ARCC

NEUTRAL

$18.61 Live

Ares Capital Corporation · NASDAQ

Target $21.73 (+16.8%)

$17.4 52W Range $23.42

ARCC Ares Capital Corporation - Fundamental Analysis

NEUTRAL

Console Chart News

ARCC Stock | Fundamental Analysis & Investment Insights

NASDAQ • Financial Services • Asset Management

Current Price Live

$18.61

Analyst Target

$21.73

+16.8% Upside

52W High

$23.42

52W Low

$17.4

Overview AI Snowflake Price Valuation Profitability Growth Health Statements Peers Insiders SEC Filings

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Apr 28, 2026

Market cap

$13.36B

P/E

10.06

ROE

9.4%

Profit margin

42.6%

Debt/Equity

1.12

Dividend yield

10.32%

AI Analysis

AI-powered fundamental assessment

Confidence

85%

ARCC presents a conflicting profile: while it trades at a discount to book value (P/B 0.93) and below its Graham Number ($28.81), its fundamental health is deteriorating. The Piotroski F-Score of 2/9 indicates weak financial health, compounded by a concerning earnings decline of -24.90% YoY. Most critically, the dividend payout ratio of 103.23% suggests the current 10.32% yield is unsustainable without eroding capital or utilizing reserves. Despite analyst 'Buy' ratings, the combination of negative growth and poor deterministic health scores warrants a cautious approach.

Key Strengths

Trading below book value (P/B 0.93)

Strong historical 5-year price appreciation (+53.5%)

Low P/E ratio (10.06) relative to broader financial sector averages

High current dividend yield of 10.32%

Significant market capitalization providing scale in the BDC space

Key Risks

Unsustainable dividend payout ratio (103.23%)

Severe earnings contraction (-24.90% YoY)

Weak financial health as evidenced by Piotroski F-Score of 2/9

Negative quarterly revenue and earnings growth trends

Poor liquidity indicated by a current ratio of 0.56

AI Fair Value Estimate

Based on comprehensive analysis

$17.25

-7.3% below current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall

Moderate

Value

Future

Past

Health

Dividend

AI Verdict

Underperforming Fundamentals

Key drivers: Negative earnings growth, Low Piotroski F-Score, Unsustainable payout ratio, Attractive P/B ratio

Confidence

90%

Value

75/100

Ref P/E 10.06, PEG 3.72, Graham Number $28.81

Positives

P/B < 1.0
Price below Graham Number

Watchpoints

Price significantly above growth-based intrinsic value ($12.95)

Future

20/100

Ref Growth rates

Positives

Analyst target price of $21.73

Watchpoints

YoY Earnings Growth -24.90%
Q/Q Revenue Growth -15.01%

Past

60/100

Ref Historical trends

Positives

Strong 3Y and 5Y returns
Consistent historical earnings beats prior to 2024

Watchpoints

Recent trend of missing earnings estimates (1/4 last 4 quarters)

Health

25/100

Ref Piotroski F-Score

Positives

Manageable Debt/Equity (1.12) relative to sector avg (1.42)

Watchpoints

Piotroski F-Score 2/9
Current Ratio 0.56

Dividend

30/100

Ref Yield 10.32%, Payout 103.23%

Positives

Very high yield (10.32%)

Watchpoints

Payout ratio > 100% indicates lack of earnings coverage

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price

$18.61

Analyst Target

$21.73

Upside/Downside

+16.8%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for ARCC and closest competitors.

Updated 2026-04-27

Company	5Y	3Y	1Y	6M	1M	1W
ARCC Ares Capital Corporation Primary	+53.5%	+33.5%	-3.8%	-3.7%	+6.7%	-2.7%
ERIE Erie Indemnity Company Peer	+25.4%	+14.0%	-32.1%	-21.8%	-0.3%	+3.2%
BEN Franklin Resources, Inc. Peer	+21.5%	-0.8%	+34.2%	+4.8%	+6.1%	-2.6%
EVR Evercore Inc. Peer	+169.3%	+201.6%	+75.7%	+6.7%	+20.0%	-5.1%
ALLY Ally Financial Inc. Peer	+4.1%	+73.2%	+34.9%	+8.0%	+17.5%	+1.3%

ARC

Ares Capital Corporation

Primary

+53.5%

+33.5%

-3.8%

-3.7%

+6.7%

-2.7%

ERI

Erie Indemnity Company

Peer

+25.4%

+14.0%

-32.1%

-21.8%

-0.3%

+3.2%

BEN

Franklin Resources, Inc.

