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US Equities · Finance research note

ARES — Ares Management

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 18.43%
Profit Margins 10.54%
Return on Equity 14.18%
Return on Assets 2.54%
Free Float 0.22B
Dividend Yield 4.95%
Short Int % Utilisation 16.14%

2.2 Growth

Metric Value
Revenue Growth 28.3%
Free Cash Flow 1.76B
EBITDA 34.4 (Ratio)
Enterprise Value 47.46B
EV/Revenue 8.03
EV/EBITDA 34.4

Revenue growth of 28.3% places the company in a high-growth category.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* -12.34%
Risk / Std Dev (Ann.)* 44.46%
1-Year Price Return* -20.47%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $144.02
52-Week Range $95.80 – $191.38
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in US$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2025 FY2024
Revenue Reported revenue $5.60B $3.88B
Net income Reported net income $-602.00M $-332.77M
Total assets Year-end reported balance $28.63B $24.88B
Shareholders’ equity Year-end reported balance $4.28B $3.54B
Net margin Net income ÷ revenue -10.75% -8.57%
Asset turnover Revenue ÷ total assets 0.1956x 0.1561x
Equity multiplier Total assets ÷ shareholders’ equity 6.6971x 7.0222x
ROE Net margin × asset turnover × equity multiplier -14.08% -9.39%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

FCFF DCF exception: FCFF DCF is not the primary valuation method for financial institutions or REITs. This post deliberately does not publish a mechanical enterprise value or implied per-share value on an unsuitable basis.

Available valuation input Value
Last market price $140.46
Market capitalisation $31.68B
Revenue $5.60B
EBIT $2.05B
Reported free cash flow $3.19B
FCF yield 10.09%
Net debt / EBITDA 5.56x

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks not rated — FCFF DCF suitability or data-integrity condition not met
Lynch-inspired balance-and-growth checks not rated — FCFF DCF suitability or data-integrity condition not met

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:23:15.889107 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Financial institutions and REITs require sector-specific methods rather than a mechanical FCFF DCF. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set US
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-19 to 2026-06-30
Aligned daily observations 217
Minimum observation requirement 120
Currency conversion for HK listings not required

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha -58.33% -58.57%
Adjusted R² 0.28 0.27
Annualised residual volatility 37.44% 37.44%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) 1.64 (7.43) 1.62 (6.40)
Size (SMB) 0.71 (2.39) 0.71 (2.20)
Value (HML) 0.23 (0.88) 0.23 (0.74)
Profitability (RMW) NM -0.03 (-0.10)
Investment (CMA) NM -0.00 (-0.01)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

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