20.14 USD
-0.17 (-0.84%)
20.19 USD
+0.05 (+0.25%)
We assign a fundamental rating of 4 out of 10 to ARCC. ARCC was compared to 237 industry peers in the Capital Markets industry. Both the profitability and the financial health of ARCC get a neutral evaluation. Nothing too spectacular is happening here. ARCC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ARCC had positive earnings in the past year.
ARCC had a negative operating cash flow in the past year.
In the past 5 years ARCC has always been profitable.
In the past 5 years ARCC reported 4 times negative operating cash flow.
1.2 Ratios
ARCC's Return On Assets of 4.42% is fine compared to the rest of the industry. ARCC outperforms 67.09% of its industry peers.
With a Return On Equity value of 9.52%, ARCC perfoms like the industry average, outperforming 56.96% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.79%, ARCC is in line with its industry, outperforming 54.01% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ARCC is below the industry average of 7.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.42% | ||
| ROE | 9.52% | ||
| ROIC | 3.79% |
ROA(3y)4.82%
ROA(5y)4.99%
ROE(3y)10.42%
ROE(5y)11.14%
ROIC(3y)4.28%
ROIC(5y)4%
1.3 Margins
ARCC has a Profit Margin of 45.16%. This is amongst the best in the industry. ARCC outperforms 87.34% of its industry peers.
ARCC's Profit Margin has been stable in the last couple of years.
ARCC has a better Operating Margin (47.81%) than 84.39% of its industry peers.
ARCC's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 49.47%, ARCC perfoms like the industry average, outperforming 59.49% of the companies in the same industry.
ARCC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 47.81% | ||
| PM (TTM) | 45.16% | ||
| GM | 49.47% |
OM growth 3Y5.28%
OM growth 5Y-1.82%
PM growth 3Y-16.07%
PM growth 5Y-0.39%
GM growth 3Y4.55%
GM growth 5Y-1.61%
2. Health
2.1 Basic Checks
ARCC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ARCC has more shares outstanding
ARCC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.86, we must say that ARCC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.86, ARCC perfoms like the industry average, outperforming 49.79% of the companies in the same industry.
ARCC has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
ARCC has a Debt to Equity ratio (1.09) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.86 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.23 indicates that ARCC has no problem at all paying its short term obligations.
ARCC has a better Current ratio (2.23) than 74.68% of its industry peers.
A Quick Ratio of 2.23 indicates that ARCC has no problem at all paying its short term obligations.
ARCC's Quick ratio of 2.23 is fine compared to the rest of the industry. ARCC outperforms 75.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 2.23 |
3. Growth
3.1 Past
ARCC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.94%.
The Earnings Per Share has been growing slightly by 4.06% on average over the past years.
The Revenue has been growing slightly by 2.72% in the past year.
ARCC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.37% yearly.
EPS 1Y (TTM)-14.94%
EPS 3Y5.05%
EPS 5Y4.06%
EPS Q2Q%-13.79%
Revenue 1Y (TTM)2.72%
Revenue growth 3Y18%
Revenue growth 5Y14.37%
Sales Q2Q%18.71%
3.2 Future
The Earnings Per Share is expected to decrease by -5.46% on average over the next years.
ARCC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.54% yearly.
EPS Next Y-12.38%
EPS Next 2Y-7.6%
EPS Next 3Y-5.46%
EPS Next 5YN/A
Revenue Next Year1.46%
Revenue Next 2Y3.53%
Revenue Next 3Y2.54%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.82, which indicates a very decent valuation of ARCC.
Based on the Price/Earnings ratio, ARCC is valued a bit cheaper than 71.73% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.43. ARCC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.13 indicates a reasonable valuation of ARCC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARCC indicates a somewhat cheap valuation: ARCC is cheaper than 71.73% of the companies listed in the same industry.
ARCC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.66.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.82 | ||
| Fwd PE | 10.13 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as ARCC's earnings are expected to decrease with -5.46% in the coming years.
PEG (NY)N/A
PEG (5Y)2.42
EPS Next 2Y-7.6%
EPS Next 3Y-5.46%
5. Dividend
5.1 Amount
ARCC has a Yearly Dividend Yield of 9.20%, which is a nice return.
ARCC's Dividend Yield is a higher than the industry average which is at 6.13.
ARCC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.2% |
5.2 History
The dividend of ARCC has a limited annual growth rate of 2.32%.
ARCC has paid a dividend for at least 10 years, which is a reliable track record.
ARCC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.32%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
ARCC pays out 91.56% of its income as dividend. This is not a sustainable payout ratio.
