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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 5/10

vs
industry
vs
history
Cash to Debt 0.05
ARCC's Cash to Debt is ranked lower than
69% of the 1118 Companies
in the Global Asset Management industry.

( Industry Median: 10000.00 vs. ARCC: 0.05 )
ARCC' s 10-Year Cash to Debt Range
Min: 0.03   Max: No Debt
Current: 0.05

Equity to Asset 0.60
ARCC's Equity to Asset is ranked lower than
53% of the 1232 Companies
in the Global Asset Management industry.

( Industry Median: 0.83 vs. ARCC: 0.60 )
ARCC' s 10-Year Equity to Asset Range
Min: 0.52   Max: 0.96
Current: 0.6

0.52
0.96
Interest Coverage 2.59
ARCC's Interest Coverage is ranked lower than
68% of the 1004 Companies
in the Global Asset Management industry.

( Industry Median: 337.31 vs. ARCC: 2.59 )
ARCC' s 10-Year Interest Coverage Range
Min: 2.37   Max: 9999.99
Current: 2.59

2.37
9999.99
F-Score: 4
Z-Score: 1.18
M-Score: -1.35
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 50.41
ARCC's Operating margin (%) is ranked higher than
66% of the 1228 Companies
in the Global Asset Management industry.

( Industry Median: 45.38 vs. ARCC: 50.41 )
ARCC' s 10-Year Operating margin (%) Range
Min: 45.69   Max: 61.97
Current: 50.41

45.69
61.97
Net-margin (%) 55.41
ARCC's Net-margin (%) is ranked higher than
65% of the 1236 Companies
in the Global Asset Management industry.

( Industry Median: 49.93 vs. ARCC: 55.41 )
ARCC' s 10-Year Net-margin (%) Range
Min: -57.99   Max: 143.12
Current: 55.41

-57.99
143.12
ROE (%) 9.96
ARCC's ROE (%) is ranked higher than
71% of the 1272 Companies
in the Global Asset Management industry.

( Industry Median: 8.21 vs. ARCC: 9.96 )
ARCC' s 10-Year ROE (%) Range
Min: -12.74   Max: 22.68
Current: 9.96

-12.74
22.68
ROA (%) 6.00
ARCC's ROA (%) is ranked higher than
69% of the 1288 Companies
in the Global Asset Management industry.

( Industry Median: 4.26 vs. ARCC: 6.00 )
ARCC' s 10-Year ROA (%) Range
Min: -6.67   Max: 15.16
Current: 6

-6.67
15.16
ROC (Joel Greenblatt) (%) 25227.64
ARCC's ROC (Joel Greenblatt) (%) is ranked higher than
98% of the 765 Companies
in the Global Asset Management industry.

( Industry Median: 87.54 vs. ARCC: 25227.64 )
ARCC' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 9.46   Max: 25227.64
Current: 25227.64

9.46
25227.64
Revenue Growth (%) 6.40
ARCC's Revenue Growth (%) is ranked higher than
71% of the 839 Companies
in the Global Asset Management industry.

( Industry Median: 2.00 vs. ARCC: 6.40 )
ARCC' s 10-Year Revenue Growth (%) Range
Min: -4.6   Max: 91.1
Current: 6.4

-4.6
91.1
EBITDA Growth (%) -16.80
ARCC's EBITDA Growth (%) is ranked higher than
53% of the 766 Companies
in the Global Asset Management industry.

( Industry Median: 2.70 vs. ARCC: -16.80 )
ARCC' s 10-Year EBITDA Growth (%) Range
Min: -16.8   Max: 255.2
Current: -16.8

-16.8
255.2
EPS Growth (%) -22.40
ARCC's EPS Growth (%) is ranked lower than
52% of the 757 Companies
in the Global Asset Management industry.

( Industry Median: 3.80 vs. ARCC: -22.40 )
ARCC' s 10-Year EPS Growth (%) Range
Min: -22.4   Max: 66.6
Current: -22.4

-22.4
66.6
» ARCC's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2013

ARCC Guru Trades in Q3 2013

George Soros 113,900 sh (New)
Caxton Associates 38,000 sh (New)
NWQ Managers 551,275 sh (+59.88%)
Pioneer Investments 227,735 sh (+7.7%)
Scott Black 425,346 sh (+0.4%)
Jeremy Grantham 27,300 sh (-23.1%)
» More
Q4 2013

ARCC Guru Trades in Q4 2013

Paul Tudor Jones 37,143 sh (New)
David Dreman 3,915 sh (New)
Steven Cohen 10,639 sh (New)
Pioneer Investments 348,028 sh (+52.82%)
NWQ Managers 564,375 sh (+2.38%)
George Soros Sold Out
Caxton Associates Sold Out
Scott Black 424,367 sh (-0.23%)
Jeremy Grantham 26,900 sh (-1.47%)
» More
Q1 2014

