21.02 USD
+0.1 (+0.48%)
21.09 USD
+0.07 (+0.33%)
Taking everything into account, ARCC scores 4 out of 10 in our fundamental rating. ARCC was compared to 238 industry peers in the Capital Markets industry. ARCC has only an average score on both its financial health and profitability. ARCC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ARCC had positive earnings in the past year.
ARCC had a negative operating cash flow in the past year.
In the past 5 years ARCC has always been profitable.
In the past 5 years ARCC reported 4 times negative operating cash flow.
1.2 Ratios
ARCC has a Return On Assets of 4.42%. This is in the better half of the industry: ARCC outperforms 67.65% of its industry peers.
Looking at the Return On Equity, with a value of 9.52%, ARCC is in line with its industry, outperforming 57.56% of the companies in the same industry.
ARCC has a Return On Invested Capital (3.79%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARCC is below the industry average of 6.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.42% | ||
| ROE | 9.52% | ||
| ROIC | 3.79% |
ROA(3y)4.82%
ROA(5y)4.99%
ROE(3y)10.42%
ROE(5y)11.14%
ROIC(3y)4.28%
ROIC(5y)4%
1.3 Margins
With an excellent Profit Margin value of 45.16%, ARCC belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
ARCC's Profit Margin has been stable in the last couple of years.
The Operating Margin of ARCC (47.81%) is better than 84.87% of its industry peers.
ARCC's Operating Margin has declined in the last couple of years.
ARCC's Gross Margin of 49.47% is fine compared to the rest of the industry. ARCC outperforms 60.08% of its industry peers.
ARCC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 47.81% | ||
| PM (TTM) | 45.16% | ||
| GM | 49.47% |
OM growth 3Y5.28%
OM growth 5Y-1.82%
PM growth 3Y-16.07%
PM growth 5Y-0.39%
GM growth 3Y4.55%
GM growth 5Y-1.61%
2. Health
2.1 Basic Checks
Compared to 1 year ago, ARCC has more shares outstanding
The number of shares outstanding for ARCC has been increased compared to 5 years ago.
ARCC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.87, we must say that ARCC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ARCC (0.87) is comparable to the rest of the industry.
ARCC has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ARCC (1.09) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.87 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
ARCC has a Current Ratio of 2.23. This indicates that ARCC is financially healthy and has no problem in meeting its short term obligations.
ARCC has a better Current ratio (2.23) than 75.21% of its industry peers.
A Quick Ratio of 2.23 indicates that ARCC has no problem at all paying its short term obligations.
ARCC's Quick ratio of 2.23 is fine compared to the rest of the industry. ARCC outperforms 75.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 2.23 |
3. Growth
3.1 Past
ARCC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.94%.
The Earnings Per Share has been growing slightly by 4.06% on average over the past years.
ARCC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.72%.
ARCC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.37% yearly.
EPS 1Y (TTM)-14.94%
EPS 3Y5.05%
EPS 5Y4.06%
EPS Q2Q%-13.79%
Revenue 1Y (TTM)2.72%
Revenue growth 3Y18%
Revenue growth 5Y14.37%
Sales Q2Q%18.71%
3.2 Future
ARCC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.46% yearly.
Based on estimates for the next years, ARCC will show a small growth in Revenue. The Revenue will grow by 3.59% on average per year.
EPS Next Y-12.04%
EPS Next 2Y-7.38%
EPS Next 3Y-5.46%
EPS Next 5YN/A
Revenue Next Year0.75%
Revenue Next 2Y2.9%
Revenue Next 3Y3.59%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ARCC is valuated reasonably with a Price/Earnings ratio of 10.25.
Based on the Price/Earnings ratio, ARCC is valued a bit cheaper than 70.59% of the companies in the same industry.
ARCC is valuated cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.52, which indicates a very decent valuation of ARCC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARCC indicates a somewhat cheap valuation: ARCC is cheaper than 68.49% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ARCC to the average of the S&P500 Index (36.10), we can say ARCC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 10.52 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as ARCC's earnings are expected to decrease with -5.46% in the coming years.
PEG (NY)N/A
PEG (5Y)2.53
EPS Next 2Y-7.38%
EPS Next 3Y-5.46%
5. Dividend
5.1 Amount
ARCC has a Yearly Dividend Yield of 9.36%, which is a nice return.
Compared to an average industry Dividend Yield of 8.39, ARCC pays a bit more dividend than its industry peers.
ARCC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.36% |
5.2 History
The dividend of ARCC has a limited annual growth rate of 2.32%.
ARCC has been paying a dividend for at least 10 years, so it has a reliable track record.
ARCC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.32%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
91.56% of the earnings are spent on dividend by ARCC. This is not a sustainable payout ratio.
