# Ares Management LP (ARES.US)

Canonical: https://gigainvestors.com/s/ARES

Analysis as of: 2026-10-16T07:26:34.739Z. Financial observations: FY2011–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $114.03 per share; close as of 2026-10-15.

Estimated value: low $43.75 per share, central $49.27 per share, high $56.61 per share. Buy at or below the central value $49.27 per share. Valuation as of 2026-10-16T07:26:34.739Z; scenarios are not confidence intervals.

Expected annual return: 5.8% at the stated quote. About 5.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.67×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.19×

- FY2017: -0.08×

- FY2018: 0.07×

- FY2019: 0.21×

- FY2020: 0.18×

- FY2021: 0.35×

- FY2022: 0.11×

- FY2023: 0.26×

- FY2024: 0.26×

- FY2025: 0.37×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 5.7pp below the typical margin (limit 4pp)

- ROIC, median of available years: 3.8%

- ROIC, second-lowest year: 1.0%

- Typical minus recent gross margin: 5.7 pp

- Typical gross margin (annual median): 71.9%

- Recent gross margin (lower of latest and 3-year median): 66.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.4%

- ROIC including acquisitions, ten-year median: 2.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 4.5%

- FY2017: -1.4%

- FY2018: 1.0%

- FY2019: 3.1%

- FY2020: 2.5%

- FY2021: 5.7%

- FY2022: 2.1%

- FY2023: 4.8%

- FY2024: 6.4%

- FY2025: 10.5%

### economics: pass

- Owner earnings / net income, 5-yr: 1.19×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.4B

- Net income, five-year total: $2.0B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -28.9 pp

- Working capital / revenue, change between three-year averages: -186.3 pp

- Working capital / revenue, final three-year average: 20.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.21×

- FY2022: 1.70×

- FY2023: 1.14×

- FY2024: 1.06×

- FY2025: 1.16×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- ROIC first 3 years vs last 3 years: 1.0% vs 6.4%

- Per-share earnings: 0.93 to 2.35 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- material buybacks concentrated at lower earnings yields (Spearman rho below threshold)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 10.8%

- Ordinary dilution, 5-year annual growth: 8.4%

- Market cap gain: $35B

- Cumulative retained earnings: -$2.0B

- Diluted shares, 10-year annual growth: 10.8%

- Diluted shares, 5-year annual growth: 8.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 12.3%

- Per-share value change: $1.42

- Per-share value, starting three-year median: $0.93

- Per-share value, ending three-year median: $2.35

- Buybacks concentrated in cheaper years (correlation): -0.61

- Average buyback yield: 1.5%

- Buyback history: 7 years

- Debt-funded buybacks: Yes

- Acquisition spending: $5.5B

- Cumulative net income, 10 years: $2.6B

- ROIC, first three-year median: 1.0%

- ROIC, last three-year median: 6.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.35

- FY2017: $0.93

- FY2018: $0.59

- FY2019: $1.24

- FY2020: $1.02

- FY2021: $2.16

- FY2022: $0.88

- FY2023: $2.50

- FY2024: $2.16

- FY2025: $2.35

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -9.4%

- Receivables to sales index (DSRI): 0.98×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 22.7%

- Earnings backed by cash: Yes

- Operating cash / earnings: 6.19×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.30×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 12.7%

- FY2017: 22.6%

- FY2018: -3.7%

- FY2019: 18.6%

- FY2020: 3.8%

- FY2021: 13.9%

- FY2022: 4.1%

- FY2023: 2.9%

- FY2024: -9.4%

- FY2025: -9.4%

## Holders

- [C.T. Fitzpatrick](https://gigainvestors.com/VVP): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Daniel Loeb](https://gigainvestors.com/tp): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 42% since Jan 2025 · "Ares Caps Redemptions as Private Credit Pressures Build" (finance.yahoo.com, Mar 2026) · sales +28.9%

Story as of 2026-10-16T09:58:19.464Z; price observation 2026-10-15.

Price needs cash profits to grow 12.1% a year for ten years

- 2025-08-01: Ares Management stock gaps down after Q2 earnings fall short of consensus ([seekingalpha.com](https://seekingalpha.com/news/4476571-ares-management-stock-gaps-down-after-q2-earnings-fall-short-of-consensus?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-11-04: ARES Q3 Deep Dive: Diversified Fundraising and Broad-Based Deployment Drive Earnings Upside ([finance.yahoo.com](https://finance.yahoo.com/news/ares-q3-deep-dive-diversified-053209288.html))

- 2026-02-05: Ares Management Stock Falls as Q4 Earnings Miss, Expenses Rise Y/Y ([finance.yahoo.com](https://finance.yahoo.com/news/ares-management-stock-falls-q4-182000680.html))

- 2026-03-24: Ares Management stock falls after limiting fund withdrawals ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/ares-management-stock-falls-limiting-125132111.html))

### Sales · FY2024–2025

sales +28.9%; source https://www.sec.gov/Archives/edgar/data/1176948/000162828026011413/ares-20251231.htm; observed 2026-02-25.

- FY2016: $965M 

- FY2017: $1.1B 

- FY2018: $1.2B 

- FY2019: $1.4B 

- FY2020: $1.8B 

- FY2021: $2.3B 

- FY2022: $2.9B 

- FY2023: $3.2B 

- FY2024: $3.7B 

- FY2025: $4.8B 

### Gross margin · FY2024

gross margin 58.3%; source https://www.sec.gov/Archives/edgar/data/1176948/000162828026011413/ares-20251231.htm; observed 2026-02-25.

- FY2016: 83.6% 

- FY2017: 89.0% 

- FY2018: 31.9% 

- FY2019: 77.6% 

- FY2020: 56.8% 

- FY2022: 54.1% 

- FY2023: 66.3% 

- FY2024: 58.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in asset management; annual sales are USD 4.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1176948/000162828026011413/ares-20251231.htm#000162828026011413 (filed 2026-02-25); FY2025: revenue 4755618000; grossProfit 4839224000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ARES.US: 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.

### Why customers stay

It earns 3.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: grossProfit / revenue = 66.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2024: grossProfit / revenue = 58.3%.

- Source: https://www.sec.gov/Archives/edgar/data/1176948/000162828026011413/ares-20251231.htm (filed 2026-02-25); FY2025: grossProfit / revenue = 101.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); 10-year return on capital observations [[2016,0.045338691920827075],[2017,-0.013739057193968538],[2018,0.00993624917830495],[2019,0.0314178753256452],[2020,0.02514328758477739],[2021,0.056933156651785125],[2022,0.020550952592104925],[2023,0.04829832473642412],[2024,0.06440551550566631],[2025,0.10465521669384882]]; median 0.03837828362323614. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 946.4 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2016: growth capex 0; upkeep 11913000; owner earnings 137350000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2017: growth capex 351000; upkeep 32809000; owner earnings 76178000. Growth capex / owner earnings = 0.0046076294993305155.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2018: growth capex 0; upkeep 18419000; owner earnings 67118000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2019: growth capex 0; upkeep 16796000; owner earnings 171547000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2020: growth capex 0; upkeep 15942000; owner earnings 177448000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2021: growth capex 0; upkeep 27226000; owner earnings 494904000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2022: growth capex 0; upkeep 35796000; owner earnings 284172500.05126274. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: growth capex 0; upkeep 67183000; owner earnings 541596856.4958642. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2024: growth capex 0; upkeep 91509000; owner earnings 491743919.62799406. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1176948/000162828026011413/ares-20251231.htm (filed 2026-02-25); FY2025: growth capex 0; upkeep 72178000; owner earnings 610205703.3059628. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Dividend observations: [[2016,212839000],[2017,283356000],[2018,156549000],[2019,345367000],[2020,468480000],[2021,604356000],[2022,836364000],[2023,1030666000],[2024,1310896000],[2025,1756688000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1176948/000162828026011413/ares-20251231.htm (filed 2026-02-25); FY2025: cash repurchases 946372000 USD.

### Are managers owners

Insiders own 11.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ARES.US SharesStats.PercentInsiders = 11.165 percentage points; cache date 2026-10-16.

### What could break it

"Our business depends in large part on our ability to raise capital from investors." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1176948/000162828026011413/ares-20251231.htm (filed 2026-02-25); Our business depends in large part on our ability to raise capital from investors.

### What the price says

The price assumes cash profits grow 12.1% yearly over ten years; actual growth was 13.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Ten-year compound average after fade. Initial solved rate 0.1607561521699853. Price 114.03; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.793037503334434 → FY2025 2.723724045437661. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $16.75 per share

