ARCC:NSD-Ares Capital Corporation (USD)

COMMON STOCK | Asset Management | NSD

Last Closing Price

USD 19.67

Change

+0.22 (+1.13)%

Market Cap

USD 8.51B

Volume

1.73M

Average Target Price

USD 18.50 (-5.95%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

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.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2021-04-21 )

Largest Industry Peers for Asset Management

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
TROW T. Rowe Price Group, Inc

+2.65 (+1.50%)

USD40.16B 17.69 13.10
NTRS Northern Trust Corporation

-0.63 (-0.59%)

USD22.32B 19.66 N/A
CG The Carlyle Group Inc

+0.43 (+1.09%)

USD13.93B 40.49 8.60
SEIC SEI Investments Company

+0.37 (+0.59%)

USD8.99B 20.88 12.69
HLNE Hamilton Lane Incorporated

+0.46 (+0.52%)

USD4.73B 36.04 28.92
PSEC Prospect Capital Corporation

+0.15 (+1.89%)

USD3.07B 6.58 9.42
GBDC Golub Capital BDC, Inc

+0.15 (+0.98%)

USD2.57B 23.68 18.93
GCMG GCM Grosvenor Inc

+0.12 (+1.04%)

USD2.23B N/A N/A
VCTR Victory Capital Holdings, Inc

+0.26 (+0.93%)

USD2.00B 9.91 8.15
VRTS Virtus Investment Partners, In..

+5.12 (+2.06%)

USD1.90B 24.79 13.49

ETFs Containing ARCC

Symbol Name Weight Mer Price(Change) Market Cap
BDCL UBS ETRACS 2xLeveraged Lo.. 0.00 % 0.85 %

N/A

USD0.02B
BDCS UBS ETRACS Linked to the .. 0.00 % 0.85 %

N/A

USD0.02B
BDCZ UBS ETRACS Wells Fargo Bu.. 0.00 % 0.85 %

+0.12 (+0.63%)

USD0.05B
BIZD VanEck Vectors BDC Income.. 0.00 % 10.24 %

+0.17 (+1.03%)

USD0.34B
DVHL UBS ETRACS Monthly Pay 2x.. 0.00 % 0.85 %

N/A

USD0.02B
HUSE Strategy Shares US Market.. 0.00 % 1.20 %

N/A

USD3.58M
LBDC UBS ETRACS 2×Leveraged L.. 0.00 % 0.85 %

N/A

USD0.01B
MLTI Credit Suisse X-Links Mul.. 0.00 % 0.84 %

N/A

USD5.40M
HFY:CA Hamilton Global Financial.. 0.00 % 1.15 %

N/A

USD0.06B
HFY-U:CA Hamilton Global Financial.. 0.00 % 1.20 %

N/A

N/A
IDPE:LSE iShares Listed Private Eq.. 0.00 % 0.75 %

+0.14 (+0.48%)

USD0.78B
IPRV:LSE iShares Listed Private Eq.. 0.00 % 0.75 %

+9.00 (+0.45%)

USD0.78B
IQQL:F iShares Listed Private Eq.. 0.00 % 0.75 %

N/A

USD0.78B
IQQL:XETRA iShares Listed Private Eq.. 0.00 % 0.75 %

+0.10 (+0.41%)

USD0.85B

Market Performance

  Market Performance vs.
Industry/Classification (Asset Management)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 16.46% 52% F 65% D
Dividend Return 2.37% 57% F 92% A-
Total Return 18.83% 55% F 68% D+
Trailing 12 Months  
Capital Gain 76.25% 60% D- 61% D-
Dividend Return 14.34% 60% D- 96% A
Total Return 90.59% 63% D 66% D
Trailing 5 Years  
Capital Gain 30.01% 57% F 44% F
Dividend Return 51.82% 71% C- 98% A+
Total Return 81.82% 62% D- 60% D-
Average Annual (5 Year Horizon)  
Capital Gain 0.79% 54% F 35% F
Dividend Return 9.49% 74% C 97% A+
Total Return 10.29% 67% D+ 56% F
Risk Return Profile  
Volatility (Standard Deviation) 18.19% 78% C+ 79% C+
Risk Adjusted Return 56.54% 71% C- 76% C
Market Capitalization 8.51B 94% A 90% A-
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 87%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Asset Management)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 17.06 54% F 57% F
Price/Book Ratio 1.20 41% F 82% B-
Price / Cash Flow Ratio -15.27 93% A 81% B-
EV/EBITDA 10.19 63% D 71% C-
Management Effectiveness  
Return on Equity 6.61% 56% F 67% D+
Return on Invested Capital -0.18% 19% F 50% F
Return on Assets 4.54% 70% C- 82% B-
Debt to Equity Ratio N/A N/A N/A N/A N/A
Technical Ratios  
Short Ratio 1.36 34% F 63% D
Short Percent 0.73% 44% F 86% B
Beta 1.25 59% F 44% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What to not like:
Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector