Ares Management (ARES) AI Stock Analysis

• Market Cap: $61.82B
• Dividend Yield: 2.24%
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): 105.4
• Beta (1Y): 1.52
• Revenue Growth: 46.84%
• EPS Growth: -7.13%
• Country: US
• Employees: 3,504
• Sector: Financial
• Sector Strength: 67
• Industry: Asset Management
• EPS (TTM): 1.03
• Shares Outstanding: 214,973,560
• 10 Day Avg. Volume: 1,444,582
• 30 Day Avg. Volume: 1,375,816
• 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: 0.75
• Enterprise Value/Revenue: 10.92
• Enterprise Value/Gross Profit: 20.04
• Enterprise Value/Ebitda: 32.94
• 1Y Price Target: $194.27
• Price Target Upside: 3.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 76 Outperform
• Price Target: $207.00 ▲(10.12% Upside)

Ares Management's strong financial performance, particularly in profitability and cash flow, combined with optimistic earnings call guidance and positive corporate announcements, are the primary drivers of the high overall score. However, the high valuation and potential technical resistance present some risks that moderate the score.

Positive Factors

Earnings

The P/E ratio increased to 24.6x, indicating potential growth expectations.

Market Positioning

ARES is positioned well for market dislocation, particularly in secondaries, opportunistic credit and direct lending within private credit.

Performance

ARES reported realized income per share 16% above consensus due to a 10% pre-tax income beat and a lower tax rate.

Negative Factors

Earnings Forecast

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

Fundraising

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

Revenue

Fundraising fell short, but net inflows were solid.

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 demonstrates strong profitability with robust EBIT and EBITDA margins, despite volatile revenue growth. Improved net profit margin and significant free cash flow growth highlight efficient operations and cash generation. The high debt-to-equity ratio poses some leverage risk, but this is mitigated by improved return on equity.

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	4.27B	3.88B	3.63B	3.06B	4.21B	2.13B
Gross Profit	2.32B	2.15B	2.15B	1.56B	3.05B	1.36B
EBITDA	1.41B	2.41B	2.43B	1.33B	1.47B	731.95M
Net Income	437.88M	463.74M	474.33M	167.54M	408.84M	152.14M
Balance Sheet
Total Assets	27.18B	24.88B	24.73B	22.00B	21.61B	15.17B
Cash, Cash Equivalents and Short-Term Investments	1.80B	2.74B	1.50B	1.11B	1.39B	1.06B
Total Debt	13.36B	13.15B	15.76B	13.33B	12.49B	10.90B
Total Liabilities	18.97B	18.06B	20.26B	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	3.99B	2.70B	-300.44M	-769.91M	-2.62B	-441.60M
Operating Cash Flow	4.08B	2.79B	-233.26M	-734.11M	-2.60B	-425.66M
Investing Cash Flow	-1.87B	-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: 187.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 187.98 is above the 20-day moving average (MA) of 181.84, above the 50-day MA of 173.71, and above the 200-day MA of 167.41, indicating a bullish trend. The MACD of 3.89 indicates Negative momentum. The RSI at 63.43 is Neutral, neither overbought nor oversold. The STOCH value of 71.80 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
ARES	76 Outperform	$61.82B	105.43	12.97%	2.24%	46.84%	-7.13%
KKR	74 Outperform	$127.06B	68.26	9.03%	0.50%	-23.81%	-48.96%
CG	70 Outperform	$21.70B	20.30	21.39%	2.33%	81.86%	―
OWL	69 Neutral	$29.98B	348.02	3.68%	4.06%	31.81%	-32.87%
Sector *	67 Neutral	$17.02B	11.60	9.79%	3.95%	10.63%	2.01%
BX	66 Neutral	$204.69B	45.26	37.72%	2.54%	27.13%	41.35%
TPG	63 Neutral	$21.17B	―	2.55%	3.04%	46.69%	-98.56%

Ares Management Corporate Events

Ares Management Announces Quarterly Dividend and Earnings

On August 1, 2025, Ares Management Corporation announced a quarterly dividend of $1.12 per share for its Class A common stock, payable on September 30, 2025. The company also reported its second-quarter financial results, highlighting a GAAP net income of $137.1 million and significant growth in assets under management, fee-paying AUM, and management fees, driven by strong investment performance and successful fundraising efforts. The acquisition of GCP International contributed positively to the financial results, positioning Ares for future earnings growth.

The most recent analyst rating on (ARES) stock is a Buy with a $176.00 price target. To see the full list of analyst forecasts on Ares Management stock, see the ARES Stock Forecast page.

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.