Ares Management CorporationARESNYSE
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Executive Summary
Latest Data: Dec 2025Financial Services•Asset Management
$44.0BLarge Cap
A mid-sized company, operating profitably, showing strong growth priced at a premium.
Key Investment Themes
High-growth business (67% revenue expansion)
Premium valuation (56.1x P/E)
Business Narrative
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.
Financial ServicesAsset Management
High Growth
medium confidence
Revenue Mix
Single segment business
Bull Case
- +Strong revenue growth demonstrates market share expansion
Bear Case
- -Premium valuation leaves limited margin of safety
Company at a Glance
Business Performance
Key Highlights
Positive Signals
- Exceptional revenue growth exceeding 25% annually
- Conservative balance sheet with low debt levels
Watch Areas
- Negative free cash flow - burning cash
- Current liabilities exceed current assets
- Premium valuation requires continued strong execution
Financial Health
Liquidity
Concern
Current Ratio0.00
<1.0 = Weak
Cash & Equivalents$2.7B
Leverage
Concern
Debt / Equity0.00
<1.0 = Low leverage
Interest Coverage0.00x
<2x = Tight
Efficiency
Concern
Return on Equity0.0%
<8% = Weak
Return on Capital0.0%
<8% = Weak
Valuation Assessment
Market Cap
$44.0B
Large Cap
P/E (TTM)
56.1x
Elevated
vs 5Y avg: 58.5x (-4%)
P/S (TTM)
10.1x
Elevated
vs 5Y avg: 5.5x (+84%)
EV/EBITDA
28.6x
Elevated
vs 5Y avg: 22.3x
(+29%)
(+29%)
P/E Historical Range (5Y)
Min: 32.5xAvg: 58.5xNow: 56.1xMax: 75.6x
P/S Historical Range (5Y)
Min: 3.2xAvg: 5.5xNow: 10.1xMax: 9.0x
EV/EBITDA Historical Range (5Y)
Min: 19.4xAvg: 22.3xNow: 28.6xMax: 26.0x
Valuation Corridor
CHEAP
FCF Yield
5.6%
vs Cost of Capital ~8.0% = Strong
P/E Corridor (5Y)56.1x
32.5xFair: 40.1x-75.6x75.6x
P/S Corridor (5Y)10.1x
3.2xFair: 3.2x-7.8x9.0x
EV/EBITDA Corridor (5Y)28.6x
19.4xFair: 19.4x-25.1x26.0x
Detailed Financials
Comprehensive financial statement data for deep analysis
| Metric | Dec 21 | Dec 22 | Dec 23 | Dec 24 | Dec 25 |
|---|---|---|---|---|---|
| Return on Equity | - | - | - | - | - |
| Return on Invested Capital | - | - | - | - | - |
| Gross Margin | 72.4% | 51.0%↓29.6% | 59.1%↑15.9% | 55.4%↓6.2% | 30.0%↓45.9% |
| Operating Margin | 19.0% | 10.0%↓47.3% | 23.0%↑129.0% | 24.4%↑6.1% | 27.2%↑11.8% |
| Net Margin | 9.7% | 5.5%↓43.5% | 13.1%↑138.2% | 11.9%↓8.6% | 8.2%↓31.7% |
| Earnings Yield | - | - | - | - | - |
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