(ARCC) Ares Capital - Overview
Stock: Debt, Mezzanine, Equity, Financing, Investment
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 9.10% |
| Yield on Cost 5y | 16.78% |
| Yield CAGR 5y | 4.34% |
| Payout Consistency | 96.6% |
| Payout Ratio | 96.0% |
| Risk 5d forecast | |
|---|---|
| Volatility | 36.6% |
| Relative Tail Risk | 2.55% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.39 |
| Alpha | -22.40 |
| Character TTM | |
|---|---|
| Beta | 0.841 |
| Beta Downside | 0.950 |
| Drawdowns 3y | |
|---|---|
| Max DD | 18.76% |
| CAGR/Max DD | 0.49 |
Description: ARCC Ares Capital January 03, 2026
Ares Capital Corporation (NASDAQ:ARCC) is a Business Development Company (BDC) that provides acquisition, recapitalization, mezzanine debt, restructuring, rescue financing, and leveraged-buyout capital to U.S. middle-market companies.
The firm targets firms with EBITDA of $10 million–$250 million, typically investing $20 million–$200 million (up to $400 million) in equity-linked transactions and $10 million–$100 million in debt, using instruments such as revolvers, first-lien loans, unitranche facilities, mezzanine debt, and non-control equity.
Geographically, Ares focuses on the Northeast, Mid-Atlantic, Southeast, Southwest (via its New York office), the Midwest (Chicago), and the West Coast (Los Angeles), concentrating on sectors like basic and growth manufacturing, business services, consumer products, health-care, and IT services, while also considering restaurants, retail, oil & gas, and broader technology.
Key metrics as of Q4 2023: total assets of roughly $12.5 billion, a dividend yield near 8.5 %, net asset value (NAV) per share around $19.5, and a leverage ratio of 1.6×-figures that reflect the BDC’s sensitivity to credit-spread compression in a rising-interest-rate environment.
If you want a deeper, data-driven view of ARCC’s valuation and risk profile, a quick look at ValueRay’s analytical dashboard can help you spot any hidden angles before you decide.
Piotroski VR‑10 (Strict, 0-10) 3.0
| Net Income: 1.15b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA -0.88 > 1.0 |
| NWC/Revenue: 1.70% < 20% (prev 31.69%; Δ -29.99% < -1%) |
| CFO/TA 0.04 > 3% & CFO 1.14b > Net Income 1.15b |
| Net Debt (15.07b) to EBITDA (1.08b): 13.90 < 3 |
| Current Ratio: 1.04 > 1.5 & < 3 |
| Outstanding Shares: last quarter (699.0m) vs 12m ago 6.72% < -2% |
| Gross Margin: 62.94% > 18% (prev 0.72%; Δ 6222 % > 0.5%) |
| Asset Turnover: 6.33% > 50% (prev 8.32%; Δ -1.99% > 0%) |
| Interest Coverage Ratio: 0.54 > 6 (EBITDA TTM 1.08b / Interest Expense TTM 645.2m) |
Altman Z'' 0.25
| A: 0.00 (Total Current Assets 926.0m - Total Current Liabilities 894.0m) / Total Assets 31.23b |
| B: 0.03 (Retained Earnings 958.0m / Total Assets 31.23b) |
| C: 0.01 (EBIT TTM 349.0m / Avg Total Assets 29.74b) |
| D: 0.06 (Book Value of Equity 959.0m / Total Liabilities 16.92b) |
| Altman-Z'' Score: 0.25 = B |
What is the price of ARCC shares?
Over the past week, the price has changed by -2.92%, over one month by -6.22%, over three months by -1.18% and over the past year by -7.09%.
Is ARCC a buy, sell or hold?
- StrongBuy: 7
- Buy: 4
- Hold: 2
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the ARCC price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 22.5 | 16.7% |
| Analysts Target Price | 22.5 | 16.7% |
| ValueRay Target Price | 22.6 | 17% |
ARCC Fundamental Data Overview February 07, 2026
P/E Forward = 10.2249
P/S = 4.4206
P/B = 0.9793
P/EG = 3.95
Revenue TTM = 1.88b USD
EBIT TTM = 349.0m USD
EBITDA TTM = 1.08b USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 15.99b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 15.07b USD (from netDebt column, last quarter)
Enterprise Value = 28.84b USD (13.49b + Debt 15.99b - CCE 638.0m)
Interest Coverage Ratio = 0.54 (Ebit TTM 349.0m / Interest Expense TTM 645.2m)
EV/FCF = 25.26x (Enterprise Value 28.84b / FCF TTM 1.14b)
FCF Yield = 3.96% (FCF TTM 1.14b / Enterprise Value 28.84b)
FCF Margin = 60.68% (FCF TTM 1.14b / Revenue TTM 1.88b)
Net Margin = 61.02% (Net Income TTM 1.15b / Revenue TTM 1.88b)
Gross Margin = 62.94% ((Revenue TTM 1.88b - Cost of Revenue TTM 697.5m) / Revenue TTM)
Gross Margin QoQ = 21.53% (prev 70.23%)
Tobins Q-Ratio = 0.92 (Enterprise Value 28.84b / Total Assets 31.23b)
Interest Expense / Debt = 0.66% (Interest Expense 106.2m / Debt 15.99b)
Taxrate = 23.20% (43.0m / 185.4m)
NOPAT = 268.0m (EBIT 349.0m * (1 - 23.20%))
Current Ratio = 1.04 (Total Current Assets 926.0m / Total Current Liabilities 894.0m)
Debt / Equity = 1.12 (Debt 15.99b / totalStockholderEquity, last quarter 14.32b)
Debt / EBITDA = 13.90 (Net Debt 15.07b / EBITDA 1.08b)
Debt / FCF = 13.19 (Net Debt 15.07b / FCF TTM 1.14b)
Total Stockholder Equity = 14.09b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.86% (Net Income 1.15b / Total Assets 31.23b)
RoE = 8.15% (Net Income TTM 1.15b / Total Stockholder Equity 14.09b)
RoCE = 1.15% (EBIT 349.0m / Capital Employed (Total Assets 31.23b - Current Liab 894.0m))
RoIC = 0.94% (NOPAT 268.0m / Invested Capital 28.55b)
WACC = 4.40% (E(13.49b)/V(29.48b) * Re(9.02%) + D(15.99b)/V(29.48b) * Rd(0.66%) * (1-Tc(0.23)))
Discount Rate = 9.02% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 8.57%
[DCF Debug] Terminal Value 87.37% ; FCFF base≈1.20b ; Y1≈1.34b ; Y5≈1.77b
Fair Price DCF = 51.65 (EV 52.15b - Net Debt 15.07b = Equity 37.08b / Shares 718.0m; r=5.90% [WACC]; 5y FCF grow 13.58% → 2.90% )
EPS Correlation: 8.31 | EPS CAGR: 4.76% | SUE: 0.08 | # QB: 0
Revenue Correlation: 31.94 | Revenue CAGR: -15.21% | SUE: -4.0 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.48 | Chg30d=-0.009 | Revisions Net=+0 | Analysts=11
EPS current Year (2026-12-31): EPS=1.93 | Chg30d=-0.026 | Revisions Net=-1 | Growth EPS=-4.2% | Growth Revenue=+3.9%
EPS next Year (2027-12-31): EPS=1.93 | Chg30d=-0.006 | Revisions Net=+0 | Growth EPS=-0.0% | Growth Revenue=+2.6%