Ares Capital stock analysis
Ares Capital (9A2) Stock Price & Analysis
9A2 Stock Chart & Stats
- Day’s Range
- CHF 16.14 - CHF 16.18
- 52-Week Range
- CHF 14.78 - CHF 16.65
- Previous Close
- CHF 15.98
- Volume
- N/A
- Average Volume (3M)
- 0
- Market Cap
- CHF 11.68B
- Enterprise Value
- CHF 27.93B
- Total Cash (Recent Filing)
- CHF 722.00M
- Total Debt (Recent Filing)
- CHF 15.12B
- Price to Earnings (P/E)
- 15.9
- Beta
- 0.25
- Next Earnings
- Feb 10, 2027 (Est.)
- EPS Estimate
- 0.39
- Next Dividend Ex-Date
- N/A
- Dividend Yield
- 9.75%
Bulls Say, Bears Say
Bulls Say
Strong Cash Generation
TTM operating and free cash flow of about $1.82 billion, with free cash flow roughly matching net income and rebounding 71%, indicates strong conversion of reported earnings into cash. That supports recurring distributions, portfolio reinvestment and resilience through normal credit cycles.
Stable Credit Quality
Historically low nonaccruals, stable borrower leverage and 2.0x interest coverage indicate that portfolio companies are generally servicing debt effectively. This supports the durability of investment income, limits credit-loss pressure and reinforces ARCC’s underwriting credibility.
Scale And Diversification Expansion
The planned MFIC acquisition would materially broaden ARCC’s borrower and sponsor network while adding industry diversification. Management expects modest core-earnings accretion, and the larger platform should strengthen sourcing, underwriting scale and recurring portfolio income over time.
Bears Say
Meaningful Leverage
Leverage around 1.0x to 1.3x debt-to-equity amplifies both portfolio returns and the impact of credit deterioration. Although described as workable, this debt burden reduces balance-sheet flexibility, raises funding sensitivity and can constrain investment capacity during stress.
Cooling Earnings And Revenue Growth
Flattening revenue and lower core earnings point to reduced near-term growth in ARCC’s earning base despite strong margins. If this persists, slower portfolio expansion and weaker fee generation could limit earnings growth and make dividend coverage more dependent on existing assets.
Slower Origination Environment
A slower and more selective transaction environment can reduce new loan deployment, structuring fees and portfolio growth. Longer deal timelines also make earnings less predictable and may delay the conversion of ARCC’s sourcing activity and backlog into recurring investment income.
Ares Capital News
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Ares Capital Stock Smart Score
Company Description
Ares Capital
Ares Capital Corporation (ARCC) operates as a Business Development Company (BDC), delivering diverse financing solutions predominantly to middle-market enterprises. The firm's expertise lies in facilitating various corporate actions, including funding acquisitions, recapitalizations, and leveraged buyouts. It also extends mezzanine debt, assists with corporate restructurings, and provides crucial rescue financing, in addition to offering growth capital and general refinancing options. ARCC primarily targets investments in companies within the basic and growth manufacturing, business services, consumer products, healthcare (both products and services), and information technology service sectors. Opportunistically, it also explores prospects in industries such as restaurants, retail, oil and gas, and the broader technology space. Geographically, ARCC maintains a broad reach across the United States. Its New York office oversees investments in the Northeast, Mid-Atlantic, Southeast, and Southwest regions. The Chicago office manages opportunities in the Midwest, while its Los Angeles presence covers the Western region. In terms of deal parameters, ARCC typically commits between $20 million and $200 million per investment, with an upper limit of $400 million, targeting companies that generate an EBITDA of $10 million to $250 million. For debt-specific placements, the investment range is generally $10 million to $100 million. The company employs a wide array of financial instruments, including revolving credit facilities, first and second lien loans, unitranche structures, warrants, mezzanine debt, private high yield, junior capital, and subordinated debt, alongside selective non-control preferred and common equity investments. ARCC also evaluates participation in senior and subordinated debt financings led by other parties and strategically acquires stressed or discounted debt. It frequently assumes a lead or agent role in its transactions and actively seeks board representation in its portfolio companies.
- Sector
- Financial
- Industry
- Asset Management
- CEO
- Kort Schnabel
- Employees
- 4,250
- Website
- arcc.ares.com
- Address
- 2000 Avenue of the Stars, Los Angeles, CA, 90067-4733, US
Ares Capital (9A2) Earnings & Revenues
9A2 Company Deck
9A2 Earnings Call
Earnings Call SentimentPositive
The call was predominantly positive. ARCC reported solid earnings, stable credit performance, strong liquidity, improved funding costs, a durable dividend and a strategically attractive MFIC acquisition expected to be modestly accretive. The primary challenges were a slower and more selective origination environment, lower capital structuring fees, a slightly lower portfolio fair value and uncertainty around future MFIC asset marks. Highlights significantly outweighed lowlights.
View all CH:9A2 earnings summaries9A2 Stock 12 Month Forecast
Average Price Target
Technical Analysis
Overall Consensus
| Indicator | Bullish | Neutral | Bearish |
|---|---|---|---|
| Overall Consensus | 11 | 2 | 5 |
| Technical Analysis | 3 | 2 | 5 |
| Moving Averages | 8 | 0 | 0 |
