Ares Capital Corporation [NASDAQ:ARCC]: Analyst Rating and Earnings
Experts stock market traders frequently make a point to check what top Wall Street analysts say regarding a potential buy. Regarding Ares Capital Corporation [ARCC] currently, the latest Wall Street ratings we can see is from the fiscal quarter that’s going to end in December. On average, stock market experts give ARCC an Outperform rating. Its stock price has been found in the range of 14.48 to 18.07. This is compared to its latest closing price of $17.60.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Ares Capital Corporation [ARCC] is sitting at 1.75. This is compared to 1 month ago, when its average rating was 1.75.
For the quarter ending in Mar-19 Ares Capital Corporation [ARCC] generated $0.37 billion in sales. That’s 9.34% higher than the average estimate of $0.34 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Stay on the lookout for the next publication of this organization’s financial results for the quarter, which will be made public on Wed 7 Aug (In 82 Days).
Fundamental Analysis of Ares Capital Corporation [ARCC]
Now let’s turn to look at profitability: with a current Operating Margin for Ares Capital Corporation [ARCC] sitting at +50.11 and its Gross Margin at +79.78.
Turning to investigate this organization’s capital structure, Ares Capital Corporation [ARCC] has generated a Total Debt to Total Equity ratio of 71.42. Similarly, its Total Debt to Total Capital is 41.67, while its Total Debt to Total Assets stands at 40.43. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 67.32, and its Long-Term Debt to Total Capital is 39.27. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 14.20 and its Total Debt to EBITDA Value is 4.66. The Enterprise Value to Sales for this firm is now 6.65, and its Total Debt to Enterprise Value stands at 0.45. Ares Capital Corporation [ARCC] has a Price to Book Ratio of 0.91, a Price to Cash Flow Ratio of 9.97 and P/E Ratio of 9.13. These metrics all suggest that Ares Capital Corporation is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Ares Capital Corporation [ARCC] earns $1,756,000 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 17.83 and its Total Asset Turnover is 0.14.
Ares Capital Corporation [ARCC] has 426.30M shares outstanding, amounting to a total market cap of $7.50B. Its stock price has been found in the range of 14.48 to 18.07. At its current price, it has moved by -1.38% from its 52-week high, and it has moved 23.04% from its 52-week low.
This stock’s Beta value is currently , which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 58.69. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Ares Capital Corporation [ARCC] a Reliable Buy?
Ares Capital Corporation [ARCC] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.