Ares Capital Corp Stock Research

Market Summary

USD17.54+0.35

Delayed

2.04%

ARCC Alerts

1 major insider buys recently.
Big jump in Revenue (Y/Y)
Big fall in earnings (Y/Y)

ARCC Stock Price

ARCC RSI Chart

ARCC Valuation

Market Cap

9.1B

Price/Earnings (Trailing)

15.17

Price/Sales (Trailing)

7.94

Price/Free Cashflow

-6.7

ARCC Price/Sales (Trailing)

ARCC Profitability

Return on Equity

6.28%

Return on Assets

2.68%

Free Cashflow Yield

-14.93%

ARCC Fundamentals

ARCC Revenue

Revenue (TTM)

1.1B

Revenue Y/Y

40.69%

Revenue Q/Q

-157.54%

ARCC Earnings

Earnings (TTM)

600.0M

Earnings Y/Y

-54.45%

Earnings Q/Q

67.31%

Price Action

52 Week Range

16.5321.57

(Low)(High)

Last 7 days

-1.4%

Last 30 days

-9.6%

Last 90 days

-6.1%

Trailing 12 Months

-10.5%

ARCC Financial Health

Debt/Equity

1.28

Debt/Cashflow

-0.11

ARCC Investor Care

Dividend Yield

10.66%

Dividend/Share (TTM)

1.87

Shares Dilution (1Y)

10.90%

Diluted EPS (TTM)

1.19

Financials for Ares Capital

* denotes actual numbers (not divided by Millions)
Income Statement (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2021Q4	2021Q3	2020Q4
Revenue	3484.4%	1,147	32.00	770	1,768	813
Interest Expenses	1.1%	455	450	372	376	317
Net Income	-38.3%	600	972	1,567	1,336	484
Net Income Margin	-98.3%	0.52*	30.38*	-	-	-
Free Cahsflow	80.8%	-1,359	-7,068	-	-	-

Balance Sheet					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2021Q4
Assets	1.6%	22,398	22,038	20,843	-	-
Cash Equivalents	17.9%	303	257	372	-	-
Liabilities	1.9%	12,843	12,602	11,975	-	-
Long Term Debt	3.3%	12,210	11,816	11,020	-	-
Shareholder's Equity	1.3%	9,555	9,436	8,868	-	-
Additional Paid-In Capital	2.0%	9,556	9,370	8,553	-	-
Shares Outstanding	2.2%	519	508	468	-	-

* denotes actual numbers (not divided by Millions)
Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2021Q4	2021Q3	2020Q4
Cashflow From Operations	80.8%	-1,359	-7,068	-2,459	-922	-580
Cashflow From Financing	-70.9%	1,210	4,160	2,619	2,105	730
Dividend Payments	25.3%	912	728	694	683	679
Buy Backs	NaN%	0.00	0.00	100	-	-

Risks for ARCC

What is the probability of a big loss on ARCC?

20%

Probability that Ares Capital stock will be more than 20% underwater in next one year

19.6%

Probability that Ares Capital stock will be more than 30% underwater in next one year.

19.2%

Probability that Ares Capital stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does ARCC drawdown profile look like?

Y-axis is the maximum loss one would have experienced if Ares Capital was unfortunately bought at previous high price.

Drawdowns

Returns for ARCC

Cumulative Returns on ARCC

9.1%

10-Year Cumulative Returns

12.2%

7-Year Cumulative Returns

11.2%

5-Year Cumulative Returns

30.9%

3-Year Cumulative Returns

What are the long-term rolling returns for ARCC?

FIve years rolling returns for Ares Capital.

Annualized Returns

Which funds bought or sold ARCC recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-03-15	B. Riley Wealth Advisors, Inc.	reduced	-2.11	178,582	2,686,580	0.07%
2023-03-10	BAILLIE GIFFORD & CO	reduced	-26.72	-7,067,540	28,601,500	0.03%
2023-03-10	VICTORY CAPITAL MANAGEMENT INC	reduced	-0.05	89,911	1,048,910	-%
2023-03-06	Rockefeller Capital Management L.P.	added	6.04	3,316,000	24,007,000	0.12%
2023-03-06	Rockefeller Capital Management L.P.	sold off	-100	-6,000	-	-%
2023-03-03	TIAA, FSB	sold off	-100	-172,000	-	-%
2023-03-02	OLIVER LAGORE VANVALIN INVESTMENT GROUP	added	833	46,716	51,716	0.03%
2023-03-01	WHITENER CAPITAL MANAGEMENT, INC.	reduced	-0.53	49,154	604,154	0.26%
2023-02-27	CASCADE INVESTMENT GROUP, INC.	new	-	1,125,590	1,125,590	1.17%
2023-02-27	ST GERMAIN D J CO INC	added	100	21,562	702,562	0.24%