ARCC Guru Trades in Q1 2014

Manning & Napier Advisors, Inc 17,970 sh (New)
Pioneer Investments 595,381 sh (+71.07%)
NWQ Managers 566,450 sh (+0.37%)
Scott Black 425,411 sh (+0.25%)
David Dreman 3,915 sh (unchged)
Jeremy Grantham Sold Out
Paul Tudor Jones Sold Out
Steven Cohen Sold Out
» More
Q2 2014

ARCC Guru Trades in Q2 2014

Manning & Napier Advisors, Inc 50,990 sh (+183.75%)
» More
» Details

Insider Trades

Latest Guru Trades with ARCC

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
George Soros 2013-12-31 Sold Out 0.02%$17.06 - $18.38 $ 17.05-3%0
David Dreman 2013-12-31 New Buy0.01%$17.06 - $18.38 $ 17.05-3%3915
George Soros 2013-09-30 New Buy0.02%$17.03 - $18.12 $ 17.05-3%113900
Scott Black 2013-06-30 Add 24.28%0.17%$16.415 - $18.27 $ 17.05-2%423635
Scott Black 2012-06-30 Add 29.75%0.19%$14.84 - $16.5 $ 17.059%342957
John Griffin 2011-06-30 Sold Out $15.7 - $17.71 $ 17.051%0
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Top Ranked Articles about Ares Capital Corporation

Sector Watch: US Asset Management Stocks, High-Yield ARCC and BKCC
The U.S. asset management sector currently lists 25 stocks out of 132 on a 52-week low, and the sector low ratio is 0.19. GuruFocus research shows that billionaires are avoiding most of these 25 companies on a low, but here are three companies held by billionaires and insiders. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 9.10
ARCC's P/E(ttm) is ranked higher than
80% of the 1483 Companies
in the Global Asset Management industry.

( Industry Median: 20.80 vs. ARCC: 9.10 )
ARCC' s 10-Year P/E(ttm) Range
Min: 3.49   Max: 58.33
Current: 9.1

3.49
58.33
P/B 1.00
ARCC's P/B is ranked higher than
64% of the 1483 Companies
in the Global Asset Management industry.

( Industry Median: 1.04 vs. ARCC: 1.00 )
ARCC' s 10-Year P/B Range
Min: 0.3   Max: 1.38
Current: 1

0.3
1.38
P/S 5.14
ARCC's P/S is ranked higher than
74% of the 1483 Companies
in the Global Asset Management industry.

( Industry Median: 7.56 vs. ARCC: 5.14 )
ARCC' s 10-Year P/S Range
Min: 1.31   Max: 12.72
Current: 5.14

1.31
12.72
EV-to-EBIT 17.41
ARCC's EV-to-EBIT is ranked higher than
71% of the 1483 Companies
in the Global Asset Management industry.

( Industry Median: 24.37 vs. ARCC: 17.41 )
ARCC' s 10-Year EV-to-EBIT Range
Min: 9   Max: 46.6
Current: 17.41

9
46.6
PEG 1.40
ARCC's PEG is ranked higher than
90% of the 1483 Companies
in the Global Asset Management industry.

( Industry Median: 9999.00 vs. ARCC: 1.40 )
ARCC' s 10-Year PEG Range
Min: 0.15   Max: 47.59
Current: 1.4

0.15
47.59
Shiller P/E 9.50
ARCC's Shiller P/E is ranked higher than
94% of the 1483 Companies
in the Global Asset Management industry.

( Industry Median: 9999.00 vs. ARCC: 9.50 )
ARCC' s 10-Year Shiller P/E Range
Min: 8.58   Max: 11.26
Current: 9.5

8.58
11.26
Current Ratio 1.22
ARCC's Current Ratio is ranked lower than
56% of the 856 Companies
in the Global Asset Management industry.

( Industry Median: 3.23 vs. ARCC: 1.22 )
ARCC' s 10-Year Current Ratio Range
Min: 0.36   Max: 4.13
Current: 1.22

0.36
4.13
Quick Ratio 1.22
ARCC's Quick Ratio is ranked lower than
54% of the 856 Companies
in the Global Asset Management industry.

( Industry Median: 3.07 vs. ARCC: 1.22 )
ARCC' s 10-Year Quick Ratio Range
Min: 0.36   Max: 4.13
Current: 1.22

0.36
4.13

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 8.91
ARCC's Dividend Yield is ranked higher than
92% of the 1001 Companies
in the Global Asset Management industry.

