ARCC 📈 Ares Capital - Overview
Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US04010L1035
ARCC: Debt, Equity, Loans, Financing, Investments
Ares Capital Corporation is a business development company that specializes in providing financing solutions to middle market companies, with a focus on acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions. This allows the company to support a wide range of businesses, from those in need of growth capital to those requiring general refinancing. By investing in companies across various sectors, including basic and growth manufacturing, business services, consumer products, health care products and services, and information technology services, Ares Capital Corporation is able to diversify its portfolio and mitigate risk.
The company's investment strategy is centered on targeting companies with strong potential for growth, with a particular emphasis on those operating in the Northeast, Mid-Atlantic, Southeast, and Southwest regions from its New York office, the Midwest region from the Chicago office, and the Western region from the Los Angeles office. This regional focus enables Ares Capital Corporation to develop a deep understanding of local markets and build strong relationships with the companies it invests in. In terms of investment size, the company typically invests between $20 million and $200 million, with a maximum of $400 million, in companies with an EBITDA between $10 million and $250 million.
Ares Capital Corporation's investment approach is characterized by its use of a range of financial instruments, including revolvers, first lien loans, warrants, unitranche structures, second lien loans, mezzanine debt, private high yield, junior capital, subordinated debt, and non-control preferred and common equity. This flexibility allows the company to tailor its investments to the specific needs of each portfolio company, while also ensuring that it is able to generate attractive returns for its shareholders. Additionally, Ares Capital Corporation may also consider third-party-led senior and subordinated debt financings, as well as the purchase of stressed and discounted debt positions, in order to further diversify its portfolio and capitalize on opportunistic investment opportunities.
As an active investor, Ares Capital Corporation seeks to take a proactive role in the companies it invests in, often preferring to be an agent and/or lead the transactions in which it invests. This approach enables the company to work closely with management teams to drive growth and improve financial performance, while also ensuring that its investments are aligned with its overall strategy and objectives. Furthermore, Ares Capital Corporation typically seeks board representation in its portfolio companies, which provides an additional layer of oversight and guidance, and helps to ensure that the company's investments are being managed effectively.
With its experienced management team, diversified portfolio, and disciplined investment approach, Ares Capital Corporation is well-positioned to continue delivering strong returns for its shareholders, while also supporting the growth and development of middle market companies across a range of industries. For more information, please visit the company's website at https://www.arescapitalcorp.com, or review its stock information, including its ISIN: US04010L1035, Type: common stock, and GICS Sub Industry: Asset Management & Custody Banks.
Additional Sources for ARCC Stock
Tweets: X Stocktwits
Fund Manager Positions: Dataroma Stockcircle
ARCC Stock Overview
Market Cap in USD | 14,013m |
Sector | Financial Services |
Industry | Asset Management |
GiC Sub-Industry | Asset Management & Custody Banks |
IPO / Inception | 2004-10-06 |
ARCC Stock Ratings
Growth 5y | 80.8% |
Fundamental | 57.9% |
Dividend | 88.6% |
Rel. Strength Industry | -39.8 |
Analysts | 4.36/5 |
Fair Price Momentum | 23.54 USD |
Fair Price DCF | 19.63 USD |
ARCC Dividends
Dividend Yield 12m | 8.98% |
Yield on Cost 5y | 16.75% |
Annual Growth 5y | 2.71% |
Payout Consistency | 96.9% |
ARCC Growth Ratios
Growth Correlation 3m | 81.2% |
Growth Correlation 12m | 93.1% |
Growth Correlation 5y | 94.6% |
CAGR 5y | 13.24% |
CAGR/Mean DD 5y | 1.86 |
Sharpe Ratio 12m | 1.14 |
Alpha | -8.87 |
Beta | 1.07 |
Volatility | 17.39% |
Current Volume | 9049.1k |
Average Volume 20d | 5041.9k |
As of December 21, 2024, the stock is trading at USD 21.38 with a total of 9,049,092 shares traded.
Over the past week, the price has changed by -1.43%, over one month by +0.30%, over three months by +6.04% and over the past year by +19.86%.
Partly, yes. Based on ValueRay Fundamental Analyses, Ares Capital (NASDAQ:ARCC) is currently (December 2024) ok to buy, but has to be watched. It has a ValueRay Fundamental Rating of 57.93 and therefor a somewhat positive outlook according to the companies health.
Based on ValueRays Analyses, Dividends and Discounted-Cash-Flow, the Fair Value of ARCC as of December 2024 is 23.54. This means that ARCC is currently undervalued and has a potential upside of +10.1% (Margin of Safety).
Ares Capital has received a consensus analysts rating of 4.36. Therefor, it is recommend to buy ARCC.
- Strong Buy: 7
- Buy: 5
- Hold: 2
- Sell: 0
- Strong Sell: 0
According to ValueRays Forecast Model, ARCC Ares Capital will be worth about 26.2 in December 2025. The stock is currently trading at 21.38. This means that the stock has a potential upside of +22.68%.
Issuer | Forecast | Upside |
---|---|---|
Wallstreet Target Price | 22.6 | 5.9% |
Analysts Target Price | 20.9 | -2.3% |
ValueRay Target Price | 26.2 | 22.7% |