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Crescent Capital BDC (CCAP)
NASDAQ:CCAP
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Crescent Capital BDC
(NASDAQ:CCAP)
61Neutral
Positive Factors
Earnings
CCAP reported a large beat to analyst estimates and consensus, driven by accelerated OID from payoffs and higher fee income.
Risk-adjusted Returns
Crescent Capital BDC (CCAP) is well positioned to deliver attractive risk-adjusted returns for investors.
Negative Factors
Portfolio Yield
The portfolio yield declined to -60 bps, which puts some pressure on analyst estimates.
Return on Equity
GAAP EPS was affected by portfolio depreciation, resulting in a lower return on equity.
Crescent Capital BDC (CCAP) vs. S&P 500 (SPY)
Market Cap
$593.36M
Dividend Yield10.49%
Average Volume (3M)167.30K
Price to Earnings (P/E)8.1
Beta (1Y)0.60
Revenue Growth12.83%
EPS Growth-13.29%
CountryUS
Employees230
SectorFinancial
Sector Strength88
IndustryAsset Management
Share Statistics
EPS (TTM)1.99
Shares Outstanding37,061,546
10 Day Avg. Volume99,628
30 Day Avg. Volume167,301
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.60
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit18.47
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.83Price Target Upside17.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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 makes money primarily through interest income generated from its portfolio of debt investments. These investments are typically made in the form of loans to middle-market companies, which pay interest over time. Additionally, CCAP may earn revenue from fee income related to the structuring and management of these loans. The company's earnings are influenced by factors such as interest rate fluctuations, credit performance of its portfolio companies, and strategic partnerships with financial and investment institutions that help originate and manage investment opportunities.
Crescent Capital BDC Financial Statement Overview
Summary
Crescent Capital BDC shows strong profitability and a healthy balance sheet with effective leverage management. However, challenges exist in sustaining consistent revenue growth and cash flow generation, with some instability in asset management.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 | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 83.50M | 184.13M | 20.22M | 81.33M | 46.53M | Gross Profit |
| 83.50M | 184.13M | -243.00K | 61.86M | 39.77M | EBIT |
| -267.35M | 142.59M | 48.38M | 87.28M | 55.40M | EBITDA |
| 0.00 | 0.00 | 45.44M | 0.00 | 0.00 | Net Income Common Stockholders |
| 73.65M | 83.84M | 15.54M | 83.63M | 54.67M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 10.13M | 7.78M | 6.40M | 10.07M | 1.90M | Total Assets |
| 1.66B | 1.63B | 1.30B | 1.32B | 1.05B | Total Debt |
| 0.00 | 844.78M | 654.46M | 631.04M | 471.93M | Net Debt |
| -10.13M | 837.00M | 648.06M | 620.97M | 470.04M | Total Liabilities |
| 915.64M | 884.78M | 690.34M | 665.52M | 494.15M | Stockholders Equity |
| 740.64M | 742.59M | 612.54M | 652.28M | 560.00M |
| Cash Flow | Free Cash Flow | |||
| 58.91M | 92.30M | 27.95M | -157.65M | -61.80M | Operating Cash Flow |
| 58.91M | 92.30M | 27.95M | -157.65M | -61.80M | Investing Cash Flow |
| 0.00 | 0.00 | -30.43M | -186.11B | -106.30M | Financing Cash Flow |
| -43.47M | -84.99M | -34.41M | 166.32M | 63.22M |
Crescent Capital BDC Technical Analysis
Neutral
16.01
Price Trends
16.48
Negative
17.66
Negative
17.50
Negative
Market Momentum
-0.15
Negative
50.34
Neutral
57.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCAP, the sentiment is Neutral. The current price of 16.01 is above the 20-day moving average (MA) of 15.40, below the 50-day MA of 16.48, and below the 200-day MA of 17.50, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 50.34 is Neutral, neither overbought nor oversold. The STOCH value of 57.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $633.74M | 24.59 | 7.53% | <0.01% | ― | ― | |
70 Neutral | $567.18M | 5.52 | 22.43% | 7.80% | 69.53% | 60.29% | |
64 Neutral | $12.64B | 9.74 | 8.05% | 17044.60% | 12.66% | -4.62% | |
