Home 
Today's Top Picks 
Top Performers 
Watchlist 
My Robo Portfolios 
ETF Zone 
Help & Tutorial 
Cancel anytime
- Chart
- Upturn Summary
- Highlights
- Valuation
Upturn AI SWOT - About
ARCC 
Ares Capital Corporation (ARCC)
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- Pass (Skip investing)
Stock price based on last close (see disclosures)
- ALL
- YEAR
- MONTH
- WEEK
Upturn Advisory Summary
09/17/2025: ARCC (2-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Number of Analysts
13 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $23.27
1 Year Target Price $23.27
| 7 | Strong Buy |
| 4 | Buy |
| 2 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 28.02% | Avg. Invested days 74 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  5.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 09/17/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 14.93B USD | Price to earnings Ratio 10.37 | 1Y Target Price 23.27 |
Price to earnings Ratio 10.37 | 1Y Target Price 23.27 | ||
Volume (30-day avg) 13 | Beta 0.75 | 52 Weeks Range 17.48 - 22.91 | Updated Date 09/16/2025 |
52 Weeks Range 17.48 - 22.91 | Updated Date 09/16/2025 | ||
Dividends yield (FY) 9.01% | Basic EPS (TTM) 2.04 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 44.94% | Operating Margin (TTM) 72.21% |
Management Effectiveness
Return on Assets (TTM) 5.04% | Return on Equity (TTM) 10.25% |
Valuation
Trailing PE 10.37 | Forward PE 10.95 | Enterprise Value 28522573824 | Price to Sales(TTM) 4.96 |
Enterprise Value 28522573824 | Price to Sales(TTM) 4.96 | ||
Enterprise Value to Revenue 19.33 | Enterprise Value to EBITDA 10.19 | Shares Outstanding 705366976 | Shares Floating - |
Shares Outstanding 705366976 | Shares Floating - | ||
Percent Insiders 0.55 | Percent Institutions 32.99 |
Upturn AI SWOT
Ares Capital Corporation
Company Overview
History and Background
Ares Capital Corporation (ARCC) was founded in 2004 and is a leading specialty finance company that provides financing to U.S. middle market companies. It has grown through organic origination and strategic acquisitions, becoming one of the largest BDCs.
Core Business Areas
- Direct Lending: Provides first lien senior secured loans, second lien senior secured loans, and mezzanine debt, often coupled with equity co-investments, to middle market companies.
- Syndicated Loans: Invests in large syndicated loans which is lower yield and lower risk.
- Other: Can include other types of investments but this is not a core segment.
Leadership and Structure
Kieran Goodwin (CEO), Michael Arougheti (Chairman), and Penni Roll (CFO). Operates as a business development company (BDC) regulated under the Investment Company Act of 1940.
Top Products and Market Share
Key Offerings
- First Lien Senior Secured Loans: Loans secured by a first priority lien on the borrower's assets, providing the highest level of security for Ares Capital. Competitors include other BDCs such as Main Street Capital and Prospect Capital. Market share is difficult to definitively quantify for this specific segment, but ARCC is a significant player.
- Second Lien Senior Secured Loans: Loans secured by a second priority lien on the borrower's assets, offering higher yields but also higher risk. Competitors include other BDCs such as Main Street Capital and Prospect Capital. Market share is difficult to definitively quantify for this specific segment, but ARCC is a significant player.
- Mezzanine Debt: Unsecured debt that often includes warrants or other equity features. The competitors include other BDCs such as Main Street Capital and Prospect Capital. Market share is difficult to definitively quantify for this specific segment, but ARCC is a significant player.
Market Dynamics
Industry Overview
The BDC industry is highly fragmented, with many participants, but ARCC is one of the largest. The industry is sensitive to interest rate changes and economic cycles.
Positioning
Ares Capital is positioned as one of the largest and most reputable BDCs, with a focus on providing stable and consistent returns to shareholders. Its competitive advantage lies in its size, scale, and established relationships with middle market companies.
Total Addressable Market (TAM)
The TAM for private credit in the U.S. middle market is estimated to be in the trillions of dollars. Ares Capital is positioned to capture a significant portion of this TAM, leveraging its extensive origination platform and capital base.
Upturn SWOT Analysis
Strengths
- Large scale and diversification
- Experienced management team
- Strong origination platform
- Access to capital markets
- Established reputation
Weaknesses
- Exposure to credit risk
- Sensitivity to interest rate changes
- Regulatory constraints as a BDC
- Dependence on deal flow
Opportunities
- Growth in private credit market
- Expansion into new sectors and geographies
- Strategic acquisitions
- Increased demand for alternative financing
Threats
- Economic downturn
- Increased competition
- Rising interest rates
- Regulatory changes
- Deterioration in credit quality
Competitors and Market Share
Key Competitors
- Main Street Capital (MAIN)
- Prospect Capital (PSEC)
- Golub Capital BDC (GBDC)
Competitive Landscape
Ares Capital's advantages include its large size and scale, while its disadvantages may include higher operating costs compared to smaller BDCs.
Major Acquisitions
American Capital
- Year: 2017
- Acquisition Price (USD millions): 3400
- Strategic Rationale: Significantly increased Ares Capital's asset base and expanded its investment portfolio.
Growth Trajectory and Initiatives
Historical Growth: Ares Capital has grown significantly through organic origination and strategic acquisitions.
Future Projections: Future growth projections depend on market conditions and Ares Capital's ability to deploy capital effectively.
Recent Initiatives: Recent initiatives might include acquisitions and new lending programs to diversify their portfolio.
Summary
Ares Capital is a major player in the BDC space, benefiting from its scale and experience. Its consistent dividend payout is attractive to income-seeking investors. However, investors should be aware of credit risk and interest rate sensitivity. Continued monitoring of their portfolio and economic conditions is important.
Peer Comparison
Sources and Disclaimers
Data Sources:
- SEC Filings
- Company Website
- Analyst Reports
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Market data is subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Ares Capital Corporation
Exchange NASDAQ | Headquaters Los Angeles, CA, United States | ||
IPO Launch date 2004-10-06 | CEO, Partner & Co-Head of U.S. Direct Lending Mr. Kort Schnabel | ||
Sector Financial Services | Industry Asset Management | Full time employees - | Website https://www.arescapitalcorp.com |
Full time employees - | Website https://www.arescapitalcorp.com | ||
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 invest in the United States based companies. 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.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.