Ares Capital Corporation (ARCC) Stock

Ares Capital Corporation (ARCC) is a Financial Services stock trading at $18.80 (as of 2026-07-24), with a market capitalization of $13.50B and a trailing P/E of 11.7. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Ares Capital Corporation is a business development company that invests in middle market companies, providing financing for acquisitions, recapitalizations, leveraged buyouts, mezzanine and other debt, restructurings, and growth capital. It lends and invests across multiple industries, including business services, manufacturing, consumer and healthcare, and technology.

Understand Ares Capital Corporation: how it makes money

Ares Capital Corporation provides business development financing to middle market companies, using strategies like mezzanine debt, recapitalizations, rescue financing, and leveraged buyout transactions, and it earns returns from these investment activities.

The profit engine is the performance of its middle market investment portfolio, built through debt and related financing transactions (including mezzanine debt, rescue financing, and general refinancing).

Business quality (Mixed): Clear description of the core lending and financing strategies, but no reportable segment breakdown or operational KPI labels were provided for this stock, so the quarter-level drivers beyond total revenue cannot be traced to specific lines.

Valuation: At 11× earnings, ARCC trades in line with the Asset Management average (10×). Note: one-time items can distort reported P/E.

Bull case

  • Focused deal toolkit for middle market companies: The company concentrates on acquisition and recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions, plus growth capital and general refinancing.
  • Broad set of industries it will consider: It prefers investment in areas including basic and growth manufacturing, business services, consumer products, health care products and services, and information technology services, and it can also consider other sectors such as restaurants, retail, oil and gas, and technology.

Bear case

  • Credit and restructuring risk is inherent to its strategies: Because it invests in mezzanine debt and provides rescue financing and restructurings, weaker borrower performance can directly impact outcomes.
  • Middle market concentration can raise volatility: Its focus on middle market companies and specialized financing transactions may make results more sensitive to changes in deal conditions and borrower financial health.
Valuation — source: SEC EDGAR (first-party)
Price$18.80
Market Cap$13.50B
P/E Ratio11.7
Price / Book0.96
Price / Sales4.38
DCF Value (model)$21.99
DCF Upside vs Price17.0%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$3.05B
Net Margin42.6%
Revenue Growth (YoY)4.2%
EPS Growth (YoY)-63.9%
Valuation vs Sector & Industry
Stock P/E11.7
Sector P/E (Financial Services)8.9
Industry P/E (Asset Management)8.9
vs Sector31.9%
vs Industry31.6%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderMORGAN STANLEY ($294.71M)
Institutional Holders Tracked10
Congressional Trades (recent)8
Company
SectorFinancial Services
IndustryAsset Management
CEOKort Schnabel
Employees1,200
CountryUS
IPO Date2004-10-05

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ARCC earnings history · ARCC institutional & insider holders · ARCC KPIs & operating metrics · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-07-24.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.