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Ares CapitalARCC +0.66%57 Net Margin % is 78.08% as of Jun. 2026, which is 13% below its 10-year median of 89.26. GuruFocus rates ARCC with a GF Score™ of 57/100 and a GF Value™ of $19.69 (Fairly Valued). The stock has 8 warning signs investors should review. Among 1,567 Asset Management companies, Ares Capital ranks worse than 52.65% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Ares Capital's Net Income for the
three
months ended in Jun. 2026 was $171 Mil. Ares Capital's Revenue for the
three
months ended in Jun. 2026 was $219 Mil. Therefore, Ares Capital's net margin for the quarter that ended in Jun. 2026 was 78.08%.
The historical rank and industry rank for Ares Capital's Net Margin % or its related term are showing as below:
ARCC'
s Net Margin % Range Over the Past 10 Years
Min: 80.97 Med: 89.26 Max: 97.61
Current: 81.77
ARCC's Net Margin % is ranked worse than 52.65% of 1567
companies
in the Asset Management industry
Industry Median: 85.7
vs ARCC: 81.77
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Ares Capital Net Margin % Related Terms
Ares Capital Net Margin % Historical Data
* Premium members only.
The historical data trend for Ares Capital's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Asset Management subindustry, Ares Capital's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ares Capital Net Margin % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Ares Capital's Net Margin % distribution charts can be found below:
* The bar in red indicates where Ares Capital's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ares Capital (ARCC) has a Net Margin % of 78.08% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Ares Capital and its competitors. This is 13% below median its historical median of 89.26. Over the past decade, Ares Capital's Net Margin % has ranged from 80.97 to 97.61. According to the industry distribution chart, Ares Capital ranks #825 out of 1567 companies in the Asset Management industry, placing it in the top 52.6%.
Is Ares Capital's Net Margin % too high?
Ares Capital's current Net Margin % of 78.08% is 13% below median its 10-year median of 89.26. Over the past 10 years, this metric has ranged from a low of 80.97 to a high of 97.61. The Asset Management industry median Net Margin % is 85.70. Ares Capital's value of 78.08% is 8.9% below this industry median. Based on the distribution chart, Ares Capital ranks #825 out of 1567 companies in the Asset Management industry, which is below the industry midpoint. Overall, Ares Capital has a GF Score™ of 57/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ares Capital's Net Margin % compare to PS and IVZ?
According to the Asset Management industry distribution chart, Ares Capital ranks #825 out of 1567 companies for Net Margin %. This places Ares Capital in the lower half of its industry. The industry median Net Margin % is 85.70. Ares Capital's value of 78.08% is 8.9% below this benchmark. Historically, Ares Capital's own Net Margin % has ranged from 80.97 to 97.61 over the past decade. While the company's 10-year median is 89.26 vs. the industry median of 85.70, Ares Capital has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for an Asset Management company?
The median Net Margin % among Asset Management companies is 85.70, based on 1,567 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ares Capital's current Net Margin % of 78.08% is 8.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Ares Capital and its competitors. For the Asset Management industry, the median Net Margin % is 85.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ares Capital's current Net Margin % is 78.08%, which is 13% below median its own 10-year median of 89.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ares Capital stock overvalued right now?
Based on GuruFocus' analysis, Ares Capital (ARCC) is currently considered Fairly Valued. The stock's GF Value™ is $19.69, compared to a current price of $19.80 — trading 0.6% above its estimated fair value. The current Net Margin % is 78.08%, which is 13% below median its 10-year median of 89.26 and 8.9% below the Asset Management industry median of 85.70. Ares Capital's overall GF Score™ is 57/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Ares Capital (ARCC), the current Net Margin % is 78.08% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ares Capital (ARCC) Overvalued in 2026?
Based on GuruFocus' analysis, Ares Capital stock appears to be overvalued.
The current stock price of $19.80 is trading 0.6% above its estimated GF Value™ of $19.69.
GuruFocus considers Ares Capital to be Fairly Valued.
Key valuation signals for ARCC:
Net Margin %: 78.08% (13% below median its 10-year median of 89.26)
GF Value™: $19.69 vs. price of $19.80 (0.6% above fair value)
Industry Position: 8.9% below the Asset Management median (#825 of 1567)
No single metric tells the full story. See the ARCC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ares Capital Corp is a United States-based closed-ended specialty finance company. Its investment objective is to generate both current income and capital appreciation through debt and equity investments. The company focuses on investing in first lien senior secured loans (including unitranche loans, which are loans that combine both senior and subordinated debt, generally in a first lien position) and second lien senior secured loans. In addition to senior secured loans, the company also invests in subordinated loans and preferred equity, it also makes common equity investments.
57GF Score
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