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Ares Capital

Nasdaq:ARCC
Snowflake Description

Fair value second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ARCC
Nasdaq
$8B
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

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. The last earnings update was 77 days ago. More info.


Add to Portfolio Compare Print
  • Ares Capital is a fund or ETF! Currently our data availability for these is poor, we only recommend using them as part of a portfolio.
ARCC Share Price and Events
7 Day Returns
0.7%
NasdaqGS:ARCC
1.5%
US Capital Markets
1.1%
US Market
1 Year Returns
8.9%
NasdaqGS:ARCC
-4.9%
US Capital Markets
4.7%
US Market
ARCC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ares Capital (ARCC) 0.7% 2.2% 5.3% 8.9% 24.3% 7.3%
US Capital Markets 1.5% 3.8% 0.7% -4.9% 53.6% 59.5%
US Market 1.1% 4.3% 2.9% 4.7% 37.7% 43.6%
1 Year Return vs Industry and Market
  • ARCC outperformed the Capital Markets industry which returned -4.9% over the past year.
  • ARCC outperformed the Market in United States of America which returned 4.7% over the past year.
Price Volatility
ARCC
Industry
5yr Volatility vs Market

Value

 Is Ares Capital undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ares Capital to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ares Capital.

NasdaqGS:ARCC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 5 analysts.
= Stable Book Value * Return on Equity
= $17.37 * 10.6%
$1.84
Book Value of Equity per Share Weighted future Book Value estimates from 2 analysts. $17.37
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:ARCC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.65
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.65 (1 + (1- 21%) (81.46%))
1.046
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.05
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.046 * 5.96%)
8.96%

Discounted Cash Flow Calculation for NasdaqGS:ARCC using Excess Returns Model Model

The calculations below outline how an intrinsic value for Ares Capital is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGS:ARCC Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (10.6% – 8.96%) * $17.37)
$0.28
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.28 / (8.96% - 2.73%)
$4.53
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $17.37 + $4.53
$21.9
NasdaqGS:ARCC Discount to Share Price
Calculation Result
Value per share (USD) From above. $21.90
Current discount Discount to share price of $18.25
= -1 x ($18.25 - $21.90) / $21.90
16.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Ares Capital is available for.
Intrinsic value
17%
Share price is $18.25 vs Future cash flow value of $21.9
Current Discount Checks
For Ares Capital to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Ares Capital's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Ares Capital's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ares Capital's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ares Capital's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:ARCC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.95
NasdaqGS:ARCC Share Price ** NasdaqGS (2019-07-16) in USD $18.25
United States of America Capital Markets Industry PE Ratio Median Figure of 91 Publicly-Listed Capital Markets Companies 37.74x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 17.98x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ares Capital.

NasdaqGS:ARCC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ARCC Share Price ÷ EPS (both in USD)

= 18.25 ÷ 1.95

9.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ares Capital is good value based on earnings compared to the US Capital Markets industry average.
  • Ares Capital is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Ares Capital's expected growth come at a high price?
Raw Data
NasdaqGS:ARCC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.37x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
-2.6%per year
United States of America Capital Markets Industry PEG Ratio Median Figure of 34 Publicly-Listed Capital Markets Companies 2.23x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

NasdaqGS:ARCC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.37x ÷ -2.6%

-3.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ares Capital earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Ares Capital's assets?
Raw Data
NasdaqGS:ARCC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $17.23
NasdaqGS:ARCC Share Price * NasdaqGS (2019-07-16) in USD $18.25
United States of America Capital Markets Industry PB Ratio Median Figure of 174 Publicly-Listed Capital Markets Companies 7.88x
United States of America Market PB Ratio Median Figure of 5,240 Publicly-Listed Companies 1.81x
NasdaqGS:ARCC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ARCC Share Price ÷ Book Value per Share (both in USD)

= 18.25 ÷ 17.23

1.06x

* Primary Listing of Ares Capital.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ares Capital is good value based on assets compared to the US Capital Markets industry average.
X
Value checks
We assess Ares Capital's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. Ares Capital has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Ares Capital expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-2.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ares Capital expected to grow at an attractive rate?
  • Ares Capital's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Ares Capital's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Ares Capital's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:ARCC Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:ARCC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts -2.6%
NasdaqGS:ARCC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 5.6%
United States of America Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 6.5%
United States of America Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:ARCC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:ARCC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,617 1
2020-12-31 1,572 767 11
2019-12-31 1,484 779 11
NasdaqGS:ARCC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,393 -102 830
2018-12-31 1,337 304 858
2018-09-30 1,299 1,223 937
2018-06-30 1,251 938 867
2018-03-31 1,202 184 791
2017-12-31 1,160 -2,048 667
2017-09-30 1,113 -1,906 510
2017-06-30 1,078 -1,890 481
2017-03-31 1,039 -1,713 460
2016-12-31 1,012 707 474
2016-09-30 1,013 289 414
2016-06-30 1,015 108 421

