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 Jun 25
4
With ROE of 9.61%, it has a very attractive valuation with a 1.13 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 -7.55%, its profits have fallen by -23%
5
High Institutional Holdings at 34.99%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 1.31% over the previous quarter.
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -7.55% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
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.
-5.68%
-0.24
22.64%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
16.57%
EBIT Growth (5y)
42.06%
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
78.72%
Pledged Shares
0
Institutional Holding
34.99%
ROCE (avg)
19.34%
ROE (avg)
13.18%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
1.13
EV to EBIT
6.89
EV to EBITDA
6.89
EV to Capital Employed
1.13
EV to Sales
5.02
PEG Ratio
NA
Dividend Yield
6.95%
ROCE (Latest)
16.46%
ROE (Latest)
9.61%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,276 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 95.8 %
RAW MATERIAL COST(Y)
Fallen by 1.83% (YoY
NET SALES(Q)
Highest at USD 822 MM
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Ares Capital Corp.
Operating Cash Flow
Highest at USD 1,276 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Debt-Equity Ratio
Lowest at 95.8 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Net Sales
Highest at USD 822 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Raw Material Cost
Fallen by 1.83% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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