Is Ares Capital Stock a Good Investment?
Ares Capital Investment Advice | ARCC |
- Examine Ares Capital's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Ares Capital's leadership team and their track record. Good management can help Ares Capital navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Asset Management & Custody Banks space and any emerging trends that could impact Ares Capital's business and its evolving consumer preferences.
- Compare Ares Capital's performance and market position to its competitors. Analyze how Ares Capital is positioned in terms of product offerings, innovation, and market share.
- Check if Ares Capital pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Ares Capital's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Ares Capital stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Ares Capital is a good investment.
Sell | Buy |
Hold
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Ares Capital Stock
Researching Ares Capital's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 30.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.11. Some equities with similar Price to Book (P/B) outperform the market in the long run. Ares Capital last dividend was issued on the 14th of March 2025.
To determine if Ares Capital is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Ares Capital's research are outlined below:
| Ares Capital currently holds 14.9 B in liabilities with Debt to Equity (D/E) ratio of 1.27, which is about average as compared to similar companies. Ares Capital has a current ratio of 0.93, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Ares Capital's use of debt, we should always consider it together with its cash and equity. | |
| Ares Capital currently holds about 257 M in cash with (2.13 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.51. | |
| Latest headline from thelincolnianonline.com: Commonwealth Equity Services LLC Boosts Stock Position in Ares Capital Co. |
Ares Capital Quarterly Liabilities And Stockholders Equity |
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Ares Capital uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Ares Capital. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Ares Capital's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 7th of February 2024 Upcoming Quarterly Report | View | |
| 23rd of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 7th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Ares Capital's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Ares Capital's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2006-02-28 | 2005-12-31 | 0.3 | 0.33 | 0.03 | 10 | ||
2016-11-02 | 2016-09-30 | 0.39 | 0.43 | 0.04 | 10 | ||
2015-11-04 | 2015-09-30 | 0.38 | 0.42 | 0.04 | 10 | ||
2014-11-04 | 2014-09-30 | 0.38 | 0.34 | -0.04 | 10 | ||
2013-08-06 | 2013-06-30 | 0.39 | 0.35 | -0.04 | 10 | ||
2010-11-04 | 2010-09-30 | 0.33 | 0.37 | 0.04 | 12 | ||
2022-04-26 | 2022-03-31 | 0.47 | 0.42 | -0.05 | 10 | ||
2019-07-30 | 2019-06-30 | 0.44 | 0.49 | 0.05 | 11 |
Know Ares Capital's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Ares Capital is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Ares Capital backward and forwards among themselves. Ares Capital's institutional investor refers to the entity that pools money to purchase Ares Capital's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Wells Fargo & Co | 2024-12-31 | 3.6 M | Advisors Capital Management, Llc | 2024-12-31 | 3.5 M | Lpl Financial Corp | 2024-12-31 | 3.3 M | Ubs Group Ag | 2024-12-31 | 2.9 M | Allen Investment Management Llc | 2024-12-31 | 2.7 M | Two Sigma Investments Llc | 2024-12-31 | 2.7 M | Goldman Sachs Group Inc | 2024-12-31 | 2.5 M | Blackrock Inc | 2024-12-31 | 2.4 M | Stifel Financial Corp | 2024-12-31 | 2.3 M | Morgan Stanley - Brokerage Accounts | 2024-12-31 | 14.8 M | Van Eck Associates Corporation | 2024-12-31 | 14.1 M |
Ares Capital's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 14.81 B.Market Cap |
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Ares Capital's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.05 | 0.03 | |
| Return On Capital Employed | 0.09 | 0.06 | |
| Return On Assets | 0.05 | 0.03 | |
| Return On Equity | 0.11 | 0.06 |
Determining Ares Capital's profitability involves analyzing its financial statements and using various financial metrics to determine if Ares Capital is a good buy. For example, gross profit margin measures Ares Capital's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Ares Capital's profitability and make more informed investment decisions.
