Ares Management (ARES) AI Stock Analysis

• Market Cap: $54.65B
• Dividend Yield: 2.68%
• Average Volume (3M): 1.54M
• Price to Earnings (P/E): 96.7
• Beta (1Y): 1.54
• Revenue Growth: 19.02%
• EPS Growth: -22.75%
• Country: US
• Employees: 3,504
• Sector: Financial
• Sector Strength: 76
• Industry: Asset Management
• EPS (TTM): 1.09
• Shares Outstanding: 214,973,560
• 10 Day Avg. Volume: 1,518,893
• 30 Day Avg. Volume: 1,535,594
• 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: 0.44
• Enterprise Value/Revenue: 1.45
• Enterprise Value/Gross Profit: 8.15
• Enterprise Value/Ebitda: 3.49
• 1Y Price Target: $175.27
• Price Target Upside: 5.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 71 Outperform
• Price Target: $181.00 ▲(9.19%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 Performance

Realized performance earnings exceeded forecast and consensus.

Market Confidence

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

Negative Factors

Earnings Estimate

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

Fundraising Challenges

Fundraising fell short, but net inflows were solid.

Fundraising Performance

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

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
	EBIT
1.36B	2.25B	885.80M	694.21M	868.90M	313.56M
	EBITDA
1.64B	2.41B	1.15B	1.04B	982.19M	354.81M
	Net Income Common Stockholders
514.22M	463.74M	474.33M	167.54M	408.84M	152.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
618.54M	2.74B	1.50B	1.11B	1.39B	1.06B
	Total Assets
27.18B	24.88B	24.73B	22.00B	21.61B	15.17B
	Total Debt
686.04M	13.15B	15.76B	13.33B	12.49B	10.90B
	Net Debt
67.50M	10.41B	14.26B	12.22B	11.10B	9.84B
	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: 165.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 165.76 is below the 20-day moving average (MA) of 166.09, above the 50-day MA of 158.66, and above the 200-day MA of 162.96, indicating a neutral trend. The MACD of 1.81 indicates Positive momentum. The RSI at 51.59 is Neutral, neither overbought nor oversold. The STOCH value of 22.17 is Neutral, 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
CG	73 Outperform	$17.00B	15.90	20.38%	2.97%	81.86%	―
OWL	72 Outperform	$28.79B	188.02	4.62%	4.82%	32.99%	8.06%
ARES	71 Outperform	$54.65B	96.72	12.97%	2.68%	19.02%	-22.75%
KKR	68 Neutral	$109.03B	53.07	9.03%	0.60%	-27.45%	-46.67%
BX	68 Neutral	$166.81B	41.59	34.07%	2.71%	22.06%	16.57%
Sector *	64 Neutral	$12.73B	9.92	7.90%	78.88%	12.06%	-7.95%
TPG	63 Neutral	$18.45B	―	0.24%	3.28%	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.