(ARCC) Ares Capital - NASDAQ
Sector: Financial Services | Industry: Asset Management | Exchange: NASDAQ (USA) | Market Cap: 13.829m USD | Total Return: -6.4% in 12m
Avg Turnover: 91.1M
EPS Trend: -84.0%
Qual. Beats: 0
Rev. Trend: 65.2%
Qual. Beats: 0
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
Ares Capital Corporation (ARCC) is a Business Development Company (BDC) that provides financing solutions to middle-market firms across the United States. The firm focuses on debt and equity investments ranging from $30 million to $500 million, targeting companies with EBITDA between $10 million and $250 million for acquisitions, recapitalizations, and growth capital.
As a BDC, the company operates under the Investment Company Act of 1940, which requires it to distribute at least 90% of its taxable income to shareholders annually to maintain its tax-advantaged status. This business model primarily generates revenue through interest payments on senior secured loans, unitranche structures, and mezzanine debt, often seeking board representation to influence portfolio company governance.
The firm maintains a diversified geographic presence with offices in New York, Chicago, and Los Angeles to source deals in sectors including healthcare, technology, and business services. Investors looking for deeper insights into these portfolio holdings can find comprehensive data on ValueRay. Ares Capital typically acts as the lead agent in transactions, allowing for greater control over loan structuring and monitoring of credit quality.
- Elevated interest rates drive net interest margin expansion on floating rate loans
- Middle market credit quality impacts non-accrual rates and net asset value
- Increased deal flow in private equity drives deployment and fee income
- Access to low-cost unsecured debt markets lowers overall cost of capital
- Portfolio concentration in defensive sectors mitigates cyclical default risks and volatility
| Net Income: 1.15b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA -0.89 > 1.0 |
| NWC/Revenue: -2.85% < 20% (prev 36.10%; Δ -38.95% < -1%) |
| CFO/TA 0.04 > 3% & CFO 1.07b > Net Income 1.15b |
| Net Debt (15.3b) to EBITDA (1.78b): 8.64 < 3 |
| Current Ratio: 0.87 > 1.5 & < 3 |
| Outstanding Shares: last quarter (718.0m) vs 12m ago 6.21% < -2% |
| Gross Margin: 70.82% > 18% (prev 68.16%; Δ 2.66% > 0.5%) |
| Asset Turnover: 8.92% > 50% (prev 7.62%; Δ 1.30% > 0%) |
| Interest Coverage Ratio: 2.54 > 6 (EBIT TTM 1.74b / Interest Expense TTM 686.2m) |
| A: -0.00 (Total Current Assets 505.0m - Total Current Liabilities 580.0m) / Total Assets 30.7b |
| B: 0.02 (Retained Earnings 705.0m / Total Assets 30.7b) |
| C: 0.06 (EBIT TTM 1.74b / Avg Total Assets 29.5b) |
| D: 0.85 (Book Value of Equity 14.1b / Total Liabilities 16.6b) |
| Altman-Z'' = 1.34 = BB |
As of June 19, 2026, the stock is trading at USD 18.10 with a total of 5,848,356 shares traded.
Over the past week, the price has changed by -2.51%,
over one month by -0.84%,
over three months by +0.67% and
over the past year by -6.44%.
Ares Capital has received a consensus analysts rating of 4.38. Therefore, it is recommended to buy ARCC.
- StrongBuy: 7
- Buy: 4
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 20.8 | 14.8% |
P/E Trailing = 11.816
P/E Forward = 9.7752
P/S = 4.4856
P/B = 0.9832
P/EG = 3.7176
Revenue TTM = 2.63b USD
EBIT TTM = 1.74b USD
EBITDA TTM = 1.78b USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 15.8b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 15.3b USD (calculated: Debt 15.8b - CCE 505.0m)
Enterprise Value = 29.2b USD (13.8b + Debt 15.8b - CCE 505.0m)
Interest Coverage Ratio = 2.54 (Ebit TTM 1.74b / Interest Expense TTM 686.2m)
EV/FCF = 27.16x (Enterprise Value 29.2b / FCF TTM 1.07b)
FCF Yield = 3.68% (FCF TTM 1.07b / Enterprise Value 29.2b)
FCF Margin = 40.81% (FCF TTM 1.07b / Revenue TTM 2.63b)
Net Margin = 43.69% (Net Income TTM 1.15b / Revenue TTM 2.63b)
Gross Margin = 70.82% ((Revenue TTM 2.63b - Cost of Revenue TTM 768.0m) / Revenue TTM)
Gross Margin QoQ = 72.08% (prev 70.39%)
Tobins Q-Ratio = 0.95 (Enterprise Value 29.2b / Total Assets 30.7b)
Interest Expense / Debt = 4.33% (Interest Expense 686.2m / Debt 15.8b)
Taxrate = 6.20% (76.0m / 1.23b)
NOPAT = 1.63b (EBIT 1.74b * (1 - 6.20%))
Current Ratio = 0.87 (Total Current Assets 505.0m / Total Current Liabilities 580.0m)
Debt / Equity = 1.13 (Debt 15.8b / totalStockholderEquity, last quarter 14.1b)
Debt / EBITDA = 8.64 (Net Debt 15.3b / EBITDA 1.78b)
Debt / FCF = 14.29 (Net Debt 15.3b / FCF TTM 1.07b)
Total Stockholder Equity = 14.2b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.90% (Net Income 1.15b / Total Assets 30.7b)
RoE = 8.11% (Net Income TTM 1.15b / Total Stockholder Equity 14.2b)
RoCE = 5.79% (EBIT 1.74b / Capital Employed (Total Assets 30.7b - Current Liab 580.0m))
RoIC = 5.45% (NOPAT 1.63b / Invested Capital 30.0b)
WACC = 5.99% (E(13.8b)/V(29.7b) * Re(8.21%) + D(15.8b)/V(29.7b) * Rd(4.33%) * (1-Tc(0.06)))
Discount Rate = 8.21% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 91.11 | Cagr: 8.87%
[DCF] Terminal Value 73.35% ; FCFF base≈1.14b ; Y1≈1.01b ; Y5≈842.7m
[DCF] Fair Price = N/A (negative equity: EV 13.5b - Net Debt 15.3b = -1.86b; debt exceeds intrinsic value)
EPS Correlation: -84.00 | EPS CAGR: -6.92% | SUE: -0.47 | # QB: 0
Revenue Correlation: 65.17 | Revenue CAGR: 10.80% | SUE: -0.06 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.47 | Chg30d=+0.28% | Revisions=-50% | Analysts=14
EPS next Quarter (2026-09-30): EPS=0.48 | Chg30d=+0.29% | Revisions=+12% | Analysts=14
EPS current Year (2026-12-31): EPS=1.93 | Chg30d=+0.22% | Revisions=-12% | GrowthEPS=-3.9% | GrowthRev=+2.0%
EPS next Year (2027-12-31): EPS=1.93 | Chg30d=+0.09% | Revisions=+29% | GrowthEPS=-0.2% | GrowthRev=+3.0%
[Analyst] Revisions Ratio: -50%