Ares Management (ARES) AI Stock Analysis

• Market Cap: $58.12B
• Dividend Yield: 2.52%
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): 102.9
• Beta (1Y): 1.51
• Revenue Growth: 19.02%
• EPS Growth: -22.75%
• Country: US
• Employees: 3,504
• Sector: Financial
• Sector Strength: 82
• Industry: Asset Management
• EPS (TTM): 1.09
• Shares Outstanding: 214,973,560
• 10 Day Avg. Volume: 1,642,104
• 30 Day Avg. Volume: 1,460,118
• PEG Ratio: -1.28
• Price to Book (P/B): 7.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.60
• Enterprise Value/Market Cap: 0.42
• Enterprise Value/Revenue: 1.45
• Enterprise Value/Gross Profit: 8.15
• Enterprise Value/Ebitda: 3.49
• 1Y Price Target: $175.73
• Price Target Upside: -1.25% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 71 Outperform
• Price Target: $181.00 ▲(1.71%Upside)

Ares Management's overall stock score of 71 reflects a strong financial foundation and positive earnings outlook, balanced by high valuation concerns. The company's profitability, strong cash flow, and strategic acquisitions support its stability and growth potential. However, technical indicators and high P/E ratio highlight cautious optimism amidst market volatility.

Positive Factors

Capital Deployment

ARES demonstrated the ability to deploy significant capital during a seasonally slower part of the year and continued to raise capital effectively.

Earnings Outperformance

ARES reported realized income per share 16% above consensus due to a 10% pre-tax income beat and a lower tax rate.

Market Confidence

The stock price closed at $165.85, suggesting market confidence.

Negative Factors

Earnings Estimate Reduction

Lowering 2Q25e EPS by -6.9% to $1.05.

Fundraising Challenges

Fundraising was below Street expectations, mainly driven by lower than expected gross new capital raised.

Fundraising Shortfall

Fundraising fell short, but net inflows were solid.

Ares Management Business Overview & Revenue Model

Company Description

Ares Management Corporation (ARES) is a leading global alternative investment manager operating across the credit, private equity, real estate, and strategic initiatives sectors. The company is focused on providing investors with a diverse array of investment strategies and solutions, leveraging its deep industry knowledge and experience to deliver strong risk-adjusted returns. Ares Management is headquartered in Los Angeles, California, and serves a wide range of clients, including institutional investors, public and corporate pension funds, sovereign wealth funds, and individual investors.

How the Company Makes Money

Ares Management makes money primarily through management fees and performance fees. Management fees are charged as a percentage of the assets under management (AUM) and are typically calculated based on the size and type of the investment funds managed. Performance fees, also known as carried interest, are earned when the investment funds achieve returns above a predefined benchmark or hurdle rate. Additionally, Ares benefits from significant partnerships and strategic initiatives that help expand its investment opportunities and enhance its revenue potential. The company's focus on diverse asset classes allows it to capitalize on market inefficiencies and generate income across varying economic cycles.

Ares Management Financial Statement Overview

Summary

Ares Management displays strong financial performance with robust profitability and cash flow generation. The high income statement score reflects efficient operations with a consistent gross profit margin and improved net profit margin. While the balance sheet shows reliance on leverage, improvements in debt-to-equity ratio and shareholder returns are positive. Cash flow generation is substantial, reflecting efficient cash utilization.

Income Statement

Ares Management shows strong profitability with a consistent gross profit margin around 60% and improved net profit margin from 2.6% in 2022 to 10.5% in the TTM (Trailing-Twelve-Months). Revenue growth has been volatile, with a decline recently, but the EBIT and EBITDA margins have remained robust, indicating efficient operations.

Balance Sheet

The company has a high debt-to-equity ratio of 0.15 in the TTM, indicating reliance on leverage, though this has improved significantly from previous years. Return on equity has improved, reflecting better profitability on shareholder equity. However, the equity ratio remains moderate, suggesting potential leverage risk.

Cash Flow

Ares Management has demonstrated substantial free cash flow growth, with significant improvement in operating cash flow surpassing net income, indicating strong cash-generating capabilities. The free cash flow to net income ratio is favorable, showing efficient cash utilization despite past periods of negative cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.92B	5.19B	3.63B	3.06B	4.21B	1.76B
Gross Profit	2.97B	3.46B	2.15B	1.24B	1.38B	592.68M
EBITDA	1.64B	2.41B	1.15B	1.04B	982.19M	354.81M
Net Income	514.22M	463.74M	474.33M	167.54M	408.84M	152.14M
Balance Sheet
Total Assets	27.18B	24.88B	24.73B	22.00B	21.61B	15.17B
Cash, Cash Equivalents and Short-Term Investments	618.54M	2.74B	1.50B	1.11B	1.39B	1.06B
Total Debt	686.04M	13.15B	15.76B	13.33B	12.49B	10.90B
Total Liabilities	18.39B	18.06B	19.71B	18.20B	17.79B	12.70B
Stockholders Equity	4.45B	3.54B	1.89B	1.59B	1.83B	1.19B
Cash Flow
Free Cash Flow	5.50B	2.70B	-300.44M	-769.91M	-2.62B	-441.60M
Operating Cash Flow	5.63B	2.79B	-233.26M	-734.11M	-2.60B	-425.66M
Investing Cash Flow	-793.97M	-159.40M	-111.08M	-337.38M	-1.08B	-136.76M
Financing Cash Flow	-1.94B	-1.43B	292.13M	1.13B	3.50B	943.89M

Ares Management Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 177.96
• 50DMA: Positive
• 100DMA: Positive
• 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 177.96 is above the 20-day moving average (MA) of 170.02, above the 50-day MA of 164.77, and above the 200-day MA of 164.51, indicating a bullish trend. The MACD of 3.33 indicates Negative momentum. The RSI at 67.98 is Neutral, neither overbought nor oversold. The STOCH value of 93.29 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
ARES	71 Outperform	$58.12B	102.86	12.97%	2.52%	19.02%	-22.75%
KKR	71 Outperform	$123.44B	60.09	9.03%	0.55%	-27.45%	-46.67%
BX	71 Outperform	$188.21B	46.93	34.07%	2.42%	22.06%	16.57%
CG	70 Outperform	$20.12B	18.82	20.38%	2.57%	81.86%	―
OWL	69 Neutral	$30.17B	197.08	4.62%	4.64%	32.99%	8.06%
Sector *	67 Neutral	$17.01B	11.90	9.70%	3.76%	11.63%	-9.47%
TPG	63 Neutral	$19.98B	―	0.24%	3.06%	46.69%	-98.56%

Ares Management Corporate Events

Ares Management Holds Annual Stockholders Meeting

On June 6, 2025, Ares Management Corporation held its annual meeting of stockholders, where various proposals were voted on. The meeting included the election of directors for one-year terms, the ratification of Ernst & Young LLP as the independent registered public accounting firm for 2025, and advisory votes on executive compensation. The stockholders approved a three-year frequency for future advisory votes on executive compensation, aligning with the company’s decision to include a say-on-pay vote in its proxy materials every three years.

The most recent analyst rating on (ARES) stock is a Buy with a $155.00 price target. To see the full list of analyst forecasts on Ares Management stock, see the ARES Stock Forecast page.