20.2203 USD
-0.63 (-3.02%)
Overall ARCC gets a fundamental rating of 4 out of 10. We evaluated ARCC against 237 industry peers in the Capital Markets industry. ARCC has only an average score on both its financial health and profitability. ARCC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ARCC was profitable.
In the past year ARCC has reported a negative cash flow from operations.
In the past 5 years ARCC has always been profitable.
ARCC had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of ARCC (4.42%) is better than 67.09% of its industry peers.
ARCC has a Return On Equity (9.52%) which is comparable to the rest of the 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 7.00%.
| 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 87.34% of its industry peers.
ARCC's Profit Margin has been stable in the last couple of years.
The Operating Margin of ARCC (47.81%) is better than 84.39% of its industry peers.
In the last couple of years the Operating Margin of ARCC has declined.
With a Gross Margin value of 49.47%, ARCC perfoms like the industry average, outperforming 59.49% of the companies in the same industry.
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
Compared to 1 year ago, ARCC has more shares outstanding
ARCC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ARCC has been reduced compared to a year ago.
2.2 Solvency
ARCC has an Altman-Z score of 0.87. This is a bad value and indicates that ARCC is not financially healthy and even has some risk of bankruptcy.
ARCC has a Altman-Z score (0.87) which 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.
ARCC has a Debt to Equity ratio (1.09) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.87 |
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.
ARCC has a better Current ratio (2.23) than 74.68% of its industry peers.
A Quick Ratio of 2.23 indicates that ARCC has no problem at all paying its short term obligations.
The Quick ratio of ARCC (2.23) is better than 75.11% 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%.
ARCC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.06% yearly.
The Revenue has been growing slightly by 2.72% in the past year.
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
ARCC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.46% yearly.
ARCC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.54% yearly.
EPS Next Y-12.38%
EPS Next 2Y-7.6%
EPS Next 3Y-5.46%
EPS Next 5YN/A
Revenue Next Year1.46%
Revenue Next 2Y3.53%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.86, the valuation of ARCC can be described as reasonable.
ARCC's Price/Earnings ratio is a bit cheaper when compared to the industry. ARCC is cheaper than 70.04% of the companies in the same industry.
ARCC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.56.
ARCC is valuated reasonably with a Price/Forward Earnings ratio of 10.17.
70.89% of the companies in the same industry are more expensive than ARCC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ARCC to the average of the S&P500 Index (23.79), we can say ARCC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.86 | ||
| Fwd PE | 10.17 |
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 -5.46% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.43
EPS Next 2Y-7.6%
EPS Next 3Y-5.46%
5. Dividend
5.1 Amount
ARCC has a Yearly Dividend Yield of 9.20%, which is a nice return.
Compared to an average industry Dividend Yield of 6.13, ARCC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, ARCC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.2% |
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
ARCC pays out 91.56% of its income as dividend. 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-7.6%
EPS Next 3Y-5.46%
NASDAQ:ARCC (12/15/2025, 11:00:52 AM)
20.2203
-0.63 (-3.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners32.88%
Inst Owner Change-14.37%
Ins Owners0.47%
Ins Owner Change0.42%
Market Cap14.47B
Revenue(TTM)3.02B
Net Income(TTM)1.36B
Analysts83.81
Price Target23.1 (14.24%)
Short Float %2.67%
Short Ratio3.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.2% |
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)-0.53%
EPS NQ rev (3m)-1.15%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-0.55%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)2.55%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.86 | ||
| Fwd PE | 10.17 | ||
| P/S | 4.8 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.01 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.05
EY10.14%
EPS(NY)1.99
Fwd EY9.84%
FCF(TTM)-2.18
FCFYN/A
OCF(TTM)-2.18
OCFYN/A
SpS4.22
BVpS20.01
TBVpS20.01
PEG (NY)N/A
PEG (5Y)2.43
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-12.38%
EPS Next 2Y-7.6%
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 Year1.46%
Revenue Next 2Y3.53%
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 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 9.86 and the Price/Book (PB) ratio is 1.01.
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 -12.38% in the next year.