Ares Management Lp (ARES)
NYSE:ARES
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Ares Management
(NYSE:ARES)
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Rating:69Neutral
Price Target:
$138.00
â–²(17.17% Upside)
Action:Downgraded
Date:05/09/26
The score is driven primarily by strong earnings-call momentum and reiterated growth/dividend targets, supported by improving near-term technical trends. Offsetting these positives are weak and volatile cash flows in the most recent period and a premium valuation that leaves less room for execution missteps.
Positive Factors
AUM and fee-paying AUM growth
Sustained AUM and fee-paying AUM growth expands the recurring fee base and underpins long-term revenue visibility. Larger fee-paying AUM smooths management-fee income across cycles, strengthens client relationships, and increases the platform’s ability to scale operating margins over multiple years.
Negative Factors
Weak and volatile cash generation
Persistent volatility and recent weakness in operating and free cash flow undermine the firm’s ability to consistently fund buybacks, dividends, and reinvestment from internal cash. Reliance on non‑cash earnings and lumpy realizations increases financing and execution risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
AUM and fee-paying AUM growth
Sustained AUM and fee-paying AUM growth expands the recurring fee base and underpins long-term revenue visibility. Larger fee-paying AUM smooths management-fee income across cycles, strengthens client relationships, and increases the platform’s ability to scale operating margins over multiple years.
Read all positive factors
Ares Management Key Performance Indicators (KPIs)
Any
Fee-Related Earnings By Segment
Details earnings derived from management and advisory fees across segments, indicating the stability and growth potential of the company's revenue streams.
Details earnings derived from management and advisory fees across segments, indicating the stability and growth potential of the company's revenue streams.
Data provided by:
The Fly
The FlyAres Management (ARES) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.04B
Dividend Yield2.65%
Average Volume (3M)3.01M
Price to Earnings (P/E)42.9
Beta (1Y)1.61
Revenue Growth46.89%
EPS Growth21.89%
CountryUS
Employees4,250
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)2.26
Shares Outstanding222,028,430
10 Day Avg. Volume2,335,490
30 Day Avg. Volume3,014,419
Financial Highlights & Ratios
PEG Ratio-12.54
Price to Book (P/B)8.22
Price to Sales (P/S)5.43
P/FCF Ratio11.00
Enterprise Value/Market Cap1.31
Enterprise Value/Revenue8.49
Enterprise Value/Gross Profit12.01
Enterprise Value/Ebitda22.16
Forecast
1Y Price Target
$144.42Price Target Upside22.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)6.01
Revenue Forecast (FY)$5.67B
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 ...
How the Company Makes Money
Ares primarily makes money by earning fees for managing client assets and, to a lesser extent, by participating in investment profits.
1) Management fees (recurring base fees): Ares earns management fees calculated as a percentage of assets under...
Ares Management Earnings Call Summary
Earnings Call Date:May 01, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 31, 2026
Earnings Call Sentiment Positive
The call emphasized broad-based growth and strong operational momentum: record fundraising, double-digit growth across AUM, management fees and FRE, significant available capital and solid reported returns across strategies. The main negatives were localized and manageable: moderated retail/non-traded BDC flows, a near-term slowdown in U.S. Direct Lending deal activity (driven by geopolitical and macro uncertainty), Q1 cadence effects on realizations and some short-term interest expense seasonality. Management framed these headwinds as limited in scope relative to the platform's scale and optionality, highlighting dry powder and diversified pipelines to capitalize on dislocations.Positive Updates
Strong AUM and Fee-Paying AUM Growth
Total AUM rose 18% year-over-year to $644 billion and fee-paying AUM increased 19% to $400 billion, supporting fee revenue expansion and long-term fee visibility.
Negative Updates
Moderation in Non-Traded BDC / Retail Flows
Equity flows into the non-traded BDC moderated relative to prior periods and Q1 repurchase requests were concentrated among a limited set of family offices and smaller institutions; management noted these products constitute ~4.5% of fee-paying AUM and modeled a stressed redemption scenario that could reduce FPAUM by ~1% annually.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong AUM and Fee-Paying AUM Growth
Total AUM rose 18% year-over-year to $644 billion and fee-paying AUM increased 19% to $400 billion, supporting fee revenue expansion and long-term fee visibility.
Read all positive updates
Company Guidance
Management reiterated they are on track for 2026 and left detailed quantitative targets intact: a quarterly dividend of $1.35 per share (up >20% YoY) will be paid June 30, and longer‑term compound annual growth goals remain 16–20% for FRE, 20–25% for realized income and 20% for dividends. Q1 metrics underpinning that guidance included AUM up 18% YoY to $644bn, fee‑paying AUM/FPAUM up 19% to $400bn, available capital >$158bn with credit dry powder >$100bn, $30bn of gross capital raised in Q1 (+46% YoY; $20bn in Credit), deployment >$32bn, management fees >$1bn (+22% YoY), FRE $454m (+26% YoY) with FRE margin +90bps to 42.4% (management expects margin expansion toward the high end of its target and to be at the upper end of the 0–150bps annual improvement range), realized income $503m (+24% YoY) including $75m of realized net performance (+84% YoY), after‑tax realized income per share $1.24 (+14% YoY), a Q1 tax rate of 13.5% (guidance 11–15%), interest expense $51m, Wealth AUM $68bn (+54% YoY) with Q1 gross/net wealth equity capital of $4bn/$3bn, and the company reiterated its realization cadence guidance and that it will file the Form 10‑Q later this month.Ares Management Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
56
Neutral
Cash Flow
32
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.31B | 6.47B | 3.88B | 3.63B | 3.06B | 4.21B |
| Gross Profit | 4.46B | 4.84B | 2.15B | 2.15B | 1.56B | 3.05B |
| EBITDA | 2.42B | 2.30B | 2.41B | 2.43B | 1.33B | 1.47B |
| Net Income | 622.78M | 527.36M | 463.74M | 474.33M | 167.54M | 408.84M |
Balance Sheet | ||||||
| Total Assets | 28.39B | 28.99B | 24.88B | 24.73B | 22.00B | 21.61B |
| Cash, Cash Equivalents and Short-Term Investments | 1.44B | 1.50B | 2.74B | 1.50B | 1.11B | 1.39B |
| Total Debt | 14.15B | 14.91B | 13.15B | 15.76B | 13.33B | 12.49B |
| Total Liabilities | 20.01B | 20.29B | 18.06B | 20.26B | 18.20B | 17.79B |
| Stockholders Equity | 4.03B | 4.28B | 3.54B | 1.89B | 1.59B | 1.83B |
Cash Flow | ||||||
| Free Cash Flow | 1.61B | 3.19B | 2.70B | -300.44M | -769.91M | -2.62B |
| Operating Cash Flow | 1.68B | 3.27B | 2.79B | -233.26M | -734.11M | -2.60B |
| Investing Cash Flow | 271.57M | -1.80B | -159.40M | -111.08M | -337.38M | -1.08B |
| Financing Cash Flow | -1.88B | -2.43B | -1.43B | 292.13M | 1.13B | 3.50B |
Ares Management Technical Analysis
Positive
117.78
Price Trends
113.77
Positive
126.34
Negative
143.78
Negative
Market Momentum
2.55
Positive
57.36
Neutral
44.53
Neutral
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 117.78 is below the 20-day moving average (MA) of 121.37, above the 50-day MA of 113.77, and below the 200-day MA of 143.78, indicating a neutral trend. The MACD of 2.55 indicates Positive momentum. The RSI at 57.36 is Neutral, neither overbought nor oversold. The STOCH value of 44.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARES.
Ares Management Risk Analysis
Ares Management disclosed 1 risk factors in its most recent earnings report. Ares Management reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ares Management Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $144.76B | 34.66 | 36.16% | 3.02% | 17.79% | 17.92% | |
69 Neutral | $41.04B | 42.85 | 14.54% | 2.65% | 46.89% | 21.89% | |
68 Neutral | $15.68B | 99.93 | 3.89% | 5.45% | 19.26% | -20.10% | |
68 Neutral | $16.00B | -1,111.90 | 12.56% | 3.03% | 11.60% | 28307.69% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $84.44B | 50.85 | 9.92% | 0.56% | 35.81% | 27.22% | |
58 Neutral | $16.35B | -32.87 | 9.65% | 2.30% | -26.37% | -49.86% |
* Financial Sector Average
ARES
Ares Management
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-30.68
-19.78%
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Ares Management Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Ares Management Posts Strong Q1 Results, Declares Dividend
Positive
May 1, 2026
On May 1, 2026, Ares Management reported first-quarter 2026 results, posting GAAP net income attributable to the company of $142.6 million, or $0.46 per share, and after-tax realized income of $452.4 million, or $1.24 per Class A share, alongside ...
Business Operations and StrategyFinancial Disclosures
Ares Management Cuts Q1 Outlook, Affirms 2026 Guidance
Negative
Apr 1, 2026
Ares Management said it preliminarily expects realized net performance income of about $75 million for the quarter ending March 31, 2026, up from $41 million a year earlier but below its prior guidance of roughly $100 million, largely because perf...
Business Operations and StrategyPrivate Placements and Financing
Ares Management Secures New $400 Million Term Loan
Positive
Mar 31, 2026
On March 27, 2026, Ares Holdings L.P., a subsidiary of Ares Management Corporation, entered into a new $400 million term loan credit agreement with a syndicate of lenders led by Bank of America, N.A., as administrative agent. The facility, fully f...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.