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Ares Capital Corporation (ARCC) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Ares Capital Corporation

ARCCMarket cap $13BPrice $18.4

Country🇺🇸United States

SectorFinancials

IndustryCapital Markets

Lends directly to mid-sized businesses that banks won't touch, earning fat interest income as a business development company. It's the largest BDC in America, backing private equity deals big banks skip.

In Bastion Portfolios?

52W Return-1%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+13%8

Revenue Forecast

Rev CAGR (1y)na–

Rev CAGR (3y)na–

Rev CAGR (5y)na–

Earnings Forecast

EPS Growth Y+1na–

EPS Growth Y+2na–

EPS Growth Y+3na–

Quality

Margins

EBIT Margin76%10

Net Income Marginna–

Free Cash Flow Marginna–

Debt

Net Debt/EBITDAna–

Efficiency

ROEna–

ROAna–

Earnings Stability44

GEAR+

Not enough data to calculate the GEAR+ rating.

Value

Price Multiples

P/E Ratio (Forward)na–

P/E Ratio (Forward 3y)na–

P/BVna–

EV Multiples

EV/EBITDA Fwdna–

EV/EBIT Fwdna–

Yield

Free Cash Flow Yieldna–

Dividend Yield10.4%10

Momentum

Short term

1 month return-4%6

3 month return+3%7

YTD return-2%5

Mid term

Price vs 52wHigh93%9

1 year return+4%5

Long term

3 year return+29%4

5 year return+42%5

Risk Shield

Price Risk

Beta0.86

Volatility19%10

Free Cash Flow

Free Cash Flow Marginna–

Free Cash Flow Yieldna–

Quality

ROCEna–

Earnings Stability44

Net Debt/EBITDAna–

02Growth

Is it actually growing, and how fast?

ARCCAres Capital

Revenue FY25$1.5B

GROWTH RATING↗

——

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+13%8

Revenue, next 1Yna–

Revenue, next 3Y, CAGRna–

Revenue, next 5Y, CAGRna–

EARNINGS FORECAST▾SCORE

EPS growth, FY+1na–

EPS growth, FY+2na–

EPS growth, FY+3na–

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 13%/yr over the last 3 years, ahead of 70% of companies worldwide.8/10

WATCH

Revenue grew 13%/yr over the last 3 years; forecasts see it cooling to 0%/yr.

WEAKNESSES

Growth is the weak spot here, trailing 100% of companies worldwide.

The company is loss-making, so its revenue growth is not backed by profit yet.

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business that is slowing. The one thing to watch: the company is not profitable yet.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE60 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-4%6

3-month return+3%7

YTD return-2%5

MID & LONG-TERM▾SCORE

% of 52-week high93%9

1-year return+4%5

3-year return+29%4

5-year return+42%5

MOMENTUM ASSESSMENT

STRENGTHS

It's up 4% over the past year, now 7% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over three months (+3%).

WATCH

Average long-term results. Multi-year returns are middling (+29% over three years and +42% over five), roughly average for the market.

Returns sit at the market level over the past month (-4%) and so far this year (-2%).

WEAKNESSES

None flagged.

BOTTOM LINE

Mixed Momentum

Horizons disagree or sit near the middle of the pack. Momentum investors may want a clearer trend before sizing up.

04Value

Are you paying a fair price for it?

Stop guessing on Ares Capital Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

ARCCAres Capital

Revenue FY25$1.5B

GROWTH RATING↗

——

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+13%8

Revenue, next 1Yna–

Revenue, next 3Y, CAGRna–

Revenue, next 5Y, CAGRna–

EARNINGS FORECAST▾SCORE

EPS growth, FY+1na–

EPS growth, FY+2na–

EPS growth, FY+3na–

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 13%/yr over the last 3 years, ahead of 70% of companies worldwide.8/10

WATCH

Revenue grew 13%/yr over the last 3 years; forecasts see it cooling to 0%/yr.

WEAKNESSES

Growth is the weak spot here, trailing 100% of companies worldwide.

The company is loss-making, so its revenue growth is not backed by profit yet.

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business that is slowing. The one thing to watch: the company is not profitable yet.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE60 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-4%6

3-month return+3%7

YTD return-2%5

MID & LONG-TERM▾SCORE

% of 52-week high93%9

1-year return+4%5

3-year return+29%4

5-year return+42%5

MOMENTUM ASSESSMENT

STRENGTHS

It's up 4% over the past year, now 7% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over three months (+3%).

WATCH

Average long-term results. Multi-year returns are middling (+29% over three years and +42% over five), roughly average for the market.

Returns sit at the market level over the past month (-4%) and so far this year (-2%).

WEAKNESSES

None flagged.

BOTTOM LINE

Mixed Momentum

Horizons disagree or sit near the middle of the pack. Momentum investors may want a clearer trend before sizing up.

04Value

Are you paying a fair price for it?

Stop guessing on Ares Capital Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community