Ares Management Corporation (ARES) AI Stock Analysis

Ares Management Corporation is an alternative asset manager with operations globally, headquartered in Los Angeles, California. The firm manages investment funds across tradable credit, direct lending, private equity, and real estate sectors. Ares has also expanded into digital assets and cryptocurrencies to broaden its portfolio and provide institutional and retail investors with new avenues for diversification. It operates offices across the United States, Europe, and Asia, employing 4,343 people.

Between FY2020 and FY2025, Ares posted a 5-year revenue CAGR of 29.7%. Annual revenue rose 66.6% in FY2025 to $6.47B from $3.88B in FY2024, while net income increased to $527.4M with an operating margin of 27.2%. Over the trailing twelve months, revenue reached $5.25B, operating margin stood at 9.5%, and net profit margin was 12.1%. In the latest quarter ended June 30, 2026, quarterly revenue grew 9.6% year-over-year, while quarterly earnings increased 6.5%.

As of June 30, 2026, Ares held $1.85B in cash and short-term investments against $14.87B in total debt, leaving net debt at $13.02B. Shareholders' equity was $3.97B, resulting in a debt-to-equity ratio of 3.75 and a current ratio of 0.83. During FY2025, operating cash flow reached $3.27B and capital expenditures were $72.2M, yielding free cash flow of $3.19B. Capital returns in FY2025 included $946.4M in share buybacks and $1.76B in dividends paid, while share count grew 19.8% over five years.

Ares trades at a trailing P/E of 51.7x and a forward P/E of 17.0x, compared to medians of 14.2x and 12.2x for its S&P 500 Financial Services peers. The stock's price-to-sales ratio is 7.1x, above the peer median of 3.1x, while EV-to-EBITDA stands at 18.4x against the peer median of 15.1x. Ares has a PEG ratio of 0.90. Over the past year, the stock fell 16.8%, underperforming the 16.8% gain for the S&P 500 benchmark.

Ares pays a forward annual dividend of $5.40 per share, offering a dividend yield of 4.81% with a payout ratio of 100.0%. Dividends are distributed quarterly and have been paid for 13 consecutive years, with an annualized 5-year dividend growth rate of 27.2%. The last ex-dividend date was September 16, 2026.

Wall Street coverage includes 8 Strong Buy, 5 Buy, and 7 Hold ratings, with no Sell or Strong Sell ratings. The mean price target is $145.15, implying 29.3% upside from the last close of $112.27. For the fiscal year ending December 31, 2026, analysts expect revenue of $4.93B and EPS of $5.76. Ares has beaten EPS estimates in 1 of the last 4 quarters, and its next earnings date is October 29, 2026.

This page is an AI-written research summary of Ares Management Corporation (ARES). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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