disorted) | Weak |
| Debt/Equity | -0.26 | 2.41 | Strong (Low Leverage) |
| Current Ratio | 3.69 | 561.20 | Strong Liquidity |
| ROA | -242.16% | -21170.00% (disorted) | Weak |
AACT outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ares Acquisition Corporation II's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.00%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
430142087.35%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
0.00%
Industry Style: Value, Dividend, Cyclical
Declining