# Ares Capital Corporation (ARCC) — Stock CV

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

> 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.

## Identity

- **Ticker**: ARCC
- **Sector**: Financial Services
- **Industry**: Asset Management
- **Headquarters**: NEW YORK, NY
- **Employees**: 4 250
- **Website**: https://www.arescapitalcorp.com
- **Market cap**: $13.3B
- **Last price**: $18.56
- **Financial profile**: Strained

## Vitals (TTM)

- **Net income**: $960M
- **Free cash flow**: -$680M
- **Net debt**: $15.4B
- **P/E**: 13.9

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 32 |
| Growth | 25 |
| Profitability | 60 |
| Health | 42 |
| Quality | 30 |
| Moat | 0 |

## Qualifications (beginner checklist) — 7 of 11 passed

- [x] Revenue growing — +13.3% YoY
- [x] Profitable — $960M TTM
- [x] Profit growing — +17.1% YoY
- [ ] Generates cash — -$680M TTM
- [ ] Debt under control — current ratio 1.10
- [x] Established company — $13.3B market cap
- [ ] Not printing shares — +56.6% shares over ~5y
- [x] Proven track record — 5/5 profitable years
- [ ] Financially stable — health score 22/100
- [x] Pays a dividend — yield 9.97%
- [x] Valuation not extreme — P/E 13.9

## Experience (career milestones)

- **2026** — Ares agreed to acquire Whitestone REIT—operator of outdoor shopping centers across Arizona and…
- **Q1 2026** — 4 open-market insider purchases: ~37K shares bought by insiders
- **2024** — Ares Management acquired the international business of GLP Capital Partners (GCP), excluding its…
- **FY2021** — Profitable every year on record: 5 consecutive profitable years in our data
- **FY2021** — Revenue already above $1B: $1.82B in first reported year
- **FY2021** — Best year on record: $1.57B net income
- **Jul 1, 2021** — Ares Management announced the completion of its acquisition of Black Creek Group's U.S
- **Jan 30, 2020** — Ares Management acquired a controlling stake in the Hong Kong–based alternative investment firm…
- **2014** — Ares Management completed its initial public offering and is currently listed on the New York Stock…
- **2007** — A minority interest in the firm was acquired by an international institutional investor, Abu Dhabi…
- **2004** — It has several subsidiaries: *Ares Capital Corporation: established in 2004 and provides financing for middle market…

## 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)

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $1.82B | $1.57B | -$1.36B |
| FY2022 | — | $600M | -$1.36B |
| FY2023 | — | $1.52B | $511M |
| FY2024 | $2.99B | $1.52B | -$1.72B |
| FY2025 | — | $1.30B | -$1.72B |

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Source: https://stockcv.com/ARCC — derived from company filings; may be delayed or incomplete. Information, not investment advice.