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Ares CapitalARCC +0.18%57 Pretax Margin % is 86.76% as of Jun. 2026, which is 7% below its 10-year median of 93.19. 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 better than 50.35% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Ares Capital's Pre-Tax Income for the
three
months ended in Jun. 2026 was $190 Mil. Ares Capital's Revenue for the
three
months ended in Jun. 2026 was $219 Mil. Therefore, Ares Capital's pretax margin for the quarter that ended in Jun. 2026 was 86.76%.
The historical rank and industry rank for Ares Capital's Pretax Margin % or its related term are showing as below:
ARCC'
s Pretax Margin % Range Over the Past 10 Years
Min: 86.84 Med: 93.19 Max: 99.77
Current: 90.63
ARCC's Pretax Margin % is ranked better than 50.35% of 1567
companies
in the Asset Management industry
Industry Median: 90.32
vs ARCC: 90.63
Ares Capital (NAS:ARCC) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Ares Capital Pretax Margin % Related Terms
Ares Capital Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Ares Capital's Pretax 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 Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Ares Capital's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Ares Capital's Pretax 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 Pretax Margin % of 86.76% as of Jun. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Ares Capital and its competitors. This is near median its historical median of 93.19. Over the past decade, Ares Capital's Pretax Margin % has ranged from 86.84 to 99.77. According to the industry distribution chart, Ares Capital ranks #778 out of 1567 companies in the Asset Management industry, placing it in the top 49.6%.
Is Ares Capital's Pretax Margin % too high?
Ares Capital's current Pretax Margin % of 86.76% is near median its 10-year median of 93.19. Over the past 10 years, this metric has ranged from a low of 86.84 to a high of 99.77. The Asset Management industry median Pretax Margin % is 90.32. Ares Capital's value of 86.76% is 3.9% below this industry median. Based on the distribution chart, Ares Capital ranks #778 out of 1567 companies in the Asset Management industry, which is above 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 Pretax Margin % compare to PS and IVZ?
According to the Asset Management industry distribution chart, Ares Capital ranks #778 out of 1567 companies for Pretax Margin %. This puts Ares Capital in the upper half of its industry. The industry median Pretax Margin % is 90.32. Ares Capital's value of 86.76% is 3.9% below this benchmark. Historically, Ares Capital's own Pretax Margin % has ranged from 86.84 to 99.77 over the past decade. While the company's 10-year median is 93.19 vs. the industry median of 90.32, 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 Pretax Margin % for an Asset Management company?
The median Pretax Margin % among Asset Management companies is 90.32, based on 1,567 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ares Capital's current Pretax Margin % of 86.76% is 3.9% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Ares Capital and its competitors. For the Asset Management industry, the median Pretax Margin % is 90.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ares Capital's current Pretax Margin % is 86.76%, which is near median its own 10-year median of 93.19. 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 $19.84 — trading 0.7% above its estimated fair value. The current Pretax Margin % is 86.76%, which is near median its 10-year median of 93.19 and 3.9% below the Asset Management industry median of 90.32. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Ares Capital (ARCC), the current Pretax Margin % is 86.76% 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 $19.84 is trading 0.7% above its estimated GF Value™ of $19.69.
GuruFocus considers Ares Capital to be Fairly Valued.
Key valuation signals for ARCC:
Pretax Margin %: 86.76% (near median its 10-year median of 93.19)
GF Value™: $19.69 vs. price of $19.84 (0.7% above fair value)
Industry Position: 3.9% below the Asset Management median (#778 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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