Ares Capital Corporation

Asset Management

ARCCStrained7 of 11 basics passed

$18.56

-0.96%

Market cap $13.3B

$18.56

-0.96%

Market cap $13.3B

Ares Capital Corp is a United States-based closed-ended specialty finance company. Its investment objective is to generate both current income and capital appreciation through debt and equity investments.

It is a $13.3B financial services company. It trades at 13.9× earnings — in the most expensive third of its own history.

Website: arescapitalcorp.com
Location: New York, NY
Employees: 4 250
Sector: Financial Services
Founded: 2004

Share price · 3 years

$19.23 → $18.56-3.5%

price only — dividends excluded

Key facts · TTM

Profit: spends more than it earns; $960M
Free cash flow: cash left after running the business; -$680M
Net debt: debt minus cash on hand; $15.4B
P/E: years of profit in the price; 13.9
EPS: earnings per share, TTM; $1.37
Dividend: pays out 138% of profit; 9.97%
Shares: up 57% since 2021 — dilution; 699.0M
Volatility: beta vs the market — under 1 swings less; 0.66

52-week range

Low $17.45$18.56High $21.03

Today's price is 31% of the way from the year's low to its high.

P/E vs its history5y

13.9×median 8.9×

Higher than 80% of past days — in the most expensive third of its own history.

Valuation vs own history

P/E

13.9×

20%

P/S

4.3×

97%

EV/EBITDA

12.2×

98%

P/B

1.0×

89%

Share of the last ~5 years that was pricier than today (cheaper than usual). Based on the daily valuation record.

Standing in Financial Services

Size$13.3Btop 72%
Revenue growth+13%top 30%
Net margin31%top 15%
Return on equity7%top 81%
P/E13.9×top 49%
Dividend yield9.97%top 1%

Ranked against 129 Financial Services companies with a full CV — for P/E, lower ranks higher.

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Valuation, Growth, Health, Quality and Moat lag behind.

Valuation32

P/E vs own history80th pct · 0/25
FCF yield-5.1% · 0/25
P/S4.3x · 20/25
EV/EBITDA19.1x · 12/25

Growth25

Revenue CAGRn/a · 0/25
Net income CAGR-4.6% · 0/25
EPS CAGR ~5Y-14.7% · 0/25
Fwd implied growth38.2% · 25/25

Profitability60

ROIC6.5% · 5/25
ROE6.8% · 5/25
Net margin30.9% · 25/25
Operating margin48.5% · 25/25

Health42

Altman Zn/a · 0/25
Current ratio1.10 · 12/25
Interest coverage1458.0x · 25/25
Net cash / debtD/A 49% · 5/25

Quality30

Piotroski F2/9 · 5/25
Beneish Mn/a · 0/25
FCF conversionn/a · 0/25
Margin stabilityσ 4.3% · 25/25

Moat0

ROIC >12% years0/5 yrs · 0/25
Median gross marginn/a · 0/25
FCF-positive yearsn/a · 0/25
Worst-year net marginn/a · 0/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

2026Acquisition
Ares agreed to acquire Whitestone REIT—operator of outdoor shopping centers across Arizona and…
Q1 2026Insiders
4 open-market insider purchases
~37K shares bought by insiders
2024Acquisition
Ares Management acquired the international business of GLP Capital Partners (GCP), excluding its…
FY2021Financial
Profitable every year on record
5 consecutive profitable years in our data
FY2021Financial
Revenue already above $1B
$1.82B in first reported year
FY2021Financial
Best year on record
$1.57B net income
Jul 1, 2021Acquisition
Ares Management announced the completion of its acquisition of Black Creek Group's U.S
Jan 30, 2020Acquisition
Ares Management acquired a controlling stake in the Hong Kong–based alternative investment firm…
2014IPO
Ares Management completed its initial public offering and is currently listed on the New York Stock…
2007Acquisition
A minority interest in the firm was acquired by an international institutional investor, Abu Dhabi…
2004Founded
It has several subsidiaries: *Ares Capital Corporation: established in 2004 and provides financing for middle market…

Achievements

Verifiable track record, straight from the reported numbers.