ARCC's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP91.56%
EPS Next 2Y-7.6%
EPS Next 3Y-5.46%
20.14
-0.17 (-0.84%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners32.88%
Inst Owner Change-14.37%
Ins Owners0.47%
Ins Owner Change0.42%
Market Cap14.41B
Revenue(TTM)3.02B
Net Income(TTM)1.36B
Analysts83.81
Price Target23.1 (14.7%)
Short Float %2.72%
Short Ratio3.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.2% |
Yearly Dividend1.82
Dividend Growth(5Y)2.32%
DP91.56%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.8%
Min EPS beat(2)-3.22%
Max EPS beat(2)-2.38%
EPS beat(4)0
Avg EPS beat(4)-5.27%
Min EPS beat(4)-8.8%
Max EPS beat(4)-2.38%
EPS beat(8)2
Avg EPS beat(8)-2.81%
EPS beat(12)4
Avg EPS beat(12)-1.5%
EPS beat(16)6
Avg EPS beat(16)-0.73%
Revenue beat(2)1
Avg Revenue beat(2)7.14%
Min Revenue beat(2)-3.06%
Max Revenue beat(2)17.35%
Revenue beat(4)1
Avg Revenue beat(4)0.35%
Min Revenue beat(4)-7.65%
Max Revenue beat(4)17.35%
Revenue beat(8)3
Avg Revenue beat(8)1.65%
Revenue beat(12)4
Avg Revenue beat(12)1.39%
Revenue beat(16)7
Avg Revenue beat(16)1.41%
PT rev (1m)-1.71%
PT rev (3m)-2.79%
EPS NQ rev (1m)-0.53%
EPS NQ rev (3m)-1.15%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-0.55%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)2.55%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.82 | ||
| Fwd PE | 10.13 | ||
| P/S | 4.78 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.01 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.05
EY10.18%
EPS(NY)1.99
Fwd EY9.88%
FCF(TTM)-2.18
FCFYN/A
OCF(TTM)-2.18
OCFYN/A
SpS4.22
BVpS20.01
TBVpS20.01
PEG (NY)N/A
PEG (5Y)2.42
Graham Number30.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.42% | ||
| ROE | 9.52% | ||
| ROCE | 4.8% | ||
| ROIC | 3.79% | ||
| ROICexc | 3.93% | ||
| ROICexgc | 3.96% | ||
| OM | 47.81% | ||
| PM (TTM) | 45.16% | ||
| GM | 49.47% | ||
| FCFM | N/A |
ROA(3y)4.82%
ROA(5y)4.99%
ROE(3y)10.42%
ROE(5y)11.14%
ROIC(3y)4.28%
ROIC(5y)4%
ROICexc(3y)4.37%
ROICexc(5y)4.08%
ROICexgc(3y)4.39%
ROICexgc(5y)4.1%
ROCE(3y)5.42%
ROCE(5y)5.06%
ROICexgc growth 3Y12.39%
ROICexgc growth 5Y-0.77%
ROICexc growth 3Y12.35%
ROICexc growth 5Y-0.78%
OM growth 3Y5.28%
OM growth 5Y-1.82%
PM growth 3Y-16.07%
PM growth 5Y-0.39%
GM growth 3Y4.55%
GM growth 5Y-1.61%
F-Score2
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.23 | ||
| Quick Ratio | 2.23 | ||
| Altman-Z | 0.86 |
F-Score2
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-14.94%
EPS 3Y5.05%
EPS 5Y4.06%
EPS Q2Q%-13.79%
EPS Next Y-12.38%
EPS Next 2Y-7.6%
EPS Next 3Y-5.46%
EPS Next 5YN/A
Revenue 1Y (TTM)2.72%
Revenue growth 3Y18%
Revenue growth 5Y14.37%
Sales Q2Q%18.71%
Revenue Next Year1.46%
Revenue Next 2Y3.53%
Revenue Next 3Y2.54%
Revenue Next 5YN/A
EBIT growth 1Y-1.03%
EBIT growth 3Y24.22%
EBIT growth 5Y12.28%
EBIT Next Year-98.78%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-405.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-405.49%
OCF growth 3YN/A
OCF growth 5YN/A
ARES CAPITAL CORP / ARCC FAQ
What is the fundamental rating for ARCC stock?
ChartMill assigns a fundamental rating of 4 / 10 to ARCC.
What is the valuation status of ARES CAPITAL CORP (ARCC) stock?
ChartMill assigns a valuation rating of 4 / 10 to ARES CAPITAL CORP (ARCC). This can be considered as Fairly Valued.
Can you provide the profitability details for ARES CAPITAL CORP?
ARES CAPITAL CORP (ARCC) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for ARCC stock?
The Price/Earnings (PE) ratio for ARES CAPITAL CORP (ARCC) is 9.82 and the Price/Book (PB) ratio is 1.01.
What is the expected EPS growth for ARES CAPITAL CORP (ARCC) stock?
The Earnings per Share (EPS) of ARES CAPITAL CORP (ARCC) is expected to decline by -12.38% in the next year.