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Ares Management
(NYSE:ARES)
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Rating:62Neutral
Price Target:
$129.00
â–²(9.53% Upside)
Action:Reiterated
Date:07/11/26
The score is driven by strong earnings-call momentum and reiterated growth/dividend targets, but constrained by weaker underlying financial quality in the latest period—especially negative TTM free cash flow and historically volatile leverage. Technicals are neutral-to-soft and valuation is relatively expensive (high P/E), with the dividend yield providing partial support.
Positive Factors
Scale & Fee Base Growth
Material scale and growing fee-paying AUM increase the predictability of recurring management fees. A larger, diversified AUM base smooths revenue volatility across strategies, strengthens distribution leverage, and enhances long-term fee revenue visibility for multiple market cycles.
Negative Factors
Weak Cash Conversion
Persistently volatile and recently negative free cash flow constrain the firm's ability to fund distributions, organic growth, and balance-sheet commitments from internal cash. Variable cash conversion increases reliance on external financing and heightens execution risk across cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & Fee Base Growth
Material scale and growing fee-paying AUM increase the predictability of recurring management fees. A larger, diversified AUM base smooths revenue volatility across strategies, strengthens distribution leverage, and enhances long-term fee revenue visibility for multiple market cycles.
Read all positive factors
Ares Management Key Performance Indicators (KPIs)
Any
Fee-Related Earnings By Segment
Details earnings derived from management and advisory fees across segments, indicating the stability and growth potential of the company's revenue streams.
Details earnings derived from management and advisory fees across segments, indicating the stability and growth potential of the company's revenue streams.
Data provided by:
The Fly
The FlyAres Management (ARES) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.46B
Dividend Yield3.93%
Average Volume (3M)2.22M
Price to Earnings (P/E)55.6
Beta (1Y)1.66
Revenue Growth46.89%
EPS Growth21.89%
CountryUS
Employees4,250
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)2.26
Shares Outstanding222,028,430
10 Day Avg. Volume1,761,906
30 Day Avg. Volume2,224,489
Financial Highlights & Ratios
PEG Ratio-15.52
Price to Book (P/B)8.22
Price to Sales (P/S)5.43
P/FCF Ratio11.00
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$143.73Price Target Upside22.03% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)5.94
Revenue Forecast (FY)$5.72B
Ares Management Business Overview & Revenue Model
Company Description
Ares Management Corporation functions as an investment firm specializing in alternative assets, with operations spanning the United States, Europe, and Asia. Its Tradable Credit division oversees diverse investment vehicles, including pooled funds...
How the Company Makes Money
Ares primarily makes money by earning fees for managing third-party capital and, to a lesser extent, by earning performance-based income and investment income. (1) Management fees: The core revenue stream is recurring management fees charged to th...
Ares Management Earnings Call Summary
Earnings Call Date:May 01, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 31, 2026
Earnings Call Sentiment Positive
The call emphasized broad-based growth and strong operational momentum: record fundraising, double-digit growth across AUM, management fees and FRE, significant available capital and solid reported returns across strategies. The main negatives were localized and manageable: moderated retail/non-traded BDC flows, a near-term slowdown in U.S. Direct Lending deal activity (driven by geopolitical and macro uncertainty), Q1 cadence effects on realizations and some short-term interest expense seasonality. Management framed these headwinds as limited in scope relative to the platform's scale and optionality, highlighting dry powder and diversified pipelines to capitalize on dislocations.Positive Updates
Strong AUM and Fee-Paying AUM Growth
Total AUM rose 18% year-over-year to $644 billion and fee-paying AUM increased 19% to $400 billion, supporting fee revenue expansion and long-term fee visibility.
Negative Updates
Moderation in Non-Traded BDC / Retail Flows
Equity flows into the non-traded BDC moderated relative to prior periods and Q1 repurchase requests were concentrated among a limited set of family offices and smaller institutions; management noted these products constitute ~4.5% of fee-paying AUM and modeled a stressed redemption scenario that could reduce FPAUM by ~1% annually.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong AUM and Fee-Paying AUM Growth
Total AUM rose 18% year-over-year to $644 billion and fee-paying AUM increased 19% to $400 billion, supporting fee revenue expansion and long-term fee visibility.
