(ARES) Ares Management - Overview
Stock: Direct Lending, Private Equity, Real Estate, Credit, Asset Management
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 3.21% |
| Yield on Cost 5y | 12.74% |
| Yield CAGR 5y | 29.72% |
| Payout Consistency | 98.9% |
| Payout Ratio | 127.0% |
| Risk 5d forecast | |
|---|---|
| Volatility | 34.9% |
| Relative Tail Risk | 2.64% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.53 |
| Alpha | -47.33 |
| Character TTM | |
|---|---|
| Beta | 1.607 |
| Beta Downside | 1.955 |
| Drawdowns 3y | |
|---|---|
| Max DD | 39.98% |
| CAGR/Max DD | 0.60 |
Description: ARES Ares Management December 11, 2025
Ares Management Corp. (NYSE: ARES) is a diversified alternative-asset manager operating across the United States, Europe, and Asia. Its business is split into three primary segments: Direct Lending, Private Equity, and Real Estate.
• The Direct Lending Group targets middle-market companies, typically providing senior secured loans ranging from $1 M to $400 M to firms with EBITDA of $10 M–$250 M. This segment benefits from a low-interest-rate environment that supports credit-supply demand, but is sensitive to widening credit spreads if recession risks intensify.
• The Private Equity Group focuses on majority- or shared-control investments in under-capitalized businesses, often leveraging its credit platform to add financing flexibility. Recent deal flow data suggest a modest slowdown in large-cap buyouts, making mid-market opportunities relatively more attractive.
• The Real Estate Group invests in development and repositioning projects, primarily through control or majority stakes, and originates financing for middle-market commercial-real-estate owners. Sector performance is closely tied to office-space utilization trends and the pace of urban redevelopment, which have shown mixed signals post-pandemic.
Key operational metrics (as of the latest FY 2024 filing) include approximately $400 B of assets under management, a net income margin of ~12 %, and a weighted-average cost of debt around 4.5 %. The firm’s investment range-$10 M–$100 M of debt per transaction-positions it to capture the “gap” financing market that traditional banks have retreated from.
Founded in 1997 and headquartered in Los Angeles, Ares Management GP LLC serves as the general partner, overseeing strategy and capital allocation across its global platform.
For a deeper, data-driven view of ARES’s valuation dynamics, you may find the analytics on ValueRay worth a quick look.
Piotroski VR‑10 (Strict, 0-10) 5.0
| Net Income: 650.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.17 > 0.02 and ΔFCF/TA 11.24 > 1.0 |
| NWC/Revenue: 58.48% < 20% (prev -37.52%; Δ 96.00% < -1%) |
| CFO/TA 0.17 > 3% & CFO 4.56b > Net Income 650.4m |
| Net Debt (11.23b) to EBITDA (2.31b): 4.86 < 3 |
| Current Ratio: 1.54 > 1.5 & < 3 |
| Outstanding Shares: last quarter (219.9m) vs 12m ago 9.54% < -2% |
| Gross Margin: 54.74% > 18% (prev 0.55%; Δ 5419 % > 0.5%) |
| Asset Turnover: 20.78% > 50% (prev 15.01%; Δ 5.77% > 0%) |
| Interest Coverage Ratio: 2.05 > 6 (EBITDA TTM 2.31b / Interest Expense TTM 827.9m) |
Altman Z'' 0.99
| A: 0.12 (Total Current Assets 8.93b - Total Current Liabilities 5.80b) / Total Assets 27.03b |
| B: -0.05 (Retained Earnings -1.22b / Total Assets 27.03b) |
| C: 0.07 (EBIT TTM 1.70b / Avg Total Assets 25.78b) |
| D: -0.06 (Book Value of Equity -1.19b / Total Liabilities 18.43b) |
| Altman-Z'' Score: 0.99 = BB |
Beneish M 0.19
| DSRI: 4.88 (Receivables 7.43b/1.05b, Revenue 5.36b/3.68b) |
| GMI: 1.00 (GM 54.74% / 54.90%) |
| AQI: 0.75 (AQ_t 0.65 / AQ_t-1 0.87) |
| SGI: 1.46 (Revenue 5.36b / 3.68b) |
| TATA: -0.14 (NI 650.4m - CFO 4.56b) / TA 27.03b) |
| Beneish M-Score: 0.19 (Cap -4..+1) = D |
What is the price of ARES shares?
