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Ares Management
(NYSE:ARES)
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Rating:68Neutral
Price Target:
$151.00
â–²(19.36% Upside)
Action:Reiterated
Date:08/07/26
ARES scores well on momentum and business outlook: technicals are bullish (price above key moving averages and positive MACD) and the latest earnings call reinforced durable growth drivers (record fundraising, rising fee-paying AUM, improving FRE margins, and substantial dry powder). Offsetting these positives, the overall score is held back by a leveraged balance sheet and a rich valuation (P/E ~56.7), which increases sensitivity to execution and market conditions.
Positive Factors
Record fundraising & AUM growth
Sustained, record fundraising and double-digit AUM/fee-paying AUM growth materially expand the recurring management-fee base. This deepens fee visibility and reduces revenue concentration risk across strategies, supporting durable top-line and service-scale advantages over the next several quarters.
Negative Factors
High financial leverage
Material leverage increases sensitivity to rising financing costs and market dislocations. High debt-to-equity constrains capital allocation flexibility, elevates refinancing and covenant risk during stress periods, and can amplify earnings volatility if interest costs rise or asset realizations slow.
Read all positive and negative factors
Positive Factors
Negative Factors
Record fundraising & AUM growth
Sustained, record fundraising and double-digit AUM/fee-paying AUM growth materially expand the recurring management-fee base. This deepens fee visibility and reduces revenue concentration risk across strategies, supporting durable top-line and service-scale advantages over the next several quarters.
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
$42.25B
Dividend Yield3.86%
Average Volume (3M)2.19M
Price to Earnings (P/E)56.7
Beta (1Y)1.70
Revenue Growth46.89%
EPS Growth21.89%
CountryUS
Employees4,250
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)2.29
Shares Outstanding222,028,430
10 Day Avg. Volume1,778,736
30 Day Avg. Volume2,193,942
Financial Highlights & Ratios
PEG Ratio-15.52
Price to Book (P/B)8.22
Price to Sales (P/S)5.43
P/FCF Ratio11.00
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$149.92Price Target Upside18.50% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)5.88
Revenue Forecast (FY)$5.50B
Ares Management Business Overview & Revenue Model
Company Description
Ares Management Corporation functions as an investment firm specializing in alternative assets, with operations spanning the United States, Europe, and Asia. Its Tradable Credit division oversees diverse investment vehicles, including pooled funds...
How the Company Makes Money
Ares primarily makes money by earning fees for managing third-party capital and, to a lesser extent, by earning performance-based income and investment income. (1) Management fees: The core revenue stream is recurring management fees charged to th...
Ares Management Earnings Call Summary
Earnings Call Date:Jul 31, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed broad-based, durable growth: record fundraising, double-digit increases in AUM and fee-paying AUM, strong fee-related earnings and realized income growth, a large dry powder position and an expanding pipeline that supports near- and medium-term deployment and fee visibility. Management acknowledged some cyclical headwinds—slower sponsor M&A, redemption activity concentrated in a few investor cohorts, timing variability of performance fees, and some dispersion in secondary fund returns—but provided concrete metrics showing these are manageable and that the business is diversified and executing on strategic initiatives (digital infrastructure, wealth, insurance). Overall the positives (record fundraising, double-digit AUM/earnings growth, healthy pipeline, ample dry powder and improving margins) materially outweigh the near-term, addressable challenges discussed on the call.Positive Updates
Record Fundraising and Capital Raised
Company raised a record ~$36 billion of gross capital in Q2 (highest quarterly fundraising in firm history) and ~$66 billion in the first half of 2026; raised Pathfinder III ~$8.5 billion (vs $6.5 billion target, exceeded hard cap) and more than $12 billion across U.S. and European Direct Lending vehicles in the quarter.
Negative Updates
Slower Transaction Environment and Sponsor M&A Weakness
Management acknowledged a slower transaction environment and subdued sponsor M&A activity in parts of the market; U.S. Direct Lending activity was tepid at times (though pipeline improving), requiring greater reliance on incumbent/annuity deployment (75% of U.S. deployment was with incumbents in Q2).
Read all updates
Q2-2026 Updates
Positive
Negative
Record Fundraising and Capital Raised
Company raised a record ~$36 billion of gross capital in Q2 (highest quarterly fundraising in firm history) and ~$66 billion in the first half of 2026; raised Pathfinder III ~$8.5 billion (vs $6.5 billion target, exceeded hard cap) and more than $12 billion across U.S. and European Direct Lending vehicles in the quarter.
