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Bain Capital Specialty Finance
(NYSE:BCSF)
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Rating:65Neutral
Price Target:
$13.50
â–²(9.22% Upside)
Action:Reiterated
Date:08/17/26
BCSF scores as a mid-range opportunity: strong valuation support (low P/E and very high dividend yield) is balanced by a cooling financial trajectory (slightly negative TTM revenue growth, weaker FCF growth, and elevated leverage). The latest earnings call was moderately constructive on liquidity and dividend coverage, but rising nonaccruals and a NAV/income decline temper confidence. Technical indicators are neutral-to-soft, offering limited near-term momentum support.
Positive Factors
Dividend Coverage
Current earnings cover the regular dividend, indicating the core lending portfolio is generating sufficient recurring income. This supports distribution stability over the next several quarters, although management continues to monitor sustainable coverage.
Negative Factors
Rising Credit Stress
The sharp increase in nonaccruals and watchlist assets signals deterioration in borrower credit quality. If elevated defaults persist, BCSF could face lower interest income, additional valuation losses, and weaker dividend coverage over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Dividend Coverage
Current earnings cover the regular dividend, indicating the core lending portfolio is generating sufficient recurring income. This supports distribution stability over the next several quarters, although management continues to monitor sustainable coverage.
Read all positive factors
Bain Capital Specialty Finance (BCSF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$784.91M
Dividend Yield15.67%
Average Volume (3M)312.13K
Price to Earnings (P/E)12.2
Beta (1Y)0.66
Revenue Growth-11.58%
EPS Growth-40.72%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.99
Shares Outstanding64,868,510
10 Day Avg. Volume292,945
30 Day Avg. Volume312,129
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$12.67Price Target Upside2.48% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)1.68
Revenue Forecast (FY)$256.29M
Bain Capital Specialty Finance Business Overview & Revenue Model
Company Description
Bain Capital Specialty Finance, Inc. functions as a business development company (BDC) whose primary focus is providing direct debt solutions to companies in the middle market segment. The fund's investment mandate is broad, covering a spectrum of...
How the Company Makes Money
BCSF makes money primarily from investment income generated by its credit portfolio and, secondarily, from capital gains and various fee and other income related to its investments.
1) Interest income on debt investments (core revenue stream)
- T...
Bain Capital Specialty Finance Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call emphasized steady earnings generation (NII of $0.44/share covering the dividend), attractive new origination spreads (≈570 bps) and conservative underwriting (new deal leverage ~4.5x), supported by strong liquidity and liability management (facility extension, $806M liquidity). Offsetting positives were a modest NAV decline ($0.21/share) driven by $14.6M of net realized/unrealized losses, a q-o-q decline in total investment income (-5.9%), and a meaningful increase in nonaccruals at fair value (0.6% to 2.2%). Overall, the company appears well positioned in the core middle market with manageable challenges that management is addressing, including careful dividend assessment and continued monitoring of credit trends.Positive Updates
Net Investment Income and Dividend Coverage
Net investment income (NII) of $28.6M or $0.44 per share in Q2, up from $27.4M or $0.42 in Q1 (~+4.4% NII, +4.8% per-share). NII represents an annualized yield of 10.5% on equity and covered the base dividend of $0.42 by 105%.
Negative Updates
NAV Decline and Quarter Losses
NAV per share fell to $16.65, a decrease of $0.21 from $16.86 (≈-1.25% q-o-q). The company recorded net realized and unrealized losses of $14.6M ($0.22 per share), resulting in net income of $14.1M ($0.22 per share) and driving the NAV decline.
Read all updates
Q2-2026 Updates
Positive
Negative
Net Investment Income and Dividend Coverage
Net investment income (NII) of $28.6M or $0.44 per share in Q2, up from $27.4M or $0.42 in Q1 (~+4.4% NII, +4.8% per-share). NII represents an annualized yield of 10.5% on equity and covered the base dividend of $0.42 by 105%.
