ARCC logo

ARES CAPITAL CORP

ARCCNASDAQ
πŸ† #570 by market capEarnings Oct 27US Equity
$677.66β–² $19.99 (+2.95%)
Simulated price
1hβ€”
24hβ–² 3.0%
7dβ–² 3405.7%
14dβ–² 3520.0%
30dβ–² 3531.6%
1yβ–² 2915.8%
🏦Market Cap
$14.35B
Mid Cap
πŸ“ˆRevenue Growth (YoY)
+3.2%
Slowing
πŸ“ŠGross Margin
50.2%
Healthy
πŸ’΅FCF Margin
16.7%
Healthy
βš–οΈP/S Ratio
4.6x
Fair
Otter Score
57
Weak

Trading Snapshot

Day Range
$670.31 – $683.18
52-Week Range
$17.40 – $22.76
Volume
$2.12B
Avg Volume
$2.40B
Shares Outstanding
718.0M
Next Earnings
Oct 2, 2026

Fundamentals Snapshot

Annual Revenue
$2.24B
Last Q Revenue
$768M
P/E Ratio
15.0
P/S Ratio
4.6x
EPS (TTM)
$1.35
Dividend Yield
9.25%

Why Investors Own ARCC

  • βœ“High-growth profile β€” revenue up +41.8% YoY with expanding US Equity exposure.
  • βœ“Healthy economics β€” 46% gross margin and 11% free-cash-flow margin.
  • βœ“New products and segments could unlock additional revenue streams.
⚠️ Key Risks

Execution delays, intensifying competition, and valuation compression if growth decelerates.

Financial Trends

Revenue (TTM)
$2.24Bβ–² +44.4% YoY
Gross Margin (TTM)
45.8%β–² +2.5% YoY
Operating Income (TTM)
$621Mβ–² +44.4% YoY
Free Cash Flow (TTM)
$253Mβ–² +44.4% YoY

About ARES CAPITAL CORP

Ares Capital Corporation (ARCC) operates as a Business Development Company (BDC), delivering diverse financing solutions predominantly to middle-market enterprises. The firm's expertise lies in facilitating various corporate actions, including funding acquisitions, recapitalizations, and leveraged buyouts. It also extends mezzanine debt, assists with corporate restructurings, and provides crucial rescue financing, in addition to offering growth capital and general refinancing options. ARCC primarily targets investments in companies within the basic and growth manufacturing, business services, consumer products, healthcare (both products and services), and information technology service sectors. Opportunistically, it also explores prospects in industries such as restaurants, retail, oil and gas, and the broader technology space. Geographically, ARCC maintains a broad reach across the United States. Its New York office oversees investments in the Northeast, Mid-Atlantic, Southeast, and Southwest regions. The Chicago office manages opportunities in the Midwest, while its Los Angeles presence covers the Western region. In terms of deal parameters, ARCC typically commits between $20 million and $200 million per investment, with an upper limit of $400 million, targeting companies that generate an EBITDA of $10 million to $250 million. For debt-specific placements, the investment range is generally $10 million to $100 million. The company employs a wide array of financial instruments, including revolving credit facilities, first and second lien loans, unitranche structures, warrants, mezzanine debt, private high yield, junior capital, and subordinated debt, alongside selective non-control preferred and common equity investments. ARCC also evaluates participation in senior and subordinated debt financings led by other parties and strategically acquires stressed or discounted debt. It frequently assumes a lead or agent role in its transactions and actively seeks board representation in its portfolio companies.

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Otter Score Breakdown

β“˜
πŸ’ŽQualityβ˜…β˜…β˜…β˜…β˜…
πŸš€Growthβ˜…β˜…β˜…β˜…β˜…
βš–οΈValuationβ˜…β˜…β˜…β˜…β˜…
⚑Momentumβ˜…β˜…β˜…β˜…β˜…
Overall Score
Weak
57/100

Analyst Price Target

β“˜
Average Target
$742.74
β–² +9.6% Upside
High Target$932.48
Low Target$628.80
Based on 26 analysts

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