ARES Stock Analysis: Ares Management | NYSE
Asset Management | NYSE, USA | Market Cap: 35.996m USD | 12M Return: -31.6% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 312M
EPS Trend: 97.9%
Qual. Beats: -2
Rev. Trend: 89.1%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 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 publicly traded alternative asset manager founded in 1997 and headquartered in Los Angeles, California. The firm operates across three primary business segments: Direct Lending (providing financing to small- and medium-sized companies), Private Equity (focused on venture, growth, middle-market, distressed, and mezzanine investments across healthcare, services, energy, industrials, and consumer sectors), and Real Estate (new development, asset repositioning, and middle-market commercial real estate financing). Ares invests globally across North America, Europe, Asia Pacific, Southeast Asia, and Australia, typically committing between $1 million and $500 million per deal in companies with EBITDA of $10 million to $250 million.
As an alternative asset manager in the asset management and custody banks sub-industry, Ares earns revenue through management fees on assets under management (AUM) plus performance-based incentive fees (carried interest) on investment gains. The company has been publicly traded on the NYSE under the ticker ARES since its May 2014 IPO and is classified as a large-cap stock within the Financials sector. Alternative asset managers like Ares typically benefit from long-duration capital commitments from institutional investors such as pension funds, sovereign wealth funds, and insurance companies, providing more stable funding than traditional retail-facing asset managers.
- Private credit demand accelerates Direct Lending AUM growth
- Floating-rate loans benefit from higher-for-longer rate environment
- Fee-related earnings expand on record fundraising momentum
| Net Income: 711.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA -0.75 > 1.0 |
| NWC/Revenue: 22.82% < 20% (prev -53.16%; Δ 75.98% < -1%) |
| CFO/TA 0.06 > 3% & CFO 1.68b > Net Income 711.1m |
| Net Debt (13.4b) to EBITDA (2.46b): 5.45 < 3 |
| Current Ratio: 1.93 > 1.5 & < 3 |
| Outstanding Shares: last quarter (224.0m) vs 12m ago 7.01% < -2% |
| Gross Margin: 76.58% > 18% (prev 53.68%; Δ 22.89% > 0.5%) |
| Asset Turnover: 21.86% > 50% (prev 15.70%; Δ 6.16% > 0%) |
| Interest Coverage Ratio: 2.87 > 6 (EBIT TTM 2.22b / Interest Expense TTM 771.4m) |
| A: 0.05 (Total Current Assets 2.88b - Total Current Liabilities 1.49b) / Total Assets 28.4b |
| B: -0.06 (Retained Earnings -1.66b / Total Assets 28.4b) |
| C: 0.08 (EBIT TTM 2.22b / Avg Total Assets 27.8b) |
| D: 0.20 (Book Value of Equity 4.03b / Total Liabilities 20.0b) |
| Altman-Z'' = 0.88 = B |
| DSRI: 0.80 (Receivables 1.44b/1.27b, Revenue 6.07b/4.27b) |
| GMI: 0.70 (GM 53.68% / 76.58%) |
| AQI: 1.01 (AQ_t 0.88 / AQ_t-1 0.87) |
| SGI: 1.42 (Revenue 6.07b / 4.27b) |
| TATA: -0.03 (NI 711.1m - CFO 1.68b) / TA 28.4b) |
| Beneish M = -3.15 (Cap -4..+1) = AA |
As of July 03, 2026, the stock is trading at USD 116.90 with a total of 1,249,507 shares traded. Over the past week, the price has changed by +3.94%, over one month by -7.95%, over three months by +15.28% and over the past year by -31.56%.
Current recommended Stop Loss: 104.00 (which is 11% or 2.3 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 | 145.8 | 24.7% |
P/E Trailing = 50.2903
P/E Forward = 17.8571
P/S = 6.0916
P/B = 9.5933
P/EG = 0.8935
Revenue TTM = 6.07b USD
EBIT TTM = 2.22b USD
EBITDA TTM = 2.46b USD
Long Term Debt = 11.2b USD (from longTermDebt, last quarter)
Short Term Debt = 58.0m USD (from shortTermDebt, last quarter)
Debt = 14.9b USD (from shortLongTermDebtTotal, last quarter) + Leases 730.1m
Net Debt = 13.4b USD (calculated: Debt 14.9b - CCE 1.44b)
Enterprise Value = 49.4b USD (36.0b + Debt 14.9b - CCE 1.44b)
Interest Coverage Ratio = 2.87 (Ebit TTM 2.22b / Interest Expense TTM 771.4m)
EV/FCF = 37.73x (Enterprise Value 49.4b / FCF TTM 1.31b)
FCF Yield = 2.65% (FCF TTM 1.31b / Enterprise Value 49.4b)
FCF Margin = 21.57% (FCF TTM 1.31b / Revenue TTM 6.07b)
Net Margin = 11.71% (Net Income TTM 711.1m / Revenue TTM 6.07b)
Gross Margin = 76.58% ((Revenue TTM 6.07b - Cost of Revenue TTM 1.42b) / Revenue TTM)
Gross Margin QoQ = none% (prev none%)
Tobins Q-Ratio = 1.74 (Enterprise Value 49.4b / Total Assets 28.4b)
Interest Expense / Debt = 5.18% (Interest Expense 771.4m / Debt 14.9b)
Taxrate = 18.70% (292.6m / 1.57b)
NOPAT = 1.80b (EBIT 2.22b * (1 - 18.70%))
Current Ratio = 1.01 (Total Current Assets 2.88b / Total Current Liabilities 2.84b)
Debt / Equity = 3.70 (Debt 14.9b / totalStockholderEquity, last quarter 4.03b)
Debt / EBITDA = 5.45 (Net Debt 13.4b / EBITDA 2.46b)
Debt / FCF = 10.26 (Net Debt 13.4b / FCF TTM 1.31b)
Total Stockholder Equity = 4.28b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.56% (Net Income 711.1m / Total Assets 28.4b)
RoE = 16.60% (Net Income TTM 711.1m / Total Stockholder Equity 4.28b)
RoCE = 14.33% (EBIT 2.22b / Capital Employed (Equity 4.28b + L.T.Debt 11.2b))
RoIC = 6.41% (NOPAT 1.80b / Invested Capital 28.1b)
WACC = 9.15% (E(36.0b)/V(50.9b) * Re(11.19%) + D(14.9b)/V(50.9b) * Rd(5.18%) * (1-Tc(0.19)))
Discount Rate = 11.19% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 94.39 | Cagr: 7.66%
[DCF] Terminal Value 71.06% ; FCFF base≈1.37b ; Y1≈1.26b ; Y5≈1.12b
[DCF] Fair Price = 9.84 (EV 15.6b - Net Debt 13.4b = Equity 2.18b / Shares 222.0m; r=9.15% [WACC]; 5y FCF grow -10.09% → 2.50% )
EPS Correlation: 97.92 | EPS CAGR: 12.54% | SUE: -1.44 | # QB: -2
Revenue Correlation: 89.13 | Revenue CAGR: 23.41% | SUE: 0.62 | # QB: 0
EPS current Quarter (2026-09-30): EPS=1.47 | Chg30d=-0.82% | Revisions=+8% | Analysts=11
EPS current Year (2026-12-31): EPS=5.95 | Chg30d=+0.13% | Revisions=-14% | GrowthEPS=+25.0% | GrowthRev=+15.6%
EPS next Year (2027-12-31): EPS=7.32 | Chg30d=+0.05% | Revisions=-12% | GrowthEPS=+23.1% | GrowthRev=+24.1%
[Analyst] Revisions Ratio: -14%