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ares Capital's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Ares Capital's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:ARCC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Ares Capital Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ARCC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 1.79 1.88 1.67 11.00
2019-12-31 1.83 1.87 1.78 9.00
NasdaqGS:ARCC Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.95
2018-12-31 2.01
2018-09-30 2.20
2018-06-30 2.04
2018-03-31 1.86
2017-12-31 1.57
2017-09-30 1.28
2017-06-30 1.30
2017-03-31 1.35
2016-12-31 1.51
2016-09-30 1.32
2016-06-30 1.34

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Ares Capital will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Ares Capital's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ares Capital has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Ares Capital performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ares Capital's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ares Capital's year on year earnings growth rate has been positive over the past 5 years.
  • Ares Capital's 1-year earnings growth is less than its 5-year average (4.9% vs 11.4%)
  • Ares Capital's earnings growth has not exceeded the US Capital Markets industry average in the past year (4.9% vs 65.4%).
Earnings and Revenue History
Ares Capital's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ares Capital Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ARCC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,393.00 830.00 374.00
2018-12-31 1,337.00 858.00 381.00
2018-09-30 1,299.00 937.00 404.00
2018-06-30 1,251.00 867.00 389.00
2018-03-31 1,202.00 791.00 370.00
2017-12-31 1,160.00 667.00 360.00
2017-09-30 1,113.00 510.00 323.00
2017-06-30 1,078.00 481.00 318.00
2017-03-31 1,039.00 460.00 315.00
2016-12-31 1,012.00 474.00 296.00
2016-09-30 1,013.33 414.04 280.62
2016-06-30 1,015.27 420.90 282.59
2016-03-31 1,019.75 410.42 281.53
2015-12-31 1,025.00 379.00 272.00
2015-09-30 1,034.59 517.34 308.32
2015-06-30 1,027.04 578.22 321.85
2015-03-31 1,002.49 574.53 316.77
2014-12-31 989.00 591.00 317.00
2014-09-30 951.78 571.45 305.25
2014-06-30 945.19 534.50 290.91
2014-03-31 926.39 525.17 282.42
2013-12-31 881.72 488.52 265.72
2013-09-30 860.14 529.78 268.02
2013-06-30 803.91 525.54 259.23
2013-03-31 775.34 482.97 242.64
2012-12-31 748.03 508.18 245.02
2012-09-30 722.99 451.16 229.39

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Ares Capital has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Ares Capital used its assets more efficiently than the US Capital Markets industry average last year based on Return on Assets.
  • Ares Capital's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Ares Capital's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ares Capital has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Ares Capital's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ares Capital's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ares Capital is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ares Capital's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Ares Capital's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ares Capital Company Filings, last reported 3 months ago.

NasdaqGS:ARCC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 7,339.00 6,200.70 574.00
2018-12-31 7,300.00 5,216.00 300.00
2018-09-30 7,313.00 4,566.00 806.00
2018-06-30 7,270.00 4,562.30 515.00
2018-03-31 7,178.00 5,138.30 306.00
2017-12-31 7,098.00 4,864.00 316.00
2017-09-30 7,028.00 4,640.00 341.00
2017-06-30 7,051.00 4,838.00 536.00
2017-03-31 7,035.00 4,585.00 247.00
2016-12-31 5,165.00 3,874.00 223.00
2016-09-30 5,208.98 3,720.92 125.09
2016-06-30 5,218.04 3,785.35 125.93
2016-03-31 5,179.94 3,984.81 77.17
2015-12-31 5,173.00 4,114.00 257.00
2015-09-30 5,279.80 3,653.30 247.12
2015-06-30 5,282.44 3,582.20 299.08
2015-03-31 5,255.42 3,429.16 131.98
2014-12-31 5,283.72 3,924.48 194.56
2014-09-30 5,249.65 3,679.20 107.88
2014-06-30 4,933.64 3,357.42 223.15
2014-03-31 4,898.57 3,058.69 146.64
2013-12-31 4,904.44 2,986.28 149.63
2013-09-30 4,392.36 3,137.88 135.49
2013-06-30 4,348.05 2,562.44 100.52
2013-03-31 3,978.60 2,179.13 102.45
2012-12-31 3,988.35 2,195.87 269.04
2012-09-30 3,908.73 2,212.65 105.46
  • Ares Capital's level of debt (84.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (62.5% vs 84.5% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 4.4x coverage).
X
Financial health checks
We assess Ares Capital's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ares Capital has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Ares Capital's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
8.77%
Current annual income from Ares Capital dividends. Estimated to be 9.17% next year.
If you bought $2,000 of Ares Capital shares you are expected to receive $175 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Ares Capital's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.42%).
  • Ares Capital's dividend is above the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:ARCC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 41 Stocks 2.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:ARCC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.74 2.00
2020-12-31 1.66 13.00
2019-12-31 1.68 12.00
NasdaqGS:ARCC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-30 1.600 8.946
2019-02-12 1.600 9.246
2018-10-31 1.560 9.513
2018-08-01 1.520 8.914
2018-02-13 1.520 9.324
2017-11-02 1.520 9.483
2017-08-02 1.520 9.387
2017-05-03 1.520 9.218
2016-11-02 1.520 9.031
2016-08-03 1.520 9.751
2016-05-04 1.520 10.351
2016-02-24 1.570 10.798
2015-11-04 1.520 10.630
2015-08-04 1.520 9.936
2015-05-04 1.570 9.578
2015-03-05 1.570 9.167
2015-02-26 1.570 9.021
2014-08-05 1.570 9.652
2014-05-06 1.570 9.173
2014-02-26 1.570 8.986
2013-11-05 1.570 8.781
2013-08-06 1.520 8.728
2013-05-07 1.520 8.725
2013-02-27 1.520 8.507
2012-11-05 1.520 8.623
2012-08-07 1.520 8.804
2012-05-08 1.480 9.388
2012-02-28 1.480 9.120
2011-11-08 1.440 9.242
2011-08-04 1.400 9.748
2011-05-03 1.400 8.585
2011-03-01 1.400 8.198
2010-11-04 1.400 8.331
2010-08-05 1.400 9.063
2010-05-10 1.400 10.336
2010-02-25 1.400 9.526
2009-11-05 1.400 11.376
2009-08-06 1.400 13.716
2009-05-07 1.400 17.799
2009-03-02 1.680 35.879
2008-11-19 1.680 33.390
2008-08-07 1.680 19.605

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Ares Capital's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1.1x coverage).
X
Income/ dividend checks
We assess Ares Capital's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ares Capital afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ares Capital has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Ares Capital's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Robert DeVeer
COMPENSATION $0
AGE 46
TENURE AS CEO 5 years
CEO Bio

Mr. Robert Kipp DeVeer III has been a Director at Ares Capital Corporation since October 28, 2015 and has also been its Chief Executive Officer since July 2014. Mr. DeVeer serves as a Partner and Head at Ares Credit Group. Mr. DeVeer joined the group in May 2014 and also serves as a Co-Head of Private Debt Group, Co-Head of the Direct Lending Group, Director, and Senior Partner at Ares Management LLC; a Senior Partner at Ares Capital Management LLC; a Director of Ares Management Limited; and a Director since 2015 and CEO since July 2014 at Ares Capital Corporation, where he previously served as the President from May 2013 to July 2014. Prior to firm, he served as a Partner at RBC Capital Partners, where he joined the firm in October 2001 and previously served as a Vice President and Principal of Finance at the firm, where he was responsible for leading the firm's middle-market financing and principal investment business. Prior to that, Mr. DeVeer served as a Vice President in Merchant Banking Group at Indosuez Capital until September 2001. Prior to that, he worked in the Special Investment Group at J.P. Morgan Investment Management, Inc. and the Investment Banking Division at J.P. Morgan Securities Inc. Mr. DeVeer received an M.B.A. from the Stanford University's Graduate School of Business and a B.A. from the Yale University.

CEO Compensation
  • Insufficient data for Robert to compare compensation growth.
  • Insufficient data for Robert to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Ares Capital management team in years:

5
Average Tenure
48
Average Age
  • The average tenure for the Ares Capital management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Mike Arougheti

TITLE
Co-Chairman & Executive VP
AGE
47
TENURE
4.8 yrs

Ben Rosenthal

TITLE
Co-Founder & Co-Chairman
AGE
56

Robert DeVeer

TITLE
CEO & Director
AGE
46
TENURE
5 yrs

Rob Rosen

TITLE
Director
AGE
73

Mitch Goldstein

TITLE
Co-President
AGE
52
TENURE
5 yrs

Michael Smith

TITLE
Co-President
AGE
48
TENURE
5 yrs

Penni Roll

TITLE
Chief Financial Officer
AGE
53
TENURE
8.6 yrs

Scott Lem

TITLE
Chief Accounting Officer
AGE
41
TENURE
5.6 yrs

John Stilmar

TITLE
Managing Director of IR

Joshua Bloomstein

TITLE
VP, General Counsel & Secretary
AGE
45
TENURE
9.5 yrs
Board of Directors Tenure

