Bain Capital Specialty Finance (BCSF) AI Stock Analysis

• Market Cap: $925.67M
• Dividend Yield: 12.61%
• Average Volume (3M): 400.12K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.54
• Revenue Growth: -26.08%
• EPS Growth: -27.65%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.45
• Shares Outstanding: 64,868,510
• 10 Day Avg. Volume: 490,929
• 30 Day Avg. Volume: 400,118
• PEG Ratio: -3.02
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 5.31
• P/FCF Ratio: -41.74
• Enterprise Value/Market Cap: 2.41
• Enterprise Value/Revenue: 11.64
• Enterprise Value/Gross Profit: 20.29
• Enterprise Value/Ebitda: 22.97
• 1Y Price Target: $15.17
• Price Target Upside: 6.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.88
• Revenue Forecast (FY): $274.69M

• Rating: 63 Neutral
• Price Target: $14.50 ▲(1.61% Upside)

Bain Capital Specialty Finance's overall score reflects strong profitability and a high dividend yield, offset by bearish technical indicators and cash flow challenges. The positive earnings call sentiment and attractive valuation support the score, but declining revenue and technical weakness are significant concerns.

Positive Factors

Strong Profitability

BCSF's strong profitability, demonstrated by high net profit and stable EBIT margins, indicates efficient operations and a solid financial foundation, supporting long-term sustainability.

Dividend Strength

The increase in dividends reflects strong cash flow management and shareholder return focus, enhancing investor confidence and supporting BCSF's income investment appeal.

Portfolio Credit Quality

Improved portfolio credit quality with low non-accrual investments suggests effective risk management, ensuring stability and reliability in BCSF's investment strategy.

Negative Factors

Revenue Decline

Significant revenue decline poses challenges to growth prospects, potentially impacting BCSF's ability to sustain its financial performance and expand its market presence.

Negative Cash Flow

Negative cash flow indicates inefficiencies in cash generation, which could hinder BCSF's ability to fund operations and investments, affecting long-term financial health.

Aimbridge Hospitality Underperformance

Underperformance in a key investment highlights potential vulnerabilities in BCSF's portfolio, which could lead to further financial adjustments and impact overall returns.

Bain Capital Specialty Finance Business Overview & Revenue Model

Company Description

Bain Capital Specialty Finance, Inc. is business development company specializing in direct loans to middle-market companies. The fund seeks to invest in senior investments with a first or second lien on collateral, senior first lien, stretch senior, senior second lien, unitranche, mezzanine debt, junior securities, other junior investments, and secondary purchases of assets or portfolios that primarily consist of middle-market corporate debt. It typically invests in companies with EBITDA between $10 million and $150 million.

How the Company Makes Money

BCSF generates revenue primarily through interest income on the loans and debt securities it holds in its investment portfolio. The company earns interest from its investments in first and second lien loans, which are typically higher-yielding compared to traditional fixed-income securities. Additionally, BCSF may generate revenue from management fees charged to its portfolio companies and from capital gains realized upon the sale of its equity investments. The company's revenue model is further supported by the growing demand for middle-market financing solutions, as well as strategic partnerships with financial institutions and industry experts that enhance its deal sourcing and investment capabilities.

Bain Capital Specialty Finance Financial Statement Overview

Summary

Bain Capital Specialty Finance shows strong profitability with a high net profit margin and improved leverage, but faces challenges with declining revenue and deteriorating cash flow. The balance sheet is stable with no debt, but cash flow management needs improvement.

Income Statement

The income statement shows strong profitability with a gross profit margin of 100% due to revenue matching gross profit, indicating no direct costs. The net profit margin improved to 60.32% in 2024 from 41.43% in 2023, reflecting enhanced efficiency. However, the revenue declined by 25.03% from 2023 to 2024, pointing to potential growth challenges. EBIT margin remained stable, supporting continued operational profitability. Overall, while profitability is strong, declining revenue needs attention.

Balance Sheet

The balance sheet reflects financial stability with a strong equity position, as indicated by a debt-to-equity ratio of 0 in 2024, showing all debts have been cleared. The equity ratio is healthy at 43.30%, suggesting a solid equity base relative to assets. Return on equity improved to 11.82% in 2024 from 10.85% in 2023, demonstrating enhanced shareholder returns. The elimination of total debt in 2024 improves financial leverage, but historical fluctuations in debt levels suggest potential volatility.

Cash Flow

Cash flow statements highlight challenges, with negative free cash flow of -$27.1 million in 2024 compared to positive $219.3 million in 2023, indicating significant cash flow deterioration. The operating cash flow to net income ratio in 2024 is negative, showcasing inefficiency in cash generation from operations. The free cash flow to net income ratio is also negative, reflecting issues in maintaining liquidity. Overall, cash flow management requires improvement to support financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	192.05M	212.88M	218.00M	168.82M	175.41M	77.22M
Gross Profit	110.18M	138.19M	137.99M	116.51M	124.06M	13.91M
EBITDA	97.34M	123.89M	126.73M	106.32M	119.94M	8.51M
Net Income	93.11M	119.42M	123.38M	105.48M	119.81M	8.28M
Balance Sheet
Total Assets	2.72B	2.63B	2.47B	2.59B	2.57B	2.60B
Cash, Cash Equivalents and Short-Term Investments	67.04M	53.52M	49.40M	59.78M	117.42M	54.68M
Total Debt	0.00	1.39B	1.26B	1.39B	1.41B	1.46B
Total Liabilities	1.59B	1.49B	1.34B	1.48B	1.47B	1.54B
Stockholders Equity	1.13B	1.14B	1.14B	1.12B	1.10B	1.07B
Cash Flow
Free Cash Flow	78.80M	112.58M	125.87M	114.21M	54.49M	75.94M
Operating Cash Flow	78.80M	112.58M	125.87M	114.21M	54.49M	75.94M
Investing Cash Flow	-105.41M	-139.68M	93.40M	-431.04M	211.06M	13.48M
Financing Cash Flow	139.74M	14.25M	-231.43M	238.33M	-138.63M	-76.52M

Bain Capital Specialty Finance Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.27
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCSF, the sentiment is Neutral. The current price of 14.27 is above the 20-day moving average (MA) of 13.94, above the 50-day MA of 14.04, and below the 200-day MA of 14.75, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.07 is Neutral, neither overbought nor oversold. The STOCH value of 87.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BCSF.

Bain Capital Specialty Finance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLRC	72 Outperform	$866.33M	9.62	9.07%	10.57%	-6.30%	-6.92%
GSBD	71 Outperform	$1.13B	8.70	8.75%	16.85%	-16.58%	65.24%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CGBD	67 Neutral	$913.47M	10.89	7.03%	14.19%	-8.23%	-35.72%
NMFC	66 Neutral	$991.33M	14.73	5.43%	13.40%	36.15%	-38.59%
BCSF	63 Neutral	$925.67M	9.92	8.18%	12.61%	-26.08%	-27.65%
PFLT	63 Neutral	$903.87M	12.70	6.80%	13.50%	36.91%	-48.79%

Bain Capital Specialty Finance Corporate Events

Bain Capital Specialty Finance Reports Strong Q3 Earnings

Bain Capital Specialty Finance, Inc. is a specialty finance company focused on lending to middle market companies, managed by BCSF Advisors, LP, a subsidiary of Bain Capital Credit, LP. The company operates in the finance sector and is known for its strategic investments in secured debt and equity.

Bain Capital Specialty Finance: Mixed Sentiment in Q3 Earnings Call

In the recent earnings call, Bain Capital Specialty Finance (BCSF) conveyed a mixed sentiment. While the company celebrated strong net investment income and stable credit quality, it also acknowledged challenges such as a decline in net asset value, lower total investment income, and net realized and unrealized losses. Despite these hurdles, the robust dividend yield and stable credit quality provided a positive outlook for investors.

Bain Capital Specialty Finance Announces Q3 Results and Dividend

On November 10, 2025, Bain Capital Specialty Finance announced its financial results for the third quarter ending September 30, 2025, and declared a fourth quarter dividend of $0.42 per share, along with an additional $0.03 per share dividend previously announced. The company reported strong earnings driven by high net investment income, which exceeded their regular dividend, and maintained healthy credit performance. The announcement reflects Bain Capital Specialty Finance’s robust operational performance and strategic positioning in the middle-market lending space, potentially benefiting stakeholders with continued high-quality investment opportunities.

The most recent analyst rating on (BCSF) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Bain Capital Specialty Finance stock, see the BCSF Stock Forecast page.

Bain Capital Appoints New General Counsel Sabrina Rusnak-Carlson

On November 5, 2025, Bain Capital Specialty Finance appointed Sabrina Rusnak-Carlson as General Counsel. Her extensive experience in credit and public equity law, along with her previous roles at First Eagle Alternative Credit and Proskauer Rose LLP, positions her to significantly contribute to the company’s legal and strategic operations.

The most recent analyst rating on (BCSF) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Bain Capital Specialty Finance stock, see the BCSF Stock Forecast page.