ARCC Financial Services

Ares Capital Corporation

$19.01-2.11%

Price as of close on Nov 3, 2026 · Financials updated Nov 1, 2026

Basics

Sector: Financial Services
Industry: Asset Management
Country: United States
Market cap: 13.7B USD
Enterprise value: 28.8B USD

Overall health

Drawback: growing more slowly than most peersgrowing more slowly than peers
Drawback: higher risk than most peers: less short-term liquidity (current ratio 1.05 vs a peer median of 2.02)higher risk: less liquidity (current ratio 1.05 vs peers 2.02)
About average: profitability and valuation

Ranks #172 of 232 financial services companies (bottom 27%)

See how it ranks against its peers

Worth knowing

Shareholders being diluted. Shares outstanding up 38% from December 2022 to July 2026.
Ares Capital had 38% more shares at July 2026 than at December 2022, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.Ares Capital had 38% more shares at July 2026 than at December 2022, mostly from issuing stock. Each existing share now owns a smaller slice of the business.
Revenue is falling. Revenue fell 12% in the 12 months to June 2026 vs the 12 months before.
Ares Capital's revenue fell 12% in the 12 months to June 2026 vs the 12 months before.
Profit is backed by cash. Free cash flow is 119% of reported profit.
Ares Capital's free cash flow is 119% of its reported profit, so its earnings are turning into cash it can reinvest, pay out or use to reduce debt.

StockQuotient Score

42/ 100▲ 3 since Oct 27 close

Oct 5 39 → Nov 4 42 (+3)

Valuation

Is the price right?

57/100

Moderate▲ 17 since Oct 27 close

2/3 inputs reported · Partial data

Since last quarter: No major changeValuation also moves with the share price every day.

Why it changed since the Oct 27, 2026 close: Score 40 → 57

Peer companies moved+17

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Close to the peer norm on every measure.

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield7.0%

SEC filings · 12 months to Jun 2026Reported value30% base weight · Z-score 0.36Sector median: 0.0571 · MAD: 0.0371

EBITDA yieldUnavailable

Missing · left out of the score · no sector data, so not countedNot counted · remaining weights rescaledSector median: 0.0689 · MAD: 0.0428

Free cash flow yield8.3%

Yahoo Finance fallback · SEC cash flow or share count unavailable · trailing 12 months · operating cash flow − capital spendingReported value20% base weight · Z-score 0.36Sector median: 0.0613 · MAD: 0.0605

Other data (not scored)

Book yield101.8%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.8352 · MAD: 0.4517

Growth

Is it growing?

35/100

Weak

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Weaker than most peers on:

▼ EPS growth
▼ Revenue growth

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth-30.3%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -1.45Sector median: 0.0999 · MAD: 0.2773

3-year revenue growth26.7%

Yahoo Finance fallback · SEC figure unavailable or out of date · 3 fiscal years to Dec 2025Reported value33% base weight · Z-score 1.94Sector median: 0.0999 · MAD: 0.0858

Revenue growth-12.1%

Yahoo Finance fallback · SEC figure unavailable or out of date · fiscal year to Dec 2025Reported value33% base weight · Z-score -1.32Sector median: 0.0742 · MAD: 0.1477

Profitability

Does it earn well?

51/100

Moderate

2/3 inputs reported · Partial data

Since last quarter: No major change

Why

Close to the peer norm on every measure.

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating marginUnavailable

Missing · left out of the score · no sector data, so not countedNot counted · remaining weights rescaledSector median: 0.2353 · MAD: 0.1462

Return on assets3.1%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.25Sector median: 0.0256 · MAD: 0.0233

Return on invested capital6.3%

Yahoo Finance fallback · SEC operating income or invested capital unavailable · trailing 12 monthsReported value33% base weight · Z-score -0.01Sector median: 0.0630 · MAD: 0.0518

Other data (not scored)

Gross margin100.0%

Yahoo Finance fallback · SEC figure unavailable or out of date · trailing 12 monthsReported valueInformational · 0% composite weightSector median: 0.7878 · MAD: 0.2122

Return on equity6.9%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.0939 · MAD: 0.0702

Risk

Debt, liquidity, price swings

Higher

Higher relative risk

2/3 inputs reported · Partial data

Since last quarter: No major change

Why it changed since the Oct 27, 2026 close: Safety percentile 31 → 24

Company's reported figures updated-31
Peer companies moved+24

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Weaker than most peers on:

▼ Current ratio
▼ Debt / equity

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

BetaUnavailable

Missing · left out of the score · no sector data, so not countedNot counted · remaining weights rescaledSector median: 0.7010 · MAD: 0.3115

Current ratio1.05×

Yahoo Finance fallback · SEC figure unavailable or out of dateReported value33% base weight · Z-score -0.78Sector median: 2.0250 · MAD: 1.2470

Debt / equity1.14×

SEC filings · latest balance sheetReported value33% base weight · Z-score -1.03Sector median: 0.5734 · MAD: 0.5454

