Ares Management (ARES) AI Stock Analysis

• Market Cap: $50.07B
• Dividend Yield: 2.88%
• Average Volume (3M): 2.38M
• Price to Earnings (P/E): 64.0
• Beta (1Y): 1.65
• Revenue Growth: 50.70%
• EPS Growth: 9.49%
• Country: US
• Employees: 3,504
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.19
• Shares Outstanding: 215,934,700
• 10 Day Avg. Volume: 2,289,950
• 30 Day Avg. Volume: 2,380,050
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $189.77
• Price Target Upside: 25.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 5.06
• Revenue Forecast (FY): $4.52B

• Rating: 64 Neutral
• Price Target: $159.00 ▲(5.12% Upside)

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 operates as an alternative asset manager in the United States, Europe, and Asia. The company's Tradable Credit Group segment manages various types of investment funds, such as commingled and separately managed accounts for institutional investors, and publicly traded vehicles and sub-advised funds for retail investors in the tradable and non-investment grade corporate credit markets. Its Direct Lending Group segment provides financing solutions to small-to-medium sized companies. The company's Private Equity Group segment focuses on majority or shared-control investments primarily in under-capitalized companies. Its Real Estate Group segment invests in new developments and the repositioning of assets, with a focus on control or majority-control investments; and originates and invests in a range of self-originated financing opportunities for middle-market owners and operators of commercial real estate. The firm was previously known as Ares Management, L.P. Ares Management Corporation was founded in 1997 and is headquartered in Los Angeles, California with additional offices in the United States, Europe and Asia. Ares Management GP LLC is the general partner of the company.

How the Company Makes Money

Ares Management generates revenue primarily through management fees and performance-based fees. Management fees are charged as a percentage of assets under management (AUM) across its various investment funds. In addition to these fees, Ares earns performance fees, also known as carried interest, which are contingent upon the funds achieving certain investment performance benchmarks. This revenue model is complemented by strategic partnerships with institutional investors, pension funds, and sovereign wealth funds, which provide significant capital inflows. Ares also benefits from its ability to invest in multiple asset classes, allowing it to diversify its revenue streams and reduce dependence on any single market or sector.

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	4.97B	3.88B	3.63B	3.06B	4.21B	1.76B
Gross Profit	2.03B	1.74B	1.54B	1.24B	1.38B	592.68M
EBITDA	1.14B	1.15B	1.15B	1.04B	982.19M	354.81M
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: Negative
• Last Price: 151.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARES, the sentiment is Negative. The current price of 151.26 is above the 20-day moving average (MA) of 148.72, below the 50-day MA of 161.40, and below the 200-day MA of 165.17, indicating a neutral trend. The MACD of -1.96 indicates Negative momentum. The RSI at 46.91 is Neutral, neither overbought nor oversold. The STOCH value of 56.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARES.

Ares Management Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BX	69 Neutral	$175.85B	41.39	35.17%	3.27%	31.91%	19.86%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
OWL	66 Neutral	$24.47B	348.67	2.41%	5.11%	27.24%	-59.82%
ARES	64 Neutral	$50.07B	63.97	―	2.88%	50.70%	9.49%
CG	64 Neutral	$18.83B	28.96	10.68%	2.63%	-22.38%	437.16%
TPG	63 Neutral	$19.90B	582.44	7.19%	3.49%	25.02%	235.70%
KKR	60 Neutral	$105.92B	57.02	8.22%	0.60%	-24.62%	-48.96%

Ares Management Corporate Events

Ares Management Reports Strong Q3 2025 Results

Ares Management Corporation is a global alternative investment manager offering a range of investment solutions across credit, real estate, private equity, and infrastructure asset classes, with operations spanning multiple continents and a focus on delivering consistent returns.

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.

The most recent analyst rating on (ARES) stock is a Hold with a $179.00 price target. To see the full list of analyst forecasts on Ares Management stock, see the ARES Stock Forecast page.