Stock AnalizAres Capital Corp. ARCC
Finance: Consumer Services · IPO 2004 · data as of November 13, 2026
Ares Capital Corp. (ARCC) is a financial company listed in the US with a market value of about $13.8B. In the twelve months to September 30, 2026 it had revenue of $1.1B and net income of $875M, a net margin of 81.1%.
Its overall Stock Analiz score is 1.6 out of 5 (weak). The strongest part is value (2/5); the weakest is future growth (0/5).
Key numbers: a P/E of 15.7, a price to free cash flow of 12.1. A discounted cash flow model with moderate assumptions puts its intrinsic value about 30% below the current price.
Score: 1.6 / 5
Checks passed
- P/E below 25
- P/FCF below 20
- 5-year EPS growth above 10% a year
- Profitable 5 years in a row
- Positive free cash flow
- Liabilities below 60% of assets
- Pays a dividend
- Dividend 3 years in a row
Checks not passed
- P/E below the industry median
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- Profit margin improving
- 3-year free cash flow growth above 10% a year
- Strong R&D investment or growth above 20%
Valuation
Growth and quality
Financials, last 6 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|---|---|
| Revenue | $1.1B | — | — | — | — | — | — |
| Net income | $875M | $1.3B | $1.5B | $1.5B | $600M | $1.6B | $484M |
| Free cash flow | $1.1B | — | — | — | — | — | — |
| EPS (diluted) | $1.22 | $1.86 | $2.44 | $2.68 | $1.19 | $3.51 | $1.14 |
| Net margin | 81.1% | — | — | — | — | — | — |
| ROIC | — | — | — | — | — | — | — |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 12 analysts is $21.00, 10% above the current price; targets range from $20.00 to $23.00; the consensus rating is “Strong buy”; expected EPS is $1.88 for the fiscal year ending December 31, 2026.
Frequently asked questions
What is Ares Capital’s P/E ratio?
About 15.7, based on the last twelve months of diluted earnings per share (forward P/E about 10.0).
Is Ares Capital stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 30% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Ares Capital pay a dividend?
Yes. The dividend yield is about 9.87%, and it has paid dividends for 6 years in our data.
Is Ares Capital a good stock to buy?
We do not give buy or sell advice. Ares Capital scores 1.6 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
Similar companies
Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.