(ARCC) Ares Capital - Overview
Stock: Debt, Mezzanine, Equity, Financing, Capital
| Risk 5d forecast | |
|---|---|
| Volatility | 34.8% |
| Relative Tail Risk | 2.87% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.60 |
| Alpha | -24.29 |
| Character TTM | |
|---|---|
| Beta | 0.678 |
| Beta Downside | 0.935 |
| Drawdowns 3y | |
|---|---|
| Max DD | 18.76% |
| CAGR/Max DD | 0.45 |
EPS (Earnings per Share)
Revenue
Description: ARCC Ares Capital February 27, 2026
Ares Capital Corporation (NASDAQ: ARCC) operates as a business-development company (BDC) that provides growth capital, acquisition financing, mezzanine debt, and restructuring solutions to middle-market U.S. companies.
The firm targets sectors such as basic and growth manufacturing, business services, consumer products, health-care, and information-technology services, while also evaluating opportunities in restaurants, retail, oil & gas, and broader technology industries across the Northeast, Mid-Atlantic, Southeast, Southwest, Midwest and Western regions.
Typical transaction sizes range from $30 million to $500 million for equity investments and $10 million to $100 million for debt, employing structures like first-lien loans, unitranche facilities, mezzanine debt, warrants and non-control equity, often with ARCC acting as lead investor and securing board representation.
As of the most recent quarter, ARCC reported $13.5 billion in assets under management, a dividend yield of roughly 9.2 %, and a net interest margin of 6.1 %, reflecting the BDC sector’s resilience amid a tightening credit environment and strong demand for middle-market financing.
For a deeper dive into ARCC’s valuation metrics and competitive positioning, consider exploring ValueRay’s analytical tools.
Piotroski VR‑10 (Strict, 0-10) 3.5
| Net Income: 1.30b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA -0.88 > 1.0 |
| NWC/Revenue: 27.43% < 20% (prev 31.69%; Δ -4.26% < -1%) |
| CFO/TA 0.04 > 3% & CFO 1.14b > Net Income 1.30b |
| Net Debt (15.07b) to EBITDA (1.59b): 9.50 < 3 |
| Current Ratio: 1.71 > 1.5 & < 3 |
| Outstanding Shares: last quarter (699.0m) vs 12m ago 6.72% < -2% |
| Gross Margin: 68.60% > 18% (prev 0.72%; Δ 6788 % > 0.5%) |
| Asset Turnover: 7.78% > 50% (prev 8.32%; Δ -0.54% > 0%) |
| Interest Coverage Ratio: 0.54 > 6 (EBITDA TTM 1.59b / Interest Expense TTM 645.2m) |
Altman Z'' 0.37
| A: 0.02 (Total Current Assets 1.53b - Total Current Liabilities 894.0m) / Total Assets 31.23b |
| B: 0.03 (Retained Earnings 958.0m / Total Assets 31.23b) |
| C: 0.01 (EBIT TTM 349.0m / Avg Total Assets 29.74b) |
| D: 0.06 (Book Value of Equity 959.0m / Total Liabilities 16.92b) |
| Altman-Z'' Score: 0.37 = B |
Beneish M
| DSRI: 1.19 (Receivables 605.0m/516.0m, Revenue 2.31b/2.35b) |
| GMI: 1.05 (GM 68.60% / 71.97%) |
| AQI: none (AQ_t none / AQ_t-1 none) |
| SGI: 0.98 (Revenue 2.31b / 2.35b) |
| TATA: 0.01 (NI 1.30b - CFO 1.14b) / TA 31.23b) |
| Beneish M-Score: cannot calculate (missing components) |
What is the price of ARCC shares?
Over the past week, the price has changed by -2.77%, over one month by -8.23%, over three months by -7.57% and over the past year by -11.93%.
Is ARCC a buy, sell or hold?
