A Business at a Glance
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Ares Management Corp
ARES
$36.8B
Mkt Cap
$126.51
+4.31%
Ares Management Corp (ARES) has a current P/E ratio of 65.6, compared to its historical median P/E of 47.6. The stock is currently considered Fair based on its historical valuation range.
Ares Management Corp (ARES) has a 5-year average return on invested capital (ROIC) of 18.0%. This indicates strong capital allocation and a potential competitive advantage.
Ares Management Corp (ARES) does not currently pay a regular dividend.
Based on historical P/E analysis, Ares Management Corp (ARES) appears fair. The current P/E of 65.6 is 38% above its historical median of 47.6. The estimated fair value CAGR (P/E method) is 23.8%.
Ares Management Corp (ARES) operates in the Investment Advice industry, within the Financials sector.
Ares Management Corp (ARES) reported annual revenue of $4.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
Ares Management Corp (ARES) has a net profit margin of 9.0%. This is a modest margin.
Ares is a leading global alternative investment manager with $622.5 billion of assets under management and over 4,250 employees across more than 55 offices in more than 25 countries. The firm operates through four complementary investment groups—Credit, Real Assets, Secondaries, and Private Equity—each offering distinct strategies while leveraging a collaborative, integrated platform that emphasizes cross-sourcing and shared market intelligence across over 55 industries and more than 2,150 portfolio companies. Ares generates revenue primarily through management fees on assets under management and fee-related performance revenues, supplemented by realized performance income from carried interest in its funds; the business model is characterized by recurring management fee revenue from perpetual capital vehicles and drawdown funds, with significant dry powder deployed across market cycles to drive organic AUM growth and fee-paying AUM expansion. The firm's competitive moat derives from its comprehensive multi-asset class expertise enabling investment across the full capital structure, proprietary research capabilities, consistent credit-oriented investment approach, robust direct-origination sourcing model, and a collaborative culture that attracts and retains highly accomplished investment professionals averaging approximately 25 years of experience. Ares serves over 2,850 direct institutional relationships alongside a significant retail investor base through publicly-traded funds, sub-advised accounts, and perpetual wealth vehicles, with geographic diversification across the Americas, Europe, and Asia-Pacific, and has demonstrated a compound annual growth rate in AUM of 26% over the past five years and 21% over the past decade.
【Record fundraising momentum continuing】 Management expects 2026 to deliver record or near-record fundraising, with three of the largest institutional private credit funds launching over the next 12 months and strong institutional demand persisting across the platform. The firm anticipates significant margin expansion in 2026 toward the high end of its 0–150 basis point annual target, driven by continued GCP integration efficiencies, the data center business transitioning from a negative to positive fee-related earnings contributor, and strong AUM and fee-paying AUM growth from deployment. European-style performance fee realizations are expected to reach approximately $350 million in 2026, more than doubling 2025 levels, with meaningful contributions anticipated from real estate market recovery and the diversified non-traded REITs. The firm has $100 billion of already-raised AUM not yet earning fees available for future deployment, providing high visibility into 2026 revenue growth, and management remains confident in the business's positioning for continued growth despite near-term market volatility and slower direct lending activity in certain periods.
| Metric | Target | Period |
|---|---|---|
| FRE margin | 0–150 basis points annual expansion | FY2026 |
| European-style net realized performance income | approximately $350 million | FY2026 |
| Effective tax rate on realized income | 11%-15% | FY2026 |
FRE margin (FY2026): “we expect the 2026 FRE margin to come in at the high end of our annual target range of 0-150 basis points”
European-style net realized performance income (FY2026): “For the full year of 2026, we continue to expect our European-style net realized performance income will total approximately $350 million, which would more than double 2025 levels.”
