NASDAQ
ARCC
Last Price
US $19.87
KEY FIGURES
MKT CAP
$14.3B
EPS
TTM
$1.34
PEG
TTM
N/M
P/E
TTM
14.86x
P/S
TTM
6.17x
YIELD
9.66%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
6.78%
Return on equity
ROIC: 1526.49%
Valuation History
14.8X
Price to Earnings
EV/EBITDA: 18.2X
Cash flow
Profit margin
21.18%
(FY vs FY)
EBITDA Y/Y
22.68%
(FY vs FY)
Cash flow Y/Y
9.24%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $19.87
-67.79%
Default assumptions
EBITDA Multiple
Fair Value
Market $19.87
-98.09%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Ares Capital Corporation cash flow to debt ratio of 7.14% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial risk - Healthy cash flow growth.
Ares Capital Corporation's free cash flow has decreased -10.92% from $1.28G last year to $1.14G, signaling decreasing performance
Financial stability - Healthy debt to equity ratio.
Ares Capital Corporation's debt to equity ratio is 0.00, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial stability - Healthy debt to equity ratio development.
Ares Capital Corporation's debt has decreased relative to shareholder equity from 1.03 last year to 0.00 today, signaling strengthened financials
Financial risk - Net debt/EBITDA.
Ares Capital Corporation has a net debt to EBITDA ratio of 10.78x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
Ares Capital Corporation earns at least as much interest as it pays. Interest obligations are fully covered.
Financial risk - Profit margin growth.
Ares Capital Corporation's profit margin has decreased (-35.42%) in the last year from 64.30% to 41.52%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
Ares Capital Corporation's short-term assets of $1.53G exceed its short-term liabilities of $894.00M
Decreasing performance - ROA.
Ares Capital Corporation's return on assets of 3.15% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
Ares Capital Corporation's return on equity of 6.78%, is lower than 15.00%, indicating bad performance
Decreasing performance - Earnings quality.
Ares Capital Corporation's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation
Increasing performance - Earnings stability.
Ares Capital Corporation had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Ares Capital Corporation has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Ares Capital Corporation has a free cash flow yield of 8.00%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
Ares Capital Corporation's yearly earnings has decreased -14.65% since last year from $1.52G to $1.30G, signaling decreasing performance
Decreasing performance - Healthy revenue growth.
Ares Capital Corporation's yearly revenue has decreased -35.75% since last year from $2.93G to $1.88G, signaling decreasing performance
Increasing performance - ROIC.
ROIC 1.53K% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
Ares Capital Corporation's 3-year revenue CAGR of 23.30% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Ares Capital Corporation had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Ares Capital Corporation had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Ares Capital Corporation is overvalued relative to its fair value price of 6.40 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Ares Capital Corporation has an earnings yield of 6.73%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Ares Capital Corporation is overvalued relative to its fair value price of 0.38 based on EBITDA multiple model
Overvalued - EV/EBITDA.
Ares Capital Corporation has an EV/EBITDA ratio of 20.98x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings
Overvalued - PEG ratio value.
Ares Capital Corporation has no meaningful EPS growth rate; PEG ratio cannot be computed.
Undervalued - P/B ratio.
Ares Capital Corporation has a price-to-book ratio of 1.03x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Ares Capital Corporation has a price-to-sales ratio of 6.17x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue