Ares Management Corporation (ARES) 10-Year Financial Performance & Capital Metrics

ARES • • Banking & Credit

Financial ServicesAsset ManagementAlternative Asset ManagementCredit & Direct Lending Specialists

AboutAres 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. The company's Private Equity Group segment focuses on majority or shared-control investments primarily in under-capitalized companies. 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 was previously known as Ares Management, L.P. Ares Management Corporation was founded in 1997 and is headquartered in Los Angeles, California with additional offices in the United States, Europe and Asia. Ares Management GP LLC is the general partner of the company.Show more

Net Interest Income -$2M -101.2%
Total Revenue $3.88B +7.0%
Net Income $464M -2.2%
Return on Equity 8.21% -28.4%
Net Interest Margin -0.01% -101.2%
Efficiency Ratio 19.27% +12.0%
ROA 1.87% -7.9%
Equity / Assets 27.42% +51.6%
Book Value per Share 34.46 +50.8%
Tangible BV/Share 23.66 +102.1%
Debt/Equity 1.93 -45.3%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong 5Y profit CAGR of 25.5%
✓Strong Piotroski F-Score: 7/9
✓Efficient operations: 19.3% efficiency ratio
✓Well capitalized: 27.4% equity/assets
✓Healthy dividend yield of 3.9%
✓Diversified revenue: 74.9% from non-interest income

✗Weaknesses

✗Weak NIM of -0.0%
✗Dividend payout exceeds 100% of earnings

Price & Volume

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Growth Metrics

Revenue CAGR

10Y20.46%

5Y17.09%

3Y-2.66%

TTM-

Profit (Net Income) CAGR

10Y29.49%

5Y25.51%

3Y4.29%

TTM18.89%

EPS CAGR

10Y17.02%

5Y14.32%

3Y-1.26%

TTM-10.63%

ROCE

10Y Avg3.65%

5Y Avg4.3%

3Y Avg4.43%

Latest4.79%

Peer Comparison

Credit & Direct Lending Specialists

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
ARESAres Management Corporation	36.77B	169.57	81.92	6.96%	11.94%	5.81%	7.34%	1.93
OWLBlue Owl Capital Inc.	10.5B	15.79	78.95	32.56%	4.77%	0.84%	8.91%	0.51
MLCIMount Logan Capital Inc. Common Stock	109.2M	8.54	42.70	-8.88%	2.86%	-17.96%	25.46%	1.62
FSCOFS Credit Opportunities Corp.	1.29B	6.48	6.82	-17.44%	74.15%	13.47%	5.22%	0.32
BENFBeneficient	67.82M	4.88	-0.01	5.79%	21.19%	-487.65%		2.21

