ARCC
Financial ServicesAres Capital Corporation · Asset Management · $14B
What is Ares Capital Corporation?
Ares Capital Corporation is one of the largest publicly traded business development companies in the US, focused on lending to and investing in middle market businesses across a wide range of industries.
ARCC generates income by providing debt and equity financing to middle market companies — businesses often too large for traditional bank loans but too small for public capital markets. Its investment toolkit spans first and second lien loans, mezzanine debt, unitranche structures, and selective equity positions, primarily targeting companies with meaningful operating earnings.
Founded in 2004 and headquartered in Los Angeles, Ares Capital operates offices in New York, Chicago, and Los Angeles.
- Senior secured and first lien loans
- Mezzanine and subordinated debt
- Unitranche financing structures
- Selective equity co-investments
Is ARCC a Good Stock to Buy?
UQS Score rates ARCC as Good overall.
The Quality pillar stands out as the clearest bright spot, reflecting the disciplined underwriting and portfolio management that Ares Capital is known for in the BDC space.
The Risk pillar registers as Weak, which is worth noting given ARCC's inherent exposure to credit cycles and leveraged borrowers.
See the full pillar breakdown and underlying financial metrics by signing up for a Pro account. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does ARCC pay dividends?
Yes — Ares Capital Corporation pays a dividend.
ARCC pays a regular dividend, which is central to its appeal as a BDC — these structures are required to distribute the majority of taxable income to shareholders. Income-focused investors often track ARCC specifically for this consistent payout cadence.
When does ARCC report earnings?
Ares Capital Corporation reports earnings on a quarterly cadence, typical for US-listed equities.
As a BDC, ARCC's quarterly results center on net investment income, portfolio credit quality, and net asset value per share — metrics that reflect the health of its middle market loan book rather than traditional revenue growth.
For the most recent quarter's results, visit Ares Capital's investor relations page directly.
ARCC Price History
+40.7% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Ares Capital Corporation?
Based on Ares Capital Corporation's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
Frequently Asked Questions
What does Ares Capital Corporation do?
Ares Capital is a business development company that provides financing solutions to middle market companies. It deploys capital through loans, mezzanine debt, and selective equity investments, earning income from interest and fees on its portfolio.
Does ARCC pay dividends?
Yes. ARCC pays a regular dividend. As a BDC, it is required to distribute most of its taxable income to shareholders, making dividend income a core part of the investment case for ARCC holders.
When does ARCC report earnings?
ARCC follows a standard quarterly reporting schedule. For confirmed dates, check the investor relations section of Ares Capital's official website, as our data source does not publish forward earnings dates.
Is ARCC a good stock to buy?
UQS Score rates ARCC as Good overall, with a notably Strong Quality pillar. However, the Weak Risk pillar reflects real credit and leverage exposure. Whether that trade-off suits your portfolio depends on your income goals and risk tolerance.
Is ARCC overvalued?
ARCC's Valuation pillar is rated Neutral, suggesting it is neither obviously cheap nor stretched relative to its fundamentals. Pro members can view the detailed valuation metrics behind that rating.
What is ARCC's market cap bracket?
ARCC is a large-cap stock, making it one of the biggest publicly traded business development companies by market size — an unusual distinction in a segment dominated by smaller vehicles.
Is ARCC a long-term quality investment?
On a long-term quality basis, ARCC's Strong Quality pillar is a positive signal. That said, the Weak Risk pillar is a meaningful consideration — BDCs carry credit cycle sensitivity that can affect NAV and dividend sustainability over time.
What sector does ARCC belong to?
ARCC operates in the Financial Services sector, specifically within the business development company sub-category — a regulated structure that blends elements of private credit and closed-end fund investing.
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Pro Analysis
ARCC — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| Aug 16, 2026 | 30.6 | 66.7 | 41.0 | 16.4 | 2.8 | 0.0 | -25.8 |
| Aug 9, 2026 | 56.4 | 100.0 | 41.0 | 17.6 | 37.5 | 80.2 | -0.1 |
| Aug 5, 2026 | 56.5 | 83.0 | 41.0 | 45.4 | 37.5 | 71.7 | -0.4 |
| Jul 31, 2026 | 56.9 | 83.5 | 41.0 | 45.5 | 37.5 | 73.5 | +3.4 |
| Jul 29, 2026 | 53.5 | 84.7 | 41.0 | 38.5 | 27.0 | 68.5 | +0.8 |
| Jul 25, 2026 | 52.7 | 85.0 | 41.0 | 37.9 | 27.0 | 64.0 | -0.1 |
| Jul 24, 2026 | 52.8 | 85.1 | 41.0 | 37.9 | 27.0 | 64.3 | +0.1 |
| Jul 23, 2026 | 52.7 | 84.9 | 41.0 | 37.9 | 27.0 | 63.8 | 0.0 |
| Jul 22, 2026 | 52.7 | 84.8 | 41.0 | 38.2 | 27.0 | 63.6 | +0.1 |
| Jul 21, 2026 | 52.6 | 84.8 | 41.0 | 38.2 | 27.0 | 63.4 | +0.1 |
ARCC — Pillar Breakdown
Quality
— 66.7/100 (25%)Ares Capital Corporation shows solid profitability with healthy returns on capital and reasonable margins.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Free cash flow relative to market value.
Growth
— 16.4/100 (20%)Ares Capital Corporation faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Risk
— 2.8/100 (15%)Ares Capital Corporation presents elevated risk with concerns around leverage or financial stability.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 0.0/100 (15%)Ares Capital Corporation appears expensively valued relative to its fundamentals and growth prospects.
Moat
— 41/100 (25%)Ares Capital Corporation possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for ARCC.
Score Composition
Financial Data
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How is the ARCC UQS Score Calculated?
The UQS (Unified Quality Score) for Ares Capital Corporation is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Ares Capital Corporation's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Ares Capital Corporation is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.