Ares ManagementARES +0.12%78 3-Year ROIIC % is 24.05 as of Dec. 2025, which is 5626% above its 10-year median of 0.42. GuruFocus rates ARES with a GF Score™ of 78/100 and a GF Value™ of $184.87 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 654 Asset Management companies, Ares Management ranks better than 72.78% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Ares Management's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 24.05%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Ares Management's 3-Year ROIIC % or its related term are showing as below:
ARES's 3-Year ROIIC % is ranked better than 72.78% of 654
companies
in the Asset Management industry
Industry Median: 2.15
vs ARES: 24.05
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Ares Management 3-Year ROIIC % Related Terms
Ares Management 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Ares Management's 3-Year ROIIC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Asset Management subindustry, Ares Management's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ares Management 3-Year ROIIC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Ares Management's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Ares Management's 3-Year ROIIC % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Ares Management (ARES) has a 3-Year ROIIC % of 24.05 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Ares Management and its competitors. This is 5626% above median its historical median of 0.42. According to the industry distribution chart, Ares Management ranks #178 out of 654 companies in the Asset Management industry, placing it in the top 27.2%.
Is Ares Management's 3-Year ROIIC % too high?
Ares Management's current 3-Year ROIIC % of 24.05 is 5626% above median its 10-year median of 0.42. The Asset Management industry median 3-Year ROIIC % is 2.15. Ares Management's value of 24.05 is 1018.6% above this industry median. Based on the distribution chart, Ares Management ranks #178 out of 654 companies in the Asset Management industry, which is above the industry midpoint. Overall, Ares Management has a GF Score™ of 78/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ares Management's 3-Year ROIIC % compare to TROW and PFG?
According to the Asset Management industry distribution chart, Ares Management ranks #178 out of 654 companies for 3-Year ROIIC %. This puts Ares Management in the upper half of its industry. The industry median 3-Year ROIIC % is 2.15. Ares Management's value of 24.05 is 1018.6% above this benchmark. While the company's 10-year median is 0.42 vs. the industry median of 2.15, Ares Management has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for an Asset Management company?
The median 3-Year ROIIC % among Asset Management companies is 2.15, based on 654 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ares Management's current 3-Year ROIIC % of 24.05 is 1018.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Ares Management and its competitors. For the Asset Management industry, the median 3-Year ROIIC % is 2.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ares Management's current 3-Year ROIIC % is 24.05, which is 5626% above median its own 10-year median of 0.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ares Management stock overvalued right now?
Based on GuruFocus' analysis, Ares Management (ARES) is currently considered Possible Value Trap. The stock's GF Value™ is $184.87, compared to a current price of $121.81 — trading 34.1% below its estimated fair value. The current 3-Year ROIIC % is 24.05, which is 5626% above median its 10-year median of 0.42 and 1018.6% above the Asset Management industry median of 2.15. Ares Management's overall GF Score™ is 78/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Ares Management (ARES), the current 3-Year ROIIC % is 24.05 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ares Management (ARES) Overvalued in 2026?
Based on GuruFocus' analysis, Ares Management stock appears to be undervalued.
The current stock price of $121.81 is trading 34.1% below its estimated GF Value™ of $184.87.
GuruFocus considers Ares Management to be Possible Value Trap.
Key valuation signals for ARES:
3-Year ROIIC %: 24.05 (5626% above median its 10-year median of 0.42)
GF Value™: $184.87 vs. price of $121.81 (34.1% below fair value)
Industry Position: 1018.6% above the Asset Management median (#178 of 654)
No single metric tells the full story. See the ARES stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ares Management is one of the world's largest alternative-asset managers, with $622.5 billion in total assets under management, or AUM, including $384.9 billion in fee-earning AUM, at the end of 2025. The company has four main business segments: credit strategies ($406.9 billion in total AUM and $249.8 billion in fee-earning AUM), private equity, ($25.3 billion/$14.4 billion), real estate/real assets ($139.1 billion/$84.1 billion), and other alternatives ($51.2 billion/$36.6 billion). The firm primarily serves institutional investors (80% of AUM) and high-net-worth individuals (20%). Ares operates through more than 35 offices in over 15 countries around the globe.
78GF Score
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