Bain Capital Specialty Finance (BCSF)
NYSE:BCSF
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Bain Capital Specialty Finance
(NYSE:BCSF)
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Rating:60Neutral
Price Target:
$14.00
â–²(3.40% Upside)
Action:Reiterated
Date:05/22/26
The score is driven primarily by moderately positive fundamentals (profitability and capital support) tempered by volatility in revenue/cash flow and some leverage risk. The latest earnings call was balanced—dividend coverage and liquidity were positives, while unrealized losses and NAV decline were key negatives. Technicals are neutral-to-soft, and valuation is mixed with a high P/E offset by a very high dividend yield.
Positive Factors
Strong liquidity and liability management
Large available liquidity and recent liability actions materially reduce refinancing and short‑term funding risk. $660M undrawn revolver plus cash and a $350M unsecured note prefunding extend maturity, supporting continued originations, dividend coverage and the ability to absorb temporary mark‑to‑market volatility.
Negative Factors
Mark‑to‑market losses and NAV sensitivity
Material Q1 unrealized losses highlight sensitivity to spread widening and idiosyncratic credit hits. Persistent mark‑to‑market volatility erodes the NAV cushion and undermines earnings quality, increasing the risk that dividend coverage could be pressured if realizations or further markdowns recur over multiple quarters.
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Positive Factors
Negative Factors
Strong liquidity and liability management
Large available liquidity and recent liability actions materially reduce refinancing and short‑term funding risk. $660M undrawn revolver plus cash and a $350M unsecured note prefunding extend maturity, supporting continued originations, dividend coverage and the ability to absorb temporary mark‑to‑market volatility.
Read all positive factors
Bain Capital Specialty Finance (BCSF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$858.86M
Dividend Yield13.18%
Average Volume (3M)359.06K
Price to Earnings (P/E)59.3
Beta (1Y)0.63
Revenue Growth2.31%
EPS Growth-35.07%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)1.14
Shares Outstanding64,868,510
10 Day Avg. Volume313,973
30 Day Avg. Volume359,064
Financial Highlights & Ratios
PEG Ratio-0.51
Price to Book (P/B)0.81
Price to Sales (P/S)3.77
P/FCF Ratio30.54
Enterprise Value/Market Cap2.66
Enterprise Value/Revenue11.63
Enterprise Value/Gross Profit19.01
Enterprise Value/Ebitda23.47
Forecast
1Y Price Target
$13.83Price Target Upside2.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.67
Revenue Forecast (FY)$256.87M
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 seni...
How the Company Makes Money
BCSF makes money primarily from investment income generated by its portfolio of debt investments. Its largest revenue stream is interest income earned on loans it holds (typically floating-rate senior secured loans), which depends on the size of t...
Bain Capital Specialty Finance Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: operationally the company shows resilience with dividend coverage, strong liquidity, conservative portfolio structures, low nonaccruals and consistent portfolio yield, and management has executed liability management actions. Offsetting these positives are meaningful mark‑to‑market unrealized losses in the quarter that reduced NAV and EPS, a modest decline in investment income and NII QoQ, and near‑term market headwinds that moderated new activity. Overall the positives and negatives are roughly balanced.Positive Updates
Net Investment Income and Dividend Coverage
Net investment income (NII) of $27.4M ($0.42 per share) for Q1, representing an annualized ROE of 10.0%. NII fully covered the regular dividend; the Board declared a Q2 dividend of $0.42 per share (annualized yield of 10.0% based on March 31, 2026 ending book value).
Negative Updates
Material Unrealized and Mark‑to‑Market Losses
Net realized and unrealized losses of $24M in Q1 (impacting EPS by $0.37), driving Q1 EPS of $0.05. Losses attributed to idiosyncratic credit weakness in a limited number of portfolio companies and broader spread widening / multiple compression.
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Q1-2026 Updates
Positive
Negative
Net Investment Income and Dividend Coverage
Net investment income (NII) of $27.4M ($0.42 per share) for Q1, representing an annualized ROE of 10.0%. NII fully covered the regular dividend; the Board declared a Q2 dividend of $0.42 per share (annualized yield of 10.0% based on March 31, 2026 ending book value).
Read all positive updates
Company Guidance
Management reiterated that the Board declared a Q2 dividend of $0.42 per share (annualized yield 10.0% based on 3/31/26 book value) and said Q1 net investment income of $0.42 per share (annualized ROE 10.0%) fully covered the dividend; Q1 EPS was $0.05 after $24.0M of net realized/unrealized losses ($0.37 per share) that reduced NAV to $16.86 (down $0.37). They expect to maintain the $0.42 regular dividend while reviewing it quarterly and remain positioned to deploy capital as market pricing has improved (Q1 new originations averaged ~550 bps spreads and spreads have widened a further 25–50 bps into Q2); Q1 new fundings were $243M, sales/repayments $255M (net $12.2M), portfolio fair value $2.5B across 212 companies, weighted average yield ~10.8–10.9%, and liquidity totaled $729M (including $660M undrawn revolver). Key balance-sheet and credit metrics cited as supporting this guidance included net leverage 1.28x (debt/equity 1.34x; target net leverage 1.0–1.25x), weighted average debt rate 4.6%, WA debt maturity ~4.1 years, ~80% floating-rate debt, median borrower net leverage 4.6x EBITDA, median interest coverage ~2.1x, watch list ~5%, nonaccruals 1.4% (amortized cost; 0.6% fair value), and software exposure ~13% with median LTV ~37% and ~2.0x interest coverage.Bain Capital Specialty Finance Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
66
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 196.66M | 239.19M | 212.88M | 218.00M | 168.82M | 175.41M |
| Gross Profit | 120.28M | 183.89M | 138.19M | 137.99M | 116.51M | 124.06M |
| EBITDA | 97.43M | 183.09M | 123.89M | 126.73M | 106.32M | 119.94M |
| Net Income | 73.60M | 98.76M | 119.42M | 123.38M | 105.48M | 119.81M |
Balance Sheet | ||||||
| Total Assets | 2.60B | 2.66B | 2.63B | 2.47B | 2.59B | 2.57B |
| Cash, Cash Equivalents and Short-Term Investments | 30.57M | 135.34M | 53.52M | 49.40M | 59.78M | 117.42M |
| Total Debt | 1.45B | 1.47B | 1.39B | 1.26B | 1.39B | 1.41B |
| Total Liabilities | 1.51B | 1.55B | 1.49B | 1.34B | 1.48B | 1.47B |
| Stockholders Equity | 1.09B | 1.12B | 1.14B | 1.14B | 1.12B | 1.10B |
Cash Flow | ||||||
| Free Cash Flow | 90.71M | 29.52M | 112.58M | 125.87M | 114.21M | 54.49M |
| Operating Cash Flow | 90.71M | 29.52M | 112.58M | 125.87M | 114.21M | 54.49M |
| Investing Cash Flow | -23.18M | 0.00 | -139.68M | 93.40M | -431.04M | 211.06M |
| Financing Cash Flow | -125.15M | -71.88M | 14.25M | -231.43M | 238.33M | -138.63M |
Bain Capital Specialty Finance Technical Analysis
Positive
13.54
Price Trends
12.96
Positive
12.93
Positive
13.12
Positive
Market Momentum
0.04
Positive
49.62
Neutral
13.11
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCSF, the sentiment is Positive. The current price of 13.54 is above the 20-day moving average (MA) of 13.51, above the 50-day MA of 12.96, and above the 200-day MA of 13.12, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 49.62 is Neutral, neither overbought nor oversold. The STOCH value of 13.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BCSF.
Bain Capital Specialty Finance Risk Analysis
Bain Capital Specialty Finance disclosed 9 risk factors in its most recent earnings report. Bain Capital Specialty Finance reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bain Capital Specialty Finance Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $822.52M | 6.94 | 5.84% | 13.64% | -8.63% | -30.41% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $858.86M | 59.32 | 6.57% | 13.18% | 2.31% | -35.07% | |
59 Neutral | $766.95M | -3.83 | -4.83% | 14.17% | -24.31% | -157.16% | |
56 Neutral | $715.21M | 11.40 | 9.04% | 10.80% | -3.59% | 2.19% | |
56 Neutral | $759.60M | -45.98 | 4.42% | 13.63% | 15.30% | -48.57% | |
52 Neutral | $1.00B | -18.33 | 5.14% | 17.34% | 14.92% | 48.21% |
* Financial Sector Average
BCSF
Bain Capital Specialty Finance
13.30
-0.09
-0.69%
NMFC
New Mountain Finance
8.02
-1.20
-13.02%
PFLT
Pennantpark
8.17
-0.65
-7.38%
SLRC
SLR Investment Corp.
13.12
-1.67
-11.29%
GSBD
Goldman Sachs BDC
8.92
-0.34
-3.69%
CGBD
Carlyle Secured Lending Inc
10.79
-1.35
-11.15%
Bain Capital Specialty Finance Corporate Events
Executive/Board ChangesShareholder Meetings
Bain Capital Specialty Finance Holds 2026 Annual Stockholder Meeting
Positive
May 22, 2026
On May 21, 2026, Bain Capital Specialty Finance, Inc. held its 2026 Annual Meeting of Stockholders, with a quorum established as more than one-third of the 64,868,506.64 outstanding common shares were represented in person via webcast or by proxy....
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
Bain Capital Specialty Finance Reports Solid Q1 2026 Results
Positive
May 12, 2026
On May 11, 2026, Bain Capital Specialty Finance reported financial results for the quarter ended March 31, 2026, highlighting net investment income of $0.42 per share, a 10.0% annualized NII yield on book value, and net income of $0.05 per share, ...
DividendsFinancial DisclosuresPrivate Placements and Financing
Bain Capital Specialty Finance Posts Strong 2025 Results
Positive
Feb 27, 2026
On February 26, 2026, Bain Capital Specialty Finance reported strong fourth-quarter and full-year 2025 results, with net investment income of $0.46 per share and net income of $0.43 per share, supporting an annualized return on book value near 10%...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.