Ares Capital Price To Earning vs. Revenue
| ARCC Stock | USD 22.02 0.24 1.10% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.65 | 0.8293 |
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| Net Profit Margin | 0.55 | 0.73 |
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| Operating Profit Margin | 0.74 | 0.5866 |
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| Pretax Profit Margin | 0.68 | 0.7396 |
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| Return On Assets | 0.0331 | 0.0639 |
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| Return On Equity | 0.14 | 0.1359 |
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For Ares Capital profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ares Capital to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ares Capital utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ares Capital's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ares Capital over time as well as its relative position and ranking within its peers.
Ares |
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ares Capital. If investors know Ares will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ares Capital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.28) | Dividend Share 1.92 | Earnings Share 2.6 | Revenue Per Share 4.868 | Quarterly Revenue Growth 0.183 |
The market value of Ares Capital is measured differently than its book value, which is the value of Ares that is recorded on the company's balance sheet. Investors also form their own opinion of Ares Capital's value that differs from its market value or its book value, called intrinsic value, which is Ares Capital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ares Capital's market value can be influenced by many factors that don't directly affect Ares Capital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ares Capital's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ares Capital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ares Capital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Ares Capital Revenue vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Ares Capital's current stock value. Our valuation model uses many indicators to compare Ares Capital value to that of its competitors to determine the firm's financial worth. Ares Capital is rated below average in price to earning category among its peers. It is rated second in revenue category among its peers totaling about 373,655,914 of Revenue per Price To Earning. At present, Ares Capital's Total Revenue is projected to increase significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Ares Capital's earnings, one of the primary drivers of an investment's value.Ares Revenue vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Ares Capital |
| = | 5.58 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Ares Capital |
| = | 2.08 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Ares Revenue vs Competition
Ares Capital is rated second in revenue category among its peers. Market size based on revenue of Financials industry is presently estimated at about 110.84 Billion. Ares Capital claims roughly 2.08 Billion in revenue contributing just under 2% to equities under Financials industry.
Ares Capital Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Ares Capital, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ares Capital will eventually generate negative long term returns. The profitability progress is the general direction of Ares Capital's change in net profit over the period of time. It can combine multiple indicators of Ares Capital, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 11.2 B | 11.8 B | |
| Operating Income | 1.3 B | 646.6 M | |
| Income Before Tax | 1.3 B | 1.4 B | |
| Total Other Income Expense Net | 256 M | 268.8 M | |
| Net Income | 1.5 B | 1.6 B | |
| Income Tax Expense | 20 M | 14.7 M | |
| Net Income Applicable To Common Shares | 690 M | 571.1 M | |
| Net Income From Continuing Ops | 1.3 B | 1 B | |
| Interest Income | 1.9 B | 1.2 B | |
| Net Interest Income | 1.4 B | 989.9 M | |
| Non Operating Income Net Other | -2.7 M | -2.8 M | |
| Change To Netincome | 70.2 M | 73.7 M | |
| Net Income Per Share | 2.75 | 2.88 | |
| Income Quality | 0.34 | 0.35 | |
| Net Income Per E B T | 0.99 | 1.04 |
Ares Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Ares Capital. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Ares Capital position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Ares Capital's important profitability drivers and their relationship over time.
Use Ares Capital in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Ares Capital position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ares Capital will appreciate offsetting losses from the drop in the long position's value.Ares Capital Pair Trading
Ares Capital Pair Trading Analysis
The ability to find closely correlated positions to Ares Capital could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ares Capital when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Ares Capital - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Ares Capital to buy it.
The correlation of Ares Capital is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Ares Capital moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ares Capital moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Ares Capital can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Ares Capital position
In addition to having Ares Capital in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Apparel
Companies manufacturing textile accessories and apparel products. The Apparel theme has 43 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Apparel Theme or any other thematic opportunities.
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Check out Trending Equities. For information on how to trade Ares Stock refer to our How to Trade Ares Stock guide.You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
To fully project Ares Capital's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ares Capital at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Ares Capital's income statement, its balance sheet, and the statement of cash flows.