20.64 USD
-0.26 (-1.24%)
20.7 USD
+0.06 (+0.29%)
ARCC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 238 industry peers in the Capital Markets industry. Both the profitability and the financial health of ARCC get a neutral evaluation. Nothing too spectacular is happening here. ARCC has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year ARCC was profitable.
- 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's Return On Assets of 4.42% is fine compared to the rest of the industry. ARCC outperforms 64.71% of its industry peers.
- ARCC has a Return On Equity of 9.52%. This is comparable to the rest of the industry: ARCC outperforms 58.40% of its industry peers.
- ARCC has a Return On Invested Capital (3.79%) which is in line with its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ARCC is below the industry average of 7.27%.
| 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
- ARCC has a better Profit Margin (45.16%) than 88.24% of its industry peers.
- In the last couple of years the Profit Margin of ARCC has remained more or less at the same level.
- ARCC has a Operating Margin of 47.81%. This is amongst the best in the industry. ARCC outperforms 84.45% of its industry peers.
- In the last couple of years the Operating Margin of ARCC has declined.
- ARCC has a Gross Margin of 49.47%. This is comparable to the rest of the industry: ARCC outperforms 56.72% of its industry peers.
- In the last couple of years the Gross Margin of ARCC has declined.
| 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
- The number of shares outstanding for ARCC has been increased compared to 1 year ago.
- The number of shares outstanding for ARCC has been increased compared to 5 years ago.
- The debt/assets ratio for ARCC has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.86, we must say that ARCC is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 0.86, ARCC perfoms like the industry average, outperforming 51.26% of the companies in the same industry.
- ARCC has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
- ARCC has a Debt to Equity ratio (1.09) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.86 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 2.23 indicates that ARCC has no problem at all paying its short term obligations.
- With a decent Current ratio value of 2.23, ARCC is doing good in the industry, outperforming 75.21% of the companies in the same industry.
- ARCC has a Quick 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 Quick ratio (2.23) than 75.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 2.23 |
3. Growth
3.1 Past
- The earnings per share for ARCC have decreased strongly by -14.94% in the last year.
- 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%.
- The Revenue has been growing by 14.37% on average over the past years. This is quite good.
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
- Based on estimates for the next years, ARCC will show a decrease in Earnings Per Share. The EPS will decrease by -5.44% on average per year.
- The Revenue is expected to grow by 2.54% on average over the next years.
EPS Next Y-12.51%
EPS Next 2Y-7.6%
EPS Next 3Y-5.44%
EPS Next 5YN/A
Revenue Next Year1.46%
Revenue Next 2Y3.23%
Revenue Next 3Y2.54%
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
- A Price/Earnings ratio of 10.07 indicates a reasonable valuation of ARCC.
- Based on the Price/Earnings ratio, ARCC is valued a bit cheaper than the industry average as 69.75% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 26.94. ARCC is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 10.38, the valuation of ARCC can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, ARCC is valued a bit cheaper than 72.69% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.94, ARCC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.07 | ||
| Fwd PE | 10.38 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- ARCC's earnings are expected to decrease with -5.44% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.48
EPS Next 2Y-7.6%
EPS Next 3Y-5.44%
5. Dividend
5.1 Amount
- ARCC has a Yearly Dividend Yield of 9.15%, which is a nice return.
- Compared to an average industry Dividend Yield of 6.10, 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 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.15% |
5.2 History
- The dividend of ARCC has a limited annual growth rate of 2.32%.
- ARCC has paid a dividend for at least 10 years, which is 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.
- The Dividend Rate of ARCC has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP91.56%
EPS Next 2Y-7.6%
EPS Next 3Y-5.44%
20.64
-0.26 (-1.24%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)02-04 2026-02-04/bmo
Inst Owners33.01%
Inst Owner Change0.02%
Ins Owners0.47%
Ins Owner Change0.42%
Market Cap14.77B
Revenue(TTM)3.02B
Net Income(TTM)1.36B
Analysts83.81
Price Target23.1 (11.92%)
Short Float %2.46%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.15% |
Yearly Dividend1.82
Dividend Growth(5Y)2.32%
DP91.56%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
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)0%
PT rev (3m)-2.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.08%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-0.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.07 | ||
| Fwd PE | 10.38 | ||
| P/S | 4.89 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.03 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.05
EY9.93%
EPS(NY)1.99
Fwd EY9.64%
FCF(TTM)-2.18
FCFYN/A
OCF(TTM)-2.18
OCFYN/A
SpS4.22
BVpS20.01
TBVpS20.01
PEG (NY)N/A
PEG (5Y)2.48
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 | 0.86 |
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-12.51%
EPS Next 2Y-7.6%
EPS Next 3Y-5.44%
EPS Next 5YN/A
Revenue 1Y (TTM)2.72%
Revenue growth 3Y18%
Revenue growth 5Y14.37%
Sales Q2Q%18.71%
Revenue Next Year1.46%
Revenue Next 2Y3.23%
Revenue Next 3Y2.54%
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 for 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.
What is the valuation of ARES CAPITAL CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ARES CAPITAL CORP (ARCC) is 10.07 and the Price/Book (PB) ratio is 1.03.
How financially healthy is ARES CAPITAL CORP?
The financial health rating of ARES CAPITAL CORP (ARCC) is 4 / 10.