Over the past week, the price has changed by -2.15%, over one month by -11.94%, over three months by -4.73% and over the past year by -23.04%.
Is ARES a buy, sell or hold?
- StrongBuy: 4
- Buy: 6
- Hold: 5
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the ARES price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 194.6 | 32.9% |
| Analysts Target Price | 194.6 | 32.9% |
| ValueRay Target Price | 179.5 | 22.5% |
ARES Fundamental Data Overview February 03, 2026
P/E Forward = 23.0947
P/S = 9.156
P/B = 11.0922
P/EG = 1.0886
Revenue TTM = 5.36b USD
EBIT TTM = 1.70b USD
EBITDA TTM = 2.31b USD
Long Term Debt = 11.26b USD (from longTermDebt, last quarter)
Short Term Debt = 785.3m USD (from shortTermDebt, last quarter)
Debt = 12.73b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 11.23b USD (from netDebt column, last quarter)
Enterprise Value = 60.26b USD (49.04b + Debt 12.73b - CCE 1.50b)
Interest Coverage Ratio = 2.05 (Ebit TTM 1.70b / Interest Expense TTM 827.9m)
EV/FCF = 13.41x (Enterprise Value 60.26b / FCF TTM 4.49b)
FCF Yield = 7.46% (FCF TTM 4.49b / Enterprise Value 60.26b)
FCF Margin = 83.89% (FCF TTM 4.49b / Revenue TTM 5.36b)
Net Margin = 12.14% (Net Income TTM 650.4m / Revenue TTM 5.36b)
Gross Margin = 54.74% ((Revenue TTM 5.36b - Cost of Revenue TTM 2.42b) / Revenue TTM)
Gross Margin QoQ = 60.19% (prev 52.32%)
Tobins Q-Ratio = 2.23 (Enterprise Value 60.26b / Total Assets 27.03b)
Interest Expense / Debt = 1.60% (Interest Expense 203.0m / Debt 12.73b)
Taxrate = 17.15% (111.9m / 652.3m)
NOPAT = 1.41b (EBIT 1.70b * (1 - 17.15%))
Current Ratio = 1.54 (Total Current Assets 8.93b / Total Current Liabilities 5.80b)
Debt / Equity = 2.84 (Debt 12.73b / totalStockholderEquity, last quarter 4.47b)
Debt / EBITDA = 4.86 (Net Debt 11.23b / EBITDA 2.31b)
Debt / FCF = 2.50 (Net Debt 11.23b / FCF TTM 4.49b)
Total Stockholder Equity = 4.21b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.52% (Net Income 650.4m / Total Assets 27.03b)
RoE = 15.46% (Net Income TTM 650.4m / Total Stockholder Equity 4.21b)
RoCE = 10.99% (EBIT 1.70b / Capital Employed (Equity 4.21b + L.T.Debt 11.26b))
RoIC = 9.24% (NOPAT 1.41b / Invested Capital 15.25b)
WACC = 9.67% (E(49.04b)/V(61.76b) * Re(11.84%) + D(12.73b)/V(61.76b) * Rd(1.60%) * (1-Tc(0.17)))
Discount Rate = 11.84% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 7.64%
[DCF Debug] Terminal Value 63.06% ; FCFF base≈3.22b ; Y1≈2.12b ; Y5≈965.3m
Fair Price DCF = 15.83 (EV 14.66b - Net Debt 11.23b = Equity 3.43b / Shares 216.9m; r=9.67% [WACC]; 5y FCF grow -40.0% → 2.90% )
[DCF Warning] FCF declining rapidly (-40.0%), DCF may be unreliable
EPS Correlation: -1.35 | EPS CAGR: -42.62% | SUE: -4.0 | # QB: 0
Revenue Correlation: 54.19 | Revenue CAGR: 6.47% | SUE: 2.05 | # QB: 2
EPS next Quarter (2026-03-31): EPS=1.45 | Chg30d=+0.046 | Revisions Net=+1 | Analysts=13
EPS next Year (2026-12-31): EPS=6.57 | Chg30d=+0.056 | Revisions Net=+5 | Growth EPS=+30.4% | Growth Revenue=+24.3%