Ares Management CorporationARES
NYSE • Financial Services
$122.51
P/E
54.21
PEG
0.27
FCF Yield
—
Rev Growth YoY
+40.8% YoY
Gross Margin
96.1%
Health Score
6/10
D/E Ratio
3.49
Confidence
—
Business Snapshot
Ares Management is a global alternative investment manager operating in the asset management industry, generating revenue primarily through management fees and performance fees from its credit, private equity, real estate, and infrastructure strategies. It competes as a mid-to-large player alongside firms like Blackstone and KKR, with a significant presence in direct lending and private credit. The company reported TTM revenue of $6.31 billion, indicating large-cap financial scale. A defining characteristic is its high gross margin of 96.1%, reflecting the asset-light nature of fee-based income in alternative asset management.
Financial Health
Gross margin stands at 96.1%, up sharply from 72.6% in the prior year, while net margin is 9.4%. Debt/equity of 3.49x is elevated, indicating significant leverage, though the current ratio of 2.24x provides adequate short-term liquidity...
Risk Assessment
- VALUATION — P/E of 54.21x is over 3x the sector average of 16x, implying high expectations that leave little room for error.
- EARNINGS QUALITY — Only 1 of the last 4 quarters beat analyst estimates, a low hit rate that reduces confidence in management's forecasting and operational consistency.
- REVENUE DECELERATION — While YoY revenue grew 40.8%, the most recent quarter saw a 13....