19.96 USD
+0.48 (+2.46%)
At close: Feb 10, 2026
19.94 USD
-0.02 (-0.1%)
After Hours: 2/10/2026, 8:00:00 PM
ARCC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 238 industry peers in the Capital Markets industry. ARCC has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
- Each year in the past 5 years ARCC has been profitable.
- ARCC had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of ARCC (4.16%) is better than 61.76% of its industry peers.
- With a Return On Equity value of 9.07%, ARCC perfoms like the industry average, outperforming 53.78% of the companies in the same industry.
- ARCC has a Return On Invested Capital (3.78%) 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 7.26%.
| Industry Rank | Sector 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%
1.3 Margins
- The Profit Margin of ARCC (42.56%) is better than 87.39% of its industry peers.
- ARCC's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 47.77%, ARCC belongs to the best of the industry, outperforming 84.45% of the companies in the same industry.
- ARCC's Operating Margin has declined in the last couple of years.
- ARCC's Gross Margin of 49.44% is in line compared 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 | 47.77% | ||
| 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%
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.
- ARCC has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.81, we must say that ARCC is in the distress zone and has some risk of bankruptcy.
- ARCC has a Altman-Z score (0.81) which is comparable to the rest of the industry.
- ARCC has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.12, ARCC perfoms like the industry average, outperforming 44.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.81 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- ARCC has a Current 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.
- With a decent Current ratio value of 1.67, ARCC is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- A Quick Ratio of 1.67 indicates that ARCC should not have too much problems paying its short term obligations.
- ARCC has a Quick ratio of 1.67. This is in the better half of the industry: ARCC outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
- ARCC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.16%.
- ARCC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.94% yearly.
- The Revenue has been growing slightly by 2.07% in the past year.
- Measured over the past years, ARCC shows a quite strong growth in Revenue. The Revenue has been growing by 15.10% on average per year.
EPS 1Y (TTM)-14.16%
EPS 3Y-0.17%
EPS 5Y2.94%
EPS Q2Q%-9.09%
Revenue 1Y (TTM)2.07%
Revenue growth 3Y13.34%
Revenue growth 5Y15.1%
Sales Q2Q%4.48%
3.2 Future
- Based on estimates for the next years, ARCC will show a decrease in Earnings Per Share. The EPS will decrease by -0.70% on average per year.
- 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
- 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.
- 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 9.98, the valuation of ARCC can be described as reasonable.
- Based on the Price/Earnings ratio, ARCC is valued a bit cheaper than 69.75% of the companies in the same industry.
- When comparing the Price/Earnings ratio of ARCC to the average of the S&P500 Index (28.03), we can say ARCC is valued rather cheaply.
- The Price/Forward Earnings ratio is 10.06, 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 73.95% of the companies listed in the same industry.
- ARCC is valuated cheaply when we compare the Price/Forward Earnings ratio to 27.97, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.98 | ||
| Fwd PE | 10.06 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.39
EPS Next 2Y-0.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 9.86%, ARCC is a good candidate for dividend investing.
- ARCC's Dividend Yield is a higher than the industry average which is at 6.12.
- ARCC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.86% |
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 97.31% 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.
DP97.31%
EPS Next 2Y-0.7%
EPS Next 3YN/A
19.96
+0.48 (+2.46%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-04 2026-02-04/bmo
Earnings (Next)04-27 2026-04-27
Inst Owners33.01%
Inst Owner Change-0.27%
Ins Owners0.47%
Ins Owner Change0.42%
Market Cap14.29B
Revenue(TTM)3.05B
Net Income(TTM)1.30B
Analysts83.81
Price Target23.15 (15.98%)
Short Float %2.53%
Short Ratio3.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.86% |
Yearly Dividend1.82
Dividend Growth(5Y)2.32%
DP97.31%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.97%
Min EPS beat(2)-2.38%
Max EPS beat(2)-1.57%
EPS beat(4)0
Avg EPS beat(4)-3.99%
Min EPS beat(4)-8.8%
Max EPS beat(4)-1.57%
EPS beat(8)1
Avg EPS beat(8)-3.4%
EPS beat(12)3
Avg EPS beat(12)-2.44%
EPS beat(16)5
Avg EPS beat(16)-1.85%
Revenue beat(2)1
Avg Revenue beat(2)7.59%
Min Revenue beat(2)-2.17%
Max Revenue beat(2)17.35%
Revenue beat(4)1
Avg Revenue beat(4)1.12%
Min Revenue beat(4)-7.65%
Max Revenue beat(4)17.35%
Revenue beat(8)2
Avg Revenue beat(8)-0.13%
Revenue beat(12)3
Avg Revenue beat(12)0.45%
Revenue beat(16)6
Avg Revenue beat(16)0.47%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.98 | ||
| Fwd PE | 10.06 | ||
| P/S | 4.68 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1 | ||
| P/tB | 1 | ||
| EV/EBITDA | N/A |
EPS(TTM)2
EY10.02%
EPS(NY)1.98
Fwd EY9.94%
FCF(TTM)-2.4
FCFYN/A
OCF(TTM)-2.4
OCFYN/A
SpS4.26
BVpS20
TBVpS20
PEG (NY)N/A
PEG (5Y)3.39
Graham Number30
Profitability
| Industry Rank | Sector 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 Rank | Sector 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)-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)2.07%
Revenue growth 3Y13.34%
Revenue growth 5Y15.1%
Sales Q2Q%4.48%
Revenue Next Year4.81%
Revenue Next 2Y2.96%
Revenue Next 3YN/A
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 9.98 and the Price/Book (PB) ratio is 1.
How financially healthy is ARES CAPITAL CORP?
The financial health rating of ARES CAPITAL CORP (ARCC) is 2 / 10.