(ARCC) Ares Capital - Ratings and Ratios
Debt, Equity, Mezzanine, Financing, Transactions
ARCC EPS (Earnings per Share)
ARCC Revenue
Description: ARCC Ares Capital October 30, 2025
Ares Capital Corporation (NASDAQ:ARCC) is a Business Development Company (BDC) that originates and manages a portfolio of middle-market credit and equity investments, including acquisition financing, mezzanine debt, restructurings, rescue capital, and leveraged buyouts.
The firm targets U.S. companies with EBITDA between $10 million and $250 million, typically deploying $20 million–$200 million per transaction (up to $400 million for larger deals) and providing debt financing of $10 million–$100 million through a range of instruments such as first-lien loans, unitranche facilities, mezzanine debt, and non-control equity.
ARCC’s sector preferences include basic and growth manufacturing, business services, consumer products, health-care products and services, and information-technology services, while it remains open to restaurants, retail, oil & gas, and broader technology opportunities.
Geographically, the firm sources deals across the Northeast, Mid-Atlantic, Southeast, Southwest, Midwest, and Western United States, leveraging its New York, Chicago, and Los Angeles offices to source and manage investments.
From a market-driven perspective, ARCC’s dividend yield has hovered around 8% in 2024, and its net asset value (NAV) per share has shown modest growth YoY despite a tightening credit environment; the BDC’s performance is sensitive to Fed policy, as higher rates increase borrowing costs but also expand the spread on its floating-rate loan portfolio.
For a deeper, data-driven look at ARCC’s valuation and risk profile, you may find ValueRay’s analytical dashboard useful.
ARCC Stock Overview
| Market Cap in USD | 14,079m |
| Sub-Industry | Asset Management & Custody Banks |
| IPO / Inception | 2004-10-06 |
ARCC Stock Ratings
| Growth Rating | 55.4% |
| Fundamental | 58.6% |
| Dividend Rating | 81.5% |
| Return 12m vs S&P 500 | -13.1% |
| Analyst Rating | 4.38 of 5 |
ARCC Dividends
| Dividend Yield 12m | 9.53% |
| Yield on Cost 5y | 21.40% |
| Annual Growth 5y | 4.66% |
| Payout Consistency | 96.8% |
| Payout Ratio | 90.1% |
ARCC Growth Ratios
| Growth Correlation 3m | -88.4% |
| Growth Correlation 12m | 27.6% |
| Growth Correlation 5y | 94.9% |
| CAGR 5y | 11.58% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.62 |
| CAGR/Mean DD 3y (Pain Ratio) | 3.73 |
| Sharpe Ratio 12m | 0.84 |
| Alpha | -12.88 |
| Beta | 0.717 |
| Volatility | 13.67% |
| Current Volume | 6408k |
| Average Volume 20d | 6465k |
| Stop Loss | 19.5 (-3.2%) |
| Signal | -0.80 |
Piotroski VR‑10 (Strict, 0-10) 5.0
| Net Income (1.46b TTM) > 0 and > 6% of Revenue (6% = 141.4m TTM) |
| FCFTA 0.04 (>2.0%) and ΔFCFTA 1.01pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 13.32% (prev 41.46%; Δ -28.13pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.04 (>3.0%) and CFO 1.28b <= Net Income 1.46b (YES >=105%, WARN >=100%) |
| Net Debt (-447.0m) to EBITDA (1.86b) ratio: -0.24 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.77 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (695.0m) change vs 12m ago 12.82% (target <= -2.0% for YES) |
| Gross Margin 72.80% (prev 94.02%; Δ -21.21pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 8.55% (prev 7.11%; Δ 1.44pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 0.53 (EBITDA TTM 1.86b / Interest Expense TTM 699.0m) >= 6 (WARN >= 3) |
Altman Z'' 0.30
| (A) 0.01 = (Total Current Assets 720.0m - Total Current Liabilities 406.0m) / Total Assets 29.07b |
| (B) 0.03 = Retained Earnings (Balance) 789.0m / Total Assets 29.07b |
| (C) 0.01 = EBIT TTM 367.0m / Avg Total Assets 27.58b |
| (D) 0.05 = Book Value of Equity 790.0m / Total Liabilities 15.04b |
| Total Rating: 0.30 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 58.60
| 1. Piotroski 5.0pt = 0.0 |
| 2. FCF Yield 4.66% = 2.33 |
| 3. FCF Margin 54.14% = 7.50 |
| 4. Debt/Equity 0.98 = 2.04 |
| 5. Debt/Ebitda -0.24 = 2.50 |
| 6. ROIC - WACC (= -3.67)% = -4.59 |
| 7. RoE 10.83% = 0.90 |
| 8. Rev. Trend 13.01% = 0.98 |
| 9. EPS Trend -61.16% = -3.06 |
What is the price of ARCC shares?
