Should I Buy ARCC Stock in 2026?

Data-driven analysis and honest assessment for Ares Capital Corp

Analysis Updated:
CAUTIONSeveral concerns warrant careful consideration

Current Price: $18.95P/E: 10.2

Decision Score

5.0/10

Hold

Based on 6 fundamental factors

Score Breakdown:

Valuation (20%)8/10

Attractive P/E of 10.2

Growth (20%)3/10

Declining -0%

Profitability (20%)4/10

Thin margins (0% net)

Financial Health (15%)5/10

Financial health data limited

Cash Flow (15%)5/10

Cash flow data limited

Insider Activity (10%)5/10

No recent insider activity

Key Investment Metrics

Current Price

$18.95

P/E Ratio

10.19

Revenue Growth

0.0%

Profit Margin

0.4%

Market Cap

$13.6B

Dividend Yield

0.10%

How ARCC Compares to Competitors

Understanding how ARCC stacks up against peers helps inform your investment decision.

How ARCC Compares to Peers

Upcoming Events for ARCC

+5 Reasons TO Buy ARCC

1. High gross margins of 100%

strong

Gross margins above 50% typically indicate strong brand value or intellectual property moats.

2. Attractively valued at 10.2x earnings

moderate

A P/E ratio of 10.2 is below the market average of ~20x, suggesting the stock may be undervalued.

-5 Reasons NOT to Buy ARCC

1. Thin profit margins of 0.4%

high risk

Low margins provide little cushion against cost increases or pricing pressure.

2. High PEG ratio of 4.0

high risk

PEG above 2 suggests expensive relative to growth rate.

3. Minimal revenue growth

low risk

Growth of 0.0% barely keeps pace with inflation.

Who Should Buy ARCC?

Investment Profile

Risk Level

Medium

Recommended Holding Period

3-5 years

Best For:

  • Value Investors

    P/E of 10.2 offers margin of safety

Not Suitable For:

  • Growth Investors

    Limited 0% growth may disappoint

  • Income-Focused Retirees

    Low 0.1% yield

Consider These Alternatives

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Pro tip: Compare ARCC directly with competitors using our comparison tool to see which stock better fits your criteria.

Get the Full Picture

Access AI-powered insights, DCF valuations, insider trading data, and real-time analysis for ARCC

Frequently Asked Questions

What is ARCC stock price today?

ARCC (Ares Capital Corp) stock is trading at $18.95 as of the latest market data. Stock prices update in real-time during market hours (9:30 AM - 4:00 PM ET).

Is ARCC stock going up or down today?

ARCC stock price movements are influenced by market conditions, news, earnings reports, and investor sentiment. Check our live dashboard for real-time price changes and technical indicators.

Should I buy ARCC stock now?

The decision to buy ARCC depends on your investment strategy, risk tolerance, and financial goals. Our AI analysis evaluates fundamentals, valuation metrics, growth prospects, and market conditions to help inform your decision.

Is ARCC a buy, hold, or sell right now?

Our AI-powered analysis provides buy/hold/sell recommendations for ARCC based on multiple factors including valuation, growth metrics, technical indicators, and analyst consensus. Visit our dashboard for the latest recommendation.

Is ARCC stock overvalued or undervalued?

ARCC currently trades at a P/E ratio of 10.19, which may suggest attractive valuation. Our DCF calculator provides intrinsic value estimates to help determine if ARCC is fairly priced.

What is ARCC's P/E ratio?

ARCC has a price-to-earnings (P/E) ratio of 10.19, which measures how much investors are willing to pay per dollar of earnings. Compare this to industry peers and historical averages for context.

What is ARCC's market cap?

ARCC (Ares Capital Corp) has a market capitalization of $13.61 billion, making it a mid-cap stock.

What is ARCC's price to book ratio?

ARCC trades at a price-to-book (P/B) ratio of 0.95, which compares the stock price to the company's book value per share. A P/B below 1.0 may indicate undervaluation, while above 3.0 may suggest premium pricing.

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Disclaimer

This analysis is for informational purposes only and should not be considered financial advice. The decision score and recommendations are based on quantitative factors and do not account for all risks, your personal financial situation, or qualitative factors. Always do your own research and consider consulting with a financial advisor before making investment decisions.