1.07%
8.13%
11.97%
13.04%
17.00%
7.10%
25.77%
AI Spotlight on ARCC
Company Description
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.
Market Data
| Last Price | 23.67 |
| Change Percentage | 1.07% |
| Open | 23.42 |
| Previous Close | 23.42 |
| Market Cap ( Millions) | 15293 |
| Volume | 5198660 |
| Year High | 23.74 |
| Year Low | 19.32 |
| M A 50 | 22.16 |
| M A 200 | 21.26 |
Financial Ratios
| FCF Yield | -3.84% |
| Dividend Yield | 8.11% |
| ROE | 13.09% |
| Debt / Equity | 0.10% |
| Net Debt / EBIDTA | -67.28% |
| Price To Book | 1.18 |
| Price Earnings Ratio | 9.53 |
| Price To FCF | -26.05 |
| Price To sales | 6.22 |
| EV / EBITDA | 21.08 |
News
- 11:30 - Ares Capital Corporation Announces Tax Reporting Information for Calendar Year 2024
- Jan -30 - Ares Capital (ARCC) Rises Higher Than Market: Key Facts
- Jan -30 - 3 Big Dividend Laggards That Could Still Crush The Market In 2025
- Jan -28 - Super Hungry for Passive Income In 2025? Try 4 Ultra-High-Yield Dividend Wonders
- Jan -27 - Ares Capital: I Keep Adding While The Yield Exceeds 8% And Believe 2025 Will Be Another Strong Year
- Jan -27 - Ares Capital: 8% Yield, Outperforming BDC
- Jan -26 - Ares Capital: Turning To Hold On My Top BDC Position
- Jan -25 - BDC Weekly Review: OBDC Consummates Merger, Delivering Alpha To OBDE Holders
- Jan -24 - Ares Capital (ARCC) Flat As Market Gains: What You Should Know
- Jan -23 - Past Time To Take Gains On These Big Yielders
- Jan -23 - I'm Buying This +8% Yield Hand Over Fist: Ares Capital
- Jan -21 - 2 Very Overrated And 2 Very Underrated Big Dividend Stocks
- Jan -21 - 2 Discounted BDCs: One Is A Bargain, One Is A Trap
- Jan -19 - The Smartest Dividend Stocks to Buy With $100 Right Now
- Jan -18 - Want an Extra $1,000 of Dividend Income in 2025? Invest $11,750 in These 3 Ultra-High-Yield Stocks
- Jan -17 - Ares Capital (ARCC) Rises Yet Lags Behind Market: Some Facts Worth Knowing
- Jan -17 - Why BDCs Will Likely Outperform In 2025
- Jan -15 - High Yield REITs Whacked By Higher Rates
- Jan -15 - My Dividend Stock Portfolio: $10,000 In Dividends In 2024 - 97 Holdings With 13 Buys
- Jan -14 - My Top 10 High Dividend Yield Stocks For January 2025, One Yields Over 8%
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Investment and Related Activities
Expected Growth : 9.9 %
What the company do ?
Ares Capital Corporation's Investment and Related Activities involve originating and managing a diversified portfolio of credit investments in middle-market companies, providing financing solutions to meet their capital needs.
Why we expect these perspectives ?
Ares Capital Corporation's 9.9% growth in Investment and Related Activities is driven by increasing demand for middle-market financing, expansion of its investment portfolio, and strategic partnerships. Additionally, the company's ability to originate and syndicate new investments, coupled with its strong balance sheet and access to capital, have contributed to its growth momentum.
Ares Capital Corporation Products
| Product Range | What is it ? |
|---|---|
| Senior Secured Loans | Ares Capital Corporation provides senior secured loans to middle-market companies, offering a flexible and customized financing solution to meet their capital needs. |
| Unitranche Loans | Ares Capital offers unitranche loans, which combine senior and subordinated debt into a single loan facility, providing a simplified and efficient financing solution. |
| Second Lien Loans | Ares Capital provides second lien loans, which offer a lower-cost financing option for companies with existing senior debt, allowing them to access additional capital. |
| Subordinated Debt | Ares Capital offers subordinated debt, which provides a flexible and patient source of capital for companies, allowing them to achieve their long-term goals. |
| Equity Co-Investments | Ares Capital makes equity co-investments alongside its debt investments, providing companies with a comprehensive financing solution. |
Ares Capital Corporation's Porter Forces
Threat Of Substitutes
Ares Capital Corporation operates in the financial services industry, which has a moderate threat of substitutes. While there are alternative investment options available, Ares Capital's diversified portfolio and expertise in middle-market lending provide a competitive advantage.
Bargaining Power Of Customers
Ares Capital Corporation's customers are primarily middle-market companies, which have limited bargaining power due to their smaller size and reliance on Ares Capital's financing solutions.
Bargaining Power Of Suppliers
Ares Capital Corporation's suppliers are primarily investment banks and other financial institutions, which have limited bargaining power due to the competitive nature of the financial services industry.
Threat Of New Entrants
The threat of new entrants in the middle-market lending industry is low due to the significant barriers to entry, including regulatory requirements and the need for specialized expertise and scale.
Intensity Of Rivalry
The intensity of rivalry in the middle-market lending industry is moderate, with several established players competing for market share. However, Ares Capital Corporation's diversified portfolio and expertise provide a competitive advantage.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 51.62% |
| Debt Cost | 4.50% |
| Equity Weight | 48.38% |
| Equity Cost | 9.05% |
| WACC | 6.70% |
| Leverage | 106.70% |
Ares Capital Corporation : Quality Control
Ares Capital Corporation passed 5 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| GBDC | Golub Capital BDC, Inc. (GBDC) is a business development company and operates as an externally managed closed-end non-diversified management investment company. It invests in debt and minority equity investments in … |
| HTGC | Hercules Capital, Inc. is a business development company. The firm specializing in providing venture debt, debt, senior secured loans, and growth capital to privately held venture capital-backed companies at all … |
| CRBG | Corebridge Financial, Inc. provides retirement solutions and insurance products in the United States. It operates through Individual Retirement, Group Retirement, Life Insurance, and Institutional Markets segments. The Individual Retirement segment … |
| VCTR | Victory Capital Holdings, Inc., together with its subsidiaries, operates as an asset management company worldwide. It offers investment advisory, fund administration, fund compliance, fund transfer agent, and fund distribution services. … |
| MAIN | Main Street Capital Corporation is a business development company specializes in equity capital to lower middle market companies. The firm specializing in recapitalizations, management buyouts, refinancing, family estate planning, management … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Main Street Capital
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1-Year Total Return ->
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Victory Capital Holdings
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Ares Capital
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4
Golub Capital BDC
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5
Corebridge Financial
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1-Year Total Return ->
6
