ARES Systematic Research
Ares Management Corp presents a distinctive growth profile among alternative asset managers, with revenue expanding 38.51% year-over-year—substantially outpacing traditional asset management peers. The current price of $128.09 reflects considerable compression from the 52-week high of $195.26, positioning the stock 34.4% below its recent peak despite maintaining strong operational momentum. The firm's net margin of 10.54% and operating margin of 17.71% demonstrate consistent monetization of expanding assets under management.
Systematic screening highlights several compelling fundamental attributes:
- Accelerated earnings growth: EPS expansion of 29.77% year-over-year to $2.82 per share supports the premium P/E multiple of 45.67x, suggesting the market anticipates sustained momentum in fee-generating activities
- Return generation: ROE of 14.54% indicates effective deployment of shareholder capital, though ROA of 2.24% reflects the leverage-intensive business model typical of financial services firms
- Market positioning: The $28.4 billion market capitalization establishes ARES as a scaled competitor alongside peers BAM, STT, and AMP in the alternative asset management landscape
Risk factors warrant attention in quantitative models. The debt-to-equity ratio of 3.17 reflects significant financial leverage, while the current ratio of 0.3 indicates limited near-term liquidity buffers. The elevated beta of 1.53 signals above-market volatility sensitivity, particularly relevant given the stock's 34% retracement from recent highs. The P/B ratio of 8.2x implies substantial intangible value embedded in client relationships and management infrastructure, representing execution risk if fee streams deteriorate during market stress.
Analysis updated monthly based on systematic screening of fundamentals, profitability, growth, and peer positioning.