Ares Management (ARES)
NYSE:ARES
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Ares Management
(NYSE:ARES)
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Rating:64Neutral
Price Target:
$108.00
â–²(1.41% Upside)
Action:ReiteratedDate:02/25/26
The score is primarily supported by solid financial performance (strong revenue trajectory, improved leverage, and stronger recent cash generation) and a constructive earnings call emphasizing credit quality, liquidity, and dividend coverage. These positives are moderated by weak technicals (price below key moving averages with negative MACD) and a demanding valuation (high P/E despite a supportive dividend yield).
Positive Factors
Scale & Fee Growth
Material AUM and fee base expansion creates durable recurring revenue. Large scale and recently strong fundraising widen the stable management-fee envelope, reduce per-dollar operating leverage, and support reinvestment in distribution and product capabilities that should sustain fee growth and margin support over the medium term.
Negative Factors
Earnings Sensitivity to Interest Rates
Material EPS decline year-over-year highlights exposure to macro funding and yield conditions. With a large floating-rate book and fee/income mix tied to base rates, rate declines compress earnings and carried-fee timing; this structural sensitivity can pressure distributable earnings and dividend coverage in lower-rate regimes.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & Fee Growth
Material AUM and fee base expansion creates durable recurring revenue. Large scale and recently strong fundraising widen the stable management-fee envelope, reduce per-dollar operating leverage, and support reinvestment in distribution and product capabilities that should sustain fee growth and margin support over the medium term.
Read all positive factors
Ares Management (ARES) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.09B
Dividend Yield2.65%
Average Volume (3M)4.39M
Price to Earnings (P/E)66.6
Beta (1Y)1.61
Revenue Growth50.70%
EPS Growth7.32%
CountryUS
Employees4,250
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)1.45
Shares Outstanding220,902,620
10 Day Avg. Volume5,569,670
30 Day Avg. Volume4,388,668
Financial Highlights & Ratios
PEG Ratio-12.54
Price to Book (P/B)8.22
Price to Sales (P/S)5.43
P/FCF Ratio22.75
Enterprise Value/Market Cap1.39
Enterprise Value/Revenue8.34
Enterprise Value/Gross Profit14.29
Enterprise Value/Ebitda22.37
Forecast
1Y Price Target
$170.00Price Target Upside59.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)6.41
Revenue Forecast (FY)$5.85B
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 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 Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 24, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operating and credit performance story: record originations, portfolio growth, strong diversification, low non-accruals, material realized gains, and robust funding/liquidity execution. Offsetting items include meaningful year-over-year declines in GAAP and core EPS (largely driven by lower base rates), modest NAV per share change, and near-term headwinds from rate declines and seasonal origination slowdowns. Management emphasized conservative underwriting, diversification, and available capital, indicating confidence to navigate challenges.Positive Updates
Record Originations and New Borrowers
Gross originations reached a record $15.8 billion in 2025, including $5.8 billion in Q4 (up more than 50% vs. 2024). ARCC added more than 100 new borrowers during the year and ended 2025 with 603 borrowers, enhancing diversification and scale.
Negative Updates
Year-over-Year Earnings Decline
GAAP net income per share for the year was $1.86 versus $2.44 in 2024 (down ~23.8%). Core EPS for the year declined to $2.01 from $2.33 in 2024 (down ~13.7%). Q4 core EPS was $0.50 versus $0.55 a year ago (down ~9.1%). Management attributes much of the decline to lower base rates.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Originations and New Borrowers
Gross originations reached a record $15.8 billion in 2025, including $5.8 billion in Q4 (up more than 50% vs. 2024). ARCC added more than 100 new borrowers during the year and ended 2025 with 603 borrowers, enhancing diversification and scale.
Read all positive updates
Company Guidance
The company guided that it expects to maintain its current dividend (Q1 2026 dividend $0.48/share payable Mar 31) supported by core EPS that covered the dividend in all four quarters of 2025 (Q4 core EPS $0.50; FY core EPS $2.01), but warned a roughly $0.10/share 2026 earnings headwind from lower base rates (rate changes lag ~1 quarter); management emphasized dividend coverage, more than two quarters of taxable spillover ($988 million, ~$1.38/share available for distribution in 2026), low leverage with net debt-to-equity of 1.08x (below 1.1x and with headroom to a 1.25x upper target), strong liquidity (> $6.0 billion pro forma), and funding flexibility (nearly 70% floating-rate borrowings vs ~50% at YE2024) as key supports.Ares Management Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
73
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.47B | 3.88B | 3.63B | 3.06B | 4.21B |
| Gross Profit | 4.84B | 2.15B | 2.15B | 1.56B | 3.05B |
| EBITDA | 2.30B | 2.41B | 2.43B | 1.33B | 1.47B |
| Net Income | 527.36M | 463.74M | 474.33M | 167.54M | 408.84M |
Balance Sheet | |||||
| Total Assets | 28.99B | 24.88B | 24.73B | 22.00B | 21.61B |
| Cash, Cash Equivalents and Short-Term Investments | 1.50B | 2.74B | 1.50B | 1.11B | 1.39B |
| Total Debt | 14.91B | 13.15B | 15.76B | 13.33B | 12.49B |
| Total Liabilities | 20.29B | 18.06B | 20.26B | 18.20B | 17.79B |
| Stockholders Equity | 4.28B | 3.54B | 1.89B | 1.59B | 1.83B |
Cash Flow | |||||
| Free Cash Flow | 1.54B | 2.70B | -300.44M | -769.91M | -2.62B |
| Operating Cash Flow | 1.62B | 2.79B | -233.26M | -734.11M | -2.60B |
| Investing Cash Flow | 694.23M | -159.40M | -111.08M | -337.38M | -1.08B |
| Financing Cash Flow | -3.27B | -1.43B | 292.13M | 1.13B | 3.50B |
Ares Management Technical Analysis
Negative
106.50
Price Trends
127.49
Negative
142.96
Negative
155.36
Negative
Market Momentum
-5.93
Negative
41.19
Neutral
66.26
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 106.5 is below the 20-day moving average (MA) of 107.26, below the 50-day MA of 127.49, and below the 200-day MA of 155.36, indicating a bearish trend. The MACD of -5.93 indicates Negative momentum. The RSI at 41.19 is Neutral, neither overbought nor oversold. The STOCH value of 66.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $132.47B | 39.87 | 36.17% | 3.02% | 33.12% | 19.86% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $14.04B | 128.08 | 3.43% | 5.45% | 27.24% | -59.82% | |
64 Neutral | $35.09B | 66.62 | 12.01% | 2.65% | 50.70% | 7.32% | |
60 Neutral | $16.98B | 26.29 | 14.18% | 2.30% | -24.62% | 437.16% | |
59 Neutral | $15.63B | 31.80 | 16.10% | 3.03% | 25.02% | 235.70% | |
57 Neutral | $79.27B | 24.79 | 8.15% | 0.56% | -33.80% | -24.81% |
* Financial Sector Average
ARES
Ares Management
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Ares Management Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresShareholder Meetings
Ares Management Reports Strong 2025 Results, Raises Dividend
Positive
Feb 5, 2026
On February 5, 2026, Ares Management reported its fourth-quarter and full-year 2025 results, posting GAAP net income attributable to the company of $54.2 million, or $0.08 per share, and after-tax realized income of $529.1 million, or $1.45 per Cl...
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.