Average tenure and age of the Ares Capital board of directors in years:

6.8
Average Tenure
61
Average Age
  • The tenure for the Ares Capital board of directors is about average.
Board of Directors

Mike Arougheti

TITLE
Co-Chairman & Executive VP
AGE
47
TENURE
5 yrs

Ben Rosenthal

TITLE
Co-Founder & Co-Chairman
AGE
56
TENURE
15.5 yrs

Robert DeVeer

TITLE
CEO & Director
AGE
46
TENURE
3.8 yrs

Rob Rosen

TITLE
Director
AGE
73
TENURE
15.5 yrs

Ann Bates

TITLE
Independent Director
COMPENSATION
$232K
AGE
61
TENURE
9.3 yrs

Steve McKeever

TITLE
Independent Director
COMPENSATION
$223K
AGE
58
TENURE
6.8 yrs

Eric Siegel

TITLE
Lead Independent Director
COMPENSATION
$242K
AGE
62
TENURE
8.9 yrs

Steve Bartlett

TITLE
Independent Director
COMPENSATION
$221K
AGE
72
TENURE
6.8 yrs

Daniel Kelly

TITLE
Independent Director
COMPENSATION
$221K
AGE
67
TENURE
3.2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Ares Capital individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
12. Jun 19 Buy Daniel Kelly Individual 10. Jun 19 10. Jun 19 4,500 $18.01 $81,045
17. May 19 Buy Steven McKeever Individual 13. May 19 13. May 19 5,640 $17.52 $98,813
16. May 19 Buy Ann Bates Individual 15. May 19 15. May 19 9,725 $17.61 $171,257
18. Dec 18 Buy Robert DeVeer Individual 14. Dec 18 14. Dec 18 50,000 $16.02 $801,000
22. Nov 18 Sell Penelope Roll Individual 20. Nov 18 20. Nov 18 -6,000 $16.76 $-100,560
13. Sep 18 Buy Eric Siegel Individual 12. Sep 18 12. Sep 18 6,990 $17.32 $120,947
31. Aug 18 Buy Ann Bates Individual 29. Aug 18 29. Aug 18 9,000 $17.44 $156,960
X
Management checks
We assess Ares Capital's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ares Capital has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Read This Before Buying Ares Capital Corporation (ARCC) For Its Upcoming $0.38 Dividend

Check out our latest analysis for Ares Capital Here's how I find good dividend stocks Whenever I am looking at a potential dividend stock investment, I always check these five metrics: Does it pay an annual yield higher than 75% of dividend payers? … Dividend payments from Ares Capital have been volatile in the past 10 years, with some years experiencing significant drops of over 25%. … Investors may not have the best feeling about their investment in ARCC right now, in terms of its dividend attributes.

Simply Wall St -

What Do Analysts Think About Ares Capital Corporation's (ARCC) Future?

Analysts covering Ares Capital Corporation (NASDAQ:ARCC) are predicting double-digit earnings per share growth of 32.04% over the following three years. … This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 32.04% over the next few years. … Although its past performance does not bolster the expected positive growth, it could also mean ARCC is growing off a lower base, meaning a higher growth rate is easier to achieve.

Simply Wall St -

Company Info

Description

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. The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically considers the purchase of stressed and discounted debt positions. The fund prefers to be an agent and/or lead the transactions in which it invests. The fund also seeks board representation in its portfolio companies.

Details
Name: Ares Capital Corporation
ARCC
Exchange: NasdaqGS
Founded: 2004
$7,779,942,150
426,298,200
Website: http://www.arescapitalcorp.com
Address: Ares Capital Corporation
245 Park Avenue,
44th Floor,
New York,
New York, 10167,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ARCC Common Stock Nasdaq Global Select US USD 05. Oct 2004
DB 9A2 Common Stock Deutsche Boerse AG DE EUR 05. Oct 2004
LSE 0HHP Common Stock London Stock Exchange GB USD 05. Oct 2004
Number of employees
Current staff
Staff numbers
0
Ares Capital employees.
Industry
Asset Management and Custody Banks
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 23:53
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/07/15
Last earnings filing: 2019/04/30
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.