ARES CAPITAL CORP (ARCC) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:ARCC • US04010L1035

19.31 USD
+0.52 (+2.77%)
At close: Feb 6, 2026
19.32 USD
+0.01 (+0.05%)
After Hours: 2/6/2026, 8:18:07 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

Taking everything into account, ARCC scores 3 out of 10 in our fundamental rating. ARCC was compared to 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.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • In the past year ARCC was profitable.
  • ARCC had a negative operating cash flow in the past year.
  • Of the past 5 years ARCC 4 years were profitable.
  • ARCC had negative operating cash flow in 4 of the past 5 years.
ARCC Yearly Net Income VS EBIT VS OCF VS FCFARCC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B -2B

1.2 Ratios

  • ARCC has a better Return On Assets (4.42%) than 64.85% of its industry peers.
  • The Return On Equity of ARCC (9.52%) is comparable to the rest of the industry.
  • ARCC has a Return On Invested Capital of 3.79%. This is comparable to the rest of the industry: ARCC outperforms 53.56% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ARCC is below the industry average of 7.27%.
Industry RankSector 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%
ARCC Yearly ROA, ROE, ROICARCC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • ARCC has a better Profit Margin (45.16%) than 88.28% of its industry peers.
  • ARCC's Profit Margin has been stable in the last couple of years.
  • ARCC has a Operating Margin of 47.81%. This is amongst the best in the industry. ARCC outperforms 84.52% of its industry peers.
  • ARCC's Operating Margin has declined in the last couple of years.
  • ARCC has a Gross Margin (49.47%) which is in line with its industry peers.
  • ARCC's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
ARCC Yearly Profit, Operating, Gross MarginsARCC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • There is no outstanding debt for ARCC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
ARCC Yearly Shares OutstandingARCC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M
ARCC Yearly Total Debt VS Total AssetsARCC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

2.2 Solvency

  • ARCC has an Altman-Z score of 0.83. This is a bad value and indicates that ARCC is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 0.83, ARCC is in line with its industry, outperforming 51.88% 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.
  • Looking at the Debt to Equity ratio, with a value of 1.09, ARCC is in line with its industry, outperforming 45.19% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.09
Debt/FCF N/A
Altman-Z 0.83
ROIC/WACCN/A
WACCN/A
ARCC Yearly LT Debt VS Equity VS FCFARCC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B

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 75.31% 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 75.73% of its industry peers.
Industry RankSector Rank
Current Ratio 2.23
Quick Ratio 2.23
ARCC Yearly Current Assets VS Current LiabilitesARCC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

1

3. Growth

3.1 Past

  • The earnings per share for ARCC have decreased strongly by -14.16% in the last year.
  • Measured over the past 5 years, ARCC shows a small growth in Earnings Per Share. The EPS has been growing by 2.94% on average per year.
EPS 1Y (TTM)-14.16%
EPS 3Y-0.17%
EPS 5Y2.94%
EPS Q2Q%-9.09%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%4.48%

3.2 Future

  • ARCC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.70% yearly.
  • Based on estimates for the next years, ARCC will show a small growth in Revenue. The Revenue will grow by 2.96% on average per year.
EPS Next Y-0.83%
EPS Next 2Y-0.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.81%
Revenue Next 2Y2.96%
Revenue Next 3YN/A
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.
ARCC Yearly Revenue VS EstimatesARCC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
ARCC Yearly EPS VS EstimatesARCC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • ARCC is valuated reasonably with a Price/Earnings ratio of 9.65.
  • Compared to the rest of the industry, the Price/Earnings ratio of ARCC indicates a somewhat cheap valuation: ARCC is cheaper than 69.46% of the companies listed in the same industry.
  • ARCC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.93.
  • Based on the Price/Forward Earnings ratio of 9.74, the valuation of ARCC can be described as reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ARCC indicates a somewhat cheap valuation: ARCC is cheaper than 74.48% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 27.77. ARCC is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 9.65
Fwd PE 9.74
ARCC Price Earnings VS Forward Price EarningsARCC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
ARCC Per share dataARCC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)3.28
EPS Next 2Y-0.7%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • ARCC has a Yearly Dividend Yield of 10.22%, which is a nice return.
  • ARCC's Dividend Yield is a higher than the industry average which is at 6.13.
  • ARCC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 10.22%

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
ARCC Yearly Dividends per shareARCC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

  • ARCC pays out 91.56% of its income as dividend. 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-0.7%
EPS Next 3YN/A
ARCC Yearly Income VS Free CF VS DividendARCC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B -2B
ARCC Dividend Payout.ARCC Dividend Payout, showing the Payout Ratio.ARCC Dividend Payout.PayoutRetained Earnings

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ARES CAPITAL CORP

NASDAQ:ARCC (2/6/2026, 8:18:07 PM)

After market: 19.32 +0.01 (+0.05%)

19.31

+0.52 (+2.77%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-04
Earnings (Next)04-27
Inst Owners33.01%
Inst Owner Change-0.27%
Ins Owners0.47%
Ins Owner Change0.42%
Market Cap13.82B
Revenue(TTM)N/A
Net Income(TTM)1.36B
Analysts83.81
Price Target23.15 (19.89%)
Short Float %2.53%
Short Ratio3.68
Dividend
Industry RankSector Rank
Dividend Yield 10.22%
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)0.22%
PT rev (3m)-1.49%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-0.69%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)-0.65%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)0.58%
Valuation
Industry RankSector Rank
PE 9.65
Fwd PE 9.74
P/S 4.58
P/FCF N/A
P/OCF N/A
P/B 0.97
P/tB 0.97
EV/EBITDA N/A
EPS(TTM)2
EY10.36%
EPS(NY)1.98
Fwd EY10.27%
FCF(TTM)-2.18
FCFYN/A
OCF(TTM)-2.18
OCFYN/A
SpS4.22
BVpS20.01
TBVpS20.01
PEG (NY)N/A
PEG (5Y)3.28
Graham Number30.01
Profitability
Industry RankSector 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 RankSector 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 0.83
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)-14.16%
EPS 3Y-0.17%
EPS 5Y2.94%
EPS Q2Q%-9.09%
EPS Next Y-0.83%
EPS Next 2Y-0.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%4.48%
Revenue Next Year4.81%
Revenue Next 2Y2.96%
Revenue Next 3YN/A
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 3 / 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 9.65 and the Price/Book (PB) ratio is 0.97.


How financially healthy is ARES CAPITAL CORP?

The financial health rating of ARES CAPITAL CORP (ARCC) is 4 / 10.