$10 000 invested in 2021 would be worth ~$9 197 today — price return only

Profitable 5 years in a row

4 250 employees

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

High gross margin (50.2%)
Strongly profitable — 30.9% net margin
Interest covered 1458.0× by operating earnings

Watch-outs

Negative free cash flow (-$680.0M)

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

7 of 11 checks passed

Revenue growing — the company sells more than a year ago+13.3% YoY
Profitable — makes more than it spends$960M TTM
Profit growing — earnings are higher than last year+17.1% YoY
Generates cash — cash left after running and investing-$680M TTM
Debt under control — could handle its obligationscurrent ratio 1.10
Established company — not a micro-cap — lower blow-up risk$13.3B market cap
Not printing shares — share count not ballooning — you keep your slice+56.6% shares over ~5y
Proven track record — years of profitability behind it5/5 profitable years
Financially stable — balance sheet not near distresshealth score 22/100
Pays a dividend — returns cash to shareholdersyield 9.97%
Valuation not extreme — price not wildly above earningsP/E 13.9

Peer comparisonAres Capital Corporation vs 6 largest financial services peers — cap, P/E, growth and margin side by sideOpen ▾

Company	Market cap	P/E	Revenue growth	Net margin	Profile
ARCC this company	$13.3B	13.9	—	—	Strained
BRK.A Berkshire Hathaway Inc.	$1.1T	11.6	+3.9%	22.3%	Mixed
BRK.B Berkshire Hathaway	$1.1T	11.6	+0.0%	18.0%	Strong
JPM JPMorgan Chase & Co.	$886.2B	13.6	+13.5%	32.6%	Strained
V VISA Inc.	$723.9B	31.9	+14.4%	50.8%	Solid
MA Mastercard Incorporated	$516.4B	31.7	+16.0%	46.3%	Mixed
BAC Bank of America Corporation	$380.4B	11.3	+15.9%	27.8%	Mixed

Head-to-head: ARCC vs BRK.A · ARCC vs BRK.B · ARCC vs JPM

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 6Buy 10Hold 4

Appendix · Financial records

The full statements behind this CV, FY2021–FY2025. For readers who want to check the numbers.

Profit & lossRevenue — · net income $960M (TTM)Open ▾

Profit & loss

Revenue and profit over the company's career — the income statement, visualised.

RevenueNet income

Revenue (TTM)

—

Net income (TTM)

$960M

Gross margin

50.2%

Operating margin

48.5%

P/E ratio

13.9

Dividend yield

9.97%

Income statement — full detail

Figures in USD billions · EPS in USD

	2021	2022	2023	2024	2025
Revenue	1.8	—	—	3.0	—
Gross profit	1.8	—	—	3.0	—
Operating income (EBIT)	1.1	1.6	1.9	2.2	2.3
Net income	1.6	0.6	1.5	1.5	1.3
EPS (diluted)	3.51	1.16	2.65	2.44	1.86

Cash flowFree cash flow -$680M · operating cash flow -$680M (TTM)Open ▾

Cash flow statement

Cash generated by the business and what is left after investment — year by year.

Operating cash flowFree cash flow

Free cash flow (TTM)

-$680M

Operating cash flow (TTM)

-$680M

Cash flow statement — full detail

Figures in USD billions

	2021	2022	2023	2024	2025
Operating cash flow	-1.4	-1.4	0.5	-1.7	-1.7
Capital expenditure	—	—	—	—	—
Free cash flow	-1.4	-1.4	0.5	-1.7	-1.7
FCF margin	-74.7%	—	—	-57.4%	—

Balance sheetAssets $31.2B · net debt $15.4B (FY2025)Open ▾

Balance sheet

How the balance sheet is built — what it owns versus how it is financed.

How $31.2B of assets is financed

54%

46%

Liabilities $16.9B — borrowed moneyEquity $14.3B — owners' stake

Cash vs debt

Total debt $16.0B − cash $638M = net debt $15.4B

Cash on hand covers 4% of debt.

Interest coverage

1458.0x

EBIT ÷ interest expense

ROE

6.8%

Profit per $1 of equity

Balance sheet — full detail

Figures in USD billions

	2021	2022	2023	2024	2025
Cash & equivalents	0.3	0.3	0.5	0.7	0.6
Total assets	22.4	22.4	23.8	31.2	31.2
Total liabilities	12.8	12.8	12.6	16.9	16.9
Total debt	12.4	12.2	11.9	16.0	16.0
Equity	9.6	9.6	11.2	14.3	14.3
Net debt	12.1	11.9	11.3	15.3	15.4

Want the live picture — intraday moves, valuation history and full analysis?

Deeper analysis of ARCC on PreMarketPrice

Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $18.56 · market cap $13.3B.