Read all positive updates
Company Guidance
The company said it remains on track to achieve its 2026 financial objectives and reiterated long‑term targets of 16%–20% CAGR for fee‑related earnings (FRE), 20%+ CAGR for realized income (RI) and 20%+ dividend growth; management expects to be approaching the upper end of its FRE‑margin guidance (0–150 bps) for the full year and reaffirmed a full‑year tax rate range of 11%–15%. Near‑term guidance included Q3 FRPR from the open‑ended core alternative credit fund of about $62 million, limited realized net performance income of roughly $10 million in Q3, and about $32 million of potential Q4 FRPR accrued by the nontraded REITs; the firm also highlighted a declared quarterly dividend of $1.35/share (over 20% YoY). Supporting visibility, quarter metrics included >$1.0 billion of management fees, FRE of ~$491 million, $170 billion of available capital (dry powder), ~$114 billion of AUM not yet paying fees (capable of generating an estimated ~$828 million of incremental annual management fees if deployed), and record Q2 gross fundraising of ~$36 billion (H1 ~$66 billion).Ares Management Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
48
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.39B | 6.47B | 3.88B | 3.63B | 3.06B | 4.21B |
| Gross Profit | 4.00B | 4.84B | 2.15B | 2.15B | 1.56B | 3.05B |
| EBITDA | 2.48B | 2.30B | 2.41B | 2.43B | 1.33B | 1.47B |
| Net Income | 636.35M | 527.36M | 463.74M | 474.33M | 167.54M | 408.84M |
Balance Sheet | ||||||
| Total Assets | 29.63B | 28.99B | 24.88B | 24.73B | 22.00B | 21.61B |
| Cash, Cash Equivalents and Short-Term Investments | 1.85B | 1.50B | 2.74B | 1.50B | 1.11B | 1.39B |
| Total Debt | 14.87B | 14.91B | 13.15B | 15.76B | 13.33B | 12.49B |
| Total Liabilities | 21.03B | 20.29B | 18.06B | 20.26B | 18.20B | 17.79B |
| Stockholders Equity | 3.97B | 4.28B | 3.54B | 1.89B | 1.59B | 1.83B |
Cash Flow | ||||||
| Free Cash Flow | 836.15M | 3.19B | 2.70B | -300.44M | -769.91M | -2.62B |
| Operating Cash Flow | 912.13M | 3.27B | 2.79B | -233.26M | -734.11M | -2.60B |
| Investing Cash Flow | -76.39M | -1.80B | -159.40M | -111.08M | -337.38M | -1.08B |
| Financing Cash Flow | -604.30M | -2.43B | -1.43B | 292.13M | 1.13B | 3.50B |
Ares Management Technical Analysis
Positive
126.51
Price Trends
124.92
Positive
119.30
Positive
131.82
Positive
Market Momentum
4.43
Negative
62.19
Neutral
68.94
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 126.51 is below the 20-day moving average (MA) of 127.74, above the 50-day MA of 124.92, and below the 200-day MA of 131.82, indicating a bullish trend. The MACD of 4.43 indicates Negative momentum. The RSI at 62.19 is Neutral, neither overbought nor oversold. The STOCH value of 68.94 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $158.90B | 28.39 | 40.87% | 3.02% | 27.99% | 20.33% | |
72 Outperform | $91.07B | 30.19 | 9.92% | 0.75% | 28.11% | 48.98% | |
72 Outperform | $16.06B | 83.88 | 4.29% | 9.58% | 14.13% | -4.48% | |
72 Outperform | $16.78B | 53.73 | 12.13% | 5.23% | 11.60% | 28307.69% | |
68 Neutral | $42.25B | 56.68 | 14.54% | 3.90% | 46.89% | 21.89% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $16.57B | 30.23 | 6.07% | 3.08% | -26.37% | -49.86% |
* Financial Sector Average
ARES
Ares Management
136.85
-43.06
-23.93%
KKR
KKR & Co
102.81
-38.01
-26.99%
BX
Blackstone Group
137.13
-26.31
-16.10%
CG
Carlyle Group
47.79
-13.01
-21.40%
OWL
Blue Owl Capital
11.87
-6.56
-35.61%
TPG
TPG
48.99
-9.87
-16.76%
Ares Management Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Ares Management Reports Strong Q2 2026 Earnings, Dividend
Positive
Jul 31, 2026
On July 31, 2026, Ares Management Corporation reported second-quarter 2026 results, posting GAAP net income attributable to the company of $150.6 million, or $0.49 per share, and after-tax realized income of $467.6 million, or $1.29 per Class A sh...
Financial DisclosuresRegulatory Filings and Compliance
Ares Management Sees Strong Jump in Q2 Performance
Positive
Jul 10, 2026
Ares Management disclosed that, based on preliminary information, it expects realized net performance income for the quarter ending June 30, 2026 to exceed $50 million, sharply higher than the $16 million recorded for the quarter ended June 30, 20...
Executive/Board ChangesShareholder Meetings
Ares Management Shareholders Reelect Board, Confirm Auditor
Positive
Jun 11, 2026
On June 8, 2026, Ares Management Corporation held its annual meeting of stockholders, with more than 1.1 billion votes eligible across its Class A, B, and C common shares as of the April 13, 2026 record date. All 11 director nominees, including Ch...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Ares Management Expands and Extends Corporate Credit Facility
Positive
May 28, 2026
On May 21, 2026, Ares Holdings L.P., a subsidiary of Ares Management Corporation, amended its Sixth Amended and Restated Credit Agreement to extend the maturity of its credit facility to May 21, 2031 and increase revolving commitments to $2.5 bill...
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.