Overview Dividends

(ARCC) Ares Capital - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US04010L1035

Debt, Equity, Mezzanine, Financing, Transactions

ARCC EPS (Earnings per Share)

EPS Growth (3Y CAGR): -8.06%
EPS Trend (3Y Correlation): -78.7%

ARCC Revenue

Revenue Growth (3Y CAGR): 0.39%
Revenue Trend (3Y Correlation): 8.8%

Risk via 10d forecast
Volatility	14.0%
Value at Risk 5%th	23.6%
Relative Tail Risk	2.33%

Reward TTM
Sharpe Ratio	0.03
Alpha	-9.54

Character TTM
Hurst Exponent	0.410
Beta	0.807
Beta Downside	0.938

Drawdowns 3y
Max DD	18.76%
Mean DD	3.24%
Median DD	2.15%

Description: ARCC Ares Capital October 30, 2025

Ares Capital Corporation (NASDAQ:ARCC) is a Business Development Company (BDC) that originates and manages a portfolio of middle-market credit and equity investments, including acquisition financing, mezzanine debt, restructurings, rescue capital, and leveraged buyouts.

The firm targets U.S. companies with EBITDA between $10 million and $250 million, typically deploying $20 million–$200 million per transaction (up to $400 million for larger deals) and providing debt financing of $10 million–$100 million through a range of instruments such as first-lien loans, unitranche facilities, mezzanine debt, and non-control equity.

ARCC’s sector preferences include basic and growth manufacturing, business services, consumer products, health-care products and services, and information-technology services, while it remains open to restaurants, retail, oil & gas, and broader technology opportunities.

Geographically, the firm sources deals across the Northeast, Mid-Atlantic, Southeast, Southwest, Midwest, and Western United States, leveraging its New York, Chicago, and Los Angeles offices to source and manage investments.

From a market-driven perspective, ARCC’s dividend yield has hovered around 8% in 2024, and its net asset value (NAV) per share has shown modest growth YoY despite a tightening credit environment; the BDC’s performance is sensitive to Fed policy, as higher rates increase borrowing costs but also expand the spread on its floating-rate loan portfolio.

For a deeper, data-driven look at ARCC’s valuation and risk profile, you may find ValueRay’s analytical dashboard useful.

ARCC Stock Overview

Market Cap in USD	14,522m
Sub-Industry	Asset Management & Custody Banks
IPO / Inception	2004-10-06
Return 12m vs S&P 500	-12.0%
Analyst Rating	4.38 of 5

ARCC Dividends

Dividend Yield	9.50%
Yield on Cost 5y	19.07%
Yield CAGR 5y	4.66%
Payout Consistency	96.8%
Payout Ratio	93.7%

ARCC Growth Ratios

CAGR 3y	11.89%
CAGR/Max DD Calmar Ratio	0.63
CAGR/Mean DD Pain Ratio	3.67
Current Volume	2682.1k
Average Volume	4099.3k

Piotroski VR‑10 (Strict, 0-10) 3.0

Net Income (1.30b TTM) > 0 and > 6% of Revenue (6% = 135.0m TTM)

FCFTA 0.04 (>2.0%) and ΔFCFTA -0.10pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 39.38% (prev 33.78%; Δ 5.60pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.04 (>3.0%) and CFO 1.30b > Net Income 1.30b (YES >=105%, WARN >=100%)

Net Debt (-1.04b) to EBITDA (1.37b) ratio: -0.76 <= 3.0 (WARN <= 3.5)

Current Ratio 3.18 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (709.0m) change vs 12m ago 11.65% (target <= -2.0% for YES)

Gross Margin 76.98% (prev 84.40%; Δ -7.43pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 7.77% (prev 7.69%; Δ 0.08pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 0.16 (EBITDA TTM 1.37b / Interest Expense TTM 713.0m) >= 6 (WARN >= 3)

Altman Z'' 0.36

(A) 0.03 = (Total Current Assets 1.29b - Total Current Liabilities 406.0m) / Total Assets 30.81b

(B) 0.03 = Retained Earnings (Balance) 851.0m / Total Assets 30.81b

(D) 0.05 = Book Value of Equity 852.0m / Total Liabilities 16.48b

Total Rating: 0.36 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 53.84

1. Piotroski 3.0pt = -2.0

2. FCF Yield 4.79% = 2.39

3. FCF Margin 57.96% = 7.50

4. Debt/Equity 0.96 = 2.06

5. Debt/Ebitda -0.76 = 2.50

6. ROIC - WACC (= -4.89)% = -6.11

7. RoE 9.37% = 0.78

8. Rev. Trend 8.77% = 0.66

9. EPS Trend -78.67% = -3.93

What is the price of ARCC shares?

As of November 17, 2025, the stock is trading at USD 20.21 with a total of 2,682,092 shares traded.
Over the past week, the price has changed by -0.39%, over one month by +3.48%, over three months by -7.83% and over the past year by +1.81%.

Is Ares Capital a good stock to buy?

Neither. Based on ValueRay´s Fundamental Analyses, Ares Capital is currently (November 2025) neither a good nor a bad stock to buy. It has a ValueRay Fundamental Rating of 53.84 and therefor a neutral outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of ARCC is around 21.10 USD . This means that ARCC is currently overvalued and has a potential downside of 4.4%.

Is ARCC a buy, sell or hold?

Ares Capital has received a consensus analysts rating of 4.38. Therefore, it is recommended to buy ARCC.

Strong Buy: 7
Buy: 4
Hold: 2
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the ARCC price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	22.6	12%
Analysts Target Price	22.6	12%
ValueRay Target Price	22.8	13%

ARCC Fundamental Data Overview November 17, 2025

Market Cap USD = 14.52b (14.52b USD * 1.0 USD.USD)
P/E Trailing = 10.1558
P/E Forward = 10.5597
P/S = 4.8118
P/B = 1.01
P/EG = 3.95
Beta = 0.621
Revenue TTM = 2.25b USD
EBIT TTM = 115.0m USD
EBITDA TTM = 1.37b USD
Long Term Debt = unknown (none)
Short Term Debt = 2.42b USD (from shortTermDebt, two quarters ago)
Debt = 13.76b USD (from shortLongTermDebtTotal, last fiscal year)
Net Debt = -1.04b USD (from netDebt column, last quarter)
Enterprise Value = 27.25b USD (14.52b + Debt 13.76b - CCE 1.04b)
Interest Coverage Ratio = 0.16 (Ebit TTM 115.0m / Interest Expense TTM 713.0m)
FCF Yield = 4.79% (FCF TTM 1.30b / Enterprise Value 27.25b)
FCF Margin = 57.96% (FCF TTM 1.30b / Revenue TTM 2.25b)
Net Margin = 57.64% (Net Income TTM 1.30b / Revenue TTM 2.25b)
Gross Margin = 76.98% ((Revenue TTM 2.25b - Cost of Revenue TTM 518.0m) / Revenue TTM)
Gross Margin QoQ = 100.0% (prev 70.29%)
Tobins Q-Ratio = 0.88 (Enterprise Value 27.25b / Total Assets 30.81b)
Interest Expense / Debt = 1.42% (Interest Expense 195.0m / Debt 13.76b)
Taxrate = 3.15% (11.0m / 349.0m)
NOPAT = 111.4m (EBIT 115.0m * (1 - 3.15%))
Current Ratio = 3.18 (Total Current Assets 1.29b / Total Current Liabilities 406.0m)
Debt / Equity = 0.96 (Debt 13.76b / totalStockholderEquity, last quarter 14.32b)
Debt / EBITDA = -0.76 (Net Debt -1.04b / EBITDA 1.37b)
Debt / FCF = -0.79 (Net Debt -1.04b / FCF TTM 1.30b)
Total Stockholder Equity = 13.85b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.21% (Net Income 1.30b / Total Assets 30.81b)
RoE = 9.37% (Net Income TTM 1.30b / Total Stockholder Equity 13.85b)
RoCE = 0.38% (EBIT 115.0m / Capital Employed (Total Assets 30.81b - Current Liab 406.0m))
RoIC = 0.40% (NOPAT 111.4m / Invested Capital 28.19b)
WACC = 5.28% (E(14.52b)/V(28.28b) * Re(8.99%) + D(13.76b)/V(28.28b) * Rd(1.42%) * (1-Tc(0.03)))
Discount Rate = 8.99% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 9.34%
[DCF Debug] Terminal Value 76.62% ; FCFE base≈1.25b ; Y1≈1.40b ; Y5≈1.85b
Fair Price DCF = 37.79 (DCF Value 27.05b / Shares Outstanding 715.7m; 5y FCF grow 13.58% → 3.0% )
EPS Correlation: -78.67 | EPS CAGR: -8.06% | SUE: 0.0 | # QB: 0
Revenue Correlation: 8.77 | Revenue CAGR: 0.39% | SUE: -0.57 | # QB: 0

Additional Sources for ARCC Stock

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Fund Manager Positions: Dataroma | Stockcircle