Ares Management CorporationARES
NYSE•Financial Services•Asset Management
Ares Management Corporation operates as an alternative asset manager. Its Direct Lending Group segment provides financing solutions to small-to-medium sized companies. The company's Private Equity Group segment specializes in early venture, turnaround, mid venture, late venture, recapitalization, growth capital, middle market, mezzanine, distressed and growth buyouts. The firm seeks to invest in healthcare, services, energy, industrials and consumer. The firm seeks to takes majority, minority and shared-control investments primarily in under-capitalized companies in North America, Europe, Asia Pacific, Southeast Asia and Australia. 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 prefers to invest between $1 million and $500 million in companies having EBITDA between $10 million and $250 million and debt investment value between $10 million and $100 million. Ares Management Corporation was founded in 1997 and is based in Los Angeles, California with additional offices in North America, Europe and Asia.
Ares Management Corporation (ARES) reported trailing twelve months revenue of $5.91B as of March 2026, a 38.5% increase year-over-year. Quarterly revenue reached $1.40B, reflecting continued top-line momentum.
Ares Management Corporation generated $990.33M in TTM net income, with quarterly EBITDA of $227.97M. The operating margin expanded from 6.8% to 16.3%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (16.3%) and net margin (16.0%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 6.2% a year ago, signaling stronger bottom-line efficiency.
ARES trades at a P/E of 24.4x (in line with broad market averages) and a P/S of 4.1x. The price-to-book ratio of 6.0x indicates a significant premium over book value.
The company generated $390.87M in free cash flow over the trailing twelve months, a 80.2% decrease year-over-year, indicating cash generation ability. The balance sheet shows $28.39B in total assets with $11.19B in long-term debt against $4.03B in stockholders equity for a debt-to-equity ratio of 2.8, a relatively leveraged position. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~19.0% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 25.5% suggests a durable competitive advantage and efficient capital allocation.
7 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (7 of 7 quarters up), with ~83.4% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Operating margins declined 14.1% — watch for continued compression, which may signal competitive or cost pressure.
FCF covers net income by 4.7x on average — earnings are well-supported by cash generation.
D/E ratio of 2.8 is elevated. Monitor for further debt accumulation.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares outstanding increased 14.2% — significant dilution, likely from stock compensation or capital raises.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation