Stock fact sheet · data as of
Ares Dynamic Credit Allocation Fund, Inc. (ARDC): fair value, margin of safety and Wheel Score
Financial Services · Asset Management · United States · High Yield Income
Is ARDC undervalued?
At 11.35 (close of 16 Oct 2026), ARDC trades within a few percent of the GLS average fair value of 10.57 (7.4% above fair value). 9 models produced a value and they split 4 above the price to 5 below. A stock priced at fair value earns about half of the Wheel Score's Value points; the rest of the score comes from health, moat, premium and stability.
The 9 models disagree widely: GLS Growth gives 2.05 while 10 Cap gives 22.86. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files ARDC under High Yield Income: a dividend yield above 4%.
Nine valuation models for ARDC
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 12.41 | +9% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 7.72 | -32% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 11.27 | -1% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 4.93 | -57% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 2.05 | -82% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 22.86 | +101% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 11.82 | +4% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 19.86 | +75% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 2.19 | -81% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -8.96 | -179% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health ARDC scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is low at 2.5 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are thin or negative - ROIC 4.0%, ROE 6.5%, ROA 3.8% - with debt at 0.65 times equity and a free-cash-flow yield of 9.8%.
The dividend yield is high at 11.89% (payout ratio 681%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.
Institutional ownership scores 4/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 4.0% |
|---|---|---|---|
| GLS Moat | 2.5 / 10 | ROE | 6.5% |
| Debt / equity | 0.65 | ROA | 3.8% |
| Free-cash-flow yield | 9.8% | Payout ratio | 681% |
| Institutions | 4 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 35: No options
ARDC has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (35 here). The valuation and quality numbers still apply to owning the shares outright.
Volume runs at 114k shares a day on a market cap of $272M, with a beta of 0.62 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 6 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 9 / 25 | -7% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 4 / 15 | moat 2.5/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 6 / 20 | 114k shares/day, $272M cap, beta 0.62 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for ARDC in the nightly calendar. The shares go ex-dividend on 19 Oct 2026 (0.1125 per share), so a covered call sold before then carries a small early-assignment risk around that date.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Asset Management
The 12 companies below are the closest to Ares Dynamic Credit Allocation Fund, Inc. by market cap within the Asset Management industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| VALSX Value Line Select Growth Fund | 30.01 | 25.91 | -16% | 36No options | $274M |
| RIV RiverNorth Opportunities Fund, Inc. | 10.06 | 30.14 | +67% | 39No options | $275M |
| AINTX Ariel International Investor | 18.02 | 78.36 | +77% | 39No options | $268M |
| RFI Cohen & Steers Total Return Realty Fund, Inc. | 10.32 | 22.04 | +53% | 39No options | $276M |
| NCA Nuveen California Municipal Value Fund | 8.34 | 4.47 | -87% | 23No options | $276M |
| NBH Neuberger Municipal Fund Inc. | 9.04 | 18.87 | +52% | 39No options | $268M |
| MIN Aberdeen Intermediate Income Fund | 14.10 | 12.90 | -9% | 28No options | $267M |
| DBL DoubleLine Opportunistic Credit Fund | 13.52 | 19.61 | +31% | 39No options | $267M |
| RFMZ RiverNorth Flexible Municipal Income Fund II, Inc. | 11.50 | 25.91 | +56% | 39No options | $280M |
| AFB AllianceBernstein National Municipal Income Fund | 9.76 | 14.94 | +35% | 39No options | $281M |
| TNBIX 1290 SmartBeta Equity Fund Class I | 21.59 | 7.36 | -193% | 20No options | $282M |
| GECCG Great Elm Capital Corp. 7.75% Notes Due 2030 | 24.54 | 55.78 | +56% | 34No options | $284M |
⚖ Compare ARDC with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about ARDC
Is ARDC undervalued right now?
Not meaningfully: at 11.35 the stock trades within a few percent of the GLS average fair value of 10.57 (7.4% above fair value, data as of 16 Oct 2026).
What is the Wheel Score of ARDC and what does it mean?
ARDC has no listed options in our nightly snapshot, so it cannot be wheeled; its Wheel Score is capped at 39 and shown as "No options".
What is the GLS fair value for ARDC?
10.57 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Ares Dynamic Credit Allocation Fund, Inc. report earnings next?
No upcoming earnings date is recorded for ARDC in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does ARDC have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on ARDC, so the wheel strategy cannot be run on it and the Wheel Score is capped at 39.