Ares Management Corporation
$123.13
-4.4%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.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is elevated (P/E 62.8).
Valuation inputs: P/E 62.8, earnings yield +1.6%, momentum -4.4%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is acceptable (ROE +12.3%, ROIC +5.1%).
Profitability stack: net margin +8.2%, ROE +12.3%, ROIC +5.1%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +70.0%, momentum -4.4%, net margin +8.2%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Ares Management Corporation Market vs Earnings Trajectory
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Ares Management Corporation Fair Value Envelope
Ares Management Corporation Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Outstanding operational efficiency. The company generates substantial profit from core operations.
Net Profit Margin
Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
High margin compression: Large gap between gross and net margins suggests operational inefficiencies or heavy debt burden. Focus on expense management and deleveraging.
Ares Management Corporation Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.
Ares Management Corporation Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Financial Health Insight
Mixed signals: Strong short-term liquidity provides comfort, but high overall leverage requires careful monitoring of debt servicing capabilities and refinancing risk.
Ares Management Corporation Street Expectations Map
Wall Street analysts project that ARES stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 171.13, with estimates ranging from a low of 140.00 to a high of 215.00.
The consensus 1-year price target stands at 171.13, with estimates ranging from a low of 140.00 to a high of 215.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Mixed analyst views. Wide target range suggests differing opinions on key value drivers, growth prospects, or risk factors.
Analyst Conviction
Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Ares Management Corporation Insider Positioning
During the last 12 months, insiders have purchased $1.33M and sold $83.23M worth of ARES shares, resulting in $81.91M of net selling activity.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
10.5K
1.33M
1.5K
239.54K
+1.1M
+$1.09M
6-9 Months
0
0.00
156.7K
24.53M
-24.5M
-$24.53M
9-12 Months
0
0.00
325.1K
58.46M
-58.5M
-$58.46M
Top Buyers
Bhutani Ashish
Director
$1.27M
Olian Judy D.
Director
$60K
Top Sellers
Ressler Antony P
Director, 10 Percent Owner, Officer: Co-Founder & Exec. Chairman
$43.84M
Arougheti Michael J
Director, Officer: Co-Founder And Ceo
$31.28M
Rosenthal Bennett
Director, Officer: Co-Founder & Chairman Of Peg
$7.65M
Sagati Aghili Naseem
Officer: General Counsel
$458K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $81.91M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Insider Participation
4 insider sellers vs. 2 buyers. More insiders selling than buying suggests cautious or negative sentiment.
ares Dividend History
Learning Layer
Related Guides
Build conviction on ARES by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.