ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Ares Capital Corp. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 13.18%
2
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 13.18%
3
Flat results in Dec 25
- ROCE(HY) Lowest at 9.39%
- DEBT-EQUITY RATIO (HY) Highest at 105.23 %
- DEBTORS TURNOVER RATIO(HY) Lowest at 5.61 times
4
With ROE of 9.07%, it has a very attractive valuation with a 0.90 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -17.69%, its profits have fallen by -15.4%
5
High Institutional Holdings at 34.73%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Below par performance in long term as well as near term
- Along with generating -17.69% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Ares Capital Corp. should be less than 10%
- Overall Portfolio exposure to Capital Markets should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Ares Capital Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Ares Capital Corp.
-16.22%
-0.69
23.93%
S&P 500
14.9%
0.77
19.29%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
18.46%
EBIT Growth (5y)
21.48%
EBIT to Interest (avg)
3.97
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
5.26%
Dividend Payout Ratio
103.31%
Pledged Shares
0
Institutional Holding
34.73%
ROCE (avg)
19.34%
ROE (avg)
13.18%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
0.90
EV to EBIT
5.51
EV to EBITDA
5.51
EV to Capital Employed
0.89
EV to Sales
3.80
PEG Ratio
NA
Dividend Yield
8.31%
ROCE (Latest)
16.19%
ROE (Latest)
9.07%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
CASH AND EQV(HY)
Highest at USD 2,178 MM
-8What is not working for the Company
ROCE(HY)
Lowest at 9.39%
DEBT-EQUITY RATIO
(HY)
Highest at 105.23 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.61 times
NET SALES(Q)
Lowest at USD 635 MM
Here's what is working for Ares Capital Corp.
Cash and Eqv
Highest at USD 2,178 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Ares Capital Corp.
Net Sales
At USD 635 MM has Fallen at -21.68%
over average net sales of the previous four periods of USD 810.75 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (USD MM)
Net Sales
Lowest at USD 635 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (USD MM)
Debt-Equity Ratio
Highest at 105.23 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 5.61 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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