( Industry Median: 3.21 vs. ARCC: 8.91 )
ARCC' s 10-Year Dividend Yield Range
Min: 5.47   Max: 49.85
Current: 8.91

5.47
49.85
Dividend Payout 0.81
ARCC's Dividend Payout is ranked higher than
79% of the 1483 Companies
in the Global Asset Management industry.

( Industry Median: 9999.00 vs. ARCC: 0.81 )
ARCC' s 10-Year Dividend Payout Range
Min: 0.2   Max: 10.5
Current: 0.81

0.2
10.5
Dividend growth (3y) 2.80
ARCC's Dividend growth (3y) is ranked higher than
68% of the 449 Companies
in the Global Asset Management industry.

( Industry Median: 6.10 vs. ARCC: 2.80 )
ARCC' s 10-Year Dividend growth (3y) Range
Min: -5.7   Max: 76.9
Current: 2.8

-5.7
76.9
Yield on cost (5-Year) 9.54
ARCC's Yield on cost (5-Year) is ranked higher than
90% of the 982 Companies
in the Global Asset Management industry.

( Industry Median: 3.55 vs. ARCC: 9.54 )
ARCC' s 10-Year Yield on cost (5-Year) Range
Min: 5.86   Max: 53.44
Current: 9.54

5.86
53.44
Share Buyback Rate -14.70
ARCC's Share Buyback Rate is ranked lower than
55% of the 909 Companies
in the Global Asset Management industry.

( Industry Median: -0.60 vs. ARCC: -14.70 )
ARCC' s 10-Year Share Buyback Rate Range
Min: -14.7   Max: -82.9
Current: -14.7

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.00
ARCC's Price/Tangible Book is ranked higher than
69% of the 1483 Companies
in the Global Asset Management industry.

( Industry Median: 1.18 vs. ARCC: 1.00 )
ARCC' s 10-Year Price/Tangible Book Range
Min: 0.43   Max: 1.26
Current: 1

0.43
1.26
Price/Median PS Value 1.00
ARCC's Price/Median PS Value is ranked higher than
82% of the 1483 Companies
in the Global Asset Management industry.

( Industry Median: 1.40 vs. ARCC: 1.00 )
ARCC' s 10-Year Price/Median PS Value Range
Min: 0.35   Max: 2.19
Current: 1

0.35
2.19
Price/Graham Number 0.70
ARCC's Price/Graham Number is ranked higher than
80% of the 1483 Companies
in the Global Asset Management industry.

( Industry Median: 1.94 vs. ARCC: 0.70 )
ARCC' s 10-Year Price/Graham Number Range
Min: 0.42   Max: 1.53
Current: 0.7

0.42
1.53
Earnings Yield (Greenblatt) 5.70
ARCC's Earnings Yield (Greenblatt) is ranked higher than
54% of the 1098 Companies
in the Global Asset Management industry.

( Industry Median: 8.10 vs. ARCC: 5.70 )
ARCC' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.1   Max: 11.2
Current: 5.7

2.1
11.2
Forward Rate of Return (Yacktman) -8.86
ARCC's Forward Rate of Return (Yacktman) is ranked lower than
57% of the 1044 Companies
in the Global Asset Management industry.

( Industry Median: 0.98 vs. ARCC: -8.86 )
ARCC' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -59.2   Max: -9.1
Current: -8.86

-59.2
-9.1

Business Description

Industry: Asset Management » Asset Management
Compare:AMP, AMG, BEN, BLK, BK » details
Traded in other countries:9A2.Germany
Ares Capital Corporation was founded on April 16, 2004 and went public on October 8, 2004. The Company is a closed-end, non-diversified management investment company that primarily invests in non-syndicated senior debt, mezzanine debt and non-control equity. It primarily invests U.S. middle-market companies. The Middle market represents companies with annual EBITDA between $10 million and $250 million. The Company invests in first lien senior secured loans, second lien senior secured loans and mezzanine debt. The Company and GE Global Sponsor Finance LLC, through the SSLP, co-invest in first lien senior secured loans of middle market companies. The first and second lien senior secured loans have stated terms of three to 10 years and the mezzanine debt investments have stated terms of up to 10 years, but the expected average life of such first and second lien loans and mezzanine debt is generally between three and seven years. Its portfolio company, Ivy Hill Asset Management, L.P. manages 13 credit vehicles and serves as the sub-manager or sub-servicer for three other credit vehicles as of December 31, 2012. The Company has offices in Atlanta, Chicago, Los Angeles, Menlo Park, New York, and Washington, D.C. As of 31 December 2013, it had approximately $59 billion of total committed capital under management.
» More Articles for ARCC

Headlines

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