Effective tax rate on realized income (FY2026): “For 2026, we anticipate an effective tax rate on our realized income to be in the range of 11%-15%.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 5.0B | 4.8B | 3.7B | 3.2B | 2.9B | 4.2B |
| Net Income | 522M | 426M | 441M | 474M | 168M | 387M |
| EPS | $0.00 | - | $1.41 | $1.54 | $0.57 | $1.33 |
| Free Cash Flow | 0 | 3.3B | 2.8B | -233M | -734M | -2.6B |
| ROIC | 0.0% | 10.9% | 16.2% | 27.2% | 9.8% | 25.6% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 0.00 | 4.66 | 4.93 | 10.41 | 10.76 | 9.15 |
| Dividends/Share | $0.00 | - | - | - | $0.61 | $1.88 |
| Operating Income | 0 | 1.3B | 1.3B | 1.3B | 511M | 1.1B |
| Operating Margin | 0.0% | 27.1% | 34.6% | 41.2% | 17.7% | 25.3% |
| ROE | 13.0% | 10.9% | 16.2% | 27.2% | 9.8% | 25.6% |
| Shares Outstanding | 0M | - | 313M | 308M | 295M | 290M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 604M | 814M | 965M | 1.1B | 1.2B | 1.4B | 1.8B | 4.2B | 2.9B | 3.2B | 3.7B | 4.8B | 5.0B |
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | N/A | N/A | N/A | N/A | N/A | N/A | 259M | 444M | 695M | 660M | 737M | 996M | 1.0B |
| EBIT | 557M | 81M | 298M | 150M | 184M | 425M | 379M | 1.1B | 511M | 1.3B | 1.3B | 1.3B | 0 |
| Op. Margin | 92.2% | 10.0% | 30.9% | 13.8% | 15.1% | 29.7% | 21.6% | 25.3% | 17.7% | 41.2% | 34.6% | 27.1% | 0.0% |
| Net Income | 35M | 19M | 98M | 54M | 35M | 127M | 130M | 387M | 168M | 474M | 441M | 426M | 522M |
| Net Margin | 5.8% | 2.3% | 10.2% | 5.0% | 2.9% | 8.9% | 7.4% | 9.2% | 5.8% | 14.7% | 11.9% | 9.0% | 10.3% |
| Non-Recurring | 3.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 1.0% | 7.1% | 36.4% | 6.2% | 3.4% | 18.8% | 13.3% | 25.6% | 9.8% | 27.2% | 16.2% | 10.9% | 0.0% |
| ROE | 1.0% | 7.1% | 36.4% | 6.2% | 3.4% | 18.8% | 13.3% | 25.6% | 9.8% | 27.2% | 16.2% | 10.9% | 13.0% |
| ROA | 0.2% | 0.1% | 1.9% | 0.8% | 0.4% | 1.1% | 1.0% | 2.1% | 0.8% | 2.0% | 1.8% | 1.6% | 1.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 1.5B | -528M | -626M | 1.9B | 1.4B | 2.1B | -426M | -2.6B | -734M | -233M | 2.8B | 3.3B | 1.7B |
| Free Cash Flow | 1.5B | -539M | -638M | 1.8B | 1.4B | 2.1B | -426M | -2.6B | -734M | -233M | 2.8B | 3.3B | 0 |
| Owner Earnings | 1.4B | -565M | -671M | 1.8B | 1.3B | 2.0B | -568M | -2.9B | -1.1B | -646M | 2.3B | 2.3B | 938M |
| CapEx | 17M | 11M | 12M | 33M | 18M | 17M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Maint. CapEx | 35M | 6.9M | 8.2M | 31M | 25M | 17M | 19M | 22M | 160M | 157M | 149M | 239M | 55M |
| Growth CapEx | 0 | 3.8M | 3.7M | 2.7M | 0 | 0 | N/A | N/A | N/A | N/A | N/A | N/A | 0 |
| D&A | 35M | 6.9M | 8.2M | 31M | 25M | 17M | 19M | 22M | 160M | 157M | 149M | 239M | 55M |
| CapEx/OCF | 1.1% | N/A | N/A | 1.8% | 1.3% | 0.8% | N/A | N/A | N/A | N/A | 3.3% | 2.2% | 0.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 25M |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 10M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | N/A | N/A | N/A | 1.0% | N/A | 0.2% | N/A | 1.8% | 1.8% | 0.7% | 0.6% | 1.2% | 0.0% |
| Stock-Based Comp | 63M | 30M | 37M | 68M | 88M | 97M | 123M | 237M | 200M | 256M | 353M | 741M | 686M |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | N/A | N/A | N/A | N/A | 96M | N/A | N/A | N/A | N/A | N/A | N/A | N/A | -569M |
| Cash & Equiv. | -1.4B | 582M | 343M | 119M | 110M | 138M | 540M | 344M | 390M | 348M | 1.5B | 489M | 569M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt/Equity | 52.46 | 13.48 | 15.20 | 4.86 | 0.35 | 13.22 | 10.55 | 9.15 | 10.76 | 10.41 | 4.93 | 4.66 | 0.00 |
| Interest Coverage | N/A | 4.3 | 16.6 | 7.1 | 4726.7 | 10902.1 | 15.2 | 29.0 | 7.2 | 30.7 | 61.1 | 1.9 | 1.9 |
| Equity | 284M | 247M | 293M | 1.5B | 588M | 768M | 1.2B | 1.8B | 1.6B | 1.9B | 3.5B | 4.3B | 4.0B |
| Total Assets | 21.6B | 4.3B | 5.8B | 8.6B | 10.2B | 12.0B | 15.2B | 21.6B | 22.0B | 24.7B | 24.9B | 28.6B | 28.4B |
| Total Liabilities | 14.9B | 3.3B | 4.5B | 7.1B | 8.8B | 10.2B | 12.6B | 16.7B | 17.1B | 19.7B | 17.5B | 19.9B | 20.0B |
| Intangibles | 41M | 85M | 58M | 40M | 31M | 8.0M | 222M | 769M | 640M | 491M | 408M | 798M | 777M |