61 Neutral | $593.36M | 8.06 | 9.93% | 10.49% | 12.83% | -13.29% | |
61 Neutral | $662.33M | 7.94 | 12.58% | 9.02% | 2.31% | -15.06% | |
58 Neutral | $574.27M | ― | -8.57% | 18.81% | 8.24% | -207.60% | |
58 Neutral | $527.09M | 15.71 | 3.99% | 14.49% | 2.30% | -63.97% |
* Financial Sector Average
Performance Comparison
CCAP
Crescent Capital BDC
16.01
0.23
1.46%
FDUS
Fidus Investment
19.07
1.28
7.20%
GLAD
Gladstone Capital
25.40
5.62
28.41%
TCPC
BlackRock TCP Capital
6.75
-2.20
-24.58%
VINP
Vinci Partners Investments
9.77
-0.51
-4.96%
CION
CION Investment Corp
9.94
-0.22
-2.17%
Crescent Capital BDC Earnings Call Summary
Earnings Call Date:Feb 19, 2025
(Q4-2024)
| % Change Since: -17.73%|
Next Earnings Date:May 14, 2025
Earnings Call Sentiment Neutral
The earnings call revealed a mix of positive performance in dividend coverage, investment activity, and liquidity management, alongside challenges like declining net investment income, NAV decrease, and external risks. The balanced highlights and lowlights suggest a stable but cautious outlook.Q4-2024 Updates
Positive Updates
Strong Dividend Coverage
CCAP's net investment income (NII) of $0.55 per share covered the base dividend by 131% for the fourth quarter.
Stable Investment Portfolio
The portfolio consisted of 90% first lien loans and remained well-diversified across 20 industries, with 99% of the debt portfolio sponsor-backed.
Increased Investment Activity
Gross deployment in Q4 was $127 million, with 98% in first lien investments, and net deployment was $21 million.
Low Non-Accrual Levels
Non-accruals represented 0.9% of total debt investments at fair value and 2.2% of cost, below industry average.
Improved Liquidity and Maturity Extension
The SMBC revolver maturity extended to December 2029, and $150 million in new senior unsecured notes were priced, reducing maturity concentration in 2026.
Negative Updates
Decline in Net Investment Income
NII decreased from $0.64 per share in the prior quarter to $0.55 in Q4 2024, impacted by lower investment portfolio yield and base rate cuts.
Decrease in Net Asset Value
Net asset value (NAV) per share decreased by $0.22 to $19.98 in the fourth quarter, driven by changes in unrealized marks.
Unrealized Losses and Watch List Increase
Net unrealized and realized losses totaled $0.28 per share, and seven new names were added to the watch list.
Expected Decline in Interest Income
Interest income expected to decline further in Q1 2025 due to the full quarter impact of rate cuts in Q4.
External Challenges
Potential exposure to tariffs and government contracting cost-cutting identified, though representing a minority of the portfolio.
Company Guidance
In the recent earnings call for Crescent Capital BDC, Inc. (CCAP), several key metrics and strategic insights were shared. The company reported a net investment income (NII) of $0.55 per share for the fourth quarter of 2024, translating to an annualized NII return on equity of 11%. This represents a decrease from $0.64 in the prior quarter, attributed to a lower investment portfolio yield and reduced non-recurring income. CCAP's net asset value (NAV) decreased by $0.22 to $19.98 per share, driven by changes in unrealized marks, with a year-over-year NAV per share decline of 0.3%. The portfolio ended the year with approximately $1.6 billion in investments across 185 companies. The portfolio is highly diversified, with 90% consisting of first lien loans and 99% backed by sponsor-backed companies. The weighted average portfolio grade remained stable at 2.1, with 87% of investments performing at or above expectations. Non-accruals were below industry average, representing 0.9% of total debt investments at fair value. The company declared a regular dividend of $0.42 per share for Q1 2025, continuing its trend of stable or increasing dividends since 2015. Additionally, they announced a series of special dividends but did not declare a supplemental distribution for the quarter. The management expressed optimism about the M&A environment for 2025, citing a favorable economic outlook and significant private equity dry powder.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.