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Ares Capital Corporation is currently in a long term uptrend where the price is trading 12.7% above its 200 day moving average.
From a valuation standpoint, the stock is 22.5% more expensive than other stocks from the Financial Services sector with a price to sales ratio of 11.1.
Ares Capital Corporation's total revenue rose by 16.8% to $451M since the same quarter in the previous year.
Its net income has increased by 85.3% to $378M since the same quarter in the previous year.
Finally, its free cash flow fell by 122.7% to $-726M since the same quarter in the previous year.
Based on the above factors, Ares Capital Corporation gets an overall score of 3/5.
ISIN | US04010L1035 |
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CurrencyCode | USD |
Industry | Asset Management |
Sector | Financial Services |
Exchange | NASDAQ |
Beta | 1.07 |
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PE Ratio | 15.65 |
Market Cap | 10B |
Target Price | 21.18 |
Dividend Yield | 10.% |
Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors. The fund will also consider investments in industries such as restaurants, retail, oil and gas, and technology sectors. It focuses on investments in Northeast, Mid-Atlantic, Southeast and Southwest regions from its New York office, the Midwest region, from the Chicago office, and the Western region from the Los Angeles office. The fund typically invests between $20 million and $200 million and a maximum of $400 million in companies with an EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million The fund invests through revolvers, first lien loans, warrants, unitranche structures, second lien loans, mezzanine debt, private high yield, junior capital, subordinated debt, and non-control preferred and common equity. The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically considers the purchase of stressed and discounted debt positions. The fund prefers to be an agent and/or lead the transactions in which it invests. The fund also seeks board representation in its portfolio companies.
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