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Net Interest Income+	33.65M	34M	46.82M	100.56M	105.69M	160.5M	152.88M	113.21M	153.94M	-1.9M
NII Growth %	-0.88%	0.01%	0.38%	1.15%	0.05%	0.52%	-0.05%	-0.26%	0.36%	-1.01%
Net Interest Margin %	-	-	-	-	-	-	-	-	-	-
Interest Income	131.42M	143.44M	194.76M	344.9M	403.11M	471.72M	447.68M	595.93M	1.01B	976.4M
Interest Expense	97.77M	109.43M	147.95M	244.34M	297.42M	311.22M	294.81M	482.72M	860.88M	978.3M
Loan Loss Provision	428.37M	726.14M	845.88M	356.29M	853.12M	860.14M	2.54B	1.33B	1.23B	1.16B
Non-Interest Income+	683.02M	1.11B	1.29B	613.56M	1.36B	1.29B	3.76B	2.46B	2.62B	2.91B
Non-Interest Income %	-	-	-	-	-	-	-	-	-	-
Total Revenue+	814.44M	1.25B	1.48B	958.46M	1.77B	1.76B	4.21B	3.06B	3.63B	3.88B
Revenue Growth %	0.35%	0.54%	0.18%	-0.35%	0.84%	-0%	1.39%	-0.27%	0.19%	0.07%
Non-Interest Expense	201.1M	180.85M	235.75M	269.73M	292.26M	279.12M	506.66M	550.07M	624.94M	748.48M
Efficiency Ratio	-	-	-	-	-	-	-	-	-	-
Operating Income+	87.2M	237.95M	250.36M	88.1M	322.64M	313.56M	868.9M	694.21M	920.06M	993.14M
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Operating Income Growth %	1.44%	1.73%	0.05%	-0.65%	2.66%	-0.03%	1.77%	-0.2%	0.33%	0.08%
Pretax Income+	81.48M	297.92M	149.86M	184.34M	425.18M	379.48M	1.07B	510.81M	1.33B	1.28B
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	19.06M	11.02M	-23.05M	32.2M	52.38M	54.99M	147.38M	71.89M	172.97M	164.62M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	19.38M	111.81M	76.18M	57.02M	148.88M	152.14M	408.84M	167.54M	474.33M	463.74M
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	-0.45%	4.77%	-0.32%	-0.25%	1.61%	0.02%	1.69%	-0.59%	1.83%	-0.02%
Net Income (Continuing)	62.42M	286.9M	172.91M	152.14M	372.8M	324.49M	918.3M	438.92M	1.16B	1.11B
EPS (Diluted)+	0.23	1.20	0.62	0.30	1.06	0.87	2.15	0.87	2.42	2.07
EPS Growth %	-0.47%	4.22%	-0.48%	-0.52%	2.53%	-0.18%	1.47%	-0.6%	1.78%	-0.14%
EPS (Basic)	0.23	1.22	0.62	0.30	1.11	0.89	2.25	0.87	2.46	2.07
Diluted Shares Outstanding	80.67M	82.94M	81.84M	96.02M	119.88M	149.51M	180.11M	175.51M	195.77M	198.05M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash & Short Term Investments+	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Cash & Due from Banks	280.99M	798.14M	675.43M	494.89M	744.71M	1.06B	1.39B	1.11B	1.5B	2.74B
Short Term Investments	0	0	0	0	0	0	0	0	0	0
Total Investments+	3.03B	3.8B	7.31B	9B	10.39B	12.56B	16.5B	17.18B	19.23B	17.38B
Investments Growth %	-0.84%	0.25%	0.92%	0.23%	0.15%	0.21%	0.31%	0.04%	0.12%	-0.1%
Long-Term Investments	3.03B	3.8B	7.31B	9B	10.39B	12.56B	16.5B	17.18B	19.23B	17.38B
Accounts Receivables	0	0	0	0	0	0	0	0	0	0
Goodwill & Intangibles+	-	-	-	-	-	-	-	-	-	-
Goodwill	144.07M	143.72M	143.9M	143.79M	143.85M	371.05M	787.97M	999.66M	1.12B	1.16B
Intangible Assets	84.97M	58.31M	40.47M	31.43M	7.97M	222.09M	1.42B	1.21B	1.06B	975.83M
PP&E (Net)	38.15M	40.76M	61.15M	63.38M	206.29M	215.62M	238.91M	235.63M	371.55M	688.99M
Other Assets	22.72M	23.73M	43.55M	35.59M	33.82M	42.89M	64.34M	111.62M	157.45M	186.08M
Total Current Assets	1B	1.76B	958.72M	839.06M	1.18B	1.69B	2.55B	2.2B	2.77B	4.25B
Total Non-Current Assets	3.32B	4.07B	7.6B	9.32B	10.83B	13.48B	19.05B	19.8B	21.96B	20.64B
Total Assets+	4.32B	5.83B	8.56B	10.15B	12.01B	15.17B	21.61B	22B	24.73B	24.88B
Asset Growth %	-0.8%	0.35%	0.47%	0.19%	0.18%	0.26%	0.42%	0.02%	0.12%	0.01%
Return on Assets (ROA)	0%	0.02%	0.01%	0.01%	0.01%	0.01%	0.02%	0.01%	0.02%	0.02%
Accounts Payable	121.58M	104.39M	146.27M	167.1M	150.03M	162.11M	382.93M	400.21M	423.41M	686.97M
Total Debt+	2.58B	3.39B	11.3B	7.37B	8.57B	10.9B	12.49B	13.33B	15.76B	13.15B
Net Debt	2.29B	2.59B	10.62B	6.87B	7.82B	9.84B	11.1B	12.22B	14.26B	10.41B
Long-Term Debt	2.56B	3.34B	5.59B	7.16B	8.29B	10.6B	12.16B	12.98B	15.31B	12.23B
Short-Term Debt	11.73M	55.07M	132.48M	207.92M	106.05M	121.91M	127.77M	168.05M	125.24M	275M
Other Liabilities	168.54M	131.74M	-5.55B	29.39M	37.8M	222.29M	1.41B	1.62B	834.29M	855.09M
Total Current Liabilities	599.71M	983.82M	1.49B	1.57B	1.66B	1.69B	4.02B	3.42B	3.79B	4.33B
Total Non-Current Liabilities	2.75B	3.47B	5.61B	7.19B	8.5B	11B	13.77B	14.78B	16.47B	13.73B
Total Liabilities	3.35B	4.45B	7.1B	8.76B	10.16B	12.7B	17.79B	18.2B	20.26B	18.06B
Total Equity+	991.91M	1.38B	1.46B	1.39B	1.86B	2.47B	3.81B	3.8B	4.47B	6.82B
Equity Growth %	-0.85%	0.39%	0.06%	-0.05%	0.33%	0.33%	0.54%	-0%	0.18%	0.53%
Equity / Assets (Capital Ratio)	-	-	-	-	-	-	-	-	-	-
Return on Equity (ROE)	0.01%	0.09%	0.05%	0.04%	0.09%	0.07%	0.13%	0.04%	0.11%	0.08%
Book Value per Share	12.30	16.61	17.84	14.52	15.50	16.53	21.18	21.64	22.85	34.46
Tangible BV per Share	-	-	-	-	-	-	-	-	-	-
Common Stock	251.54M	0	279.06M	1.02M	1.15M	2.6M	2.9M	2.95M	3.08M	3.13M
Additional Paid-in Capital	0	0	0	326.01M	525.24M	1.04B	1.91B	1.97B	2.39B	2.94B
Retained Earnings	0	0	0	-29.34M	-50.82M	-151.82M	-89.38M	-369.48M	-495.08M	-837.29M
Accumulated OCI	-4.62M	-8.94M	-4.21M	-8.52M	-6.05M	483K	-1.85M	-14.99M	-5.63M	-17.76M
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Preferred Stock	0	298.76M	298.76M	298.76M	298.76M	298.76M	0	0	0	1.46B