Read all positive updates
Company Guidance
Management said the Board has declared a Q3 dividend of $0.42 per share (payable to record holders as of Sept. 15), equivalent to a 10.1% annualized rate on June 30 ending book value, and that they will reevaluate the $0.42 regular dividend in coming quarters to ensure net investment income sustainably covers it into 2027—Q2 NII was $0.44 per share (covering the dividend by 105% and reflecting a 10.5% annualized yield on equity) and spillover income was cited around $1.26–$1.27; capital plans include prefunding 2026 maturities via an unsecured issuance, extending the revolver to 2031, and managing leverage back toward the midpoint of the 1.0–1.25x net leverage target (net leverage was 1.22x at quarter end and gross leverage was 1.34x post-quarter), while maintaining ~ $806M liquidity (including $606M undrawn revolver and $130.6M cash), a weighted average debt rate of ~5% with ~3.9 years average debt maturity, and continued deployment into attractive new first‑lien opportunities (new first‑lien spreads ≈570 bps, new-investment net leverage 4.5x; portfolio yields ~10.8% amortized / 10.4% fair value, 95% floating, median borrower net leverage 4.7x, median interest coverage 2.1x, and nonaccruals ~2.2% FV).Bain Capital Specialty Finance Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 192.58M | 239.19M | 212.88M | 218.00M | 168.82M | 175.41M |
| Gross Profit | 128.17M | 183.89M | 138.19M | 137.99M | 116.51M | 124.06M |
| EBITDA | 108.09M | 183.09M | 123.89M | 126.73M | 106.32M | 119.94M |
| Net Income | 63.93M | 98.76M | 119.42M | 123.38M | 105.48M | 119.81M |
Balance Sheet | ||||||
| Total Assets | 2.62B | 2.66B | 2.63B | 2.47B | 2.59B | 2.57B |
| Cash, Cash Equivalents and Short-Term Investments | 115.65M | 135.34M | 53.52M | 49.40M | 59.78M | 117.42M |
| Total Debt | 1.50B | 1.47B | 1.39B | 1.26B | 1.39B | 1.41B |
| Total Liabilities | 1.54B | 1.55B | 1.49B | 1.34B | 1.48B | 1.47B |
| Stockholders Equity | 1.08B | 1.12B | 1.14B | 1.14B | 1.12B | 1.10B |
Cash Flow | ||||||
| Free Cash Flow | 74.56M | 29.52M | 112.58M | 125.87M | 114.21M | 54.49M |
| Operating Cash Flow | 74.56M | 29.52M | 112.58M | 125.87M | 114.21M | 54.49M |
| Investing Cash Flow | 59.01M | 0.00 | -139.68M | 93.40M | -431.04M | 211.06M |
| Financing Cash Flow | -176.20M | -71.88M | 14.25M | -231.43M | 238.33M | -138.63M |
Bain Capital Specialty Finance Technical Analysis
Negative
12.36
Price Trends
12.54
Negative
12.66
Negative
12.56
Negative
Market Momentum
-0.14
Positive
37.67
Neutral
16.57
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCSF, the sentiment is Negative. The current price of 12.36 is below the 20-day moving average (MA) of 12.57, below the 50-day MA of 12.54, and below the 200-day MA of 12.56, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 37.67 is Neutral, neither overbought nor oversold. The STOCH value of 16.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BCSF.
Bain Capital Specialty Finance Risk Analysis
Bain Capital Specialty Finance disclosed 8 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $779.56M | 22.27 | 3.25% | 15.44% | 11.89% | -58.67% | |
69 Neutral | $731.24M | 14.44 | 4.82% | 17.37% | 12.58% | -40.06% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $686.30M | 9.36 | 7.45% | 11.90% | -3.92% | -16.93% | |
65 Neutral | $784.91M | 12.15 | 7.10% | 15.29% | -11.58% | -40.72% | |
63 Neutral | $1.12B | 19.29 | 4.17% | 17.78% | 117.29% | -58.47% | |
62 Neutral | $713.12M | -15.75 | -4.28% | 17.69% | -50.21% | -161.42% |
* Financial Sector Average
BCSF
Bain Capital Specialty Finance
12.06
-1.38
-10.27%
NMFC
New Mountain Finance
7.56
-1.46
-16.18%
PFLT
Pennantpark
7.37
-1.52
-17.11%
SLRC
SLR Investment Corp.
12.63
-2.17
-14.67%
GSBD
Goldman Sachs BDC
9.84
0.09
0.92%
CGBD
Carlyle Secured Lending Inc
11.35
-0.91
-7.41%
Bain Capital Specialty Finance Corporate Events
DividendsFinancial Disclosures
Bain Capital Specialty Finance Posts Q2 2026 Results
Neutral
Aug 10, 2026
On August 10, 2026, Bain Capital Specialty Finance reported second-quarter 2026 results showing net investment income of $28.6 million, or $0.44 per share, and net income of $0.22 per share. The firm’s net asset value per share eased to $16....
Business Operations and StrategyPrivate Placements and Financing
Bain Capital Specialty Finance Expands Revolving Credit Facility
Positive
Jul 31, 2026
On July 28, 2026, Bain Capital Specialty Finance, Inc. amended its senior secured revolving credit agreement with Sumitomo Mitsui Banking Corporation and a syndicate of lenders, extending the revolver availability period from May 19, 2028 to July ...
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....
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.