Read all positive updates
Company Guidance
Management reiterated they are on track for 2026 and left detailed quantitative targets intact: a quarterly dividend of $1.35 per share (up >20% YoY) will be paid June 30, and longer‑term compound annual growth goals remain 16–20% for FRE, 20–25% for realized income and 20% for dividends. Q1 metrics underpinning that guidance included AUM up 18% YoY to $644bn, fee‑paying AUM/FPAUM up 19% to $400bn, available capital >$158bn with credit dry powder >$100bn, $30bn of gross capital raised in Q1 (+46% YoY; $20bn in Credit), deployment >$32bn, management fees >$1bn (+22% YoY), FRE $454m (+26% YoY) with FRE margin +90bps to 42.4% (management expects margin expansion toward the high end of its target and to be at the upper end of the 0–150bps annual improvement range), realized income $503m (+24% YoY) including $75m of realized net performance (+84% YoY), after‑tax realized income per share $1.24 (+14% YoY), a Q1 tax rate of 13.5% (guidance 11–15%), interest expense $51m, Wealth AUM $68bn (+54% YoY) with Q1 gross/net wealth equity capital of $4bn/$3bn, and the company reiterated its realization cadence guidance and that it will file the Form 10‑Q later this month.Ares Management Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
56
Neutral
Cash Flow
32
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.31B | 6.47B | 3.88B | 3.63B | 3.06B | 4.21B |
| Gross Profit | 4.46B | 4.84B | 2.15B | 2.15B | 1.56B | 3.05B |
| EBITDA | 2.42B | 2.30B | 2.41B | 2.43B | 1.33B | 1.47B |
| Net Income | 622.78M | 527.36M | 463.74M | 474.33M | 167.54M | 408.84M |
Balance Sheet | ||||||
| Total Assets | 28.39B | 28.99B | 24.88B | 24.73B | 22.00B | 21.61B |
| Cash, Cash Equivalents and Short-Term Investments | 1.44B | 1.50B | 2.74B | 1.50B | 1.11B | 1.39B |
| Total Debt | 14.15B | 14.91B | 13.15B | 15.76B | 13.33B | 12.49B |
| Total Liabilities | 20.01B | 20.29B | 18.06B | 20.26B | 18.20B | 17.79B |
| Stockholders Equity | 4.03B | 4.28B | 3.54B | 1.89B | 1.59B | 1.83B |
Cash Flow | ||||||
| Free Cash Flow | 1.61B | 3.19B | 2.70B | -300.44M | -769.91M | -2.62B |
| Operating Cash Flow | 1.68B | 3.27B | 2.79B | -233.26M | -734.11M | -2.60B |
| Investing Cash Flow | 271.57M | -1.80B | -159.40M | -111.08M | -337.38M | -1.08B |
| Financing Cash Flow | -1.88B | -2.43B | -1.43B | 292.13M | 1.13B | 3.50B |
Ares Management Technical Analysis
Positive
117.78
Price Trends
123.06
Positive
116.08
Positive
132.94
Negative
Market Momentum
0.39
Negative
56.96
Neutral
78.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARES, the sentiment is Positive. The current price of 117.78 is below the 20-day moving average (MA) of 119.08, below the 50-day MA of 123.06, and below the 200-day MA of 132.94, indicating a neutral trend. The MACD of 0.39 indicates Negative momentum. The RSI at 56.96 is Neutral, neither overbought nor oversold. The STOCH value of 78.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARES.
Ares Management Risk Analysis
Ares Management disclosed 1 risk factors in its most recent earnings report. Ares Management reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ares Management Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $155.02B | 32.45 | 36.16% | 3.02% | 17.79% | 17.92% | |
68 Neutral | $14.84B | 73.46 | 3.89% | 5.45% | 19.26% | -20.10% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $16.81B | 53.83 | 12.56% | 3.03% | 11.60% | 28307.69% | |
62 Neutral | $41.46B | 55.61 | 14.54% | 2.65% | 46.89% | 21.89% | |
62 Neutral | $90.63B | 32.04 | 9.92% | 0.56% | 35.81% | 27.22% | |
54 Neutral | $16.58B | 30.26 | 9.65% | 2.30% | -26.37% | -49.86% |
* Financial Sector Average
ARES
Ares Management
121.27
-51.25
-29.71%
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OWL
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9.35
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Ares Management Corporate Events
Financial DisclosuresRegulatory Filings and Compliance
Ares Management Sees Strong Jump in Q2 Performance
Positive
Jul 10, 2026
Ares Management disclosed that, based on preliminary information, it expects realized net performance income for the quarter ending June 30, 2026 to exceed $50 million, sharply higher than the $16 million recorded for the quarter ended June 30, 20...
Executive/Board ChangesShareholder Meetings
Ares Management Shareholders Reelect Board, Confirm Auditor
Positive
Jun 11, 2026
On June 8, 2026, Ares Management Corporation held its annual meeting of stockholders, with more than 1.1 billion votes eligible across its Class A, B, and C common shares as of the April 13, 2026 record date. All 11 director nominees, including Ch...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Ares Management Expands and Extends Corporate Credit Facility
Positive
May 28, 2026
On May 21, 2026, Ares Holdings L.P., a subsidiary of Ares Management Corporation, amended its Sixth Amended and Restated Credit Agreement to extend the maturity of its credit facility to May 21, 2031 and increase revolving commitments to $2.5 bill...
Business Operations and StrategyDividendsFinancial Disclosures
Ares Management Posts Strong Q1 Results, Declares Dividend
Positive
May 1, 2026
On May 1, 2026, Ares Management reported first-quarter 2026 results, posting GAAP net income attributable to the company of $142.6 million, or $0.46 per share, and after-tax realized income of $452.4 million, or $1.24 per Class A share, alongside ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.