ARCC

Company Overview — What Does ARES CAPITAL CORP Do?

Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors. The fund will also consider investments in industries such as restaurants, retail, oil and gas, and technology sectors. It focuses on investments in Northeast, Mid-Atlantic, Southeast and Southwest regions from its New York office, the Midwest region, from the Chicago office, and the Western region from the Los Angeles office. The fund typically invests between $20 million and $200 million and a maximum of $400 million in companies with an EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million The fund invests through revolvers, first lien loans, warrants, unitranche structures, second lien loans, mezzanine debt, private high yield, junior capital, subordinated debt, and non-control preferred and common equity. The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically considers the purchase of stressed and discounted debt positions. The fund prefers to be an agent and/or lead the transactions in which it invests. The fund also seeks board representation in its portfolio companies. ARES CAPITAL CORP (ARCC) is classified as a large-cap stock in the Financials sector, specifically within the Financial Services industry. The company is led by CEO R. Kipp deVeer and employs approximately 2,550 people, headquartered in Los Angeles, New York. With a market capitalization of $12.7B, ARCC is one of the prominent companies in the Financials sector.

ARES CAPITAL CORP (ARCC) Stock Rating — Reduce (April 2026)

As of April 2026, ARES CAPITAL CORP receives a Reduce rating with a composite score of 34.4/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.ARCC ranks #3,329 out of 4,446 stocks in our coverage universe. Within the Financials sector, ARES CAPITAL CORP ranks #763 of 891 stocks, placing it in the lower half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

ARCC Stock Price and 52-Week Range

ARES CAPITAL CORP (ARCC) currently trades at $17.89. The stock lost $0.12 (0.7%) in the most recent trading session. The 52-week high for ARCC is $23.41, which means the stock is currently trading -23.6% from its annual peak. The 52-week low is $17.59, putting the stock 1.7% above its annual trough. Recent trading volume was 246K shares, suggesting relatively thin trading activity.

Is ARCC Overvalued or Undervalued? — Valuation Analysis

ARES CAPITAL CORP (ARCC) carries a value factor score of 35/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The trailing price-to-earnings ratio is 9.26x, compared to the Financials sector average of 14.88x — a discount of 38%. The price-to-book ratio stands at 0.91x, versus the sector average of 1.22x. The price-to-sales ratio is 8.98x, compared to 0.90x for the average Financials stock. On an enterprise value basis, ARCC trades at 20.93x EV/EBITDA, versus 3.26x for the sector.

At current multiples, ARES CAPITAL CORP trades at a premium to most Financials peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.

ARES CAPITAL CORP Profitability — ROE, Margins, and Quality Score

ARES CAPITAL CORP (ARCC) earns a quality factor score of 10/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 9.8%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 4.5% versus the sector average of 1.2%.

On a margin basis, ARES CAPITAL CORP reports gross margins of 0.0%. The operating margin is 0.0% (sector: 21.8%). Net profit margin stands at 97.3%, versus 17.7% for the average Financials stock. Revenue growth is running at -12.5% on a trailing basis, compared to 9.4% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.

ARCC Debt, Balance Sheet, and Financial Health

ARES CAPITAL CORP has a debt-to-equity ratio of 112.0%, compared to the Financials sector average of 121.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.85x, suggesting adequate working capital coverage. Total debt on the balance sheet is $15.99B. Cash and equivalents stand at $638M.

ARCC has a beta of 0.86, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for ARES CAPITAL CORP is 82/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.

ARES CAPITAL CORP Revenue and Earnings History — Quarterly Trend

In TTM 2026, ARES CAPITAL CORP reported revenue of $1.44B and earnings per share (EPS) of $1.86. Net income for the quarter was $1.40B. Gross margin was 0.0%. Operating income came in at $257M.

In FY 2025, ARES CAPITAL CORP reported revenue of $1.46B and earnings per share (EPS) of $1.86. Net income for the quarter was $1.30B. Revenue grew -1.2% year-over-year compared to FY 2024.

In Q3 2025, ARES CAPITAL CORP reported revenue of $349M and earnings per share (EPS) of $0.57. Net income for the quarter was $404M. Revenue grew -6.4% year-over-year compared to Q3 2024.

In Q2 2025, ARES CAPITAL CORP reported revenue of $350M and earnings per share (EPS) of $0.52. Net income for the quarter was $361M. Revenue grew -12.3% year-over-year compared to Q2 2024.

Over the past 8 quarters, ARES CAPITAL CORP has demonstrated a growth trajectory, with revenue expanding from $399M to $1.44B. Investors analyzing ARCC stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

ARCC Dividend Yield and Income Analysis

ARES CAPITAL CORP (ARCC) currently pays a dividend yield of 9.6%. At this yield, a $10,000 investment in ARCC stock would generate approximately $$963.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning ARCC offers above-average income for its sector. With a net margin of 97.3%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.

ARCC Momentum and Technical Analysis Profile

ARES CAPITAL CORP (ARCC) has a momentum factor score of 32/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 37/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 63/100 reflects moderate short selling activity.

ARCC vs Competitors — Financials Sector Ranking and Peer Comparison

Within the Financials sector, ARES CAPITAL CORP (ARCC) ranks #763 out of 891 stocks based on the Blank Capital composite score. This places ARCC in the lower half of all Financials stocks in our coverage universe. Key competitors and sector peers include WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) with a score of 62.9/100, OPPENHEIMER HOLDINGS INC (OPY) with a score of 62.6/100, Enact Holdings, Inc. (ACT) with a score of 61.6/100, International General Insurance Holdings Ltd. (IGIC) with a score of 61.3/100, and PARKE BANCORP, INC. (PKBK) with a score of 60.4/100.

Comparing ARCC against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full ARCC vs S&P 500 (SPY) comparison to assess how ARES CAPITAL CORP stacks up against the broader market across all factor dimensions.

ARCC Next Earnings Date

No upcoming earnings date has been announced for ARES CAPITAL CORP (ARCC) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy ARCC? — Investment Thesis Summary

The quantitative profile for ARES CAPITAL CORP suggests caution. The quality score of 10/100 flags below-average profitability. The value score of 35/100 indicates premium valuation. Momentum is weak at 32/100, a headwind for near-term performance. Low volatility (stability score 82/100) reduces downside risk.

In summary, ARES CAPITAL CORP (ARCC) earns a Reduce rating with a composite score of 34.4/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on ARCC stock.

Related Resources for ARCC Investors

Explore more research and tools: ARCC vs S&P 500 comparison, top Financials stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare ARCC head-to-head with peers: ARCC vs WTM, ARCC vs OPY, ARCC vs ACT.