(ARCC) Ares Capital - Ratings and Ratios
Debt, Mezzanine, Equity, Financing, Investment
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 9.10% |
| Yield on Cost 5y | 17.55% |
| Yield CAGR 5y | 4.34% |
| Payout Consistency | 96.6% |
| Payout Ratio | 93.7% |
| Risk via 5d forecast | |
|---|---|
| Volatility | 15.3% |
| Value at Risk 5%th | 25.6% |
| Relative Tail Risk | 1.85% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.20 |
| Alpha | -15.85 |
| CAGR/Max DD | 0.64 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.486 |
| Beta | 0.822 |
| Beta Downside | 0.937 |
| Drawdowns 3y | |
|---|---|
| Max DD | 18.76% |
| Mean DD | 3.62% |
| Median DD | 2.25% |
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) 2.0
| Net Income: 1.36b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA -0.10 > 1.0 |
| NWC/Revenue: 68.40% < 20% (prev 29.68%; Δ 38.72% < -1%) |
| CFO/TA 0.04 > 3% & CFO 1.30b > Net Income 1.36b |
| Net Debt (14.57b) to EBITDA (1.43b): 10.21 < 3 |
| Current Ratio: 12.82 > 1.5 & < 3 |
| Outstanding Shares: last quarter (709.0m) vs 12m ago 11.65% < -2% |
| Gross Margin: 68.27% > 18% (prev 0.73%; Δ 6753 % > 0.5%) |
| Asset Turnover: 7.76% > 50% (prev 8.75%; Δ -0.99% > 0%) |
| Interest Coverage Ratio: 0.16 > 6 (EBITDA TTM 1.43b / Interest Expense TTM 713.0m) |
Altman Z'' 0.50
| A: 0.05 (Total Current Assets 1.67b - Total Current Liabilities 130.0m) / Total Assets 30.81b |
| B: 0.03 (Retained Earnings 851.0m / Total Assets 30.81b) |
| C: 0.00 (EBIT TTM 115.0m / Avg Total Assets 28.95b) |
| D: 0.05 (Book Value of Equity 852.0m / Total Liabilities 16.48b) |
| Altman-Z'' Score: 0.50 = B |
Beneish M
| DSRI: 1.74 (Receivables 631.0m/382.0m, Revenue 2.25b/2.37b) |
| GMI: 1.08 (GM 68.27% / 73.48%) |
| AQI: none (AQ_t none / AQ_t-1 none) |
| SGI: 0.95 (Revenue 2.25b / 2.37b) |
| TATA: 0.00 (NI 1.36b - CFO 1.30b) / TA 30.81b) |
| Beneish M-Score: cannot calculate (missing components) |
ValueRay F-Score (Strict, 0-100) 54.32
| 1. Piotroski: 2.0pt |
| 2. FCF Yield: 4.41% |
| 3. FCF Margin: 58.03% |
| 4. Debt/Equity: 1.09 |
| 5. Debt/Ebitda: 10.21 |
| 6. ROIC - WACC: -4.59% |
| 7. RoE: 9.84% |
| 8. Revenue Trend: 63.70% |
| 9. EPS Trend: -33.58% |
What is the price of ARCC shares?
Over the past week, the price has changed by -0.57%, over one month by +4.32%, over three months by +6.67% and over the past year by -2.80%.
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 | 22.6 | 9% |
| Analysts Target Price | 22.6 | 9% |
| ValueRay Target Price | 24.6 | 18.6% |
ARCC Fundamental Data Overview January 19, 2026
P/E Forward = 10.929
P/S = 4.9641
P/B = 1.0461
P/EG = 3.95
Revenue TTM = 2.25b USD
EBIT TTM = 115.0m USD
EBITDA TTM = 1.43b USD
Long Term Debt = unknown (none)
Short Term Debt = 2.42b USD (from shortTermDebt, two quarters ago)
Debt = 15.61b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 14.57b USD (from netDebt column, last quarter)
Enterprise Value = 29.55b USD (14.98b + Debt 15.61b - CCE 1.04b)
Interest Coverage Ratio = 0.16 (Ebit TTM 115.0m / Interest Expense TTM 713.0m)
EV/FCF = 22.66x (Enterprise Value 29.55b / FCF TTM 1.30b)
FCF Yield = 4.41% (FCF TTM 1.30b / Enterprise Value 29.55b)
FCF Margin = 58.03% (FCF TTM 1.30b / Revenue TTM 2.25b)
Net Margin = 60.66% (Net Income TTM 1.36b / Revenue TTM 2.25b)
Gross Margin = 68.27% ((Revenue TTM 2.25b - Cost of Revenue TTM 713.0m) / Revenue TTM)
Gross Margin QoQ = 70.23% (prev 70.29%)
Tobins Q-Ratio = 0.96 (Enterprise Value 29.55b / Total Assets 30.81b)
Interest Expense / Debt = 1.25% (Interest Expense 195.0m / Debt 15.61b)
Taxrate = 6.26% (27.0m / 431.0m)
NOPAT = 107.8m (EBIT 115.0m * (1 - 6.26%))
Current Ratio = 12.82 (Total Current Assets 1.67b / Total Current Liabilities 130.0m)
Debt / Equity = 1.09 (Debt 15.61b / totalStockholderEquity, last quarter 14.32b)
Debt / EBITDA = 10.21 (Net Debt 14.57b / EBITDA 1.43b)
Debt / FCF = 11.17 (Net Debt 14.57b / FCF TTM 1.30b)
Total Stockholder Equity = 13.85b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.71% (Net Income 1.36b / Total Assets 30.81b)
RoE = 9.84% (Net Income TTM 1.36b / Total Stockholder Equity 13.85b)
RoCE = 0.37% (EBIT 115.0m / Capital Employed (Total Assets 30.81b - Current Liab 130.0m))
RoIC = 0.38% (NOPAT 107.8m / Invested Capital 28.19b)
WACC = 4.98% (E(14.98b)/V(30.59b) * Re(8.94%) + D(15.61b)/V(30.59b) * Rd(1.25%) * (1-Tc(0.06)))
Discount Rate = 8.94% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 9.34%
[DCF Debug] Terminal Value 87.37% ; FCFF base≈1.25b ; Y1≈1.40b ; Y5≈1.85b
Fair Price DCF = 55.71 (EV 54.50b - Net Debt 14.57b = Equity 39.93b / Shares 716.8m; r=5.90% [WACC]; 5y FCF grow 13.58% → 2.90% )
EPS Correlation: -33.58 | EPS CAGR: -43.49% | SUE: -4.0 | # QB: 0
Revenue Correlation: 63.70 | Revenue CAGR: 7.18% | SUE: -0.50 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.49 | Chg30d=+0.000 | Revisions Net=+1 | Analysts=15
EPS next Year (2026-12-31): EPS=1.95 | Chg30d=+0.001 | Revisions Net=+1 | Growth EPS=-2.0% | Growth Revenue=+4.8%
Additional Sources for ARCC Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle