ARES CAPITAL CORP (ARCC) Stock Fundamental Analysis

NASDAQ:ARCC • US04010L1035

19.41 USD
+0.11 (+0.57%)
At close: Feb 18, 2026
19.4588 USD
+0.05 (+0.25%)
After Hours: 2/18/2026, 8:14:34 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to ARCC. ARCC was compared to 237 industry peers in the Capital Markets industry. While ARCC is still in line with the averages on profitability rating, there are concerns on its financial health. ARCC has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

4

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.
  • ARCC had positive earnings in each of the past 5 years.
  • 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 2025 0 1B -1B -2B

1.2 Ratios

  • The Return On Assets of ARCC (4.16%) is better than 62.03% of its industry peers.
  • ARCC has a Return On Equity (9.07%) which is comparable to the rest of the industry.
  • With a Return On Invested Capital value of 3.78%, ARCC perfoms like the industry average, outperforming 53.16% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for ARCC is below the industry average of 7.29%.
Industry RankSector Rank
ROA 4.16%
ROE 9.07%
ROIC 3.78%
ROA(3y)5.31%
ROA(5y)5.23%
ROE(3y)11.35%
ROE(5y)11.6%
ROIC(3y)4.16%
ROIC(5y)3.93%
ARCC Yearly ROA, ROE, ROICARCC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • Looking at the Profit Margin, with a value of 42.56%, ARCC belongs to the top of the industry, outperforming 88.19% of the companies in the same industry.
  • ARCC's Profit Margin has improved in the last couple of years.
  • The Operating Margin of ARCC (47.77%) is better than 84.39% of its industry peers.
  • In the last couple of years the Operating Margin of ARCC has declined.
  • ARCC has a Gross Margin of 49.44%. This is comparable to the rest of the industry: ARCC outperforms 56.12% of its industry peers.
  • ARCC's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 47.77%
PM (TTM) 42.56%
GM 49.44%
OM growth 3Y-4.43%
OM growth 5Y-2.35%
PM growth 3Y14.14%
PM growth 5Y5.85%
GM growth 3Y-4.37%
GM growth 5Y-2.57%
ARCC Yearly Profit, Operating, Gross MarginsARCC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. Health

2.1 Basic Checks

  • ARCC has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, ARCC has more shares outstanding
  • Compared to 1 year ago, ARCC has a worse debt to assets ratio.
ARCC Yearly Shares OutstandingARCC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 10B 20B 30B

2.2 Solvency

  • ARCC has an Altman-Z score of 0.81. This is a bad value and indicates that ARCC is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of ARCC (0.81) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 1.12 is on the high side and indicates that ARCC has dependencies on debt financing.
  • ARCC has a Debt to Equity ratio (1.12) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 1.12
Debt/FCF N/A
Altman-Z 0.81
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 2025 0 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 1.67 indicates that ARCC should not have too much problems paying its short term obligations.
  • The Current ratio of ARCC (1.67) is better than 70.89% of its industry peers.
  • ARCC has a Quick Ratio of 1.67. This is a normal value and indicates that ARCC is financially healthy and should not expect problems in meeting its short term obligations.
  • ARCC has a Quick ratio of 1.67. This is in the better half of the industry: ARCC outperforms 70.89% of its industry peers.
Industry RankSector Rank
Current Ratio 1.67
Quick Ratio 1.67
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 2025 200M 400M 600M 800M 1B

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

3

3. Growth

3.1 Past

  • The earnings per share for ARCC have decreased strongly by -18.03% in the last year.
  • ARCC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.00% yearly.
  • The Revenue has been growing slightly by 2.07% in the past year.
  • ARCC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.10% yearly.
EPS 1Y (TTM)-18.03%
EPS 3Y-1.69%
EPS 5Y2%
EPS Q2Q%-25.45%
Revenue 1Y (TTM)2.07%
Revenue growth 3Y13.34%
Revenue growth 5Y15.1%
Sales Q2Q%-5.8%

3.2 Future

  • The Earnings Per Share is expected to decrease by -1.68% on average over the next years.
  • ARCC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.31% yearly.
EPS Next Y3.84%
EPS Next 2Y1.61%
EPS Next 3Y-1.68%
EPS Next 5YN/A
Revenue Next Year4.81%
Revenue Next 2Y2.96%
Revenue Next 3Y1.31%
Revenue Next 5YN/A

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • 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.
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 2028 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 2028 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

  • Based on the Price/Earnings ratio of 10.16, the valuation of ARCC can be described as reasonable.
  • Based on the Price/Earnings ratio, ARCC is valued a bit cheaper than the industry average as 67.51% of the companies are valued more expensively.
  • ARCC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.27.
  • The Price/Forward Earnings ratio is 9.79, which indicates a very decent valuation of ARCC.
  • 73.42% of the companies in the same industry are more expensive than ARCC, based on the Price/Forward Earnings ratio.
  • ARCC is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.16, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.16
Fwd PE 9.79
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

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ARCC does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.65
PEG (5Y)5.08
EPS Next 2Y1.61%
EPS Next 3Y-1.68%

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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 9.86%, which is a nice return.
  • ARCC's Dividend Yield is a higher than the industry average which is at 6.05.
  • Compared to an average S&P500 Dividend Yield of 1.84, ARCC pays a better dividend.
Industry RankSector Rank
Dividend Yield 9.86%

5.2 History

  • The dividend of ARCC has a limited annual growth rate of 2.72%.
  • 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)2.72%
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

  • 97.31% 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.
DP97.31%
EPS Next 2Y1.61%
EPS Next 3Y-1.68%
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 2025 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 (2/18/2026, 8:14:34 PM)

After market: 19.4588 +0.05 (+0.25%)

19.41

+0.11 (+0.57%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-04
Earnings (Next)04-27
Inst Owners33.01%
Inst Owner Change2.15%
Ins Owners0.47%
Ins Owner Change1.47%
Market Cap13.94B
Revenue(TTM)3.05B
Net Income(TTM)1.30B
Analysts83.81
Price Target23.15 (19.27%)
Short Float %2.38%
Short Ratio2.98
Dividend
Industry RankSector Rank
Dividend Yield 9.86%
Yearly Dividend1.82
Dividend Growth(5Y)2.72%
DP97.31%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.83%
Min EPS beat(2)-19.28%
Max EPS beat(2)-2.38%
EPS beat(4)0
Avg EPS beat(4)-8.42%
Min EPS beat(4)-19.28%
Max EPS beat(4)-2.38%
EPS beat(8)1
Avg EPS beat(8)-5.61%
EPS beat(12)3
Avg EPS beat(12)-3.92%
EPS beat(16)5
Avg EPS beat(16)-2.95%
Revenue beat(2)1
Avg Revenue beat(2)2.78%
Min Revenue beat(2)-11.79%
Max Revenue beat(2)17.35%
Revenue beat(4)1
Avg Revenue beat(4)-1.29%
Min Revenue beat(4)-11.79%
Max Revenue beat(4)17.35%
Revenue beat(8)2
Avg Revenue beat(8)-1.33%
Revenue beat(12)3
Avg Revenue beat(12)-0.35%
Revenue beat(16)6
Avg Revenue beat(16)-0.14%
PT rev (1m)0.22%
PT rev (3m)-1.49%
EPS NQ rev (1m)-1.05%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-0.77%
Revenue NQ rev (1m)-0.8%
Revenue NQ rev (3m)-1.99%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)0.31%
Valuation
Industry RankSector Rank
PE 10.16
Fwd PE 9.79
P/S 4.57
P/FCF N/A
P/OCF N/A
P/B 0.97
P/tB 0.97
EV/EBITDA N/A
EPS(TTM)1.91
EY9.84%
EPS(NY)1.98
Fwd EY10.22%
FCF(TTM)-2.39
FCFYN/A
OCF(TTM)-2.39
OCFYN/A
SpS4.25
BVpS19.94
TBVpS19.94
PEG (NY)2.65
PEG (5Y)5.08
Graham Number29.27
Profitability
Industry RankSector Rank
ROA 4.16%
ROE 9.07%
ROCE 4.78%
ROIC 3.78%
ROICexc 3.86%
ROICexgc 3.89%
OM 47.77%
PM (TTM) 42.56%
GM 49.44%
FCFM N/A
ROA(3y)5.31%
ROA(5y)5.23%
ROE(3y)11.35%
ROE(5y)11.6%
ROIC(3y)4.16%
ROIC(5y)3.93%
ROICexc(3y)4.25%
ROICexc(5y)4.01%
ROICexgc(3y)4.28%
ROICexgc(5y)4.04%
ROCE(3y)5.26%
ROCE(5y)4.98%
ROICexgc growth 3Y-2.72%
ROICexgc growth 5Y-1.5%
ROICexc growth 3Y-2.84%
ROICexc growth 5Y-1.53%
OM growth 3Y-4.43%
OM growth 5Y-2.35%
PM growth 3Y14.14%
PM growth 5Y5.85%
GM growth 3Y-4.37%
GM growth 5Y-2.57%
F-Score2
Asset Turnover0.1
Health
Industry RankSector Rank
Debt/Equity 1.12
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 1.94
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.67
Quick Ratio 1.67
Altman-Z 0.81
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)-18.03%
EPS 3Y-1.69%
EPS 5Y2%
EPS Q2Q%-25.45%
EPS Next Y3.84%
EPS Next 2Y1.61%
EPS Next 3Y-1.68%
EPS Next 5YN/A
Revenue 1Y (TTM)2.07%
Revenue growth 3Y13.34%
Revenue growth 5Y15.1%
Sales Q2Q%-5.8%
Revenue Next Year4.81%
Revenue Next 2Y2.96%
Revenue Next 3Y1.31%
Revenue Next 5YN/A
EBIT growth 1Y-1.22%
EBIT growth 3Y8.33%
EBIT growth 5Y12.39%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y19.31%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y19.31%
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 10.16 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 2 / 10.