Ares Capital Corp (ARCC) Stock Analysis
Verdict: BUY
Heavy insider buying at $19+ and a 10.7% yield create a high-conviction floor while the stock trades at a rare 7% discount to book value.
Investment score: 68/100
Analysis as of
Is Ares Capital Corp stock worth reviewing? AI model thesis
A rare opportunity to buy the BDC sector leader at a discount to Book Value while insiders are aggressively buying. The double-digit dividend yield is the primary return driver.
7-factor investment score
- Valuation: 85/100 (weight 20%)
- Financial Health: 70/100 (weight 15%)
- Technical Momentum: 40/100 (weight 15%)
- Earnings Quality: 45/100 (weight 15%)
- Insider Sentiment: 95/100 (weight 10%)
- Analyst Consensus: 75/100 (weight 10%)
- Risk-Adjusted Return: 80/100 (weight 15%)
Ares Capital Corp opportunities and risks
What speaks for ARCC
- Deep Value at 0.93x P/B
What speaks against ARCC
- Interest Rate Sensitivity
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| ARCC | 11.2x | 5.0x | 13.9x | 70.8% | 43.7% | 8.2% |
| TROW | 11.8x | 3.2x | 7.0x | 69.1% | 28.3% | 9.9% |
| BEN | 24.8x | 1.9x | 16.5x | 73.8% | 9.0% | 5.4% |
| TPG | 48.8x | 4.3x | 28.4x | 94.8% | 4.0% | 6.4% |
| CG | 27.2x | 3.7x | 26.4x | 73.1% | 13.7% | -6.2% |
| OWL | 66.1x | 4.6x | 18.2x | 64.4% | 3.0% | 9.6% |
| Peer median | 27.2x | 3.7x | 18.2x | 73.1% | 9.0% | 6.4% |
Frequently asked questions about Ares Capital Corp (ARCC)
Is ARCC stock a good investment?
The cached TradeMates AI model rates Ares Capital Corp as BUY with an investment score of 68/100. A rare opportunity to buy the BDC sector leader at a discount to Book Value while insiders are aggressively buying. The double-digit dividend yield is the primary return driver. This is algorithmic model output, not personal investment advice.
Is ARCC stock a buy?
The TradeMates model verdict for ARCC is BUY with an investment score of 68/100. Treat this as a model signal to review, not a personal buy recommendation.