Ares Capital Corporation

Fundamentals5.0
Price Action4.0
News Sentiment6.0
AI Rating
5.0

Key Drivers

  • Cheap Valuation
  • Weak Cash Conversion
  • Tight Dividend Coverage

AI
AI Summary

5.0

ARCC should be viewed less as a growth story and more as a high-yield credit position: the dividend is only barely covered, so the investment case now hinges on stable credit performance, tighter funding discipline, and avoiding further NAV or cash-flow erosion rather than expecting meaningful upside rerating.

IncomeRisk
CreditRisk
BDC‍

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:

  • Cheap Valuation
  • Weak Cash Conversion
  • Tight Dividend Coverage

ARCC looks cheap on earnings and book value with a sizable asset base, but thin interest coverage, weak cash conversion, and barely covered dividends make the income story higher risk than the valuation suggests.

Undervalued
CashFlowRisk

Price Behavior

4.0
Research tool. Not personalized advice. Technical analysis is for informational purposes only.

Key Price Behavior Insights:

  • Range-bound trade
  • Repeated support
  • Capped rallies

ARCC is range-bound and neutral over the last month, with repeated support near $19.20-$19.30 but stalled rallies around $19.20-$19.35 keeping near-term upside capped.

rangebound
neutral
Support Level: $19.20-$19.30
Resistance Level: $19.20-$19.35

Brief early-May rebound after a late-April dip, but momentum faded before a new high

Sentiment & News

6.0

Key News Insights:

  • Dividend coverage
  • Portfolio resilience
  • Financing access

ARCC's latest news shows short-term earnings and NAV pressure, but strong dividend coverage, portfolio resilience, and ongoing access to financing continue to support the high-yield story.

dividend
discount

The news flow is mildly constructive overall, suggesting ARCC can likely sustain investor interest if credit quality and income coverage remain stable