(ARES) Ares Management - Overview
Sector: Financial Services | Industry: Asset Management | Exchange: NYSE (USA) | Market Cap: 40.898m USD | Total Return: -19.4% in 12m
Avg Turnover: 345M
EPS Trend: 97.9%
Qual. Beats: -2
Rev. Trend: 89.1%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Ares Management Corporation (NYSE: ARES) is a global alternative asset manager headquartered in Los Angeles. The firm operates through three primary segments: Direct Lending, Private Equity, and Real Estate. Its investment strategy targets under-capitalized small-to-medium sized enterprises and commercial real estate assets across North America, Europe, and the Asia-Pacific region.
The company’s business model relies on generating management fees and performance-based income by deploying capital into diverse structures, including growth buyouts, mezzanine debt, and distressed assets. Alternative asset managers like Ares often benefit from the permanent capital structure of private credit, which provides a more stable fee base compared to traditional mutual funds during periods of market volatility.
Ares focuses its sector expertise on healthcare, energy, industrials, and consumer services, typically targeting companies with EBITDA between $10 million and $250 million. To gain deeper insights into these fundamental drivers, you may find it useful to explore the analytical tools available on ValueRay. The firm manages a broad spectrum of financing solutions, ranging from minority stakes to majority-control investments in both new developments and asset repositioning projects.
- Direct lending segment growth drives fee-related earnings and management fee expansion
- High interest rate environment boosts yields on floating rate private credit portfolios
- Fundraising momentum in private equity and real estate increases total assets under management
- Credit quality and default rates in middle-market portfolio impact realized performance fees
- Global expansion into Asia and Europe diversifies revenue streams and capital sources
| 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 0.54%; Δ 7.60k% > 0.5%) |
| Asset Turnover: 21.86% > 50% (prev 15.70%; Δ 6.16% > 0%) |
| Interest Coverage Ratio: 2.87 > 6 (EBITDA TTM 2.46b / 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: -0.08 (Book Value of Equity -1.64b / Total Liabilities 20.0b) |
| Altman-Z'' = 0.58 = B |
| DSRI: 0.80 (Receivables 1.44b/1.27b, Revenue 6.07b/4.27b) |
| GMI: 0.70 (GM 76.58% / 53.68%) |
| 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 = -3.18 (Cap -4..+1) = AA |
As of May 24, 2026, the stock is trading at USD 124.41 with a total of 1,693,861 shares traded.
Over the past week, the price has changed by +0.81%,
over one month by +8.39%,
over three months by +10.07% and
over the past year by -19.39%.
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 | 145.4 | 16.8% |
P/E Forward = 20.284
P/S = 6.9211
P/B = 10.8997
P/EG = 1.0152
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 = 54.3b USD (40.9b + Debt 14.9b - CCE 1.44b)
Interest Coverage Ratio = 2.87 (Ebit TTM 2.22b / Interest Expense TTM 771.4m)
EV/FCF = 41.48x (Enterprise Value 54.3b / FCF TTM 1.31b)
FCF Yield = 2.41% (FCF TTM 1.31b / Enterprise Value 54.3b)
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 = 1.91 (Enterprise Value 54.3b / Total Assets 28.4b)
Interest Expense / Debt = 5.18% (Interest Expense 771.4m / Debt 14.9b)
Taxrate = 19.13% (59.9m / 312.9m)
NOPAT = 1.79b (EBIT 2.22b * (1 - 19.13%))
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 = 11.97% (Net Income TTM 711.1m / Total Stockholder Equity 5.94b)
RoCE = 12.94% (EBIT 2.22b / Capital Employed (Equity 5.94b + L.T.Debt 11.2b))
RoIC = 6.31% (NOPAT 1.79b / Invested Capital 28.4b)
WACC = 9.51% (E(40.9b)/V(55.8b) * Re(11.44%) + D(14.9b)/V(55.8b) * Rd(5.18%) * (1-Tc(0.19)))
Discount Rate = 11.44% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 94.39 | Cagr: 7.66%
[DCF] Terminal Value 69.83% ; FCFF base≈1.37b ; Y1≈1.26b ; Y5≈1.12b
[DCF] Fair Price = 6.34 (EV 14.8b - Net Debt 13.4b = Equity 1.41b / Shares 222.0m; r=9.51% [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 (2026-06-30): EPS=1.35 | Chg30d=-1.20% | Revisions=+23% | Analysts=11
EPS next Quarter (2026-09-30): EPS=1.48 | Chg30d=+0.58% | Revisions=+8% | Analysts=10
EPS current Year (2026-12-31): EPS=5.94 | Chg30d=-2.90% | Revisions=-60% | GrowthEPS=+24.8% | GrowthRev=+15.6%
EPS next Year (2027-12-31): EPS=7.32 | Chg30d=-1.41% | Revisions=-18% | GrowthEPS=+23.2% | GrowthRev=+24.1%
[Analyst] Revisions Ratio: -60%