(ARCC) Ares Capital - Overview

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US04010L1035

Stock:

Total Rating 25

Risk 60

Buy Signal -0.86

Asset Management -4.8
Asset Management & Custody Banks -4.8

Market Cap: 13,607m
Avg Trading Vol: 138M USD

ATR: 2.35%
Peers RS (IBD): 34.15

Risk 5d forecast
Volatility	19.0%
Relative Tail Risk	2.78%

Reward TTM
Sharpe Ratio	-0.50
Alpha	-21.95

Character TTM
Beta	0.673
Beta Downside	0.960

Drawdowns 3y
Max DD	18.76%
CAGR/Max DD	0.51

EPS (Earnings per Share)

EPS CAGR: 4.76%
EPS Trend: 8.3%

Last SUE: 0.08
Qual. Beats: 0

Revenue

Rev. CAGR: 15.08%
Rev. Trend: 73.9%

Last SUE: 0.44
Qual. Beats: 0

Description: ARCC Ares Capital

Ares Capital Corporation is a business development company specializing in growth capital, acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors. The fund will also consider investments in industries such as restaurants, retail, oil and gas, and technology sectors. It invest in the United States based companies. It focuses on investments in Northeast, Mid-Atlantic, Southeast and Southwest regions from its New York office, the Midwest region, from the Chicago office, and the Western region from the Los Angeles office. The fund typically invests between $30 million and $500 million, in companies with an EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million The fund invests through revolvers, first lien loans, warrants, unitranche structures, second lien loans, mezzanine debt, private high yield, junior capital, subordinated debt, and non-control preferred and common equity. The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically considers the purchase of stressed and discounted debt positions. The fund prefers to be an agent and/or lead the transactions in which it invests. The fund also seeks board representation in its portfolio companies.

Piotroski VR‑10 (Strict, 0-10) 3.5

Net Income: 1.30b TTM > 0 and > 6% of Revenue
FCF/TA: 0.04 > 0.02 and ΔFCF/TA -0.88 > 1.0
NWC/Revenue: 27.43% < 20% (prev 31.69%; Δ -4.26% < -1%)
CFO/TA 0.04 > 3% & CFO 1.14b > Net Income 1.30b
Net Debt (15.07b) to EBITDA (1.59b): 9.50 < 3
Current Ratio: 1.71 > 1.5 & < 3
Outstanding Shares: last quarter (699.0m) vs 12m ago 6.72% < -2%
Gross Margin: 68.60% > 18% (prev 0.72%; Δ 6788 % > 0.5%)
Asset Turnover: 7.78% > 50% (prev 8.32%; Δ -0.54% > 0%)
Interest Coverage Ratio: 0.54 > 6 (EBITDA TTM 1.59b / Interest Expense TTM 645.2m)

Altman Z'' 0.37

A: 0.02 (Total Current Assets 1.53b - 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: 0.37 = B

Beneish M

DSRI: 1.19 (Receivables 605.0m/516.0m, Revenue 2.31b/2.35b)
GMI: 1.05 (GM 68.60% / 71.97%)
AQI: none (AQ_t none / AQ_t-1 none)
SGI: 0.98 (Revenue 2.31b / 2.35b)
TATA: 0.01 (NI 1.30b - CFO 1.14b) / TA 31.23b)
Beneish M-Score: cannot calculate (missing components)

What is the price of ARCC shares?

As of February 25, 2026, the stock is trading at USD 19.18 with a total of 7,250,422 shares traded.
Over the past week, the price has changed by -0.62%, over one month by -5.75%, over three months by -2.57% and over the past year by -9.67%.

Is ARCC a buy, sell or hold?

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

What are the forecasts/targets for the ARCC price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	22.3	16.1%
Analysts Target Price	22.3	16.1%

ARCC Fundamental Data Overview February 21, 2026

P/E Trailing = 10.4121
P/E Forward = 10.0402
P/S = 4.4582
P/B = 0.9714
P/EG = 3.95
Revenue TTM = 2.31b USD
EBIT TTM = 349.0m USD
EBITDA TTM = 1.59b 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 = 28.67b USD (13.61b + Debt 15.99b - CCE 924.0m)
Interest Coverage Ratio = 0.54 (Ebit TTM 349.0m / Interest Expense TTM 645.2m)
EV/FCF = 25.11x (Enterprise Value 28.67b / FCF TTM 1.14b)
FCF Yield = 3.98% (FCF TTM 1.14b / Enterprise Value 28.67b)
FCF Margin = 49.33% (FCF TTM 1.14b / Revenue TTM 2.31b)
Net Margin = 56.11% (Net Income TTM 1.30b / Revenue TTM 2.31b)
Gross Margin = 68.60% ((Revenue TTM 2.31b - Cost of Revenue TTM 727.0m) / Revenue TTM)
Gross Margin QoQ = 70.39% (prev 70.23%)
Tobins Q-Ratio = 0.92 (Enterprise Value 28.67b / Total Assets 31.23b)
Interest Expense / Debt = 0.66% (Interest Expense 106.2m / Debt 15.99b)
Taxrate = 8.15% (26.0m / 319.0m)
NOPAT = 320.6m (EBIT 349.0m * (1 - 8.15%))
Current Ratio = 1.71 (Total Current Assets 1.53b / Total Current Liabilities 894.0m)
Debt / Equity = 1.12 (Debt 15.99b / totalStockholderEquity, last quarter 14.32b)
Debt / EBITDA = 9.50 (Net Debt 15.07b / EBITDA 1.59b)
Debt / FCF = 13.19 (Net Debt 15.07b / FCF TTM 1.14b)
Total Stockholder Equity = 14.09b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.37% (Net Income 1.30b / Total Assets 31.23b)
RoE = 9.22% (Net Income TTM 1.30b / Total Stockholder Equity 14.09b)
RoCE = 1.15% (EBIT 349.0m / Capital Employed (Total Assets 31.23b - Current Liab 894.0m))
RoIC = 1.11% (NOPAT 320.6m / Invested Capital 28.99b)
WACC = 4.19% (E(13.61b)/V(29.60b) * Re(8.40%) + D(15.99b)/V(29.60b) * Rd(0.66%) * (1-Tc(0.08)))
Discount Rate = 8.40% (= 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: 73.94 | Revenue CAGR: 15.08% | SUE: 0.44 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.49 | Chg30d=-0.004 | Revisions Net=-2 | Analysts=12
EPS current Year (2026-12-31): EPS=1.94 | Chg30d=-0.010 | Revisions Net=-2 | Growth EPS=-3.4% | Growth Revenue=+3.7%
EPS next Year (2027-12-31): EPS=1.93 | Chg30d=-0.008 | Revisions Net=-2 | Growth EPS=-0.8% | Growth Revenue=+4.5%

Additional Sources for ARCC Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Fund Manager Positions: Dataroma | Stockcircle