| Retained Earnings | N/A | N/A | N/A | 0 | -29M | -51M | -152M | -89M | -369M | -495M | -837M | -1.5B | -1.7B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | N/A | N/A | N/A | N/A | 0.35 | 1.10 | 0.50 | 1.33 | 0.57 | 1.54 | 1.41 | N/A | 0.00 |
| Owner EPS | N/A | N/A | N/A | N/A | 12.83 | 17.09 | -2.19 | -9.83 | -3.71 | -2.10 | 7.31 | N/A | N/A |
| Book Value | N/A | N/A | N/A | N/A | 5.79 | 6.67 | 4.60 | 6.28 | 5.39 | 6.16 | 11.32 | N/A | 0.00 |
| Cash Flow/Share | N/A | N/A | N/A | N/A | 13.95 | 18.08 | -1.64 | -8.94 | -2.49 | -0.76 | 8.91 | N/A | 0.00 |
| Dividends/Share | 0.42 | 0.88 | 0.83 | 1.13 | 1.33 | 1.28 | 0.40 | 1.88 | 0.61 | N/A | N/A | N/A | 0.00 |
| Shares Out. | N/A | N/A | N/A | N/A | 101.6M | 115.2M | 259.6M | 290.5M | 294.6M | 307.6M | 313.2M | N/A | 0.0M |
| Valuation | |||||||||||||
| P/E Ratio | 23.6 | 35.3 | 9.0 | 19.5 | 47.0 | 33.4 | 54.1 | 32.7 | 68.1 | 48.3 | 86.3 | 86.3 | N/A |
| P/FCF | N/A | N/A | N/A | N/A | 1.0 | 1.6 | N/A | N/A | N/A | N/A | 19.3 | N/A | N/A |
| EV/EBIT | N/A | 11.2 | 2.9 | N/A | 9.5 | 9.3 | 18.9 | 12.3 | 25.4 | 18.5 | 30.7 | 30.9 | N/A |
| Price/Book | 2.9 | 2.8 | 3.5 | 2.6 | 2.8 | 5.5 | 5.9 | 6.9 | 7.2 | 12.1 | 10.7 | 8.6 | N/A |
| Price/Sales | 1.4 | 1.1 | 0.7 | 0.9 | 2.0 | 1.8 | 3.1 | 2.3 | 4.0 | 4.8 | 7.8 | 6.4 | N/A |
| FCF Yield | 184.0% | -78.7% | -63.0% | 123.0% | 84.3% | 48.6% | -6.0% | -20.6% | -6.4% | -1.0% | 7.3% | 8.9% | N/A |
| Market Cap | 824M | 684M | 1.0B | 1.5B | 1.7B | 4.2B | 7.1B | 12.6B | 11.4B | 22.9B | 38.1B | 36.8B | 0 |
| Avg. Price | 10.73 | 11.23 | 10.15 | 13.22 | 16.36 | 21.24 | 32.27 | 55.75 | 64.04 | 86.18 | 137.27 | 162.08 | 126.51 |
| Year-End Price | 10.21 | 8.43 | 12.22 | 14.44 | 13.98 | 28.41 | 41.25 | 71.75 | 60.09 | 112.21 | 172.33 | 166.46 | 126.51 |
Ares Management Corp passes 3 of 9 quality checks, indicating weak fundamentals.
Ares Management Corp trades at 65.6x trailing earnings, compared to its 15-year median P/E of 47.6x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 8.7x vs a median of 1.6x. The company's 5-year average ROIC is 18.0%. At current prices, the estimated annualized return to fair value is -0.8%.
Ares Management Corp (ARES) generated $3.3 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Ares Management Corp (ARES) has a debt-to-equity ratio of 4.66. This indicates higher leverage, which may increase financial risk.
Ares Management Corp (ARES) has a return on equity (ROE) of 10.9%. This indicates moderate shareholder returns.
The Ledger Terminal provides 14 years of financial data for Ares Management Corp (ARES), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Based on recent SEC filings and earnings disclosures, Management expects 2026 to deliver record or near-record fundraising, with three of the largest institutional private credit funds launching over the next 12 months and strong institutional demand persisting across the platform. The firm anticipates significant margin expansion in 2026 toward the high end of its 0–150 basis point annual target, driven by continued GCP integration efficiencies, the data center business transitioning from a negative to positive fee-related earnings contributor, and strong AUM and fee-paying AUM growth from deployment. European-style performance fee realizations are expected to reach approximately $350 million in 2026, more than doubling 2025 levels, with meaningful contributions anticipated from real estate market recovery and the diversified non-traded REITs. The firm has $100 billion of already-raised AUM not yet earning fees available for future deployment, providing high visibility into 2026 revenue growth, and management remains confident in the business's positioning for continued growth despite near-term market volatility and slower direct lending activity in certain periods.
Based on recent SEC filings and earnings calls, Ares Management Corp (ARES) has provided the following forward guidance: FRE margin: 0–150 basis points annual expansion (FY2026); European-style net realized performance income: approximately $350 million (FY2026); Effective tax rate on realized income: 11%-15% (FY2026).
No recent press releases.