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	-527.99M	-625.65M	-1.86B	428.08M	-2.08B	-425.66M	-2.6B	-734.11M	-233.26M	2.79B
Operating CF Growth %	-1.34%	-0.18%	-1.98%	1.23%	-5.87%	0.8%	-5.1%	0.72%	0.68%	12.97%
Net Income	62.42M	286.9M	172.91M	152.14M	372.8M	324.49M	390.71M	438.92M	1.16B	1.11B
Depreciation & Amortization	55.27M	37.45M	32.81M	28.52M	39.46M	41.25M	113.96M	341.34M	231.71M	158.58M
Deferred Taxes	1.43M	-28.46M	-8.11M	0	0	0	0	0	0	0
Other Non-Cash Items	-696.28M	-768.16M	-2.03B	188.22M	-2.18B	-975.05M	-3.2B	-1.52B	-1.43B	1.37B
Working Capital Changes	16.93M	-192.46M	-100.93M	164.69M	-413.87M	60.67M	98.52M	-194.63M	-454.06M	-202.99M
Cash from Investing+	-75.11M	-11.91M	-33.16M	-18.42M	-16.8M	-136.76M	-1.08B	-337.38M	-111.08M	-159.4M
Purchase of Investments	0	0	0	0	0	0	0	0	0	-6.51B
Sale/Maturity of Investments	0	0	0	0	0	0	0	0	0	1000K
Net Investment Activity	-	-	-	-	-	-	-	-	-	-
Acquisitions	-64.44M	0	0	0	0	-120.82M	-1.06B	-301.58M	-43.9M	-67.89M
Other Investing	0	0	0	0	0	0	0	0	0	-1.74B
Cash from Financing+	581.54M	880.76M	1.65B	1.41B	2.12B	943.89M	3.5B	1.13B	292.13M	-1.43B
Dividends Paid	-217.76M	-212.84M	-283.36M	-156.55M	-345.37M	-468.48M	-604.36M	-836.36M	-1.03B	-1.31B
Share Repurchases	0	0	0	0	-10.45M	0	0	0	0	0
Stock Issued	88.65M	298.76M	1.04M	105.33M	206.71M	476.03M	827.43M	21.2M	85.96M	407.12M
Net Stock Activity	-	-	-	-	-	-	-	-	-	-
Debt Issuance (Net)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	-1000K
Other Financing	2.91M	-26.24M	117.92M	-157.09M	130.31M	-215.98M	757.37M	173.85M	-445.61M	291.4M
Net Change in Cash+	-27.38M	221.38M	-223.93M	-8.68M	28.14M	401.43M	-196.16M	46.33M	-41.71M	1.16B
Exchange Rate Effect	-1000K	-1000K	1000K	1000K	1000K	1000K	-1000K	-1000K	1000K	-1000K
Cash at Beginning	148.86M	121.48M	342.86M	118.93M	110.25M	138.38M	539.81M	343.65M	389.99M	348.27M
Cash at End	121.48M	342.86M	118.93M	110.25M	138.38M	539.81M	343.65M	389.99M	348.27M	1.51B
Interest Paid	59.69M	69.09M	94.11M	184.95M	233.09M	257.13M	205.09M	320.33M	722.64M	866.76M
Income Taxes Paid	14.64M	26.78M	18.18M	27.48M	35.63M	38.17M	22.79M	104.86M	62.01M	107.57M
Free Cash Flow+	-538.66M	-637.57M	-1.9B	-1.44B	-2.1B	-441.6M	-2.62B	-769.91M	-300.44M	2.7B
FCF Growth %	-1.36%	-0.18%	-1.97%	0.24%	-0.46%	0.79%	-4.94%	0.71%	0.61%	9.99%

