Seek Returns

Ares Capital (ARCC) Stock Analysis

This is a peer-relative look at Ares Capital (ARCC): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Financial Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Ares Capital (ARCC)
Profile ItemARCC
NameAres Capital Corp.
Country/RegionUnited States
GICS SectorFinancials
GICS Industry GroupFinancial Services
GICS IndustryCapital Markets
GICS Sub-IndustryAsset Management & Custody Banks
Market Capitalization13.82 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateOctober 5, 2004
Security TypeCommon Stock

Price Performance

Cumulative Growth

ARCC
GSPC
Loading price history…
Ares Capital (ARCC) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…
Trailing total returns for Ares Capital (ARCC) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

Loading price history…
Calendar-year total returns for Ares Capital (ARCC) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Ares Capital (ARCC) metric values compared with Financial Services industry-group medians
MetricCurrent stock: ARCCIndustry group median
Total Return (1Y)5.40%1.90%
Total Return (3Y, Annualized)9.48%12.71%
Total Return (5Y, Annualized)8.26%2.81%

Risk Profile

Drawdown History

ARCC
GSPC
Loading price history…
Ares Capital (ARCC) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

Loading price history…
Distribution of monthly total returns for Ares Capital (ARCC) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Ares Capital (ARCC) metric values compared with Financial Services industry-group medians
MetricCurrent stock: ARCCIndustry group median
Volatility (1Y, Annualized)18.97%36.24%
Beta (5Y)0.591.04
Max Drawdown (5Y)-21.76%-48.56%

Risk-Adjusted Performance

Risk-Return Positioning

Loading chart…
Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. ARCC is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Ares Capital (ARCC) metric values compared with Financial Services industry-group medians
MetricCurrent stock: ARCCIndustry group median
Sharpe Ratio (1Y)0.06-0.09
Sortino Ratio (1Y)0.09-0.13

Profitability

ROE (TTM)

Ares Capital (ARCC) posts ROE of 6.19%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

ARCC

Financial Services industry group

6.19%

Group distribution
Max
44.78%
Q3
21.85%
Median
12.91%
ARCC
6.19%
Q1
4.48%
Min
-18.71%
Largest peers
MA
231.37%
V
63.51%
MS
18.04%
GS
17.71%
BRK.A
12.12%
BRK.B
12.12%
ARCC
6.19%
Loading chart…
Where Ares Capital (ARCC) stands on ROE within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Ares Capital (ARCC) keeps 28.35% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

ARCC

Financial Services industry group

28.35%

Group distribution
Max
62.84%
ARCC
28.35%
Q3
28.05%
Median
15.36%
Q1
4.82%
Min
-28.52%
Largest peers
V
51.20%
MA
46.73%
GS
31.21%
ARCC
28.35%
MS
25.63%
BRK.A
22.30%
BRK.B
22.30%
Loading chart…
Where Ares Capital (ARCC) stands on net margin within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Ares Capital (ARCC) turns 72.74% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

ARCC

Financial Services industry group

72.74%

Group distribution
Max
107.33%
ARCC
72.74%
Q3
55.90%
Median
30.09%
Q1
14.60%
Min
-44.34%
Largest peers
ARCC
72.74%
V
63.73%
MA
60.53%
MS
39.00%
GS
38.37%
BRK.A
32.56%
BRK.B
32.56%
Loading chart…
Where Ares Capital (ARCC) stands on operating margin within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Ares Capital (ARCC) metric values compared with Financial Services industry-group medians
MetricCurrent stock: ARCCIndustry group median
ROE (TTM)6.19%12.91%
ROA (TTM)4.78%3.60%
Net Margin (TTM)28.35%15.36%
Operating Margin (TTM)72.74%30.09%
Gross Margin (TTM)----

Growth

Revenue Growth

Ares Capital (ARCC) grew revenue -12.08%, in the lower peer quartile. The top line is expanding more slowly than at most peers, which can reflect softer demand, lost share, or weaker pricing.

Loading chart…
Ares Capital (ARCC): Revenue Growth across different time periods, set against Financial Services industry-group medians.

