(ARCC) Ares Capital - Ratings and Ratios

Ares Capital Corporation (NASDAQ:ARCC) is a leading business development company (BDC) that specializes in providing financing solutions to middle-market companies. It operates across a wide range of industries, including basic and growth manufacturing, business services, consumer products, healthcare, IT services, and more. The firm also invests in sectors like restaurants, retail, oil and gas, and technology. This diversification allows ARCC to maintain a balanced portfolio and capitalize on opportunities across various market cycles.

Geographically, Ares Capital focuses on investments in the Northeast, Mid-Atlantic, Southeast, and Southwest regions from its New York office. It also covers the Midwest through its Chicago office and the Western region via its Los Angeles office. This regional diversification enables the firm to identify and invest in high-potential companies across the U.S., leveraging its local presence to build strong relationships with portfolio businesses.

The firm typically invests between $20 million and $200 million in companies, with a maximum investment size of up to $400 million. It targets businesses with EBITDA ranging from $10 million to $250 million, which places it firmly in the middle-market space. Ares Capital employs a variety of investment structures, including first lien loans, unitranche debt, second lien loans, mezzanine debt, and non-control equity. It also participates in third-party-led senior and subordinated debt financings and opportunistically acquires stressed and discounted debt positions.

Ares Capital prefers to act as the lead agent or co-lead in its transactions, which allows it to exert significant influence over the terms and structure of its investments. Additionally, the firm often seeks board representation in its portfolio companies, ensuring it has a voice in strategic decisions and can work closely with management teams to drive value creation.

From a financial perspective, Ares Capital has a market capitalization of approximately $15.5 billion, with a price-to-earnings (P/E) ratio of 9.46 and a forward P/E of 10.91. Its price-to-book (P/B) ratio is 1.15, and its price-to-sales (P/S) ratio is 5.28, providing investors with key metrics to assess its valuation.

For more information, visit Ares Capital Corporations website at https://www.arescapitalcorp.com.