Peer

+21.5%

-0.8%

+34.2%

+4.8%

+6.1%

-2.6%

EVR

Evercore Inc.

Peer

+169.3%

+201.6%

+75.7%

+6.7%

+20.0%

-5.1%

ALL

Ally Financial Inc.

Peer

+4.1%

+73.2%

+34.9%

+8.0%

+17.5%

+1.3%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

10.06

9.64

3.72

0.93

4.38

9.39

N/A

$13.36B

Profitability

Profit margins and return metrics

Profit Margin 42.56%

Operating Margin 75.28%

Gross Margin 100.0%

ROE 9.39%

ROA 4.73%

Growth

Revenue and earnings growth rates

Revenue Growth +4.5%

Earnings Growth -24.9%

Q/Q Revenue Growth -15.01%

Q/Q Earnings Growth -17.9%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity

1.12

Moderate

Current Ratio

0.56

Weak

Quick Ratio

0.46

Poor

Cash/Share

$1.0

Financial Statement Flow

Interactive flow visualization showing how money moves through the company Q4 2025

Revenue

$0.3B

Net Margin

87.7%

Total Assets

$31.2B

Liabilities

$16.9B

Equity

$14.3B

Debt/Equity

1.18x

Operating CF

$-0.4B

Free Cash Flow

$-0.4B

FCF Yield

100%

Quarterly Earnings History

EPS performance vs analyst estimates

2026-04-28

$N/A

2026-02-04

$0.5

+0.4% surprise

2025-10-28

$0.5

-0.7% surprise

2025-07-29

$0.5

-1.1% surprise

Financial Services Sector Comparison

Comparing ARCC against 820 companies in the Financial Services sector (141 bullish, 351 neutral, 328 bearish)

P/E Ratio

10.06

This Stock

36.01

Sector Avg

-72.1% (Discount)

Return on Equity (ROE)

9.39%

This Stock

-0.73%

Sector Avg

-1381.2% (Below Avg)

Profit Margin

42.56%

This Stock

91.62%

Sector Avg

-53.5% (Weaker)

Debt to Equity

1.12

This Stock

1.36

Sector Avg

-17.6% (Lower)

Revenue Growth

4.5%

This Stock

35.27%

Sector Avg

-87.2% (Slower)

Current Ratio

0.56

This Stock

3.18

Sector Avg

-82.4% (Weaker)

Similar Companies

Peer comparison within the same industry

Company	AI Rating	Market Cap	P/E	ROE	Profit Margin	Price
ARCC Ares Capital Corporation	NEUTRAL	$13.36B	10.06	9.4%	42.6%	$18.61
ERIE Erie Indemnity Company	NEUTRAL	$13.25B	23.25	26.2%	13.8%	$253.38	Compare
BEN Franklin Resources, Inc.	NEUTRAL	$13.2B	28.44	3.8%	6.0%	$25.31	Compare
EVR Evercore Inc.	BULLISH	$13.64B	24.51	30.1%	15.3%	$344.3	Compare
ALLY Ally Financial Inc.	BULLISH	$13.06B	17.97	5.8%	11.6%	$42.24	Compare

ARCC Ares Capital Corporation

NEUTRAL

Mkt Cap

$13.4B

P/E

10.1

ROE

9.4%

Price

$18.61

ERIE Erie Indemnity Company

Compare with ARCC

Compare with ARCC

Compare with ARCC

ALLY Ally Financial Inc.