Over the past week, the price has changed by +1.05%, over one month by -1.42%, over three months by -9.00% and over the past year by +3.13%.
Is Ares Capital a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of ARCC is around 21.01 USD . This means that ARCC is currently overvalued and has a potential downside of 4.27%.
Is ARCC a buy, sell or hold?
- Strong Buy: 7
- Buy: 4
- Hold: 2
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the ARCC price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 23 | 14.3% |
| Analysts Target Price | 23 | 14.3% |
| ValueRay Target Price | 22.7 | 12.6% |
ARCC Fundamental Data Overview October 25, 2025
P/E Trailing = 9.7745
P/E Forward = 10.6157
P/S = 4.6759
P/B = 1.0248
P/EG = 3.95
Beta = 0.717
Revenue TTM = 2.36b USD
EBIT TTM = 367.0m USD
EBITDA TTM = 1.86b USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 13.76b USD (from shortLongTermDebtTotal, last fiscal year)
Net Debt = -447.0m USD (from netDebt column, last quarter)
Enterprise Value = 27.39b USD (14.08b + Debt 13.76b - CCE 447.0m)
Interest Coverage Ratio = 0.53 (Ebit TTM 367.0m / Interest Expense TTM 699.0m)
FCF Yield = 4.66% (FCF TTM 1.28b / Enterprise Value 27.39b)
FCF Margin = 54.14% (FCF TTM 1.28b / Revenue TTM 2.36b)
Net Margin = 61.86% (Net Income TTM 1.46b / Revenue TTM 2.36b)
Gross Margin = 72.80% ((Revenue TTM 2.36b - Cost of Revenue TTM 641.0m) / Revenue TTM)
Gross Margin QoQ = 100.0% (prev 84.31%)
Tobins Q-Ratio = 0.94 (Enterprise Value 27.39b / Total Assets 29.07b)
Interest Expense / Debt = 1.25% (Interest Expense 172.0m / Debt 13.76b)
Taxrate = 2.29% (8.00m / 350.0m)
NOPAT = 358.6m (EBIT 367.0m * (1 - 2.29%))
Current Ratio = 1.77 (Total Current Assets 720.0m / Total Current Liabilities 406.0m)
Debt / Equity = 0.98 (Debt 13.76b / totalStockholderEquity, last quarter 14.03b)
Debt / EBITDA = -0.24 (Net Debt -447.0m / EBITDA 1.86b)
Debt / FCF = -0.35 (Net Debt -447.0m / FCF TTM 1.28b)
Total Stockholder Equity = 13.46b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.02% (Net Income 1.46b / Total Assets 29.07b)
RoE = 10.83% (Net Income TTM 1.46b / Total Stockholder Equity 13.46b)
RoCE = 1.28% (EBIT 367.0m / Capital Employed (Total Assets 29.07b - Current Liab 406.0m))
RoIC = 1.31% (NOPAT 358.6m / Invested Capital 27.29b)
WACC = 4.98% (E(14.08b)/V(27.84b) * Re(8.66%) + D(13.76b)/V(27.84b) * Rd(1.25%) * (1-Tc(0.02)))
Discount Rate = 8.66% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 8.26%
[DCF Debug] Terminal Value 77.64% ; FCFE base≈1.12b ; Y1≈1.24b ; Y5≈1.63b
Fair Price DCF = 35.66 (DCF Value 25.16b / Shares Outstanding 705.4m; 5y FCF grow 12.74% → 3.0% )
EPS Correlation: -61.16 | EPS CAGR: -59.32% | SUE: -4.0 | # QB: 0
Revenue Correlation: 13.01 | Revenue CAGR: 15.11% | SUE: -0.33 | # QB: 0
Additional Sources for ARCC Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle