(ARCC) Ares Capital - Ratings and Ratios
Debt, Equity, Loans, Mezzanine, Investments
ARCC EPS (Earnings per Share)
ARCC Revenue
Description: ARCC Ares Capital
Ares Capital Corporation (ARCC) is a business development company that specializes in providing financing solutions to middle-market companies in the United States. The company focuses on investments in various sectors, including basic and growth manufacturing, business services, consumer products, healthcare, and information technology services.
ARCCs investment strategy involves providing debt and equity financing to companies through various structures, including revolvers, first lien loans, warrants, unitranche structures, second lien loans, and mezzanine debt. The company typically invests between $20 million and $200 million in companies with EBITDA between $10 million and $250 million. ARCC also seeks to be the agent and/or lead transactions in which it invests and often takes board representation in its portfolio companies.
From a performance perspective, ARCC has demonstrated a strong track record of generating returns for its shareholders. Key performance indicators (KPIs) such as dividend yield, net investment income, and net asset value (NAV) per share are important metrics to evaluate the companys performance. As a business development company, ARCC is required to distribute at least 90% of its taxable income to shareholders, making dividend yield an important consideration. The companys dividend yield is around 8-9%, which is relatively attractive compared to other investment opportunities. Additionally, ARCCs NAV per share has been steadily increasing over time, indicating a strong underlying portfolio.
To further evaluate ARCCs performance, its essential to examine its portfolio composition, credit quality, and historical returns. The companys portfolio is diversified across various industries and geographies, reducing concentration risk. ARCCs credit quality is also a key consideration, with a focus on investing in companies with stable cash flows and manageable debt levels. Historically, ARCC has demonstrated a strong ability to generate returns through a combination of interest income and capital appreciation.
ARCC Stock Overview
| Market Cap in USD | 15,864m |
| Sub-Industry | Asset Management & Custody Banks |
| IPO / Inception | 2004-10-06 |
ARCC Stock Ratings
| Growth Rating | 77.5% |
| Fundamental | 56.3% |
| Dividend Rating | 85.4% |
| Return 12m vs S&P 500 | -3.65% |
| Analyst Rating | 4.38 of 5 |
ARCC Dividends
| Dividend Yield 12m | 9.15% |
| Yield on Cost 5y | 22.27% |
| Annual Growth 5y | 3.71% |
| Payout Consistency | 96.8% |
| Payout Ratio | 90.1% |
ARCC Growth Ratios
| Growth Correlation 3m | -7.6% |
| Growth Correlation 12m | 69.9% |
| Growth Correlation 5y | 95.2% |
| CAGR 5y | 15.03% |
| CAGR/Max DD 3y | 0.80 |
| CAGR/Mean DD 3y | 7.50 |
| Sharpe Ratio 12m | 0.98 |
| Alpha | 0.08 |
| Beta | 0.754 |
| Volatility | 22.84% |
| Current Volume | 6207.6k |
| Average Volume 20d | 3382.6k |
| Stop Loss | 20.4 (-3.3%) |
| Signal | -0.60 |
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 (1.20b) ratio: -0.37 <= 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 97.74%; Δ -24.93pp) >=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 1.20b / 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) 56.26
| 1. Piotroski 5.0pt = 0.0 |
| 2. FCF Yield 8.02% = 4.01 |
| 3. FCF Margin 54.14% = 7.50 |
| 4. Debt/Equity 0.03 = 2.50 |
| 5. Debt/Ebitda 0.40 = 2.38 |
| 6. ROIC - WACC (= -8.25)% = -10.31 |
| 7. RoE 10.83% = 0.90 |
| 8. Rev. Trend 13.01% = 0.98 |
| 9. EPS Trend -33.91% = -1.70 |
What is the price of ARCC shares?
Over the past week, the price has changed by -3.56%, over one month by -3.82%, over three months by +1.10% and over the past year by +14.20%.
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 23.02 USD . This means that ARCC is currently overvalued and has a potential downside of 9.15%.
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 | 23.3 | 10.3% |
| Analysts Target Price | 23.3 | 10.3% |
| ValueRay Target Price | 25.9 | 22.8% |
Last update: 2025-09-10 04:31
ARCC Fundamental Data Overview
CCE Cash And Equivalents = 447.0m USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 11.0245
P/E Forward = 11.6144
P/S = 5.2686
P/B = 1.1279
P/EG = 3.95
Beta = 0.748
Revenue TTM = 2.36b USD
EBIT TTM = 367.0m USD
EBITDA TTM = 1.20b USD
Long Term Debt = 80.0m USD (from nonCurrentLiabilitiesTotal, last quarter)
Short Term Debt = 406.0m USD (from totalCurrentLiabilities, last fiscal year)
Debt = 486.0m USD (Calculated: Short Term 406.0m + Long Term 80.0m)
Net Debt = -447.0m USD (from netDebt column, last quarter)
Enterprise Value = 15.90b USD (15.86b + Debt 486.0m - CCE 447.0m)
Interest Coverage Ratio = 0.53 (Ebit TTM 367.0m / Interest Expense TTM 699.0m)
FCF Yield = 8.02% (FCF TTM 1.28b / Enterprise Value 15.90b)
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)
Tobins Q-Ratio = 20.13 (Enterprise Value 15.90b / Book Value Of Equity 790.0m)
Interest Expense / Debt = 35.39% (Interest Expense 172.0m / Debt 486.0m)
Taxrate = 4.58% (73.0m / 1.59b)
NOPAT = 350.2m (EBIT 367.0m * (1 - 4.58%))
Current Ratio = 1.77 (Total Current Assets 720.0m / Total Current Liabilities 406.0m)
Debt / Equity = 0.03 (Debt 486.0m / last Quarter total Stockholder Equity 14.03b)
Debt / EBITDA = 0.40 (Net Debt -447.0m / EBITDA 1.20b)
Debt / FCF = 0.38 (Debt 486.0m / FCF TTM 1.28b)
Total Stockholder Equity = 13.46b (last 4 quarters mean)
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 = 2.71% (Ebit 367.0m / (Equity 13.46b + L.T.Debt 80.0m))
RoIC = 1.28% (NOPAT 350.2m / Invested Capital 27.29b)
WACC = 9.53% (E(15.86b)/V(16.35b) * Re(8.79%)) + (D(486.0m)/V(16.35b) * Rd(35.39%) * (1-Tc(0.05)))
Shares Correlation 3-Years: 96.97 | Cagr: 2.62%
Discount Rate = 8.79% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 77.20% ; FCFE base≈1.12b ; Y1≈1.24b ; Y5≈1.63b
Fair Price DCF = 34.85 (DCF Value 24.58b / Shares Outstanding 705.4m; 5y FCF grow 12.74% → 3.0% )
EPS Correlation: -33.91 | EPS CAGR: 0.0% | SUE: -0.39 | # QB: 0
Revenue Correlation: 13.01 | Revenue CAGR: 15.11% | SUE: N/A | # QB: None
Additional Sources for ARCC Stock
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Fund Manager Positions: Dataroma | Stockcircle