- StrongBuy: 7
- Buy: 4
- Hold: 2
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the ARCC price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 22.3 | 19.6% |
| Analysts Target Price | 22.3 | 19.6% |
ARCC Fundamental Data Overview February 27, 2026
P/E Forward = 10.0
P/S = 4.59
P/B = 0.9784
P/EG = 3.95
Revenue TTM = 2.31b USD
EBIT TTM = 349.0m USD
EBITDA TTM = 1.59b USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 15.99b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 15.07b USD (from netDebt column, last quarter)
Enterprise Value = 29.08b USD (14.01b + Debt 15.99b - CCE 924.0m)
Interest Coverage Ratio = 0.54 (Ebit TTM 349.0m / Interest Expense TTM 645.2m)
EV/FCF = 25.46x (Enterprise Value 29.08b / FCF TTM 1.14b)
FCF Yield = 3.93% (FCF TTM 1.14b / Enterprise Value 29.08b)
FCF Margin = 49.33% (FCF TTM 1.14b / Revenue TTM 2.31b)
Net Margin = 56.11% (Net Income TTM 1.30b / Revenue TTM 2.31b)
Gross Margin = 68.60% ((Revenue TTM 2.31b - Cost of Revenue TTM 727.0m) / Revenue TTM)
Gross Margin QoQ = 70.39% (prev 70.23%)
Tobins Q-Ratio = 0.93 (Enterprise Value 29.08b / Total Assets 31.23b)
Interest Expense / Debt = 0.66% (Interest Expense 106.2m / Debt 15.99b)
Taxrate = 8.15% (26.0m / 319.0m)
NOPAT = 320.6m (EBIT 349.0m * (1 - 8.15%))
Current Ratio = 1.71 (Total Current Assets 1.53b / Total Current Liabilities 894.0m)
Debt / Equity = 1.12 (Debt 15.99b / totalStockholderEquity, last quarter 14.32b)
Debt / EBITDA = 9.50 (Net Debt 15.07b / EBITDA 1.59b)
Debt / FCF = 13.19 (Net Debt 15.07b / FCF TTM 1.14b)
Total Stockholder Equity = 14.09b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.37% (Net Income 1.30b / Total Assets 31.23b)
RoE = 9.22% (Net Income TTM 1.30b / Total Stockholder Equity 14.09b)
RoCE = 1.15% (EBIT 349.0m / Capital Employed (Total Assets 31.23b - Current Liab 894.0m))
RoIC = 1.11% (NOPAT 320.6m / Invested Capital 28.99b)
WACC = 4.25% (E(14.01b)/V(30.00b) * Re(8.41%) + D(15.99b)/V(30.00b) * Rd(0.66%) * (1-Tc(0.08)))
Discount Rate = 8.41% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 8.57%
[DCF] Terminal Value 87.37% ; FCFF base≈1.20b ; Y1≈1.34b ; Y5≈1.77b
[DCF] Fair Price = 51.65 (EV 52.15b - Net Debt 15.07b = Equity 37.08b / Shares 718.0m; r=5.90% [WACC]; 5y FCF grow 13.58% → 2.90% )
EPS Correlation: 8.31 | EPS CAGR: 4.76% | SUE: 0.08 | # QB: 0
Revenue Correlation: 73.94 | Revenue CAGR: 15.08% | SUE: 0.44 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.49 | Chg7d=+0.006 | Chg30d=-0.004 | Revisions Net=-2 | Analysts=12
EPS current Year (2026-12-31): EPS=1.94 | Chg7d=+0.012 | Chg30d=-0.010 | Revisions Net=-2 | Growth EPS=-3.4% | Growth Revenue=+3.7%
EPS next Year (2027-12-31): EPS=1.93 | Chg7d=+0.005 | Chg30d=-0.008 | Revisions Net=-2 | Growth EPS=-0.8% | Growth Revenue=+4.5%
[Analyst] Revisions Ratio: -0.25 (3 Up / 5 Down within 30d for Next Quarter)
[Growth] Implied Growth Rate = -1.3% (Discount Rate 8.4% - Earnings Yield 9.7%)
[Growth] Growth Spread = +7.5% (Analyst 6.2% - Implied -1.3%)