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Ares Management Corporation (ARES) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Ares Management Corporation

ARESMarket cap $26BPrice $115.8

Country🇺🇸United States

SectorFinancials

IndustryCapital Markets

Manages alternative investments across private credit, real estate, and private equity, controlling over $450 billion in assets. Built its empire lending to companies banks won't touch, turning post-financial-crisis caution into a lending powerhouse Wall Street can't ignore.

In Bastion Portfolios?

52W Return-17%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+23%9

Revenue Forecast

Rev CAGR (1y)+2%3

Rev CAGR (3y)+11%7

Rev CAGR (5y)+15%9

Earnings Forecast

EPS Growth Y+1+261%10

EPS Growth Y+2+26%8

EPS Growth Y+3+20%8

Quality

Margins

EBIT Margin0%7

Net Income Margin12%6

Free Cash Flow Margin16%7

Debt

Net Debt/EBITDAna–

Efficiency

ROE18%7

ROA5%6

Earnings Stability55

GEAR+AVERAGE43

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)175

P/E Ratio (Forward 3y)126

P/BV15.21

EV Multiples

EV/EBITDA Fwd125

EV/EBIT Fwd125

Yield

Free Cash Flow Yield0.0%2

Dividend Yield4.7%9

Momentum

Short term

1 month return-16%1

3 month return-1%6

YTD return-26%2

Mid term

Price vs 52wHigh67%3

1 year return-20%3

Long term

3 year return+17%4

5 year return+75%7

Risk Shield

Price Risk

Beta1.71

Volatility44%4

Free Cash Flow

Free Cash Flow Margin16%7

Free Cash Flow Yield0.0%2

Quality

ROCE2%6

Earnings Stability55

Net Debt/EBITDAna–

02Growth

Is it actually growing, and how fast?

ARESAres Management

Revenue FY25$5.6B

GROWTH RATING↗

STRONG73 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+23%9

Revenue, next 1Y+2%3

Revenue, next 3Y, CAGR+11%7

Revenue, next 5Y, CAGR+15%9

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+261%10

EPS growth, FY27E+26%8

EPS growth, FY28E+20%8

GROWTH ASSESSMENT

STRENGTHS

It out-grows 73% of companies worldwide.

Revenue grew 23%/yr over the last 3 years, ahead of 80% of companies worldwide.9/10

The runway holds up: revenue is set to grow 15%/yr over five years.9/10

Earnings are set to grow faster than sales (EPS about 26%/yr vs revenue 11%/yr), so margins should widen.

WATCH

Revenue is set to grow 11%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 23%/yr over the last 3 years; forecasts see it cooling to 11%/yr.

WEAKNESSES

None flagged.

BOTTOM LINE

Elite Compounder

A top-tier grower that is slowing. The one thing to watch: the pace is cooling.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK25 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-16%1

3-month return-1%6

YTD return-26%2

MID & LONG-TERM▾SCORE

% of 52-week high67%3

1-year return-20%3

3-year return+17%4

5-year return+75%7

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+17% over three years and +75% over five), roughly average for the market.

Returns sit at the market level over three months (-1%).

WEAKNESSES

It's down 20% over the past year, now 33% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-16%) and so far this year (-26%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the one-year trend is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Ares Management Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

ARESAres Management

Revenue FY25$5.6B

GROWTH RATING↗

STRONG73 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+23%9

Revenue, next 1Y+2%3

Revenue, next 3Y, CAGR+11%7

Revenue, next 5Y, CAGR+15%9

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+261%10

EPS growth, FY27E+26%8

EPS growth, FY28E+20%8

GROWTH ASSESSMENT

STRENGTHS

It out-grows 73% of companies worldwide.

Revenue grew 23%/yr over the last 3 years, ahead of 80% of companies worldwide.9/10

The runway holds up: revenue is set to grow 15%/yr over five years.9/10

Earnings are set to grow faster than sales (EPS about 26%/yr vs revenue 11%/yr), so margins should widen.

WATCH

Revenue is set to grow 11%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 23%/yr over the last 3 years; forecasts see it cooling to 11%/yr.

WEAKNESSES

None flagged.

BOTTOM LINE

Elite Compounder

A top-tier grower that is slowing. The one thing to watch: the pace is cooling.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK25 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-16%1

3-month return-1%6

YTD return-26%2

MID & LONG-TERM▾SCORE

% of 52-week high67%3

1-year return-20%3

3-year return+17%4

5-year return+75%7

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+17% over three years and +75% over five), roughly average for the market.

Returns sit at the market level over three months (-1%).

WEAKNESSES

It's down 20% over the past year, now 33% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-16%) and so far this year (-26%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Ares Management Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community