Ares Capital Corporation

Fundamentals5.0
Price Action6.0
News Sentiment7.0
AI Rating
6.0

Key Drivers

  • Dividend Coverage
  • Cash Flow Volatility
  • Moderate Leverage

AI
AI Summary

6.0

ARCC should be viewed less as a simple high-yield discount play and more as a fragile credit-quality/dividend-coverage story: improved liquidity and lower funding costs help, but thin earnings coverage, declining book value, and modest interest coverage mean the payout is only sustainable if asset quality holds and spreads do not compress further.

DividendRisk
CreditQuality‍
FundingFlexibility

Price Chart

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Financial Metrics

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Revenue (TTM)
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Net Income (TTM)
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EPS (Q)
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MCAP

Deep Analysis

Research tool. Not personalized advice.

Fundamental Analysis

5.0

Key Financial Insights:

  • Dividend Coverage
  • Cash Flow Volatility
  • Moderate Leverage

ARCC offers a high yield and near-book valuation, but thin dividend coverage, moderate leverage, and uneven cash flow make the income case increasingly risky. ക

Income
Valuation

Price Behavior

6.0
Research tool. Not personalized advice. Technical analysis is for informational purposes only.

Key Price Behavior Insights:

  • Higher lows
  • Holding support
  • Resistance cap

ARCC is trending modestly higher, holding above $18.50 after a rebound and higher lows, but it still needs a clear break above $18.78 to confirm more upside.

bullish
neutral
Support Level: $18.50
Resistance Level: $18.78

Rebounded from the

Sentiment & News

7.0

Key News Insights:

  • Valuation discount
  • Dividend safety
  • Earnings catalyst

ARCC is attracting bullish attention for its rare discount to NAV, near-11% yield, and dividend-safety case, but private-credit cycle risks and the upcoming Q2 earnings release keep the outlook mixed.

ARCC
HighYield

The stock looks supported by income appeal and attractive valuation, but sentiment may stay choppy until earnings confirm dividend durability and credit quality