Ares Capital
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.
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- 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
1 Year Returns
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
Related Companies
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Ares Capital.
| 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.
| 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.
| 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 |
| 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
Current Discount Checks
- 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?
| 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.
| 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?
| 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 .
| 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?
| 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 |
| 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.
Value checks
We assess Ares Capital's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check) 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
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!
Earnings growth vs Low Risk Savings
- 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
| 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
| 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 |
| 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 |
| 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.
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.
| 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 |
| 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.
Future performance checks
We assess Ares Capital's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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
Past Earnings growth analysis
- 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
All data from Ares Capital Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| 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).
Past performance checks
We assess Ares Capital's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
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.
- 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
Assets
Liabilities and shares
- 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.
All data from Ares Capital Company Filings, last reported 3 months ago.
| 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).
Financial health checks
We assess Ares Capital's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Ares Capital has a total score of 2/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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
If you bought
$2,000 of
Ares Capital
shares you are expected to receive
$175
in your first year as a dividend.
Dividend Amount
- 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.
| 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.
| 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 |
| 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.
Income/ dividend checks
We assess Ares Capital's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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
CEO
| 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:
- 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
Co-Chairman & Executive VP
47
4.8 yrs
Ben Rosenthal
Co-Founder & Co-Chairman
56
Robert DeVeer
CEO & Director
46
5 yrs
Rob Rosen
Director
73
Mitch Goldstein
Co-President
52
5 yrs
Michael Smith
Co-President
48
5 yrs
Penni Roll
Chief Financial Officer
53
8.6 yrs
Scott Lem
Chief Accounting Officer
41
5.6 yrs
John Stilmar
Managing Director of IR
Joshua Bloomstein
VP, General Counsel & Secretary
45
9.5 yrs
Board of Directors Tenure
Average tenure and age of the Ares Capital board of directors in years:
- The tenure for the Ares Capital board of directors is about average.
Board of Directors
Mike Arougheti
Co-Chairman & Executive VP
47
5 yrs
Ben Rosenthal
Co-Founder & Co-Chairman
56
15.5 yrs
Robert DeVeer
CEO & Director
46
3.8 yrs
Rob Rosen
Director
73
15.5 yrs
Ann Bates
Independent Director
$232K
61
9.3 yrs
Steve McKeever
Independent Director
$223K
58
6.8 yrs
Eric Siegel
Lead Independent Director
$242K
62
8.9 yrs
Steve Bartlett
Independent Director
$221K
72
6.8 yrs
Daniel Kelly
Independent Director
$221K
67
3.2 yrs
Who owns this company?
Recent Insider Trading
- More shares have been bought than sold by Ares Capital individual insiders in the past 3 months.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | 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 | ||
Management checks
We assess Ares Capital's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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 - – Full articleWhat 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 - – Full articleCompany 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
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.
