ARES Stock Analysis: Ares Management | NYSE
Asset Management | NYSE, USA | Market Cap: 39.471m USD | 12M Return: -24% | US03990B1017 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 256M
EPS Trend: 98.4%
Qual. Beats: 0
Rev. Trend: 94.1%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Ares Management Corporation is a large-cap U.S. alternative asset manager founded in 1997 and headquartered in Los Angeles, with additional offices across North America, Europe, and Asia. The firm operates through three core segments: a Direct Lending Group that provides financing to small- and mid-sized companies, a Private Equity Group that invests across the full capital structure (from early-stage venture to distressed buyouts), and a Real Estate Group focused on development, repositioning, and middle-market commercial real estate financing. Ares targets companies in the healthcare, services, energy, industrials, and consumer sectors, with investment sizes generally ranging from $1 million to $500 million in companies with $10–$250 million in EBITDA.
As a publicly traded alternative asset manager (NYSE: ARES) in the Financials sector, Ares generates revenue primarily through management fees and performance-related carried interest on its private credit, private equity, and real estate funds. The alternative asset management industry has expanded rapidly in recent years as institutional investors have increased allocations to private market strategies, particularly direct lending, which has benefited from the retreat of traditional banks from middle-market lending following post-2008 regulatory changes.
- Private credit origination surges as banks retreat from middle market lending
- Commercial real estate fund faces markdowns on office sector exposure
- Fee-related earnings expand as total AUM hits record high
| Net Income: 724.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA -11.77 > 1.0 |
| NWC/Revenue: -6.36% < 20% (prev -48.17%; Δ 41.81% < -1%) |
| CFO/TA 0.03 > 3% & CFO 912.1m > Net Income 724.7m |
| Net Debt (13.8b) to EBITDA (2.64b): 5.23 < 3 |
| Current Ratio: 0.83 > 1.5 & < 3 |
| Outstanding Shares: last quarter (226.3m) vs 12m ago 3.38% < -2% |
| Gross Margin: 68.16% > 18% (prev 54.43%; Δ 13.72% > 0.5%) |
| Asset Turnover: 21.63% > 50% (prev 17.71%; Δ 3.92% > 0%) |
| Interest Coverage Ratio: 3.25 > 6 (EBIT TTM 2.40b / Interest Expense TTM 738.5m) |
| A: -0.01 (Total Current Assets 1.85b - Total Current Liabilities 2.24b) / Total Assets 29.6b |
| B: -0.06 (Retained Earnings -1.85b / Total Assets 29.6b) |
| C: 0.08 (EBIT TTM 2.40b / Avg Total Assets 28.4b) |
| D: 0.19 (Book Value of Equity 3.97b / Total Liabilities 21.0b) |
| Altman-Z'' = 0.47 = B |
As of October 01, 2026, the stock is trading at USD 116.17 with a total of 2,066,290 shares traded. Over the past week, the price has changed by -4.37%, over one month by -18.00%, over three months by +5.47% and over the past year by -23.97%.
Current recommended Stop Loss: 105.10 (which is 9.5% or 2.5 ATR below the current price).
Ares Management has received a consensus analysts rating of 3.93. Therefore, it is recommended to buy ARES.
- StrongBuy: 4
- Buy: 6
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 147.9 | 27.3% |
P/E Trailing = 54.3242
P/E Forward = 16.9779
P/S = 7.5147
P/B = 11.0167
P/EG = 0.9025
Revenue TTM = 6.15b USD
EBIT TTM = 2.40b USD
EBITDA TTM = 2.64b USD
Long Term Debt = 11.5b USD (from longTermDebt, last quarter)
Short Term Debt = 2.53b USD (from shortLongTermDebt, last quarter)
Debt = 15.7b USD (from shortLongTermDebtTotal, last quarter) + Leases 812.6m
Net Debt = 13.8b USD (calculated: Debt 15.7b - CCE 1.85b)
Enterprise Value = 53.3b USD (39.5b + Debt 15.7b - CCE 1.85b)
Interest Coverage Ratio = 3.25 (Ebit TTM 2.40b / Interest Expense TTM 738.5m)
EV/FCF = 63.75x (Enterprise Value 53.3b / FCF TTM 836.1m)
FCF Yield = 1.57% (FCF TTM 836.1m / Enterprise Value 53.3b)
FCF Margin = 13.59% (FCF TTM 836.1m / Revenue TTM 6.15b)
Net Margin = 11.78% (Net Income TTM 724.7m / Revenue TTM 6.15b)
Gross Margin = 68.16% ((Revenue TTM 6.15b - Cost of Revenue TTM 1.96b) / Revenue TTM)
Gross Margin QoQ = 17.40% (prev none%)
Tobins Q-Ratio = 1.80 (Enterprise Value 53.3b / Total Assets 29.6b)
Interest Expense / Debt = 4.71% (Interest Expense 738.5m / Debt 15.7b)
Taxrate = 18.31% (304.6m / 1.66b)
NOPAT = 1.96b (EBIT 2.40b * (1 - 18.31%))
Current Ratio = 0.83 (Total Current Assets 1.85b / Total Current Liabilities 2.24b)
Debt / Equity = 3.95 (Debt 15.7b / totalStockholderEquity, last quarter 3.97b)
Debt / EBITDA = 5.23 (Net Debt 13.8b / EBITDA 2.64b)
Debt / FCF = 16.54 (Net Debt 13.8b / FCF TTM 836.1m)
Total Stockholder Equity = 4.19b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.55% (Net Income 724.7m / Total Assets 29.6b)
RoE = 17.31% (Net Income TTM 724.7m / Total Stockholder Equity 4.19b)
RoCE = 15.29% (EBIT 2.40b / Capital Employed (Equity 4.19b + L.T.Debt 11.5b))
RoIC = 6.87% (NOPAT 1.96b / Invested Capital 28.6b)
WACC = 9.20% (E(39.5b)/V(55.2b) * Re(11.33%) + D(15.7b)/V(55.2b) * Rd(4.71%) * (1-Tc(0.18)))
Discount Rate = 11.33% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 95.03 | Cagr: 7.42%
[DCF] Terminal Value 69.97% ; FCFF base≈2.09b ; Y1≈1.84b ; Y5≈1.48b
[DCF] Fair Price = 31.43 (EV 20.9b - Net Debt 13.8b = Equity 7.04b / Shares 224.0m; r=9.20% [WACC]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 98.37 | EPS CAGR: 13.99% | SUE: 0.0 | # QB: 0
Revenue Correlation: 94.09 | Revenue CAGR: 27.75% | SUE: 0.44 | # QB: 0
EPS current Quarter (2026-09-30): EPS=1.30 | Chg30d=-0.54% | Revisions=-73% | Analysts=13
EPS current Year (2026-12-31): EPS=5.84 | Chg30d=-0.23% | Revisions=-46% | GrowthEPS=+22.6% | GrowthRev=+16.3%
EPS next Year (2027-12-31): EPS=7.19 | Chg30d=-0.02% | Revisions=-31% | GrowthEPS=+23.2% | GrowthRev=+17.2%
[Analyst] Revisions Ratio: -58% (up=5, down=23)