Ares Capital Corporation (ARCC) Stock Analysis
Latest ClaritX AI analysis ·
Ares Capital Corporation (ARCC) operates as a Business Development Company (BDC), delivering diverse financing solutions predominantly to middle-market enterprises. The firm's expertise lies in facilitating various corporate actions, including funding acquisitions, recapitalizations, and leveraged buyouts. It also extends mezzanine debt, assists with corporate restructurings, and provides crucial rescue financing, in addition to offering growth capital and general refinancing options. ARCC primarily targets investments in companies within the basic and growth manufacturing, business services, consumer products, healthcare (both products and services), and information technology service secto
| Metric | Value |
|---|---|
| Price | $18.86 |
| Market cap | $13.5B |
| Sector | Financial Services |
| Industry | Asset Management |
| ClaritX AI score | 77/100 |
| Price/Book | 0.97 |
| Dividend yield | 10.18% |
| Beta | 0.63 |
AI verdict
The fundamental investment thesis for Ares Capital Corporation (ARCC) remains exceptionally robust, presenting a uniquely compelling core holding for risk-conscious income investors despite severe near-term technical friction. Trading at $18.86, the asset commands a highly attractive valuation with a Price-to-Book ratio of 0.975x, allowing capital deployment into the undisputed BDC heavyweight at a tangible 2.5% discount to its intrinsic Net Asset Value. Bolstered by a massive 10.18% dividend yield, a flawless 5/5 institutional DCF rating, and a pristine 'A-' analyst consensus, ARCC asserts itself as a premium, recession-resistant income vehicle. Furthermore, impeccable insider buying data with a 100% buy-to-sell ratio over the trailing quarters wholly neutralizes broad macroeconomic skepticism, proving internal conviction in the loan book's health. Crucially, the technical configuration dictates immediate risk parameters while emphasizing long-term safety. At $18.86, ARCC trades at a 10.78% discount to its 52-week high of $21.14. A stock near its 52-week high on euphoric sentiment and a beaten-down, deeply oversold stock with identical immaculate fundamentals are completely different risk propositions; this 10.78% structural buffer severely mitigates downside risk by wiping out speculative premiums. Additionally, ARCC's low beta coefficient of 0.627 ensures it historically experiences 37.3% less volatility than the equity market. Although technically vulnerable with an RSI
What this score has been worth
ClaritX scores ARCC 77 out of 100 (snapshot 2026-10-05).
Every ClaritX analysis is scored first and judged only on what the stock did afterwards. Across the 293 analyses that scored in the 70-79 band, the average forward return was +0.8% with a 49% win rate, -4.1pp against the S&P 500. That is a measured tendency across many names, not a forecast for ARCC — roughly 51% of stocks in this band still lost money.
The full band-by-band table, including the bands that lost, is on the AI Rank Report; the live strategy arms behind it are on the AI Track Record, losses published.