ARCC:NSD-Ares Capital Corporation (USD)

COMMON STOCK | Asset Management | NSD

Last Closing Price

USD 20.02

Change

+0.05 (+0.25)%

Market Cap

USD 8.90B

Volume

2.59M

Avg Analyst Target

USD 20.29 (+1.33%)

Avg User Target

USD
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: 2021-08-02 )

Largest Industry Peers for Asset Management

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

+2.08 (+1.02%)

USD46.33B 16.13 13.95
NTRS Northern Trust Corporation

-0.91 (-0.81%)

USD23.52B 19.26 N/A
CG The Carlyle Group Inc

-0.94 (-1.86%)

USD17.89B 9.97 8.60
SEIC SEI Investments Company

+0.27 (+0.44%)

USD8.58B 17.72 10.83
HLNE Hamilton Lane Incorporated

+0.06 (+0.06%)

USD4.93B 33.14 25.49
PSEC Prospect Capital Corporation

+0.02 (+0.25%)

USD3.14B 6.73 9.42
GBDC Golub Capital BDC, Inc

+0.08 (+0.51%)

USD2.65B 6.12 18.93
VRTS Virtus Investment Partners, In..

+1.50 (+0.54%)

USD2.11B 12.85 10.12
VCTR Victory Capital Holdings, Inc

+0.91 (+2.98%)

USD2.07B 10.19 8.20
GCMG GCM Grosvenor Inc

+0.13 (+1.31%)

USD1.86B 47.88 N/A

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 %

+0.03 (+0.16%)

USD0.06B
BIZD VanEck Vectors BDC Income.. 0.00 % 10.23 %

+0.02 (+0.12%)

USD0.46B
DVHL UBS ETRACS Monthly Pay 2x.. 0.00 % 0.85 %

N/A

USD0.02B
HOLD AdvisorShares Trust - Adv.. 0.00 % 0.36 %

-0.02 (-0.02%)

USD0.04B
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 II Public Limited.. 0.00 % 0.75 %

+0.18 (+0.57%)

USD0.95B
IPRV:LSE iShares II Public Limited.. 0.00 % 0.75 %

+14.50 (+0.64%)

USD1.03B
IQQL:F iShares II Public Limited.. 0.00 % 0.75 %

+0.11 (+0.41%)

USD1.03B
IQQL:XETRA iShares Listed Private Eq.. 0.00 % 0.75 %

+0.10 (+0.38%)

USD0.94B

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 18.53% 52% F 68% D+
Dividend Return 4.74% 56% F 92% A-
Total Return 23.27% 56% F 72% C-
Trailing 12 Months  
Capital Gain 38.74% 42% F 58% F
Dividend Return 11.09% 58% F 95% A
Total Return 49.83% 45% F 64% D
Trailing 5 Years  
Capital Gain 30.08% 53% F 45% F
Dividend Return 51.07% 83% B 98% A+
Total Return 81.16% 60% D- 63% D
Average Annual (5 Year Horizon)  
Capital Gain 2.79% 52% F 36% F
Dividend Return 9.58% 72% C- 97% A+
Total Return 12.37% 63% D 55% F
Risk Return Profile  
Volatility (Standard Deviation) 21.24% 78% C+ 75% C
Risk Adjusted Return 58.24% 72% C- 76% C
Market Capitalization 8.90B 95% A 91% 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 5.12 73% C 84% B
Price/Book Ratio 1.10 39% F 84% B
Price / Cash Flow Ratio -15.99 85% B 78% C+
EV/EBITDA 10.19 63% D 68% D+
Management Effectiveness  
Return on Equity 22.61% 67% D+ 90% A-
Return on Invested Capital 10.81% 80% B- 80% B-
Return on Assets 4.11% 59% F 77% C+
Debt to Equity Ratio N/A N/A N/A N/A N/A
Technical Ratios  
Short Ratio 2.25 35% F 55% F
Short Percent 1.02% 41% F 78% C+
Beta 1.24 61% D- 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

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User / Independent Analyst Ratings

User Name Target Rating Target Horizon (Months) Target Price User Analysis Date Comment

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.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

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 Dividend Growth

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