NASDAQ: ARCC
Ares Capital Corporation
Financial Services · Asset Management
After hours: $18.90(+0.05%) · as of 7:56 PM ET
Market Cap
$13.56B
52w High
$23.12
52w Low
$17.40
P/E
11.79
Volume
5.02M
Outstanding Shares
718.02M
Price vs Fundamentals
Why The Stock Is Moving
Note: The most recent financial data is over 3 months old. Metrics shown may not reflect the latest reporting period.
What changed
The stock fell 16.78% over the last year. Revenue grew 21.96% over the trailing twelve months. Operating margin moved from 63.53% to 66.19%. Free cash flow declined 13.6% over the trailing twelve months.
What the market seems to be pricing
Visible fundamentals weakened far less than the stock price. The market appears to be discounting durability, risk, or trust rather than just the latest reported numbers.
What would invalidate this read
This read changes if operating margin (currently 66.19%) continues to decline, or if revenue growth turns negative. The bull case requires the business to hold its current trajectory.
Company profile
Ares Capital Corporation (ARCC) operates as a Business Development Company (BDC), delivering diverse financing solutions predominantly to middle-market enterprises.
Valuation
Stock splits
No stock splits recorded for this ticker.
Profitability & growth
Standard profitability metrics can be misleading for financial/insurance companies. GAAP requires unrealized investment gains/losses in net income (affecting ROE), and margins are blended across diverse business segments.
Analyst consensus
24
Buy
8
Hold
0
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Jul 29, 2026
Q3 FY26 · EPS est $0.47 · Revenue est $770.19M
View
Dividends
$1.92/shareQuarterlyStretchedARCC pays a dividend with a 10.16% dividend yield, growing at 3.71% annually, covered 0.9× by free cash flow.
Dividend Yield
10.16%
Annual Div / Share
$1.92
5yr CAGR
+3.71%
Doubles every ~19.0yr
Payout Ratio
113.13%
Stretched
Dividend Growth Rate
3yr CAGR
-0.17%
5yr CAGR
+3.71%
10yr CAGR
+2.36%
Dividend History
Annualized dividend cycles per share
Income Projection
Today
$8/mo
In 5 yrs
$10/mo
In 10 yrs
$12/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$102/yr $8/mo | $122/yr+20% $10/mo | $146/yr+44% $12/mo |
Yield-on-cost grows from 10.16% → 14.64% over 10yr
Analysis
Dividend Strengths
No strong strength signal stands out from the latest period pair.
Risks to Watch
High payout ratio
With 113.13% of earnings paid as dividends, there is limited retained earnings for reinvestment — and a dividend cut becomes more likely if earnings decline.
Dividend exceeds free cash flow
Free cash flow covers only 0.90× the dividend. The company is paying out more than it generates in cash, which is unsustainable without borrowing or asset sales.