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Ares Capital

Is Ares Capital getting weaker?: Its latest SEC filing (Jul 29, 2026) showed no major changes. Its overall score is 42/100, up 3 since Oct 28, 2026.
How is Ares Capital valued vs its peers?: Priced about in line with its peers. Valuation scores 57/100 against 432 financial services peers.
Is Ares Capital growing?: More slowly than most of its peers. Growth scores 35/100 against 432 financial services peers. 3-year revenue growth 26.7% vs a peer median of 10.0% (stronger than 85% of peers).3-year revenue growth 26.7% vs peers 10.0% (stronger than 85% of peers). Earnings per share growth -30.3% vs a peer median of 10.0% (weaker than 82% of peers).Earnings per share growth -30.3% vs peers 10.0% (weaker than 82% of peers).
How profitable is Ares Capital?: About as profitable as its peers. Profitability scores 51/100 against 432 financial services peers.
How risky is Ares Capital?: Higher risk relative to 432 financial services peers, judged on debt, liquidity and share-price swings. Current ratio 1.05× vs a peer median of 2.02× (weaker than 76% of peers).Current ratio 1.05× vs peers 2.02× (weaker than 76% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Jul 29, 2026 · compared with the quarter ended Mar 31, 2026

No major changes

	Previous quarter	Latest quarter	Change
Net income (12 months)	1.1B USD	960.0M USD	−16.5%
Debt	15.8B USD	15.8B USD	−0.5%
Cash	505.0M USD	383.0M USD	−24.2%
Shares outstanding	718.0M	718.0M	0.0%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Industry: Asset Management · 43 companies

Valuations in Asset Management are near the top of their range since 2016.

95% of months since 2016 were valued lower than now.
37% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +10% and earnings +13% (medians): prices and earnings moved broadly together.
Median price-to-sales is +31% vs the whole market, against a usual +6%.

2016Shaded: most expensive fifth of its range2026

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Return on assets (ROA)	7.5%	2.7%	6.4%	5.4%	4.2%	▼ 1.2 pts
Return on equity (ROE)	17.7%	6.3%	13.6%	11.4%	9.1%	▼ 2.3 pts
Debt to equity	1.24×	1.28×	1.06×	1.03×	1.12×	▲ 8.7%

ARCC price history

Price history is added with the daily price update and will appear after the next one.

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Sector leaderboards

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Bringing the fundamentals into focus…

Overall health

Drawback: growing more slowly than most peersgrowing more slowly than peers

Drawback: higher risk than most peers: less short-term liquidity (current ratio 1.05 vs a peer median of 2.02)higher risk: less liquidity (current ratio 1.05 vs peers 2.02)

About average: profitability and valuation

Ranks #172 of 232 financial services companies (bottom 27%)

See how it ranks against its peers

Worth knowing

Shareholders being diluted. Shares outstanding up 38% from December 2022 to July 2026.

Ares Capital had 38% more shares at July 2026 than at December 2022, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.Ares Capital had 38% more shares at July 2026 than at December 2022, mostly from issuing stock. Each existing share now owns a smaller slice of the business.

Revenue is falling. Revenue fell 12% in the 12 months to June 2026 vs the 12 months before.

Ares Capital's revenue fell 12% in the 12 months to June 2026 vs the 12 months before.

Profit is backed by cash. Free cash flow is 119% of reported profit.

Ares Capital's free cash flow is 119% of its reported profit, so its earnings are turning into cash it can reinvest, pay out or use to reduce debt.

Questions investors ask about Ares Capital

Is Ares Capital getting weaker?

Its latest SEC filing (Jul 29, 2026) showed no major changes. Its overall score is 42/100, up 3 since Oct 28, 2026.

How is Ares Capital valued vs its peers?

Priced about in line with its peers. Valuation scores 57/100 against 432 financial services peers.

Is Ares Capital growing?

More slowly than most of its peers. Growth scores 35/100 against 432 financial services peers. 3-year revenue growth 26.7% vs a peer median of 10.0% (stronger than 85% of peers).3-year revenue growth 26.7% vs peers 10.0% (stronger than 85% of peers). Earnings per share growth -30.3% vs a peer median of 10.0% (weaker than 82% of peers).Earnings per share growth -30.3% vs peers 10.0% (weaker than 82% of peers).

How profitable is Ares Capital?

About as profitable as its peers. Profitability scores 51/100 against 432 financial services peers.

How risky is Ares Capital?

Higher risk relative to 432 financial services peers, judged on debt, liquidity and share-price swings. Current ratio 1.05× vs a peer median of 2.02× (weaker than 76% of peers).Current ratio 1.05× vs peers 2.02× (weaker than 76% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Net income (12 months)

1.1B USD

960.0M USD

−16.5%

Debt

15.8B USD

15.8B USD

−0.5%

Cash

505.0M USD

383.0M USD

−24.2%

Shares outstanding

718.0M

718.0M

0.0%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Return on assets (ROA)

7.5%

2.7%

6.4%

5.4%

4.2%

▼ 1.2 pts

Return on equity (ROE)

17.7%

6.3%

13.6%

11.4%

9.1%

▼ 2.3 pts

Debt to equity

1.24×

1.28×

1.06×

1.03×

1.12×

▲ 8.7%