US04010L1035 - Common Stock

Taking everything into account, **ARCC** scores **5** out of 10 in our fundamental rating. **ARCC** was compared to 206 industry peers in the **Capital Markets** industry. **ARCC** has a medium profitability rating, but doesn't score so well on its financial health evaluation. **ARCC** is not valued too expensively and it also shows a decent growth rate. **ARCC** also has an excellent dividend rating.

In the past year **ARCC** was profitable.

Each year in the past 5 years **ARCC** has been profitable.

In the past 5 years **ARCC** reported 4 times negative operating cash flow.

The **Return On Assets** of **ARCC** (**5.60%**) is better than **69.46%** of its industry peers.

The **Return On Equity** of **ARCC** (**11.86%**) is better than **67.49%** of its industry peers.

The 3 year average ROIC (**3.77%**) for **ARCC** is below the current ROIC(**4.59%**), indicating increased profibility in the last year.

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 5.6% | ||

ROE | 11.86% | ||

ROIC | 4.59% |

ROA(3y)4.4%

ROA(5y)5.03%

ROE(3y)10.23%

ROE(5y)10.61%

ROIC(3y)3.77%

ROIC(5y)4.06%

The **Profit Margin** of **ARCC** (**50.37%**) is better than **88.67%** of its industry peers.

In the last couple of years the **Profit Margin** of **ARCC** has declined.

In the last couple of years the **Gross Margin** of **ARCC** has grown nicely.

Industry Rank | Sector Rank | ||
---|---|---|---|

OM | 51% | ||

PM (TTM) | 50.37% | ||

GM | 52.65% |

OM growth 3Y0.37%

OM growth 5Y3.67%

PM growth 3Y-17.99%

PM growth 5Y-13.02%

GM growth 3Y0.86%

GM growth 5Y2.17%

Compared to 5 years ago, **ARCC** has more shares outstanding

Compared to 1 year ago, **ARCC** has a worse debt to assets ratio.

Based on the Altman-Z score of **0.90**, we must say that **ARCC** is in the distress zone and has some risk of bankruptcy.

The Debt to FCF ratio of **ARCC** is **22.65**, which is on the high side as it means it would take **ARCC**, **22.65** years of fcf income to pay off all of its debts.

Looking at the **Debt to FCF ratio**, with a value of **22.65**, **ARCC** is in line with its industry, outperforming **47.29%** of the companies in the same industry.

The **Debt to Equity ratio** of **ARCC** (**1.07**) is comparable to the rest of the industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 1.07 | ||

Debt/FCF | 22.65 | ||

Altman-Z | 0.9 |

ROIC/WACCN/A

WACCN/A

The **Current ratio** of **ARCC** (**1.42**) is comparable to the rest of the industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

Current Ratio | 1.42 | ||

Quick Ratio | 1.42 |

The **Earnings Per Share** has grown by an impressive **20.92%** over the past year.

EPS 1Y (TTM)20.92%

EPS 3Y1.72%

EPS 5Y7.5%

EPS growth Q2Q18%

Revenue 1Y (TTM)28.31%

Revenue growth 3Y11.11%

Revenue growth 5Y12.56%

Revenue growth Q2Q21.97%

The **Earnings Per Share** is expected to grow by **3.51%** on average over the next years.

The **Revenue** is expected to grow by **9.80%** on average over the next years. This is quite good.

EPS Next Y18.95%

EPS Next 2Y8.82%

EPS Next 3Y3.51%

EPS Next 5YN/A

Revenue Next Year27.22%

Revenue Next 2Y16.12%

Revenue Next 3Y9.8%

Revenue Next 5YN/A

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

A **Price/Earnings** ratio of **8.46** indicates a reasonable valuation of **ARCC**.

Compared to the rest of the industry, the **Price/Earnings** ratio of **ARCC** indicates a somewhat cheap valuation: **ARCC** is cheaper than 76.85% of the companies listed in the same industry.

The average S&P500 **Price/Earnings** ratio is at **24.54**. **ARCC** is valued rather cheaply when compared to this.

The **Price/Forward Earnings** ratio is **8.43**, which indicates a very decent valuation of **ARCC**.

72.91% of the companies in the same industry are more expensive than **ARCC**, based on the **Price/Forward Earnings** ratio.

When comparing the **Price/Forward Earnings** ratio of **ARCC** to the average of the S&P500 Index (**20.22**), we can say **ARCC** is valued rather cheaply.

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 8.46 | ||

Fwd PE | 8.43 |

The rest of the industry has a similar **Price/Free Cash Flow** ratio as **ARCC**.

