ARES Stock Analysis: Ares Management | NYSE
Asset Management | NYSE, USA | Market Cap: 47.505m USD | 12M Return: -17.4% | US03990B1017 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 322M
EPS Trend: 98.4%
Qual. Beats: 0
Rev. Trend: 94.1%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.6 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: 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 (1.57b): 8.81 < 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: 1.80 > 6 (EBIT TTM 1.33b / 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: 0.05 (EBIT TTM 1.33b / Avg Total Assets 28.4b) |
| D: 0.19 (Book Value of Equity 3.97b / Total Liabilities 21.0b) |
| Altman-Z'' = 0.22 = B |
As of August 23, 2026, the stock is trading at USD 141.25 with a total of 1,172,500 shares traded. Over the past week, the price has changed by -1.92%, over one month by +16.95%, over three months by +15.07% and over the past year by -17.43%.
Current recommended Stop Loss: 133.70 (which is 5.3% or 1.4 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 | 146.5 | 3.7% |
P/E Trailing = 68.581
P/E Forward = 23.1481
P/S = 7.9338
P/B = 12.3781
P/EG = 1.3005
Revenue TTM = 6.15b USD
EBIT TTM = 1.33b USD
EBITDA TTM = 1.57b 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 = 61.3b USD (47.5b + Debt 15.7b - CCE 1.85b)
Interest Coverage Ratio = 1.80 (Ebit TTM 1.33b / Interest Expense TTM 738.5m)
EV/FCF = 73.36x (Enterprise Value 61.3b / FCF TTM 836.1m)
FCF Yield = 1.36% (FCF TTM 836.1m / Enterprise Value 61.3b)
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 = 2.07 (Enterprise Value 61.3b / Total Assets 29.6b)
Interest Expense / Debt = 4.71% (Interest Expense 738.5m / Debt 15.7b)
Taxrate = 18.31% (304.6m / 1.66b)
NOPAT = 1.08b (EBIT 1.33b * (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 = 8.81 (Net Debt 13.8b / EBITDA 1.57b)
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 = 8.45% (EBIT 1.33b / Capital Employed (Equity 4.19b + L.T.Debt 11.5b))
RoIC = 3.80% (NOPAT 1.08b / Invested Capital 28.6b)
WACC = 9.52% (E(47.5b)/V(63.2b) * Re(11.40%) + D(15.7b)/V(63.2b) * Rd(4.71%) * (1-Tc(0.18)))
Discount Rate = 11.40% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 95.03 | Cagr: 7.42%
[DCF] Terminal Value 68.83% ; FCFF base≈2.09b ; Y1≈1.84b ; Y5≈1.48b
[DCF] Fair Price = 27.53 (EV 19.9b - Net Debt 13.8b = Equity 6.11b / Shares 222.0m; r=9.52% [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=1.31 | Chg30d=-11.13% | Revisions=-42% | Analysts=13
EPS current Year (2026-12-31): EPS=5.85 | Chg30d=-1.42% | Revisions=-67% | GrowthEPS=+22.9% | GrowthRev=+16.4%
EPS next Year (2027-12-31): EPS=7.19 | Chg30d=-1.78% | Revisions=-19% | GrowthEPS=+22.9% | GrowthRev=+17.3%
[Analyst] Revisions Ratio: -49% (up=8, down=26)