Ares Management Corporation (ARES)

FairStock Score: 40/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Ares as a fee-based alternative asset manager, not a bond substitute. The filing record shows real growth: in FY2025, the year ended 2025-12-31, revenue was $5.6B versus $3.9B in FY2024, and net income was $527.4M versus $463.7M in FY2024. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.4B and net income $150.6M, up from $137.1M in fiscal Q2 2025, although the 10.54% margin is not fat. The computed Lynch category is FAST GROWER, based on five-year profit growth of 28.2% a year and revenue growth of 26.0%, and FairStock's ROE is a respectable 14.94%. But the moat is only as good as its underwriting and fundraising; D/E is 1.72, Altman Z is 1.00, Piotroski is 3/9, and ROCE is only 2.59%, so balance-sheet quality and capital efficiency are not comforting. More importantly, the price on 2026-10-13 is $115.62. FairStock calculations show P/E 53.04, P/B 10.44, PEG 5.36, EV/EBITDA 21.44, FCF yield 2.3%, Graham Number $29.38, and margin of safety -293.53%. That is not Graham's bargain; it is a full price for a fast grower whose latest fiscal Q2 2026 revenue was flat versus fiscal Q2 2025 and whose net income was $150.6M. The 4.36% dividend yield helps, but the FairStock Score of 40/100 captures the tension. I would want much more margin of safety before calling this a value opportunity.

In plain English: Ares Management runs money for clients and makes loans and private investments, earning fees and investment income. The business is profitable and has grown, with net income of $150.6M in the quarter ended 2026-06-30, but it uses a lot of debt and several financial health checks are weak. At the 2026-10-13 close of $115.62, the shares look expensive compared with current profits and accounting value, while the 4.36% dividend yield is a positive.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer