Ares Capital Corporation (ARCC) Stock Analysis
Last updated Oct 27, 2026
Health Check
Last analyzed Oct 23, 2026
- Financial Health 35
- Profitability 40
- Business Quality 50
- Balance Sheet 35
- Cash Flow 40
Why this rating?
Health 39/100 — Avoid
Worth tracking, but timing is mixed — not a clear setup yet.
Company overview
Ares Capital Corporation (ARCC) is a Asset Management company in the Financial Services sector. Compound Radar rates Ares Capital Corporation 39/100 (Avoid) due to solid business quality, steady revenue growth, and elevated leverage.
Investment profile
- Quality Moderate
- Growth Moderate
- Balance Sheet Stretched
- Valuation Attractive
Financial highlights
Valuation
- P/E 13.81
- Forward P/E 9.55
- PEG 3.72
- EV/Revenue 9.28
Profitability
- Revenue Growth 3.1%
- Operating Margin 75.7%
- Net Margin 30.9%
- ROE 6.9%
Financial strength
- Cash $398.00M
- Debt $15.85B
- Net Cash $-15.45B
- Free Cash Flow $-1.72B
- Current Ratio 0.61
Similar companies
Peers in Asset Management, ranked by Financial Health.
Latest quoted price for the name. Helps anchor the setup in today’s market level.
Health Entry- Hamilton Lane Incorporated Asset Management HLNE$81.32 77 Health 77 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- WisdomTree, Inc. Asset Management WT$21.23 77 Health 77 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- SEI Investments Company Asset Management SEIC$102.88 76 Health 76 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- T. Rowe Price Group, Inc. Asset Management TROW$103.63 74 Health 74 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Watch WatchWorth tracking, but timing is mixed — not a clear setup yet.
- Brookfield Asset Management Ltd. Asset Management BAM$46.75 73 Health 73 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Apollo Global Management, Inc. Asset Management APO$114.26 70 Health 70 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Raymond James Financial, Inc. Asset Management RJF$158.12 68 Health 68 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Good Entry Good EntryA usable setup — not as clean as Strong Entry, but timing is not mixed or weak.
- BlackRock, Inc. Asset Management BLK$1,136.05 66 Health 66 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Strong Entry Strong EntryTiming looks favorable across trend, momentum, valuation, support, and catalysts.
FAQ
How Compound Radar scores and tracks Ares Capital Corporation (ARCC).