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Ares CapitalSTU:9A2 -0.34%57 ROE % is 4.90% as of Jun. 2026, which is 55% below its 10-year median of 10.81. GuruFocus rates STU:9A2 with a GF Score™ of 57/100 and a GF Value™ of €16.83 (Fairly Valued). The stock has 8 warning signs investors should review. Among 1,609 Asset Management companies, Ares Capital ranks worse than 50.47% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Ares Capital's annualized net income for the quarter that ended in Jun. 2026 was €594 Mil. Ares Capital's average Total Stockholders Equity over the quarter that ended in Jun. 2026 was €12,112 Mil. Therefore, Ares Capital's annualized ROE % for the quarter that ended in Jun. 2026 was 4.90%.
The historical rank and industry rank for Ares Capital's ROE % or its related term are showing as below:
STU:9A2'
s ROE % Range Over the Past 10 Years
Min: 6.51 Med: 10.81 Max: 19.53
Current: 6.8
During the past 13 years, Ares Capital's highest ROE % was 19.53%. The lowest was 6.51%. And the median was 10.81%.
STU:9A2's ROE % is ranked worse than 50.47% of 1609
companies
in the Asset Management industry
Industry Median: 6.87
vs STU:9A2: 6.80
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Ares Capital ROE % Related Terms
Ares Capital ROE % Historical Data
* Premium members only.
The historical data trend for Ares Capital's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Ares Capital's ROE % distribution charts can be found below:
* The bar in red indicates where Ares Capital's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Ares Capital (STU:9A2) has a ROE % of 4.90% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Ares Capital and its competitors. This is 55% below median its historical median of 10.81. Over the past decade, Ares Capital's ROE % has ranged from 6.51 to 19.53. According to the industry distribution chart, Ares Capital ranks #812 out of 1609 companies in the Asset Management industry, placing it in the top 50.5%.
Is Ares Capital's ROE % too high?
Ares Capital's current ROE % of 4.90% is 55% below median its 10-year median of 10.81. Over the past 10 years, this metric has ranged from a low of 6.51 to a high of 19.53. The Asset Management industry median ROE % is 6.87. Ares Capital's value of 4.90% is 28.7% below this industry median. Based on the distribution chart, Ares Capital ranks #812 out of 1609 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 ROE % compare to PS and IVZ?
According to the Asset Management industry distribution chart, Ares Capital ranks #812 out of 1609 companies for ROE %. This places Ares Capital in the lower half of its industry. The industry median ROE % is 6.87. Ares Capital's value of 4.90% is 28.7% below this benchmark. Historically, Ares Capital's own ROE % has ranged from 6.51 to 19.53 over the past decade. While the company's 10-year median is 10.81 vs. the industry median of 6.87, 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 ROE % for an Asset Management company?
The median ROE % among Asset Management companies is 6.87, based on 1,609 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ares Capital's current ROE % of 4.90% is 28.7% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Ares Capital and its competitors. For the Asset Management industry, the median ROE % is 6.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ares Capital's current ROE % is 4.90%, which is 55% below median its own 10-year median of 10.81. 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 (STU:9A2) is currently considered Fairly Valued. The stock's GF Value™ is €16.83, compared to a current price of €16.93 — trading 0.6% above its estimated fair value. The current ROE % is 4.90%, which is 55% below median its 10-year median of 10.81 and 28.7% below the Asset Management industry median of 6.87. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Ares Capital (STU:9A2), the current ROE % is 4.90% 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 (STU:9A2) Overvalued in 2026?
Based on GuruFocus' analysis, Ares Capital stock appears to be overvalued.
The current stock price of €16.93 is trading 0.6% above its estimated GF Value™ of €16.83.
GuruFocus considers Ares Capital to be Fairly Valued.
Key valuation signals for STU:9A2:
ROE %: 4.90% (55% below median its 10-year median of 10.81)
GF Value™: €16.83 vs. price of €16.93 (0.6% above fair value)
Industry Position: 28.7% below the Asset Management median (#812 of 1609)
No single metric tells the full story. See the STU:9A2 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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