21.02 USD
+0.1 (+0.48%)
21.09 USD
+0.07 (+0.33%)
Overall ARCC gets a fundamental rating of 4 out of 10. We evaluated ARCC against 238 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 on the other hand it scores bad on growth.
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.
ARCC had positive earnings in each of the past 5 years.
ARCC had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
ARCC has a Return On Assets of 4.42%. This is in the better half of the industry: ARCC outperforms 67.65% of its industry peers.
ARCC has a Return On Equity (9.52%) which is in line with its industry peers.
With a Return On Invested Capital value of 3.79%, ARCC perfoms like the industry average, outperforming 53.36% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARCC is below the industry average of 6.95%.
| 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
Looking at the Profit Margin, with a value of 45.16%, ARCC belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
ARCC's Profit Margin has been stable in the last couple of years.
ARCC has a Operating Margin of 47.81%. This is amongst the best in the industry. ARCC outperforms 84.87% of its industry peers.
ARCC's Operating Margin has declined in the last couple of years.
ARCC has a better Gross Margin (49.47%) than 60.08% of its industry peers.
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
The number of shares outstanding for ARCC has been increased compared to 1 year ago.
The number of shares outstanding for ARCC has been increased compared to 5 years ago.
Compared to 1 year ago, ARCC has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.87, we must say that ARCC is in the distress zone and has some risk of bankruptcy.
ARCC's Altman-Z score of 0.87 is in line compared to the rest of the industry. ARCC outperforms 50.00% of its industry peers.
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 of 1.09. This is comparable to the rest of the industry: ARCC outperforms 45.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.87 |
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.
With a decent Current ratio value of 2.23, ARCC is doing good in the industry, outperforming 75.21% of the companies in the same industry.
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 75.63% 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.
Looking at the last year, ARCC shows a small growth in Revenue. The Revenue has grown by 2.72% in the last year.
The Revenue has been growing by 14.37% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 3.59% on average over the next years.
EPS Next Y-12.04%
EPS Next 2Y-7.38%
EPS Next 3Y-5.46%
EPS Next 5YN/A
Revenue Next Year0.75%
Revenue Next 2Y2.9%
Revenue Next 3Y3.59%
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
With a Price/Earnings ratio of 10.25, the valuation of ARCC can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of ARCC indicates a somewhat cheap valuation: ARCC is cheaper than 70.59% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, ARCC is valued rather cheaply.
ARCC is valuated reasonably with a Price/Forward Earnings ratio of 10.52.
Based on the Price/Forward Earnings ratio, ARCC is valued a bit cheaper than the industry average as 68.49% of the companies are valued more expensively.
ARCC is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 10.52 |
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)2.53
EPS Next 2Y-7.38%
EPS Next 3Y-5.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.36%, ARCC is a good candidate for dividend investing.
ARCC's Dividend Yield is a higher than the industry average which is at 8.39.
Compared to an average S&P500 Dividend Yield of 2.32, ARCC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.36% |
5.2 History
The dividend of ARCC has a limited annual growth rate of 2.32%.
ARCC has been paying a dividend for at least 10 years, so it has 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-7.38%
EPS Next 3Y-5.46%
21.02
+0.1 (+0.48%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners32.38%
Inst Owner Change-14.35%
Ins Owners0.47%
Ins Owner Change0.42%
Market Cap15.04B
Revenue(TTM)3.02B
Net Income(TTM)1.36B
Analysts83.81
Price Target23.1 (9.9%)
Short Float %2.67%
Short Ratio3.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.36% |
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)-0.7%
EPS NQ rev (3m)-1.15%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)2.37%
Revenue NQ rev (3m)2.55%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 10.52 | ||
| P/S | 4.98 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.05 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.05
EY9.75%
EPS(NY)2
Fwd EY9.51%
FCF(TTM)-2.18
FCFYN/A
OCF(TTM)-2.18
OCFYN/A
SpS4.22
BVpS20.01
TBVpS20.01
PEG (NY)N/A
PEG (5Y)2.53
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 | 0.87 |
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-12.04%
EPS Next 2Y-7.38%
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 Year0.75%
Revenue Next 2Y2.9%
Revenue Next 3Y3.59%
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 10.25 and the Price/Book (PB) ratio is 1.05.
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 -12.04% in the next year.