Please note, the presentation of Ares Capital's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Ares Capital's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Ares Capital's management manipulating its earnings.
Evaluate Ares Capital's management efficiency
Ares Capital has return on total asset (ROA) of 0.0526 % which means that it generated a profit of $0.0526 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.124 %, meaning that it created $0.124 on every $100 dollars invested by stockholders. Ares Capital's management efficiency ratios could be used to measure how well Ares Capital manages its routine affairs as well as how well it operates its assets and liabilities. As of March 21, 2025, Return On Tangible Assets is expected to decline to 0.03. In addition to that, Return On Capital Employed is expected to decline to 0.06. At present, Ares Capital's Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Other Assets is expected to grow to about 637.4 M, whereas Non Currrent Assets Other are projected to grow to (25.4 B).| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 21.40 | 13.90 | |
| Tangible Book Value Per Share | 21.40 | 14.10 | |
| Enterprise Value Over EBITDA | 12.18 | 16.06 | |
| Price Book Value Ratio | 1.02 | 0.77 | |
| Enterprise Value Multiple | 12.18 | 16.06 | |
| Price Fair Value | 1.02 | 0.77 | |
| Enterprise Value | 1.2 B | 782.5 M |
Ares Capital showcases strong leadership that adapts to market changes and drives innovation. Our analysis explores how this adaptability affects the stock's investment appeal.
Basic technical analysis of Ares Stock
As of the 21st of March, Ares Capital shows the mean deviation of 0.8505, and Risk Adjusted Performance of 0.0408. Ares Capital technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Ares Capital's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Ares Capital insiders, such as employees or executives, is commonly permitted as long as it does not rely on Ares Capital's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Ares Capital insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Bates Ann Torre over a month ago Acquisition by Bates Ann Torre of 6000 shares of Ares Capital at 22.75 subject to Rule 16b-3 | ||
Bartlett Steve over a month ago Acquisition by Bartlett Steve of 200 shares of Ares Capital at 15.73 subject to Rule 16b-3 | ||
Bartlett Steve over three months ago Acquisition by Bartlett Steve of 200 shares of Ares Capital at 14.2 subject to Rule 16b-3 | ||
Bartlett Steve over six months ago Acquisition by Bartlett Steve of 200 shares of Ares Capital at 16.21 subject to Rule 16b-3 | ||
Schnabel Michael Kort over a year ago Purchase by Schnabel Michael Kort of 15000 shares of Ares Capital | ||
Eric Siegel over a year ago Exercise of in-the-money or at-the-money derivative position by Eric Siegel of 266 shares of Ares Capital | ||
Penelope Roll over a year ago Purchase by Penelope Roll of 3000 shares of Ares Capital |
Ares Capital's Outstanding Corporate Bonds
Ares Capital issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Ares Capital uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Ares bonds can be classified according to their maturity, which is the date when Ares Capital has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| ARES CAPITAL PORATION Corp BondUS04010LBA08 | View | |
| ARES CAPITAL PORATION Corp BondUS04010LBB80 | View | |
| ARCC 32 15 NOV 31 Corp BondUS04010LBC63 | View | |
| ARCC 2875 15 JUN 27 Corp BondUS04010LBD47 | View | |
| ARES CAPITAL PORATION Corp BondUS04010LAY92 | View | |
| ARES CAPITAL PORATION Corp BondUS04010LAZ67 | View | |
| ARES CAP P Corp BondUS04010LAV53 | View | |
| ARES 4125 30 JUN 51 Corp BondUS04018VAA17 | View |
Understand Ares Capital's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Ares Capital's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0408 | |||
| Market Risk Adjusted Performance | 0.7271 | |||
| Mean Deviation | 0.8505 | |||
| Semi Deviation | 1.11 | |||
| Downside Deviation | 1.23 | |||
| Coefficient Of Variation | 2283.56 | |||
| Standard Deviation | 1.11 | |||
| Variance | 1.22 | |||
| Information Ratio | 0.1001 | |||
| Jensen Alpha | 0.0423 | |||
| Total Risk Alpha | 0.1286 | |||
| Sortino Ratio | 0.0899 | |||
| Treynor Ratio | 0.7171 | |||
| Maximum Drawdown | 5.67 | |||
| Value At Risk | (1.94) | |||
| Potential Upside | 1.53 | |||
| Downside Variance | 1.52 | |||
| Semi Variance | 1.24 | |||
| Expected Short fall | (0.85) | |||
| Skewness | (0.46) | |||
| Kurtosis | 0.7295 |
| Risk Adjusted Performance | 0.0408 | |||
| Market Risk Adjusted Performance | 0.7271 | |||
| Mean Deviation | 0.8505 | |||