ARCC's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP91.56%
EPS Next 2Y-7.38%
EPS Next 3Y-5.46%
21.02
+0.1 (+0.48%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners32.38%
Inst Owner Change-14.35%
Ins Owners0.47%
Ins Owner Change0.42%
Market Cap15.04B
Revenue(TTM)3.02B
Net Income(TTM)1.36B
Analysts83.81
Price Target23.1 (9.9%)
Short Float %2.67%
Short Ratio3.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.36% |
Yearly Dividend1.82
Dividend Growth(5Y)2.32%
DP91.56%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.8%
Min EPS beat(2)-3.22%
Max EPS beat(2)-2.38%
EPS beat(4)0
Avg EPS beat(4)-5.27%
Min EPS beat(4)-8.8%
Max EPS beat(4)-2.38%
EPS beat(8)2
Avg EPS beat(8)-2.81%
EPS beat(12)4
Avg EPS beat(12)-1.5%
EPS beat(16)6
Avg EPS beat(16)-0.73%
Revenue beat(2)1
Avg Revenue beat(2)7.14%
Min Revenue beat(2)-3.06%
Max Revenue beat(2)17.35%
Revenue beat(4)1
Avg Revenue beat(4)0.35%
Min Revenue beat(4)-7.65%
Max Revenue beat(4)17.35%
Revenue beat(8)3
Avg Revenue beat(8)1.65%
Revenue beat(12)4
Avg Revenue beat(12)1.39%
Revenue beat(16)7
Avg Revenue beat(16)1.41%
PT rev (1m)-1.71%
PT rev (3m)-2.79%
EPS NQ rev (1m)-0.7%
EPS NQ rev (3m)-1.15%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)2.37%
Revenue NQ rev (3m)2.55%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 10.52 | ||
| P/S | 4.98 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.05 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.05
EY9.75%
EPS(NY)2
Fwd EY9.51%
FCF(TTM)-2.18
FCFYN/A
OCF(TTM)-2.18
OCFYN/A
SpS4.22
BVpS20.01
TBVpS20.01
PEG (NY)N/A
PEG (5Y)2.53
Graham Number30.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.42% | ||
| ROE | 9.52% | ||
| ROCE | 4.8% | ||
| ROIC | 3.79% | ||
| ROICexc | 3.93% | ||
| ROICexgc | 3.96% | ||
| OM | 47.81% | ||
| PM (TTM) | 45.16% | ||
| GM | 49.47% | ||
| FCFM | N/A |
ROA(3y)4.82%
ROA(5y)4.99%
ROE(3y)10.42%
ROE(5y)11.14%
ROIC(3y)4.28%
ROIC(5y)4%
ROICexc(3y)4.37%
ROICexc(5y)4.08%
ROICexgc(3y)4.39%
ROICexgc(5y)4.1%
ROCE(3y)5.42%
ROCE(5y)5.06%
ROICexgc growth 3Y12.39%
ROICexgc growth 5Y-0.77%
ROICexc growth 3Y12.35%
ROICexc growth 5Y-0.78%
OM growth 3Y5.28%
OM growth 5Y-1.82%
PM growth 3Y-16.07%
PM growth 5Y-0.39%
GM growth 3Y4.55%
GM growth 5Y-1.61%
F-Score2
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.23 | ||
| Quick Ratio | 2.23 | ||
| Altman-Z | 0.87 |
F-Score2
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-14.94%
EPS 3Y5.05%
EPS 5Y4.06%
EPS Q2Q%-13.79%
EPS Next Y-12.04%
EPS Next 2Y-7.38%
EPS Next 3Y-5.46%
EPS Next 5YN/A
Revenue 1Y (TTM)2.72%
Revenue growth 3Y18%
Revenue growth 5Y14.37%
Sales Q2Q%18.71%
Revenue Next Year0.75%
Revenue Next 2Y2.9%
Revenue Next 3Y3.59%
Revenue Next 5YN/A
EBIT growth 1Y-1.03%
EBIT growth 3Y24.22%
EBIT growth 5Y12.28%
EBIT Next Year-98.78%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-405.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-405.49%
OCF growth 3YN/A
OCF growth 5YN/A
ARES CAPITAL CORP / ARCC FAQ
What is the fundamental rating for ARCC stock?
ChartMill assigns a fundamental rating of 4 / 10 to ARCC.
What is the valuation status of ARES CAPITAL CORP (ARCC) stock?
ChartMill assigns a valuation rating of 4 / 10 to ARES CAPITAL CORP (ARCC). This can be considered as Fairly Valued.
Can you provide the profitability details for ARES CAPITAL CORP?
ARES CAPITAL CORP (ARCC) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for ARCC stock?
The Price/Earnings (PE) ratio for ARES CAPITAL CORP (ARCC) is 10.25 and the Price/Book (PB) ratio is 1.05.
What is the expected EPS growth for ARES CAPITAL CORP (ARCC) stock?
The Earnings per Share (EPS) of ARES CAPITAL CORP (ARCC) is expected to decline by -12.04% in the next year.