Compare with ARCC

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

Date	Insider	Position	Transaction	Shares	Value
2026-02-09	MARKOWICZ JANA	Chief Operating Officer	Purchase	15,000	$288,000
2026-02-06	LEM SCOTT C	Chief Financial Officer	Purchase	5,186	$100,038
2026-02-05	HENSON MARY BETH	Director	Purchase	4,000	$76,560
2026-02-05	SCHNBELL MICHAEL KORT	Chief Executive Officer	Purchase	12,500	$239,125
2026-02-05	SCHNBELL MICHAEL KORT	Chief Executive Officer	Purchase	12,500	$239,125
2025-10-31	SCHNBELL MICHAEL KORT	Chief Executive Officer	Purchase	13,000	$265,070

MARKOWICZ JANA

Chief Operating Officer

Buy

2026-02-09

15,000 shares · $288,000

LEM SCOTT C

Chief Financial Officer

Buy

2026-02-06

5,186 shares · $100,038

HENSON MARY BETH

Director

Buy

2026-02-05

4,000 shares · $76,560

SCHNBELL MICHAEL KORT

Chief Executive Officer

Buy

2026-02-05

12,500 shares · $239,125

SCHNBELL MICHAEL KORT

Chief Executive Officer

Buy

2026-02-05

12,500 shares · $239,125

SCHNBELL MICHAEL KORT

Chief Executive Officer

Buy

2025-10-31

13,000 shares · $265,070

Insider transactions can signal confidence or concerns about company prospects

SEC Filings

Recent regulatory filings from the SEC EDGAR database

DEF 14A

FORM DEF 14A

2026-03-05

Ares Capital Corporation (ARCC) filed a definitive proxy statement on March 5, 2026, providing shareholders with necessary information to vote on matters at the company's annual meeting.

8-K

2026-02-27

Ares Capital Corporation announced its quarterly financial results.

10-K

2026-02-04

Ares Capital Corporation (ARCC) filed its 10-K on February 4, 2026, providing comprehensive disclosures on its business operations and financial condition. The filing includes detailed management analysis of results of operations and a dedicated section outlining the company's primary risk factors.

8-K

2026-02-04

Ares Capital Corporation filed an 8-K on February 4, 2026, likely to announce its quarterly financial results.

8-K

FORM 8-K

2026-01-12

8-K

FORM 8-K

2025-12-09

Ares Capital Corporation filed an 8-K on December 9, 2025, likely to announce the declaration of its quarterly dividend.

10-Q

2025-10-28

Ares Capital Corporation (ARCC) filed its 10-Q on October 28, 2025. The filing includes a detailed discussion of risk factors under Item 1A, although specific financial highlights were not provided in the available excerpt.

8-K

2025-10-28

Ares Capital Corporation filed an 8-K on October 28, 2025, likely to announce its third-quarter financial results.

8-K

FORM 8-K

2025-09-09

Ares Capital Corporation filed an 8-K on September 9, 2025, likely to announce its quarterly financial results or a dividend declaration.

8-K

2025-08-11

10-Q

2025-07-29

8-K

2025-07-29

8-K

2025-07-03

8-K

2025-06-06

8-K

FORM 8-K

2025-06-03

Data sourced from SEC EDGAR. AI summaries generated automatically.

Wall Street Analysts

Professional analyst ratings and price targets

Consensus

BUY

13 analysts

Citizens

2026-04-22

Maintains

Market Outperform Market Outperform

Keefe, Bruyette & Woods

2026-04-16

Maintains

Outperform Outperform

UBS

2026-03-13

Maintains

Neutral Neutral

JP Morgan

2026-03-13

Maintains

Overweight Overweight

RBC Capital

2026-02-09

Maintains

Outperform Outperform

Wells Fargo

2026-02-05

Maintains

Overweight Overweight

Past News Coverage

Recent headlines mentioning ARCC from our newsroom.

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ARCC

ARCC Ares Capital Corporation - Fundamental Analysis

At a glance

AI Analysis

Key Strengths

Key Risks

Performance Snowflake

Stock Price & Analyst Targets

Multi-Horizon Performance vs Peers

Historical Performance Trends

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Valuation Metrics

Profitability

Growth

Financial Health

Financial Statement Flow

Quarterly Earnings History

Financial Services Sector Comparison

Similar Companies

Recent Insider Trading

SEC Filings

Wall Street Analysts

Past News Coverage

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