EPS Growth

Ares Capital (ARCC) grew earnings per share -23.77%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

Loading chart…
Ares Capital (ARCC): EPS Growth across different time periods, set against Financial Services industry-group medians.

Growth Metrics

Ares Capital (ARCC) metric values compared with Financial Services industry-group medians
MetricCurrent stock: ARCCIndustry group median
Revenue Growth (YoY)-12.08%9.46%
Revenue Growth (3Y CAGR)26.67%10.90%
EPS Growth (YoY)-23.77%7.46%
EPS Growth (3Y CAGR)16.05%13.04%

Financial Strength

Current Ratio (MRQ)

current ratio is set aside for Ares Capital (ARCC) in Financial Services: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.

Debt / Equity (MRQ)

debt-to-equity ratio is set aside for Ares Capital (ARCC) in Financial Services: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.

Financial Strength Metrics

Ares Capital (ARCC) metric values compared with Financial Services industry-group medians
MetricCurrent stock: ARCCIndustry group median
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Ares Capital (ARCC) has dividend yield of 9.92%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.

ARCC

Financial Services industry group

9.92%

Group distribution
ARCC
9.92%
Max
9.77%
Q3
3.92%
Median
1.09%
Q1
0.00%
Min
0.00%
Largest peers
ARCC
9.92%
MS
2.40%
GS
2.07%
V
0.66%
MA
0.53%
BRK.A
0.00%
BRK.B
0.00%
Loading chart…
Where Ares Capital (ARCC) stands on dividend yield within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Ares Capital (ARCC) has payout ratio of 157.38%, meaning dividends exceeded current-period earnings. The gap would need to be covered by cash, retained earnings, financing, or other sources, so earnings alone do not support the payout.

ARCC

Financial Services industry group

157.38%

Group distribution
Max
241.07%
ARCC
157.38%
Q3
97.36%
Median
25.77%
Q1
0.00%
Min
0.00%
Largest peers
ARCC
157.38%
MS
32.91%
GS
25.88%
V
21.75%
MA
17.63%
BRK.A
0.00%
BRK.B
0.00%
Loading chart…
Where Ares Capital (ARCC) stands on payout ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Ares Capital (ARCC) metric values compared with Financial Services industry-group medians
MetricCurrent stock: ARCCIndustry group median
Dividend Yield (TTM)9.92%1.09%
Dividend Payout Ratio (TTM)157.38%25.77%

Valuation

P/E Ratio (TTM)

Ares Capital (ARCC) trades at P/E ratio of 15.68, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

ARCC

Financial Services industry group

15.68

Group distribution
Max
45.85
Q3
24.64
ARCC
15.68
Median
15.37
Q1
9.68
Min
0.16
Largest peers
V
34.31
MA
34.15
ARCC
15.68
MS
14.39
BRK.A
14.36
BRK.B
14.36
GS
12.45
Loading chart…
Where Ares Capital (ARCC) stands on P/E ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Ares Capital (ARCC) trades at 4.48 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

ARCC

Financial Services industry group

4.48

Group distribution
Max
9.23
Q3
4.57
ARCC
4.48
Median
2.72
Q1
1.28
Min
-0.55
Largest peers
V
17.18
MA
15.67
ARCC
4.48
MS
3.55
GS
3.52
BRK.A
3.18
BRK.B
3.18
Loading chart…
Where Ares Capital (ARCC) stands on P/S ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Ares Capital (ARCC) trades at 0.99 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

ARCC

Financial Services industry group

0.99

Group distribution
Max
7.79
Q3
3.63
Median
1.57
ARCC
0.99
Q1
0.81
Min
-0.39
Largest peers
MA
84.30
V
22.05
MS
2.65
GS
2.36
BRK.A
1.72
ARCC
0.99
BRK.B
0.00
Loading chart…
Where Ares Capital (ARCC) stands on P/B ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Ares Capital (ARCC) metric values compared with Financial Services industry-group medians
MetricCurrent stock: ARCCIndustry group median
P/E Ratio (TTM)15.6815.37
P/S Ratio (TTM)4.482.72
P/B Ratio (MRQ)0.991.57
Free Cash Flow Yield (TTM)----