ARES

Ares Management Corporation

Fundamental data last updated:June 10, 2026

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company profile

SECTOR

Financial Services

industry

Asset Management

Exchange

NYSE

County of HQ

US

Next Earnings Date

07/30/2026

Business Summary

Ares Management Corporation operates as an alternative asset manager in the United States, Europe, and Asia. The company's Tradable Credit Group segment manages various types of investment funds, such as commingled and separately managed accounts for institutional investors, and publicly traded vehicles and sub-advised funds for retail investors in the tradable and non-investment grade corporate credit markets. Its Direct Lending Group segment provides financing solutions to small-to-medium sized companies. The company's Private Equity Group segment focuses on majority or shared-control investments primarily in under-capitalized companies. Its Real Estate Group segment invests in new developments and the repositioning of assets, with a focus on control or majority-control investments; and originates and invests in a range of self-originated financing opportunities for middle-market owners and operators of commercial real estate. The firm was previously known as Ares Management, L.P. Ares Management Corporation was founded in 1997 and is headquartered in Los Angeles, California with additional offices in the United States, Europe and Asia. Ares Management GP LLC is the general partner of the company.

 


VALUATION

P/E

46.49

Market Cap ($M USD)

$42.44B

Forward P/E

13.96

PEG

0.06

PRICE TO SALES

6.73

PRICE TO BOOK

7.19

EV / EBITDA

22.82

5-Year Average P/E

Free Cash Flow Yield

3.80%

DCF Value

$94.13

Graham Number

$33.52

Price to FCF

26.30

EV to FCF

34.18

Earnings Yield

2.15%

FCF Yield

3.80%

DIVIDEND

Yield

3.64%

Annual Payout

$4.71

Payout Ratio

294.54%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$2.78

Next Year EPS Growth Estimate

$9.26

Next Year Revenue Growth Estimate

$1.18T

Return on Equity (ROE)

14.54%

FREE CASH FLOW

Operating Margin

22.90%

Debt-to-Equity

3.49

Piotroski F-Score

7

Altman Z-Score

1.75

Return on Invested Capital (ROIC)

5.10%

Current Ratio

49.67

Quick Ratio

49.67

Net Debt to EBITDA

5.26

Interest Coverage

1.88

Gross Profit margin

70.73%

FCF PER SHARE

$7.20

REVENUE PER SHARE

$28.15

Gainseekers Quantitative Analysis

Summary

The market seems to be mispricing Ares Management Corporation, trading above its DCF value and Graham Number. With a Forward P/E of 13.61, the stock appears attractively valued for future earnings growth, yet the current P/E of 45.42 suggests a premium for its past performance. The Earnings Yield of 2.20% is modest, indicating limited immediate income potential. The Altman Z-score of 1.64 raises concerns about financial distress, suggesting caution despite the optimistic consensus rating. Overall, the valuation reflects a complex mix of growth potential and financial vulnerability.

AI Exposure / Tech Reliance

As an asset management firm, Ares Management is well-positioned to leverage AI and tech advancements to enhance investment strategies and operational efficiencies. The industry is increasingly reliant on data analytics and machine learning to drive decision-making and optimize portfolio performance. Ares' ability to integrate these technologies could provide a competitive edge in asset allocation and risk management.

The Bull Case

For the value or GARP investor, Ares Management presents a compelling opportunity. The company boasts a robust ROIC of 5.22%, indicating efficient capital use. A Piotroski F-Score of 7 suggests strong financial health, while an operating margin of 22.90% underscores its pricing power. Despite a negative FCF Yield, the high gross profit margin of 70.73% reflects its ability to generate substantial revenue from its operations, hinting at potential for future cash flow improvements.

The Bear Case

However, structural risks loom large for Ares Management. The Price/Book ratio of 7.03 and Price/Sales ratio of 6.57 signal a potentially overvalued stock, especially given the negative FCF Yield and Price to FCF ratio of -1120.15. The stock's proximity to its 52-week high, with a 54.66% distance, suggests technical overextension. Additionally, a payout ratio of 294.54% raises red flags about the sustainability of its dividend policy.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$171.13

Institutional Ownership %

1-Year Beta

1.52

Insider Buying % (6 Mo)

Distance to 52-Week High

51.09%

Distance to 52-Week Low

25.87%

EARNINGS SURPRISE %

-6.77%

50-DAY SMA

$115.23

200-DAY SMA

$145.09

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.