Ares Management (ARES) AI Stock Analysis

• Market Cap: $54.08B
• Dividend Yield: 2.61%
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 70.5
• Beta (1Y): 1.62
• Revenue Growth: 50.70%
• EPS Growth: 7.32%
• Country: US
• Employees: 3,504
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.19
• Shares Outstanding: 216,852,340
• 10 Day Avg. Volume: 1,342,635
• 30 Day Avg. Volume: 1,758,323
• PEG Ratio: -4.77
• Price to Book (P/B): 9.89
• Price to Sales (P/S): 9.03
• P/FCF Ratio: 12.99
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 10.47
• Enterprise Value/Gross Profit: 19.23
• Enterprise Value/Ebitda: 25.13
• 1Y Price Target: $189.58
• Price Target Upside: 15.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 5.06
• Revenue Forecast (FY): $4.52B

• Rating: 64 Neutral
• Price Target: $159.00 ▼(-3.20% Downside)

Ares Management's strong earnings call performance and financial growth are offset by technical indicators suggesting bearish trends and a high valuation. The company's ability to manage credit risks and improve margins will be crucial for future performance.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust market demand and effective business strategies, enhancing long-term financial stability.

Capital Raising

Record capital raising reflects strong investor confidence and provides resources for future growth and investment opportunities.

Management Fee Growth

Significant growth in management fees underscores the company's ability to scale operations and enhance profitability.

Negative Factors

Margin Compression

Decreasing margins can indicate rising costs or inefficiencies, potentially impacting long-term profitability if not addressed.

Free Cash Flow Growth

Negative free cash flow growth could limit reinvestment capabilities and financial flexibility, affecting future expansion plans.

Equity Ratio

A low equity ratio may increase vulnerability to market volatility, potentially affecting financial stability and investor confidence.

Ares Management Business Overview & Revenue Model

Company Description

Ares Management Corporation (ARES) is a leading global alternative investment firm that specializes in credit, private equity, and real estate. Founded in 1997 and headquartered in Los Angeles, Ares offers a diverse range of investment products and services to institutional and retail investors. The firm operates through several segments, including Ares Credit Group, Ares Private Equity Group, and Ares Real Estate Group, focusing on generating attractive returns across various asset classes while managing risk effectively.

How the Company Makes Money

Ares Management generates revenue primarily through management fees and performance fees. Management fees are earned from the assets under management (AUM) across its investment funds, which are typically a percentage of the AUM. Performance fees, also known as carried interest, are earned when investment funds exceed predefined performance benchmarks, providing an additional revenue stream tied to the firm's investment performance. Additionally, Ares benefits from a diversified approach by investing in various sectors and geographies, which helps mitigate risk and enhance returns. The firm has established significant partnerships with institutional investors, including pension funds and sovereign wealth funds, which contribute to its capital raising efforts and overall earnings potential.

Ares Management Financial Statement Overview

Summary

Ares Management shows strong revenue growth and stable profitability, with improvements in leverage and cash flow management. However, challenges in maintaining high margins and ensuring robust free cash flow growth persist.

Income Statement

Ares Management shows strong revenue growth with a 13.16% increase in TTM, indicating a positive trajectory. The gross profit margin is healthy at 41.95%, though it has decreased from previous years. The net profit margin is stable at 9.94%, reflecting consistent profitability. However, the EBIT and EBITDA margins have slightly decreased, suggesting potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio has improved to 3.09 in TTM, indicating better leverage management compared to previous years. Return on equity is solid at 13.30%, showing effective use of equity. However, the equity ratio remains low, which could pose risks if asset values fluctuate.

Cash Flow

Operating cash flow has significantly improved, covering 78.31% of net income, indicating better cash generation. Free cash flow growth is negative, but the free cash flow to net income ratio is strong at 98.00%, suggesting efficient cash utilization. The company needs to maintain positive cash flow trends to ensure financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.83B	3.88B	3.63B	3.06B	4.21B	1.76B
Gross Profit	2.63B	2.15B	2.15B	1.56B	3.05B	996.79M
EBITDA	2.01B	2.41B	2.43B	1.33B	1.47B	731.95M
Net Income	480.01M	463.74M	474.33M	167.54M	408.84M	152.14M
Balance Sheet
Total Assets	27.26B	24.88B	24.73B	22.00B	21.61B	15.17B
Cash, Cash Equivalents and Short-Term Investments	1.53B	2.74B	1.50B	1.11B	1.39B	1.06B
Total Debt	13.47B	13.15B	15.76B	13.33B	12.49B	10.90B
Total Liabilities	19.01B	18.06B	20.26B	18.20B	17.79B	12.70B
Stockholders Equity	4.36B	3.54B	1.89B	1.59B	1.83B	1.19B
Cash Flow
Free Cash Flow	3.98B	2.70B	-300.44M	-769.91M	-2.62B	-441.60M
Operating Cash Flow	4.06B	2.79B	-233.26M	-734.11M	-2.60B	-425.66M
Investing Cash Flow	-1.86B	-159.40M	-111.08M	-337.38M	-1.08B	-136.76M
Financing Cash Flow	-2.05B	-1.43B	292.13M	1.13B	3.50B	943.89M

Ares Management Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 164.26
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARES, the sentiment is Positive. The current price of 164.26 is above the 20-day moving average (MA) of 153.30, above the 50-day MA of 151.41, and above the 200-day MA of 161.74, indicating a bullish trend. The MACD of 3.18 indicates Negative momentum. The RSI at 67.00 is Neutral, neither overbought nor oversold. The STOCH value of 96.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARES.

Ares Management Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BX	72 Outperform	$185.60B	43.64	35.17%	3.08%	33.12%	19.86%
KKR	69 Neutral	$115.36B	55.14	8.73%	0.56%	-33.80%	-24.81%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
OWL	66 Neutral	$25.33B	360.89	2.41%	5.34%	27.24%	-59.82%
ARES	64 Neutral	$54.08B	70.49	18.64%	2.61%	50.70%	7.32%
TPG	61 Neutral	$23.32B	643.95	7.19%	3.21%	25.02%	235.70%
CG	59 Neutral	$20.58B	31.78	11.85%	2.49%	-24.62%	437.16%

Ares Management Corporate Events

Ares Management Releases Investor Presentation Online

On September 25, 2025, Ares Management Corporation announced that it is posting a presentation on its Investor Resources website, which will be used in a meeting with the company’s analysts. The company frequently uses its website as a channel for distributing financial and other significant information, indicating a strategic approach to transparency and stakeholder engagement.