ARES CAPITAL CORP (ARCC) Stock Fundamental Analysis

NASDAQ:ARCC • US04010L1035

19.15 USD
+0.2 (+1.06%)
At close: Feb 20, 2026
19.2 USD
+0.05 (+0.26%)
After Hours: 2/20/2026, 7:20:05 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

ARCC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 237 industry peers in the Capital Markets industry. There are concerns on the financial health of ARCC while its profitability can be described as average. ARCC has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • In the past year ARCC was profitable.
  • ARCC had a negative operating cash flow in the past year.
  • ARCC had positive earnings in each of the past 5 years.
  • In the past 5 years ARCC reported 4 times negative operating cash flow.
ARCC Yearly Net Income VS EBIT VS OCF VS FCFARCC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B -2B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 4.16%, ARCC is in the better half of the industry, outperforming 62.03% of the companies in the same industry.
  • ARCC has a Return On Equity (9.07%) which is comparable to the rest of the industry.
  • ARCC has a Return On Invested Capital of 3.78%. This is comparable to the rest of the industry: ARCC outperforms 53.16% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ARCC is below the industry average of 7.31%.
Industry RankSector Rank
ROA 4.16%
ROE 9.07%
ROIC 3.78%
ROA(3y)5.31%
ROA(5y)5.23%
ROE(3y)11.35%
ROE(5y)11.6%
ROIC(3y)4.16%
ROIC(5y)3.93%
ARCC Yearly ROA, ROE, ROICARCC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • ARCC has a Profit Margin of 42.56%. This is amongst the best in the industry. ARCC outperforms 88.19% of its industry peers.
  • In the last couple of years the Profit Margin of ARCC has grown nicely.
  • ARCC has a better Operating Margin (47.77%) than 84.39% of its industry peers.
  • ARCC's Operating Margin has declined in the last couple of years.
  • ARCC has a Gross Margin (49.44%) which is comparable to the rest of the industry.
  • ARCC's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 47.77%
PM (TTM) 42.56%
GM 49.44%
OM growth 3Y-4.43%
OM growth 5Y-2.35%
PM growth 3Y14.14%
PM growth 5Y5.85%
GM growth 3Y-4.37%
GM growth 5Y-2.57%
ARCC Yearly Profit, Operating, Gross MarginsARCC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

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 worse debt/assets ratio than last year.
ARCC Yearly Shares OutstandingARCC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
ARCC Yearly Total Debt VS Total AssetsARCC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • Based on the Altman-Z score of 0.80, we must say that ARCC is in the distress zone and has some risk of bankruptcy.
  • ARCC has a Altman-Z score (0.80) which is in line with its industry peers.
  • ARCC has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
  • ARCC has a Debt to Equity ratio (1.12) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.12
Debt/FCF N/A
Altman-Z 0.8
ROIC/WACCN/A
WACCN/A
ARCC Yearly LT Debt VS Equity VS FCFARCC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 1.67 indicates that ARCC should not have too much problems paying its short term obligations.
  • With a decent Current ratio value of 1.67, ARCC is doing good in the industry, outperforming 70.89% of the companies in the same industry.
  • ARCC has a Quick Ratio of 1.67. This is a normal value and indicates that ARCC is financially healthy and should not expect problems in meeting its short term obligations.
  • With a decent Quick ratio value of 1.67, ARCC is doing good in the industry, outperforming 70.89% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.67
Quick Ratio 1.67
ARCC Yearly Current Assets VS Current LiabilitesARCC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. Growth

3.1 Past

  • The earnings per share for ARCC have decreased strongly by -18.03% in the last year.
  • The Earnings Per Share has been growing slightly by 2.00% on average over the past years.
  • The Revenue has been growing slightly by 2.07% in the past year.
  • ARCC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.10% yearly.
EPS 1Y (TTM)-18.03%
EPS 3Y-1.69%
EPS 5Y2%
EPS Q2Q%-25.45%
Revenue 1Y (TTM)2.07%
Revenue growth 3Y13.34%
Revenue growth 5Y15.1%
Sales Q2Q%-5.8%

3.2 Future

  • ARCC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.68% yearly.
  • ARCC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.31% yearly.
EPS Next Y3.84%
EPS Next 2Y1.61%
EPS Next 3Y-1.68%
EPS Next 5YN/A
Revenue Next Year4.81%
Revenue Next 2Y2.96%
Revenue Next 3Y1.31%
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.
ARCC Yearly Revenue VS EstimatesARCC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B
ARCC Yearly EPS VS EstimatesARCC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1 1.5 2

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 10.03, the valuation of ARCC can be described as reasonable.
  • Compared to the rest of the industry, the Price/Earnings ratio of ARCC indicates a somewhat cheap valuation: ARCC is cheaper than 67.93% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of ARCC to the average of the S&P500 Index (26.99), we can say ARCC is valued rather cheaply.
  • The Price/Forward Earnings ratio is 9.66, which indicates a very decent 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 74.68% of the companies listed in the same industry.
  • ARCC is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.03
Fwd PE 9.66
ARCC Price Earnings VS Forward Price EarningsARCC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
ARCC Per share dataARCC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.61
PEG (5Y)5.01
EPS Next 2Y1.61%
EPS Next 3Y-1.68%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 9.86%, ARCC is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 6.04, ARCC pays a bit more dividend than its industry peers.
  • ARCC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.85.
Industry RankSector Rank
Dividend Yield 9.86%

