ARES Ares Management

Ares Management is a global alternative investment manager focused on credit, private equity, and real estate strategies with a large direct lending franchise. Sector: Financials.

Ares Management (ARES) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

Looking at how effectively the company deploy capital, ROIC is 3.75%, WACC is 10.78%, and the economic spread is -7.03%. On balance, capital is being deployed at rates below what debt and equity holders require, a headwind to long-term value creation if sustained. Supporting metrics show ROE at 13.01% and ROA at 2.15%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that likely needs operating improvement before returns quality can be considered durable.

On an earnings multiple basis, trailing P/E of 59.33, forward P/E of 16.11, PEG of 0.86. Forward P/E sits materially below trailing P/E, which supports the view that earnings expectations are improving and the company looks cheaper on forward numbers. At this PEG level, growth-adjusted valuation looks attractive — the market appears to be paying a reasonable price for the earnings growth embedded in estimates. A current ratio reading of 0.83 suggests the company carries less short-term financial cushion than the broader market average. Combining multiples and liquidity, the company appears adequately priced for its current earnings trajectory, with balance sheet health providing a degree of downside resilience.

Across the three margin layers, gross margin sits at 45.37%, operating margin at 16.90%, and free cash flow margin at 57.03%. Gross margins sit in a healthy range, consistent with businesses that manage input costs effectively. Operating margins are in good shape, consistent with businesses that maintain reasonable earnings conversion after overhead. Free cash flow conversion is exceptional, indicating the company that are self-funding and cash-generative well above average. This margin configuration supports a cautious interpretation: profitability exists, though durability is less certain under stress.

Two key indicators frame the near-term view: TTM revenue growth of 19.53% a signal of steady demand without the volatility of high-growth names, while the estimated 12-month price change of 65.72%, where consensus pricing assumptions suggest sizable appreciation potential. The near-term return case is built on whether reported trends and analyst projections can remain close enough to make current prices look justified. Whether the setup resolves positively or negatively will depend as much on the macro backdrop as on the capacity of the company to deliver against current estimates. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

Balancing the strengths against the areas of uncertainty, the weight of evidence favors an optimistic view with appropriate risk awareness.

The analysis above draws from quantitative data only and does not constitute personalized financial advice. Investors should conduct independent research and consider professional guidance before acting on any information presented here.