Latest Funds Activity

Are funds buying ARCC calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own ARCC

No. of Funds

Ares Capital News

ARCC Fair Value

Recent SEC filings of Ares Capital

View All Filings

Date Filed	Form Type	Document
Mar 17, 2023	4	Insider Trading
Mar 17, 2023	DEF 14A	DEF 14A
Mar 17, 2023	DEFA14A	DEFA14A
Mar 17, 2023	DEFA14A	DEFA14A
Feb 07, 2023	10-K	Annual Report
Feb 07, 2023	8-K	Current Report
Feb 07, 2023	IRANNOTICE	IRANNOTICE
Jan 23, 2023	3	Insider Trading
Jan 19, 2023	8-K	Current Report
Jan 18, 2023	8-K	Current Report

Latest Insider Trading transactions for ARCC

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-03-16	ROLL PENELOPE F	bought	52,320	17.44	3,000	chief financial officer
2023-03-15	ROLL PENELOPE F	bought	52,500	17.5	3,000	chief financial officer
2022-09-14	ROLL PENELOPE F	bought	47,600	19.04	2,500	chief financial officer
2022-08-31	HENSON MARY BETH	bought	177,930	19.77	9,000	-
2022-08-03	ROLL PENELOPE F	bought	494,250	19.77	25,000	chief financial officer
2022-06-15	McKeever Steven B.	bought	49,811	17.95	2,775	-
2022-06-14	Arougheti Michael J	bought	5,325,000	17.75	300,000	executive vice president
2022-06-01	HENSON MARY BETH	bought	98,100	19.62	5,000	-
2022-05-19	Smith Michael Lewis	bought	1,006,560	18.64	54,000	co-president
2022-03-14	HENSON MARY BETH	bought	120,300	20.05	6,000	-

About Ares Capital

R. Kipp deVeer

www.arescapitalcorp.com

2100

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.

ARCC Income Statement

2022-09-30

CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
INVESTMENT INCOME:
PIK interest income			$ 97.0	$ 121.0
Total investment income	$ 537.0	$ 442.0	1,456.0	1,291.0
EXPENSES:
Interest and credit facility fees	120.0	94.0	314.0	267.0
Base management fees	78.0	65.0	226.0	184.0
Income based fees	63.0	53.0	171.0	158.0
Capital gains incentive fees	(37.0)	30.0	(64.0)	133.0
Administrative fees	3.0	4.0	9.0	11.0
Other general and administrative	8.0	7.0	20.0	18.0
Total expenses	235.0	253.0	676.0	771.0
NET INVESTMENT INCOME BEFORE INCOME TAXES	302.0	189.0	780.0	520.0
Income tax expense, including excise tax	14.0	5.0	37.0	21.0
NET INVESTMENT INCOME	288.0	184.0	743.0	499.0
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS, FOREIGN CURRENCY AND OTHER TRANSACTIONS:
Foreign currency and other transactions	22.0	26.0	32.0	9.0
Net realized gains	0.0	149.0	55.0	267.0
Net unrealized losses (gains) on investments, foreign currency and other transactions	29.0	(11.0)	50.0	5.0
Net unrealized gains (losses)	(184.0)	1.0	(324.0)	462.0
Net realized and unrealized gains (losses) on investments, foreign currency and other transactions	(184.0)	150.0	(269.0)	729.0
Realized loss on extinguishment of debt	0.0	0.0	(48.0)	(43.0)
NET INCREASE IN STOCKHOLDERS’ EQUITY RESULTING FROM OPERATIONS	$ 104.0	$ 334.0	$ 426.0	$ 1,185.0
NET INCOME PER COMMON SHARE (see Note 10)
Basic (in usd per share)	$ 0.21	$ 0.73	$ 0.86	$ 2.68
Diluted (in usd per share)	$ 0.21	$ 0.73	$ 0.86	$ 2.68
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING (see Note 10)
Basic (in shares)	503,000,000	453,000,000	492,000,000	441,000,000
Diluted (in shares)	523,000,000	453,000,000	512,000,000	441,000,000
Non-controlled/non-affiliate
INVESTMENT INCOME:
Interest income (excluding payment-in-kind (“PIK”) interest income)	$ 300.0	$ 230.0	$ 786.0	$ 656.0
PIK interest income	28.0	42.0	84.0	95.0
Capital structuring service fees	26.0	53.0	81.0	179.0
Dividend income	52.0	31.0	140.0	86.0
Other income	11.0	11.0	29.0	28.0
Total investment income	417.0	367.0	1,120.0	1,044.0
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS, FOREIGN CURRENCY AND OTHER TRANSACTIONS:
Net realized gains (losses):	(51.0)	82.0	(2.0)	139.0
Net unrealized gains (losses):	(225.0)	35.0	(426.0)	388.0
Non-controlled affiliate
INVESTMENT INCOME:
Interest income (excluding payment-in-kind (“PIK”) interest income)	2.0	2.0	5.0	5.0
PIK interest income	2.0	1.0	4.0	3.0
Dividend income	0.0	0.0	0.8	0.0
Other income	0.0	0.0	0.3	1.0
Total investment income	4.0	3.0	10.0	9.0
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS, FOREIGN CURRENCY AND OTHER TRANSACTIONS:
Net realized gains (losses):	29.0	1.0	6.3	58.0
Net unrealized gains (losses):	30.0	6.0	61.9	13.0
Controlled affiliate
INVESTMENT INCOME:
Interest income (excluding payment-in-kind (“PIK”) interest income)	49.0	39.0	126.0	129.0
PIK interest income	4.0	3.0	9.0	23.0
Capital structuring service fees	6.0	6.0	13.0	11.0
Dividend income	55.0	23.0	173.0	72.0
Other income	2.0	1.0	5.1	3.0
Total investment income	116.0	72.0	326.0	238.0
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS, FOREIGN CURRENCY AND OTHER TRANSACTIONS:
Net realized gains (losses):	0.0	40.0	19.1	61.0
Net unrealized gains (losses):	$ (18.0)	$ (29.0)	$ (10.4)	$ 56.0

ARCC Balance Sheet

2022-09-30

CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Investments at fair value
Total investments at fair value	$ 21,338.5	$ 20,009.5
Cash and cash equivalents	257.0	372.0
Restricted cash	105.0	114.0
Interest receivable	160.0	142.0
Receivable for open trades	21.0	80.0
Other assets	135.0	99.0
Operating lease right-of-use asset	21.0	27.0
Total assets	22,038.0	20,843.0
LIABILITIES
Debt	11,816.0	11,020.0
Base management fees payable	78.0	69.0
Income based fees payable	63.0	67.0
Capital gains incentive fees payable	72.0	161.0
Interest and facility fees payable	76.0	100.0
Payable to participants	105.0	114.0
Payable for open trades	141.0	216.0
Accounts payable and other liabilities	139.0	111.0
Secured borrowings	79.0	74.0
Operating lease liabilities	33.0	43.0
Total liabilities	12,602.0	11,975.0
Commitments and contingencies (Note 7)
STOCKHOLDERS’ EQUITY
Common stock, par value $0.001 per share, 700 and 600 common shares authorized, respectively; 508 and 468 common shares issued and outstanding, respectively	0.0	0.0
Capital in excess of par value	9,370.0	8,553.0
Accumulated undistributed earnings	66.0	315.0
Total stockholders’ equity	9,436.0	8,868.0
Total liabilities and stockholders’ equity	$ 22,038.0	$ 20,843.0
NET ASSETS PER SHARE (in dollars per share)	$ 18.56	$ 18.96
Non-controlled/non-affiliate
Investments at fair value
Total investments at fair value	$ 17,227.0	$ 17,056.0
Non-controlled affiliate
Investments at fair value
Total investments at fair value	357.7	373.1
Controlled affiliate
Investments at fair value
Total investments at fair value	$ 3,753.5	$ 2,580.4