Industry Rank | Sector Rank | ||
---|---|---|---|

P/FCF | 22.4 | ||

EV/EBITDA | N/A |

The low **PEG Ratio(NY)**, which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

PEG (NY)0.45

PEG (5Y)1.13

EPS Next 2Y8.82%

EPS Next 3Y3.51%

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 9.63% |

The dividend of **ARCC** has a limited annual growth rate of **1.27%**.

Dividend Growth(5Y)1.27%

Div Incr Years3

Div Non Decr Years3

The dividend of **ARCC** is growing, but earnings are growing more, so the dividend growth is sustainable.

DP79.11%

EPS Next 2Y8.82%

EPS Next 3Y3.51%

**ARES CAPITAL CORP**

NASDAQ:ARCC (12/11/2023, 3:46:55 PM)

After market: 20.1 +0.04 (+0.2%)**20.06**

**-0.02 (-0.1%) **

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupFinancial Services

GICS IndustryCapital Markets

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

Ins Owner Change

Market Cap11.42B

Analysts

Price Target

Dividend

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 9.63% |

Dividend Growth(5Y)

DP

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

Avg EPS beat(2)

Min EPS beat(2)

Max EPS beat(2)

EPS beat(4)

Avg EPS beat(4)

Min EPS beat(4)

Max EPS beat(4)

EPS beat(8)

Avg EPS beat(8)

EPS beat(12)

Avg EPS beat(12)

EPS beat(16)

Avg EPS beat(16)

Revenue beat(2)

Avg Revenue beat(2)

Min Revenue beat(2)

Max Revenue beat(2)

Revenue beat(4)

Avg Revenue beat(4)

Min Revenue beat(4)

Max Revenue beat(4)

Revenue beat(8)

Avg Revenue beat(8)

Revenue beat(12)

Avg Revenue beat(12)

Revenue beat(16)

Avg Revenue beat(16)

PT rev (1m)

PT rev (3m)

EPS NQ rev (1m)

EPS NQ rev (3m)

EPS NY rev (1m)

EPS NY rev (3m)

Revenue NQ rev (1m)

Revenue NQ rev (3m)

Revenue NY rev (1m)

Revenue NY rev (3m)

Valuation

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 8.46 | ||

Fwd PE | 8.43 | ||

P/S | |||

P/FCF | |||

P/OCF | |||

P/B | |||

P/tB | |||

EV/EBITDA |

EPS(TTM)

EY

EPS(NY)

Fwd EY

FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)0.45

PEG (5Y)1.13

Profitability

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 5.6% | ||

ROE | 11.86% | ||

ROCE | |||

ROIC | |||

ROICexc | |||

ROICexgc | |||

OM | 51% | ||

PM (TTM) | 50.37% | ||

GM | 52.65% | ||

FCFM |

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

ROIC(5y)

ROICexc(3y)

ROICexc(5y)

ROICexgc(3y)

ROICexgc(5y)

ROCE(3y)

ROCE(5y)

ROICexcg growth 3Y

ROICexcg growth 5Y

ROICexc growth 3Y

ROICexc growth 5Y

OM growth 3Y

OM growth 5Y

PM growth 3Y

PM growth 5Y

GM growth 3Y

GM growth 5Y

F-Score

Asset Turnover0.11

Health

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 1.07 | ||

Debt/FCF | |||

Debt/EBITDA | |||

Cap/Depr | |||

Cap/Sales | |||

Interest Coverage | |||

Cash Conversion | |||

Profit Quality | |||

Current Ratio | 1.42 | ||

Quick Ratio | 1.42 | ||

Altman-Z |

F-Score

WACC

ROIC/WACC

Cap/Depr(3y)

Cap/Depr(5y)

Cap/Sales(3y)

Cap/Sales(5y)

Profit Quality(3y)

Profit Quality(5y)

Growth

EPS 1Y (TTM)20.92%

EPS 3Y1.72%

EPS 5Y

EPS growth Q2Q

EPS Next Y18.95%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)28.31%

Revenue growth 3Y11.11%

Revenue growth 5Y

Revenue growth Q2Q

Revenue Next Year

Revenue Next 2Y

Revenue Next 3Y

Revenue Next 5Y

EBIT growth 1Y

EBIT growth 3Y

EBIT growth 5Y

EBIT Next Year

EBIT Next 3Y

EBIT Next 5Y

FCF growth 1Y

FCF growth 3Y

FCF growth 5Y

OCF growth 1Y

OCF growth 3Y

OCF growth 5Y