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Ares Capital Corporation is an asset management business based in the US. Ares Capital Corporation shares (ARCC) are listed on the NASDAQ and all prices are listed in US Dollars.
|Latest market close||$21.26|
|52-week range||$12.43 - $21.11|
|50-day moving average||$20.37|
|200-day moving average||$19.80|
|Wall St. target price||$21.39|
|Dividend yield||$1.6 (7.63%)|
|Earnings per share (TTM)||$3.90|
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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
|1 week (2021-10-15)||1.05%|
|1 month (2021-09-24)||5.82%|
|3 months (2021-07-23)||6.57%|
|6 months (2021-04-23)||8.69%|
|1 year (2020-10-23)||51.42%|
|2 years (2019-10-23)||15.17%|
|3 years (2018-10-23)||31.80%|
|5 years (2016-10-21)||38.59%|
Valuing Ares Capital Corporation stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Ares Capital Corporation's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Ares Capital Corporation's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 5x. In other words, Ares Capital Corporation shares trade at around 5x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
Ares Capital Corporation's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 3.95. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Ares Capital Corporation's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
|Revenue TTM||$1.6 billion|
|Operating margin TTM||65.14%|
|Gross profit TTM||$1.5 billion|
|Return on assets TTM||4.11%|
|Return on equity TTM||22.61%|
|Market capitalisation||$9.6 billion|
TTM: trailing 12 months
There are currently 4.8 million Ares Capital Corporation shares held short by investors – that's known as Ares Capital Corporation's "short interest". This figure is 11.7% up from 4.3 million last month.
There are a few different ways that this level of interest in shorting Ares Capital Corporation shares can be evaluated.
Ares Capital Corporation's "short interest ratio" (SIR) is the quantity of Ares Capital Corporation shares currently shorted divided by the average quantity of Ares Capital Corporation shares traded daily (recently around 2.2 million). Ares Capital Corporation's SIR currently stands at 2.19. In other words for every 100,000 Ares Capital Corporation shares traded daily on the market, roughly 2190 shares are currently held short.
However Ares Capital Corporation's short interest can also be evaluated against the total number of Ares Capital Corporation shares, or, against the total number of tradable Ares Capital Corporation shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Ares Capital Corporation's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Ares Capital Corporation shares in existence, roughly 10 shares are currently held short) or 0.0106% of the tradable shares (for every 100,000 tradable Ares Capital Corporation shares, roughly 11 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Ares Capital Corporation.
Find out more about how you can short Ares Capital Corporation stock.
Dividend payout ratio: 84.74% of net profits
Recently Ares Capital Corporation has paid out, on average, around 84.74% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 7.79% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Ares Capital Corporation shareholders could enjoy a 7.79% return on their shares, in the form of dividend payments. In Ares Capital Corporation's case, that would currently equate to about $1.6 per share.
Ares Capital Corporation's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
Ares Capital Corporation's most recent dividend payout was on 27 December 2018. The latest dividend was paid out to all shareholders who bought their shares by 13 September 2021 (the "ex-dividend date").
Over the last 12 months, Ares Capital Corporation's shares have ranged in value from as little as $12.4314 up to $21.11. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Ares Capital Corporation's is 1.1847. This would suggest that Ares Capital Corporation's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).
Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors. The fund will also consider investments in industries such as restaurants, retail, oil and gas, and technology sectors. It focuses on investments in Northeast, Mid-Atlantic, Southeast and Southwest regions from its New York office, the Midwest region, from the Chicago office, and the Western region from the Los Angeles office. The fund typically invests between $20 million and $200 million and a maximum of $400 million in companies with an EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million The fund invests through revolvers, first lien loans, warrants, unitranche structures, second lien loans, mezzanine debt, private high yield, junior capital, subordinated debt, and non-control preferred and common equity.
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