- 2016-11: $17.10 per share

- 2016-12: $19.20 per share

- 2017-01: $19.65 per share

- 2017-02: $21.60 per share

- 2017-03: $18.95 per share

- 2017-04: $19.65 per share

- 2017-05: $18.05 per share

- 2017-06: $18.00 per share

- 2017-07: $18.50 per share

- 2017-08: $18.15 per share

- 2017-09: $18.65 per share

- 2017-10: $18.35 per share

- 2017-11: $18.45 per share

- 2017-12: $20.00 per share

- 2018-01: $23.35 per share

- 2018-02: $24.40 per share

- 2018-03: $21.40 per share

- 2018-04: $22.00 per share

- 2018-05: $22.15 per share

- 2018-06: $20.70 per share

- 2018-07: $21.35 per share

- 2018-08: $21.30 per share

- 2018-09: $23.20 per share

- 2018-10: $19.61 per share

- 2018-11: $22.44 per share

- 2018-12: $17.78 per share

- 2019-01: $20.86 per share

- 2019-02: $23.62 per share

- 2019-03: $23.21 per share

- 2019-04: $24.45 per share

- 2019-05: $25.69 per share

- 2019-06: $26.17 per share

- 2019-07: $29.25 per share

- 2019-08: $29.10 per share

- 2019-09: $26.81 per share

- 2019-10: $29.57 per share

- 2019-11: $33.09 per share

- 2019-12: $35.69 per share

- 2020-01: $36.06 per share

- 2020-02: $34.59 per share

- 2020-03: $30.93 per share

- 2020-04: $33.55 per share

- 2020-05: $37.76 per share

- 2020-06: $39.70 per share

- 2020-07: $39.94 per share

- 2020-08: $40.45 per share

- 2020-09: $40.42 per share

- 2020-10: $42.30 per share

- 2020-11: $45.05 per share

- 2020-12: $47.05 per share

- 2021-01: $45.16 per share

- 2021-02: $51.98 per share

- 2021-03: $56.03 per share

- 2021-04: $52.52 per share

- 2021-05: $55.18 per share

- 2021-06: $63.59 per share

- 2021-07: $71.61 per share

- 2021-08: $77.18 per share

- 2021-09: $73.83 per share

- 2021-10: $84.74 per share

- 2021-11: $81.16 per share

- 2021-12: $81.27 per share

- 2022-01: $79.72 per share

- 2022-02: $81.09 per share

- 2022-03: $81.23 per share

- 2022-04: $66.22 per share

- 2022-05: $71.17 per share

- 2022-06: $56.86 per share

- 2022-07: $71.65 per share

- 2022-08: $74.14 per share

- 2022-09: $61.95 per share

- 2022-10: $75.83 per share

- 2022-11: $78.39 per share

- 2022-12: $68.44 per share

- 2023-01: $82.99 per share

- 2023-02: $80.63 per share

- 2023-03: $83.44 per share

- 2023-04: $87.59 per share

- 2023-05: $87.09 per share

- 2023-06: $96.35 per share

- 2023-07: $99.22 per share

- 2023-08: $103.44 per share

- 2023-09: $102.87 per share

- 2023-10: $98.59 per share

- 2023-11: $112.25 per share

- 2023-12: $118.92 per share

- 2024-01: $121.48 per share

- 2024-02: $132.63 per share

- 2024-03: $132.98 per share

- 2024-04: $133.09 per share

- 2024-05: $140.17 per share

- 2024-06: $133.28 per share

- 2024-07: $153.20 per share

- 2024-08: $146.40 per share

- 2024-09: $155.84 per share

- 2024-10: $167.68 per share

- 2024-11: $176.73 per share

- 2024-12: $177.03 per share

- 2025-01: $198.22 per share

- 2025-02: $170.94 per share

- 2025-03: $146.61 per share

- 2025-04: $152.53 per share

- 2025-05: $165.50 per share

- 2025-06: $173.20 per share

- 2025-07: $185.53 per share

- 2025-08: $179.20 per share

- 2025-09: $159.89 per share

- 2025-10: $148.71 per share

- 2025-11: $156.85 per share

- 2025-12: $161.63 per share

- 2026-01: $149.67 per share

- 2026-02: $112.01 per share

- 2026-03: $109.10 per share

- 2026-04: $117.40 per share

- 2026-05: $128.50 per share

- 2026-06: $111.31 per share

- 2026-07: $128.09 per share

- 2026-08: $143.17 per share

- 2026-09: $116.17 per share

- 2026-10: $115.62 per share

## Annual estimated value (USD per share)

- FY2016: low $27.49 per share, central $29.99 per share, high $33.31 per share

- FY2017: low $21.06 per share, central $22.86 per share, high $25.26 per share

- FY2018: low $15.79 per share, central $17.30 per share, high $19.29 per share

- FY2019: low $16.24 per share, central $17.65 per share, high $19.54 per share

- FY2020: low $19.84 per share, central $21.63 per share, high $24.01 per share

- FY2021: low $20.53 per share, central $22.38 per share, high $24.83 per share

- FY2022: low $18.90 per share, central $21.22 per share, high $24.30 per share

- FY2023: low $25.40 per share, central $28.48 per share, high $32.57 per share

- FY2024: low $36.00 per share, central $48.85 per share, high $56.46 per share

- FY2025: low $33.95 per share, central $38.22 per share, high $43.89 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1176948/000162828026011413/ares-20251231.htm); period 2025-12-31, filed 2026-02-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.