5.2 History

  • The dividend of ARCC has a limited annual growth rate of 2.72%.
  • 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)2.72%
Div Incr Years0
Div Non Decr Years4
ARCC Yearly Dividends per shareARCC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

  • 97.31% of the earnings are spent on dividend by ARCC. 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.
DP97.31%
EPS Next 2Y1.61%
EPS Next 3Y-1.68%
ARCC Yearly Income VS Free CF VS DividendARCC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B -2B
ARCC Dividend Payout.ARCC Dividend Payout, showing the Payout Ratio.ARCC Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

ARES CAPITAL CORP

NASDAQ:ARCC (2/20/2026, 7:20:05 PM)

After market: 19.2 +0.05 (+0.26%)

19.15

+0.2 (+1.06%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-04
Earnings (Next)04-27
Inst Owners33.01%
Inst Owner Change2.15%
Ins Owners0.47%
Ins Owner Change1.47%
Market Cap13.75B
Revenue(TTM)3.05B
Net Income(TTM)1.30B
Analysts83.81
Price Target23.15 (20.89%)
Short Float %2.38%
Short Ratio2.98
Dividend
Industry RankSector Rank
Dividend Yield 9.86%
Yearly Dividend1.82
Dividend Growth(5Y)2.72%
DP97.31%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.83%
Min EPS beat(2)-19.28%
Max EPS beat(2)-2.38%
EPS beat(4)0
Avg EPS beat(4)-8.42%
Min EPS beat(4)-19.28%
Max EPS beat(4)-2.38%
EPS beat(8)1
Avg EPS beat(8)-5.61%
EPS beat(12)3
Avg EPS beat(12)-3.92%
EPS beat(16)5
Avg EPS beat(16)-2.95%
Revenue beat(2)1
Avg Revenue beat(2)2.78%
Min Revenue beat(2)-11.79%
Max Revenue beat(2)17.35%
Revenue beat(4)1
Avg Revenue beat(4)-1.29%
Min Revenue beat(4)-11.79%
Max Revenue beat(4)17.35%
Revenue beat(8)2
Avg Revenue beat(8)-1.33%
Revenue beat(12)3
Avg Revenue beat(12)-0.35%
Revenue beat(16)6
Avg Revenue beat(16)-0.14%
PT rev (1m)0.22%
PT rev (3m)-1.49%
EPS NQ rev (1m)-1.05%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-0.77%
Revenue NQ rev (1m)-0.8%
Revenue NQ rev (3m)-1.99%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)0.31%
Valuation
Industry RankSector Rank
PE 10.03
Fwd PE 9.66
P/S 4.51
P/FCF N/A
P/OCF N/A
P/B 0.96
P/tB 0.96
EV/EBITDA N/A
EPS(TTM)1.91
EY9.97%
EPS(NY)1.98
Fwd EY10.36%
FCF(TTM)-2.39
FCFYN/A
OCF(TTM)-2.39
OCFYN/A
SpS4.25
BVpS19.94
TBVpS19.94
PEG (NY)2.61
PEG (5Y)5.01
Graham Number29.27
Profitability
Industry RankSector Rank
ROA 4.16%
ROE 9.07%
ROCE 4.78%
ROIC 3.78%
ROICexc 3.86%
ROICexgc 3.89%
OM 47.77%
PM (TTM) 42.56%
GM 49.44%
FCFM N/A
ROA(3y)5.31%
ROA(5y)5.23%
ROE(3y)11.35%
ROE(5y)11.6%
ROIC(3y)4.16%
ROIC(5y)3.93%
ROICexc(3y)4.25%
ROICexc(5y)4.01%
ROICexgc(3y)4.28%
ROICexgc(5y)4.04%
ROCE(3y)5.26%
ROCE(5y)4.98%
ROICexgc growth 3Y-2.72%
ROICexgc growth 5Y-1.5%
ROICexc growth 3Y-2.84%
ROICexc growth 5Y-1.53%
OM growth 3Y-4.43%
OM growth 5Y-2.35%
PM growth 3Y14.14%
PM growth 5Y5.85%
GM growth 3Y-4.37%
GM growth 5Y-2.57%
F-Score2
Asset Turnover0.1
Health
Industry RankSector Rank
Debt/Equity 1.12
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 1.94
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.67
Quick Ratio 1.67
Altman-Z 0.8
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)-18.03%
EPS 3Y-1.69%
EPS 5Y2%
EPS Q2Q%-25.45%
EPS Next Y3.84%
EPS Next 2Y1.61%
EPS Next 3Y-1.68%
EPS Next 5YN/A
Revenue 1Y (TTM)2.07%
Revenue growth 3Y13.34%
Revenue growth 5Y15.1%
Sales Q2Q%-5.8%
Revenue Next Year4.81%
Revenue Next 2Y2.96%
Revenue Next 3Y1.31%
Revenue Next 5YN/A
EBIT growth 1Y-1.22%
EBIT growth 3Y8.33%
EBIT growth 5Y12.39%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y19.31%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y19.31%
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 3 / 10 to ARCC.


What is the valuation status for 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.


What is the valuation of ARES CAPITAL CORP based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ARES CAPITAL CORP (ARCC) is 10.03 and the Price/Book (PB) ratio is 0.96.


How financially healthy is ARES CAPITAL CORP?

The financial health rating of ARES CAPITAL CORP (ARCC) is 2 / 10.