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): 24.2%

Risk via 10d forecast
Volatility	18.6%
Value at Risk 5%th	31.3%

Reward
Sharpe Ratio	0.06
Alpha	-8.92

Character
Hurst Exponent	0.404
Beta	0.717

Drawdowns 3y
Max DD	18.76%
Mean DD	3.17%

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	14,422m
Sub-Industry	Asset Management & Custody Banks
IPO / Inception	2004-10-06
Return 12m vs S&P 500	-9.91%
Analyst Rating	4.38 of 5

ARCC Dividends

Dividend Yield	9.50%
Yield on Cost 5y	20.15%
Yield CAGR 5y	4.66%
Payout Consistency	96.8%
Payout Ratio	93.7%

ARCC Growth Ratios

CAGR	11.40%
CAGR/Max DD Calmar Ratio	0.61
CAGR/Mean DD Pain Ratio	3.59
Current Volume	3629.6k
Average Volume	5076.8k

Piotroski VR‑10 (Strict, 0-10) 2.5

Net Income (1.42b TTM) > 0 and > 6% of Revenue (6% = 148.3m TTM)

FCFTA -0.03 (>2.0%) and ΔFCFTA -7.19pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 35.84% (prev 33.88%; Δ 1.96pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA -0.03 (>3.0%) and CFO -880.0m <= Net Income 1.42b (YES >=105%, WARN >=100%)

Net Debt (-1.04b) to EBITDA (2.20b) ratio: -0.47 <= 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 81.39% (prev 94.61%; Δ -13.22pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 8.54% (prev 7.67%; Δ 0.87pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 0.22 (EBITDA TTM 2.20b / Interest Expense TTM 518.0m) >= 6 (WARN >= 3)

Altman Z'' 0.31

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

(B) 0.03 = Retained Earnings (Balance) 852.0m / Total Assets 30.81b

(D) 0.00 = Book Value of Equity 1.00m / Total Liabilities 16.48b

Total Rating: 0.31 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 35.90

1. Piotroski 2.50pt = -2.50

2. FCF Yield -3.24% = -1.62

3. FCF Margin -35.60% = -7.50

4. Debt/Equity 0.96 = 2.06

5. Debt/Ebitda -0.47 = 2.50

6. ROIC - WACC (= -4.62)% = -5.77

7. RoE 10.26% = 0.86

8. Rev. Trend 24.17% = 1.81

9. EPS Trend -78.67% = -3.93

What is the price of ARCC shares?

As of November 10, 2025, the stock is trading at USD 20.20 with a total of 3,629,599 shares traded.
Over the past week, the price has changed by -1.03%, over one month by +5.76%, over three months by -8.04% and over the past year by +2.18%.

Is Ares Capital a good stock to buy?

No, based on ValueRay´s Fundamental Analyses, Ares Capital (NASDAQ:ARCC) is currently (November 2025) a stock to sell. It has a ValueRay Fundamental Rating of 35.90 and therefor a negative outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of ARCC is around 21.06 USD . This means that ARCC is currently overvalued and has a potential downside of 4.26%.

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	22.8	12.6%
Analysts Target Price	22.8	12.6%
ValueRay Target Price	22.8	12.6%

ARCC Fundamental Data Overview November 01, 2025

Market Cap USD = 14.42b (14.42b USD * 1.0 USD.USD)
P/E Trailing = 10.1256
P/E Forward = 10.6157
P/S = 4.7897
P/B = 1.0248
P/EG = 3.95
Beta = 0.717
Revenue TTM = 2.47b USD
EBIT TTM = 115.0m USD
EBITDA TTM = 2.20b 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 = 27.14b USD (14.42b + Debt 13.76b - CCE 1.04b)
Interest Coverage Ratio = 0.22 (Ebit TTM 115.0m / Interest Expense TTM 518.0m)
FCF Yield = -3.24% (FCF TTM -880.0m / Enterprise Value 27.14b)
FCF Margin = -35.60% (FCF TTM -880.0m / Revenue TTM 2.47b)
Net Margin = 57.48% (Net Income TTM 1.42b / Revenue TTM 2.47b)
Gross Margin = 81.39% ((Revenue TTM 2.47b - Cost of Revenue TTM 460.0m) / Revenue TTM)
Gross Margin QoQ = 100.0% (prev 100.0%)
Tobins Q-Ratio = 0.88 (Enterprise Value 27.14b / Total Assets 30.81b)
Interest Expense / Debt = 1.25% (Interest Expense 172.0m / 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 = -0.47 (Net Debt -1.04b / EBITDA 2.20b)
Debt / FCF = 1.18 (negative FCF - burning cash) (Net Debt -1.04b / FCF TTM -880.0m)
Total Stockholder Equity = 13.85b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.61% (Net Income 1.42b / Total Assets 30.81b)
RoE = 10.26% (Net Income TTM 1.42b / 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 27.62b)
WACC = 5.02% (E(14.42b)/V(28.18b) * Re(8.66%) + D(13.76b)/V(28.18b) * Rd(1.25%) * (1-Tc(0.03)))
Discount Rate = 8.66% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 9.34%
Fair Price DCF = unknown (Cash Flow -880.0m)
EPS Correlation: -78.67 | EPS CAGR: -8.06% | SUE: 0.0 | # QB: 0
Revenue Correlation: 24.17 | Revenue CAGR: 0.39% | SUE: -0.61 | # QB: 0

Additional Sources for ARCC Stock

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