Banking Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	0.5%	9.44%	5.37%	3.99%	9.15%	7.03%	13.01%	4.4%	11.47%	8.21%
Return on Assets (ROA)	0.15%	2.2%	1.06%	0.61%	1.34%	1.12%	2.22%	0.77%	2.03%	1.87%
Net Interest Margin	0.78%	0.58%	0.55%	0.99%	0.88%	1.06%	0.71%	0.51%	0.62%	-0.01%
Efficiency Ratio	24.69%	14.42%	15.93%	28.14%	16.55%	15.82%	12.03%	18%	17.21%	19.27%
Equity / Assets	22.95%	23.62%	17.05%	13.73%	15.47%	16.29%	17.66%	17.26%	18.09%	27.42%
Book Value / Share	12.3	16.61	17.84	14.52	15.5	16.53	21.18	21.64	22.85	34.46
NII Growth	-87.54%	1.05%	37.69%	114.79%	5.1%	51.86%	-4.75%	-25.95%	35.98%	-101.23%
Dividend Payout	1123.75%	179.47%	343.48%	274.55%	217.4%	293.66%	145.17%	499.2%	217.29%	282.68%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Management Service	-	-	-	34.24M	34.92M	45.27M	44.9M	-	2.6B	2.99B
Management Service Growth	-	-	-	-	1.98%	29.63%	-0.82%	-	-	14.98%
Carried Interest	-	-	-	42.41M	-	-	2.07B	458.01M	631.15M	417M
Carried Interest Growth	-	-	-	-	-	-	-	-77.91%	37.80%	-33.93%
Management Service, Incentive	-	-	-	4M	13.85M	141K	5.46M	301.19M	277.73M	345.48M
Management Service, Incentive Growth	-	-	-	-	246.28%	-98.98%	3770.92%	5418.27%	-7.79%	24.39%
Administrative Service	-	-	-	51.62M	12.64M	15.82M	4.48M	147.53M	156.18M	163.42M
Administrative Service Growth	-	-	-	-	-75.51%	25.18%	-71.67%	3190.92%	5.86%	4.64%
Principal Investment Income	-	-	-	2.5M	-12.23M	-	99.43M	12.28M	155.63M	45.42M
Principal Investment Income Growth	-	-	-	-	-589.01%	-	-	-87.65%	1167.46%	-70.81%
Fee Related Performance Revenues	-	-	-	-	-	-	137.88M	-	-	-
Fee Related Performance Revenues Growth	-	-	-	-	-	-	-	-	-	-
Service, Other	-	-	-	24.29M	18.08M	19.95M	-	-	-	-
Service, Other Growth	-	-	-	-	-25.57%	10.34%	-	-	-	-
Credit Group	-	528.9M	1.18B	-	-	-	-	-	-	-
Credit Group Growth	-	-	123.34%	-	-	-	-	-	-	-
Private Equity Group	99.48M	567.78M	823.47M	-	-	-	-	-	-	-
Private Equity Group Growth	-	470.74%	45.03%	-	-	-	-	-	-	-
Real Estate Group	15.18M	96.59M	309.7M	-	-	-	-	-	-	-
Real Estate Group Growth	-	536.31%	220.65%	-	-	-	-	-	-	-
Direct Lending Group	31.84M	-	-	-	-	-	-	-	-	-
Direct Lending Group Growth	-	-	-	-	-	-	-	-	-	-
Tradable Credit Group	-114.86M	-	-	-	-	-	-	-	-	-
Tradable Credit Group Growth	-	-	-	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Ares Management Corporation (ARES) has a price-to-earnings (P/E) ratio of 81.9x. This suggests investors expect higher future growth.

Growth & Financials

Ares Management Corporation (ARES) grew revenue by 7.0% over the past year. This is steady growth.

Yes, Ares Management Corporation (ARES) is profitable, generating $480.0M in net income for fiscal year 2024 (11.9% net margin).

Dividend & Returns

Yes, Ares Management Corporation (ARES) pays a dividend with a yield of 3.90%. This makes it attractive for income-focused investors.

Ares Management Corporation (ARES) has a return on equity (ROE) of 8.2%. This is below average, suggesting room for improvement.

Industry Metrics

Ares Management Corporation (ARES) has a net interest margin (NIM) of -0.0%. NIM has been under pressure due to interest rate environment.

Ares Management Corporation (ARES) has an efficiency ratio of 19.3%. This is excellent, indicating strong cost control.

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