Ares Capital Stock Fair Value Calculator – Integrated Wealth Concepts LLC Increases Stake in Ares Capital Co. by 14.3%
August 12, 2023
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Ares Capital ($NASDAQ:ARCC) Co. is a publicly traded business development company (BDC) that provides flexible financing solutions to U.S. middle market companies. The company, which is listed on the NASDAQ, invests primarily in debt securities including senior secured loans, mezzanine debt, and equity securities. Integrated Wealth Concepts LLC, an institutional investor, revealed in its most recent Form 13F filing with the Securities and Exchange Commission that it had increased its stake in Ares Capital Co. by 14.3%.
It also indicates the potential for further growth in Ares Capital Co.’s stock price in the near term. With the increase in its stake in Ares Capital Co., Integrated Wealth Concepts LLC is now one of the biggest institutional investors in the company’s stock and is well-positioned to benefit from its long-term success.
Analysis – Ares Capital Stock Fair Value Calculator
At GoodWhale, we recently conducted an analysis of ARES CAPITAL‘s health. Our proprietary Valuation Line revealed that the fair value of ARES CAPITAL shares was around $16.3. However, the stock is currently being traded at $19.6 — representing a 20.1% premium over our calculated fair value. This indicates that ARES CAPITAL’s stock is being overvalued in the market. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ares Capital. More…
| Total Revenues | Net Income | Net Margin |
| 1.02k | 887 | 87.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ares Capital. More…
| Operations | Investing | Financing |
| 484 | – | -292 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ares Capital. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 22.23k | 11.88k | 19.01 |
Key Ratios Snapshot
Some of the financial key ratios for Ares Capital are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 125.4% | – | – |
| FCF Margin | ROE | ROA |
| 47.5% | 5.7% | 2.6% |
Peers
ARCC was organized in 2004 and is headquartered in New York, NY. ARCC’s investment objective is to seek to generate both current income and capital appreciation through investments in middle market companies.
– Apollo Investment Corp ($NASDAQ:AINV)
BlackRock TCP Capital Corp is a publicly traded business development company that focuses on providing middle-market companies with growth capital. The company has a market capitalization of $687.43 million and a return on equity of 4.28%. BlackRock TCP Capital Corp is headquartered in Santa Monica, California.
– BlackRock TCP Capital Corp ($NASDAQ:TCPC)
Prospect Capital Corporation is a closed-end investment company that lends to and invests in middle market companies. Prospect’s investment activities are managed by its investment advisor, Prospect Capital Management L.P.
As of December 31, 2020, Prospect had $10.3 billion of assets under management, including $7.1 billion of invested capital in 157 portfolio companies and $3.2 billion of unconsolidated assets. Prospect has paid distributions to shareholders for 106 consecutive quarters since its inception.
Summary
Ares Capital Corporation (ARCC) is a publicly traded business development company (BDC) focused on providing financing solutions to U.S. middle-market companies and sponsors. ARCC offers a variety of debt, including senior secured loans, subordinated debt, and mezzanine debt. They also provide equity investments, through minority investments or control positions, and offer access to capital at all stages of the company’s lifecycle.
By investing in ARCC, investors can benefit from a potentially attractive yield, as well as access to the capital markets. ARCC provides a unique investment opportunity that can potentially provide strong returns and help companies reach their strategic objectives.
