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

Asset Management & Custody Banks
Market Cap in USD: 14,422m

IPO / Inception: 2004-10-06
Return 12m vs S&P 500: -11.1%

EPS (Earnings per Share)

EPS CAGR: -3.88%
EPS Trend: 10.1%

Last SUE: 0.00
Qual. Beats: 0

Revenue

Rev. CAGR: 7.18%
Rev. Trend: 64.1%

Last SUE: -0.50
Qual. Beats: 0

Dividends

Dividend Yield	11.70%
Yield on Cost 5y	23.14%
Yield CAGR 5y	4.66%
Payout Consistency	96.6%
Payout Ratio	93.7%

Risk via 10d forecast
Volatility	14.8%
Value at Risk 5%th	24.9%
Relative Tail Risk	2.14%

Reward TTM
Sharpe Ratio	0.00
Alpha	-11.70
CAGR/Max DD	0.66

Character TTM
Hurst Exponent	0.383
Beta	0.814
Beta Downside	0.935

Drawdowns 3y
Max DD	18.76%
Mean DD	3.30%
Median DD	2.06%

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.

Piotroski VR‑10 (Strict, 0-10) 1.0

Net Income (1.36b TTM) > 0 and > 6% of Revenue (6% = 134.8m TTM)

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

NWC/Revenue 68.40% (prev 29.68%; Δ 38.72pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.04 (>3.0%) and CFO 1.30b <= Net Income 1.36b (YES >=105%, WARN >=100%)

Net Debt (14.57b) to EBITDA (1.43b) ratio: 10.21 <= 3.0 (WARN <= 3.5)

Current Ratio 12.82 (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 68.27% (prev 73.48%; Δ -5.21pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 7.76% (prev 8.75%; Δ -0.99pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 0.16 (EBITDA TTM 1.43b / Interest Expense TTM 713.0m) >= 6 (WARN >= 3)

Altman Z'' 0.50

(A) 0.05 = (Total Current Assets 1.67b - Total Current Liabilities 130.0m) / 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: 0.50 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 55.62

1. Piotroski 1.0pt

2. FCF Yield 4.50%

3. FCF Margin 58.03%

4. Debt/Equity 1.09

5. Debt/Ebitda 10.21

6. ROIC - WACC (= -4.56)%

7. RoE 9.84%

8. Rev. Trend 64.13%

9. EPS Trend 10.08%

What is the price of ARCC shares?

As of November 27, 2025, the stock is trading at USD 20.51 with a total of 3,382,766 shares traded.
Over the past week, the price has changed by +5.02%, over one month by +0.94%, over three months by -5.79% and over the past year by +1.82%.

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	10.4%
Analysts Target Price	22.6	10.4%
ValueRay Target Price	23.9	16.5%

ARCC Fundamental Data Overview November 26, 2025

Market Cap USD = 14.42b (14.42b USD * 1.0 USD.USD)
P/E Trailing = 10.1256
P/E Forward = 10.3734
P/S = 4.7786
P/B = 0.9915
P/EG = 3.95
Beta = 0.621
Revenue TTM = 2.25b USD
EBIT TTM = 115.0m USD
EBITDA TTM = 1.43b USD
Long Term Debt = unknown (none)
Short Term Debt = 2.42b USD (from shortTermDebt, two quarters ago)
Debt = 15.61b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 14.57b USD (from netDebt column, last quarter)
Enterprise Value = 28.99b USD (14.42b + Debt 15.61b - CCE 1.04b)
Interest Coverage Ratio = 0.16 (Ebit TTM 115.0m / Interest Expense TTM 713.0m)
FCF Yield = 4.50% (FCF TTM 1.30b / Enterprise Value 28.99b)
FCF Margin = 58.03% (FCF TTM 1.30b / Revenue TTM 2.25b)
Net Margin = 60.66% (Net Income TTM 1.36b / Revenue TTM 2.25b)
Gross Margin = 68.27% ((Revenue TTM 2.25b - Cost of Revenue TTM 713.0m) / Revenue TTM)
Gross Margin QoQ = 70.23% (prev 70.29%)
Tobins Q-Ratio = 0.94 (Enterprise Value 28.99b / Total Assets 30.81b)
Interest Expense / Debt = 1.25% (Interest Expense 195.0m / Debt 15.61b)
Taxrate = 6.26% (27.0m / 431.0m)
NOPAT = 107.8m (EBIT 115.0m * (1 - 6.26%))
Current Ratio = 12.82 (Total Current Assets 1.67b / Total Current Liabilities 130.0m)
Debt / Equity = 1.09 (Debt 15.61b / totalStockholderEquity, last quarter 14.32b)
Debt / EBITDA = 10.21 (Net Debt 14.57b / EBITDA 1.43b)
Debt / FCF = 11.17 (Net Debt 14.57b / FCF TTM 1.30b)
Total Stockholder Equity = 13.85b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.42% (Net Income 1.36b / Total Assets 30.81b)
RoE = 9.84% (Net Income TTM 1.36b / Total Stockholder Equity 13.85b)
RoCE = 0.37% (EBIT 115.0m / Capital Employed (Total Assets 30.81b - Current Liab 130.0m))
RoIC = 0.38% (NOPAT 107.8m / Invested Capital 28.19b)
WACC = 4.94% (E(14.42b)/V(30.03b) * Re(9.02%) + D(15.61b)/V(30.03b) * Rd(1.25%) * (1-Tc(0.06)))
Discount Rate = 9.02% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 9.34%
[DCF Debug] Terminal Value 76.52% ; FCFE base≈1.25b ; Y1≈1.40b ; Y5≈1.85b
Fair Price DCF = 37.60 (DCF Value 26.91b / Shares Outstanding 715.7m; 5y FCF grow 13.58% → 3.0% )
EPS Correlation: 10.08 | EPS CAGR: -3.88% | SUE: 0.0 | # QB: 0
Revenue Correlation: 64.13 | Revenue CAGR: 7.18% | SUE: -0.50 | # QB: 0

Additional Sources for ARCC Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
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Fund Manager Positions: Dataroma | Stockcircle