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Crescent Capital BDC (CCAP)
NASDAQ:CCAP
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Crescent Capital BDC
(NASDAQ:CCAP)
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Rating:68Neutral
Price Target:
$17.00
▲(19.72% Upside)
Crescent Capital BDC's overall score is driven by its solid financial performance and attractive valuation, particularly its high dividend yield. Technical indicators suggest neutral to slightly positive momentum. However, challenges in revenue growth and cash flow consistency, along with neutral earnings call sentiment, slightly temper the overall outlook.
Positive Factors
Strong Profitability
The company's strong profitability and effective leverage management indicate a robust financial foundation, supporting long-term stability and growth potential.
Diversified Investment Portfolio
A diversified portfolio reduces risk and enhances stability, providing resilience against sector-specific downturns and supporting consistent income generation.
Strong Dividend Coverage
Strong dividend coverage indicates financial health and the ability to sustain shareholder returns, enhancing investor confidence and long-term attractiveness.
Negative Factors
Revenue Growth Challenges
Inconsistent revenue growth and cash flow generation can hinder long-term expansion and operational efficiency, impacting future profitability.
Increase in Portfolio Watch List
An increased watch list suggests potential credit issues, which could lead to higher default risks and impact the company's financial stability.
Constrained Deal Activity
Constrained deal activity limits growth opportunities and can affect revenue generation, posing challenges for future business expansion and profitability.
Crescent Capital BDC (CCAP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$526.27M
Dividend Yield13.03%
Average Volume (3M)210.81K
Price to Earnings (P/E)12.0
Beta (1Y)0.54
Revenue Growth-7.13%
EPS Growth-56.63%
CountryUS
Employees230
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.46
Shares Outstanding37,061,546
10 Day Avg. Volume213,324
30 Day Avg. Volume210,807
Financial Highlights & Ratios
PEG Ratio-0.66
Price to Book (P/B)0.96
Price to Sales (P/S)3.66
P/FCF Ratio12.09
Enterprise Value/Market Cap2.47
Enterprise Value/Revenue7.13
Enterprise Value/Gross Profit7.83
Enterprise Value/Ebitda14.61
Forecast
1Y Price Target
$16.50Price Target Upside16.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Crescent Capital BDC Business Overview & Revenue Model
Company DescriptionCrescent Capital BDC, Inc. is as a business development company private equity / buyouts and loan fund. It specializes in directly investing. It specializes in middle market. The fund seeks to invest in United States.
How the Company Makes MoneyCrescent Capital BDC generates revenue primarily through interest income from its debt investments and dividends from its equity holdings. The company typically invests in secured loans and mezzanine financing, which provide higher yields compared to traditional fixed-income investments. Additionally, CCAP earns management fees from its investment activities, which contribute to stable cash flows. The firm may also realize capital gains from the sale of equity investments in its portfolio companies. Strategic partnerships with private equity firms and investment advisors enhance CCAP's deal flow and access to quality investment opportunities, further supporting its revenue generation.
Crescent Capital BDC Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted stable net investment income, strong dividend coverage, and a well-diversified portfolio. However, challenges such as a decrease in NAV, an increased watch list, and constrained market conditions balanced the positive aspects. The sentiment is neutral as highlights and lowlights are balanced.Q2-2025 Updates
Positive Updates
Stable Net Investment Income
CCAP reported net investment income of $0.46 per share, excluding a $0.02 per share one-time accelerated amortization, resulting in NII of $0.48 per share. This marks an increase from $0.45 per share in the prior quarter.
Strong Dividend Coverage
Earnings remained in excess of the dividend with 110% base dividend coverage for the quarter, and a regular dividend of $0.42 per share was declared for the third quarter of 2025.
Diversified Investment Portfolio
CCAP ended the quarter with over $1.6 billion of investments at fair value across 187 companies. The portfolio is highly diversified, with 91% consisting of first lien loans.
Continued Focus on Core and Lower Middle Market
The private credit platform maintained lead roles in transactions, focusing on high-quality companies with strong credit profiles, and maintained a weighted average yield of 10.4%.
Successful Stock Repurchase Program
The Board approved a $20 million stock repurchase program, reflecting confidence in the company's valuation and use of excess capital.
Negative Updates
Decrease in Net Asset Value
NAV per share decreased by $0.07 from $19.62 to $19.55 at the end of the second quarter, primarily due to a $0.05 special dividend.
Increase in Portfolio Watch List
The watch list increased to 14% of the portfolio, with internally rated 4s and 5s, indicating potential credit deterioration.
Moderate Nonaccrual Rate
The nonaccrual rate was 2.4% of the total investments, which is in line with industry averages but not satisfactory to management.
Constrained Deal Activity
Market conditions, including tariff discussions and regulatory uncertainty, led to reduced deal activity and constrained deployment.
Company Guidance
During Crescent Capital BDC, Inc.'s second-quarter 2025 earnings conference call, several key metrics were highlighted. The company reported a net investment income (NII) of $0.46 per share, with an adjusted NII of $0.48 per share excluding a one-time amortization cost. The net asset value (NAV) per share decreased slightly by 0.4% due to special dividends, ending the quarter at $19.55. The company's investment portfolio was valued at over $1.6 billion, consisting mainly of first lien loans which represented 91% of the portfolio. The weighted average yield on income-producing securities remained stable at 10.4%. Crescent Capital's leverage ratio was within its target range at 1.23x, with a debt-to-equity ratio of 1.23. The company declared a regular quarterly dividend of $0.42 per share and a special dividend of $0.05 per share. The board approved a $20 million stock repurchase program, reflecting confidence in the company's valuation and ongoing strategy.Crescent Capital BDC Financial Statement Overview
Summary
Crescent Capital BDC demonstrates strong profitability and a solid financial position with effective leverage management. However, the company faces challenges in sustaining revenue growth and consistent cash flow generation. The balance sheet remains a strength, with a positive equity trend despite past fluctuations.Income Statement
Crescent Capital BDC exhibits a strong net profit margin, reflecting effective cost management. However, revenue growth has been inconsistent year-on-year, and EBIT margins show volatility, indicating challenges in maintaining steady operational efficiency.65
Positive
Balance Sheet
The company maintains a solid equity position, highlighted by a healthy equity ratio. The debt-to-equity ratio is favorable due to the absence of debt in the latest period, reducing financial risk. Historical fluctuations in stockholders' equity suggest some instability in asset management.70
Positive
Cash Flow
Operating cash flow has seen improvement, but free cash flow growth is inconsistent. The operating cash flow to net income ratio is robust, indicating strong cash generation relative to earnings. However, historical volatility in cash flow from financing activities could pose risks.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 181.92M | 194.85M | 172.69M | 121.69M | 126.29M | 61.91M |
| Gross Profit | 165.82M | 197.36M | 136.09M | 101.23M | 106.82M | 77.11M |
| EBITDA | 88.85M | 138.67M | 144.29M | 48.42M | 106.73M | 74.80M |
| Net Income | 44.18M | 73.65M | 83.84M | 15.54M | 83.63M | 54.67M |
Balance Sheet | ||||||
| Total Assets | 1.65B | 1.66B | 1.63B | 1.30B | 1.32B | 1.05B |
| Cash, Cash Equivalents and Short-Term Investments | 26.14M | 10.13M | 7.78M | 6.40M | 10.07M | 1.90M |
| Total Debt | 887.32M | 875.84M | 844.78M | 654.46M | 631.04M | 471.93M |
| Total Liabilities | 929.73M | 915.64M | 884.78M | 690.34M | 665.52M | 494.15M |
| Stockholders Equity | 724.72M | 740.64M | 742.59M | 612.54M | 652.28M | 560.00M |
Cash Flow | ||||||
| Free Cash Flow | 65.36M | 58.91M | 92.30M | 27.95M | -157.65M | -61.80M |
| Operating Cash Flow | 65.36M | 58.91M | 92.30M | 27.95M | -157.65M | -61.80M |
| Investing Cash Flow | 19.63M | -23.85M | 30.48M | -30.43M | -186.11B | -106.30M |
| Financing Cash Flow | -74.87M | -43.47M | -84.99M | -34.41M | 166.32M | 63.22M |
Crescent Capital BDC Technical Analysis
Negative
14.20
Price Trends
14.68
Negative
14.41
Negative
15.43
Negative
Market Momentum
-0.11
Positive
29.47
Positive
-8.22
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCAP, the sentiment is Negative. The current price of 14.2 is below the 20-day moving average (MA) of 15.04, below the 50-day MA of 14.68, and below the 200-day MA of 15.43, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 29.47 is Positive, neither overbought nor oversold. The STOCH value of -8.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCAP.
Crescent Capital BDC Risk Analysis
Crescent Capital BDC disclosed 71 risk factors in its most recent earnings report. Crescent Capital BDC 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
Crescent Capital BDC Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Neutral | $482.10M | 6.49 | ― | 10.72% | 47.88% | -5.08% | |
68 Neutral | $526.27M | 11.96 | 5.98% | 13.03% | -7.13% | -56.63% | |
65 Neutral | $532.39M | 6.38 | 16.41% | 10.77% | 33.75% | 6.20% | |
58 Neutral | $519.57M | -43.49 | ― | 21.44% | -48.53% | 73.29% | |
58 Neutral | $491.70M | -49.63 | ― | 15.78% | -11.83% | -108.11% | |
48 Neutral | $429.65M | 31.17 | ― | 14.59% | -35.46% | -67.15% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
CCAP
Crescent Capital BDC
14.20
-2.04
-12.56%
GLAD
Gladstone Capital
21.59
-0.24
-1.10%
GAIN
Gladstone Investment
13.93
1.49
11.98%
PNNT
Pennantpark Investment
6.58
0.56
9.30%
TCPC
BlackRock TCP Capital
6.11
-0.72
-10.54%
CION
CION Investment Corp
9.44
-0.76
-7.45%
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.