(ARCC) Ares Capital - Overview

Sector: Financial Services | Industry: Asset Management | Exchange: NASDAQ (USA) | Market Cap: 12.530m USD | Total Return: -10.7% in 12m

Stock Debt, Mezzanine, Equity, Financing, Capital
Total Rating 27
Risk 54
Buy Signal -1.05
Asset Management +6.7
Asset Management & Custody Banks +6.7
Market Cap: 12,530m
Avg Trading Vol: 145M USD
ATR: 2.49%
Peers RS (IBD): 36.3
Risk 5d forecast
Volatility23.3%
Rel. Tail Risk3.39%
Reward TTM
Sharpe Ratio-0.55
Alpha-23.69
Character TTM
Beta0.633
Beta Downside0.784
Drawdowns 3y
Max DD19.35%
CAGR/Max DD0.50
EPS (Earnings per Share) EPS (Earnings per Share) of ARCC over the last years for every Quarter: "2021-03": 0.43, "2021-06": 0.53, "2021-09": 0.47, "2021-12": 0.58, "2022-03": 0.42, "2022-06": 0.46, "2022-09": 0.5, "2022-12": 0.63, "2023-03": 0.57, "2023-06": 0.58, "2023-09": 0.59, "2023-12": 0.63, "2024-03": 0.59, "2024-06": 0.61, "2024-09": 0.58, "2024-12": 0.55, "2025-03": 0.5, "2025-06": 0.5, "2025-09": 0.5, "2025-12": 0.5, "2026-03": 0,
EPS CAGR: -44.69%
EPS Trend: -46.4%
Last SUE: -4.00
Qual. Beats: 0
Revenue Revenue of ARCC over the last years for every Quarter: 2021-03: 516, 2021-06: 585, 2021-09: 444, 2021-12: 505, 2022-03: 375, 2022-06: 230, 2022-09: 249, 2022-12: 342, 2023-03: 429, 2023-06: 489, 2023-09: 660, 2023-12: 588, 2024-03: 639, 2024-06: 532, 2024-09: 613, 2024-12: 567, 2025-03: 446, 2025-06: 579, 2025-09: 655, 2025-12: 635, 2026-03: null,
Rev. CAGR: 15.08%
Rev. Trend: 73.9%
Last SUE: 0.44
Qual. Beats: 0
Description: ARCC Ares Capital February 27, 2026

Ares Capital Corporation (NASDAQ: ARCC) operates as a business-development company (BDC) that provides growth capital, acquisition financing, mezzanine debt, and restructuring solutions to middle-market U.S. companies.

The firm targets sectors such as basic and growth manufacturing, business services, consumer products, health-care, and information-technology services, while also evaluating opportunities in restaurants, retail, oil & gas, and broader technology industries across the Northeast, Mid-Atlantic, Southeast, Southwest, Midwest and Western regions.

Typical transaction sizes range from $30 million to $500 million for equity investments and $10 million to $100 million for debt, employing structures like first-lien loans, unitranche facilities, mezzanine debt, warrants and non-control equity, often with ARCC acting as lead investor and securing board representation.

As of the most recent quarter, ARCC reported $13.5 billion in assets under management, a dividend yield of roughly 9.2 %, and a net interest margin of 6.1 %, reflecting the BDC sector’s resilience amid a tightening credit environment and strong demand for middle-market financing.

For a deeper dive into ARCC’s valuation metrics and competitive positioning, consider exploring ValueRay’s analytical tools.

Headlines to Watch Out For
  • Middle market lending volume impacts new investment opportunities
  • Interest rate fluctuations affect net investment income
  • Credit quality of portfolio companies drives loan losses
  • Economic downturns increase default risk for borrowers
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 6.79k% > 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 April 01, 2026, the stock is trading at USD 18.02 with a total of 9,921,129 shares traded.
Over the past week, the price has changed by +0.33%, over one month by -2.47%, over three months by -8.49% and over the past year by -10.69%.
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
Wallstreet Target Price 21.9 21.4%
Analysts Target Price 21.9 21.4%
ARCC Fundamental Data Overview March 31, 2026
P/E Trailing = 9.3817
P/E Forward = 9.3023
P/S = 4.1053
P/B = 0.9007
P/EG = 3.7176
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 = 27.60b USD (12.53b + Debt 15.99b - CCE 924.0m)
Interest Coverage Ratio = 0.54 (Ebit TTM 349.0m / Interest Expense TTM 645.2m)
EV/FCF = 24.17x (Enterprise Value 27.60b / FCF TTM 1.14b)
FCF Yield = 4.14% (FCF TTM 1.14b / Enterprise Value 27.60b)
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 = 0.88 (Enterprise Value 27.60b / 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 = 3.95% (E(12.53b)/V(28.52b) * Re(8.21%) + D(15.99b)/V(28.52b) * Rd(0.66%) * (1-Tc(0.08)))
Discount Rate = 8.21% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 8.57%
[DCF] Terminal Value 87.37% ; FCFF base≈1.20b ; Y1≈1.34b ; Y5≈1.77b
[DCF] Fair Price = 51.55 (EV 52.08b - Net Debt 15.07b = Equity 37.01b / Shares 718.0m; r=6.0% [WACC]; 5y FCF grow 13.58% → 3.0% )
EPS Correlation: -46.35 | EPS CAGR: -44.69% | SUE: -4.0 | # QB: 0
Revenue Correlation: 73.94 | Revenue CAGR: 15.08% | SUE: 0.44 | # QB: 0
EPS next Quarter (2026-06-30): EPS=0.48 | Chg7d=-0.002 | Chg30d=+0.000 | Revisions Net=-1 | Analysts=13
EPS current Year (2026-12-31): EPS=1.93 | Chg7d=-0.009 | Chg30d=+0.001 | Revisions Net=-2 | Growth EPS=-3.8% | Growth Revenue=+3.2%
EPS next Year (2027-12-31): EPS=1.93 | Chg7d=-0.002 | Chg30d=+0.003 | Revisions Net=-2 | Growth EPS=-0.4% | Growth Revenue=+4.3%
[Analyst] Revisions Ratio: -1.00 (0 Up / 1 Down within 30d for Next Quarter)
[Growth] Implied Growth Rate = -2.4% (Discount Rate 8.2% - Earnings Yield 10.7%)
[Growth] Growth Spread = +7.6% (Analyst 5.2% - Implied -2.4%)
Additional Sources for ARCC Stock Fund Manager Positions: Dataroma · Stockcircle