| Semi Deviation | 1.11 | |||
| Downside Deviation | 1.23 | |||
| Coefficient Of Variation | 2283.56 | |||
| Standard Deviation | 1.11 | |||
| Variance | 1.22 | |||
| Information Ratio | 0.1001 | |||
| Jensen Alpha | 0.0423 | |||
| Total Risk Alpha | 0.1286 | |||
| Sortino Ratio | 0.0899 | |||
| Treynor Ratio | 0.7171 | |||
| Maximum Drawdown | 5.67 | |||
| Value At Risk | (1.94) | |||
| Potential Upside | 1.53 | |||
| Downside Variance | 1.52 | |||
| Semi Variance | 1.24 | |||
| Expected Short fall | (0.85) | |||
| Skewness | (0.46) | |||
| Kurtosis | 0.7295 |
Consider Ares Capital's intraday indicators
Ares Capital intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Ares Capital stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Ares Capital Corporate Filings
| 10th of March 2025 Other Reports | ViewVerify | |
| 7th of March 2025 Other Reports | ViewVerify | |
F4 | 5th of March 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 5th of February 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Ares Stock media impact
Far too much social signal, news, headlines, and media speculation about Ares Capital that are available to investors today. That information is available publicly through Ares media outlets and privately through word of mouth or via Ares internal channels. However, regardless of the origin, that massive amount of Ares data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Ares Capital news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Ares Capital relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Ares Capital's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Ares Capital alpha.
Ares Capital Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Ares Capital can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Ares Capital Historical Investor Sentiment
Investor biases related to Ares Capital's public news can be used to forecast risks associated with an investment in Ares. The trend in average sentiment can be used to explain how an investor holding Ares can time the market purely based on public headlines and social activities around Ares Capital. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Ares Capital's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Ares Capital and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Ares Capital news discussions. The higher the estimate score, the more favorable the investor's outlook on Ares Capital.
Ares Capital Maximum Pain Price Across June 20th 2025 Option Contracts
Ares Capital's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Ares Capital close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Ares Capital's options.
Ares Capital Corporate Management
| CPA CPA | CoPres | Profile | |
| Michael Dieber | Partner | Profile | |
| Mark Affolter | Partner | Profile | |
| Won Cho | Chief Officer | Profile |
Already Invested in Ares Capital?
The danger of trading Ares Capital is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Ares Capital is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Ares Capital. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Ares Capital is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Ares Capital offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ares Capital's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Ares Capital Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ares Capital Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Ares Capital. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. For information on how to trade Ares Stock refer to our How to Trade Ares Stock guide.You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ares Capital. If investors know Ares will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ares Capital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.23) | Dividend Share 1.92 | Earnings Share 2.44 | Revenue Per Share | Quarterly Revenue Growth 0.074 |
The market value of Ares Capital is measured differently than its book value, which is the value of Ares that is recorded on the company's balance sheet. Investors also form their own opinion of Ares Capital's value that differs from its market value or its book value, called intrinsic value, which is Ares Capital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ares Capital's market value can be influenced by many factors that don't directly affect Ares Capital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Ares Capital's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Ares Capital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ares Capital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.