Crescent Capital BDC (CCAP) AI Stock Analysis

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Crescent Capital BDC

(NASDAQ:CCAP)

Rating:61Neutral

Price Target:―

Crescent Capital BDC's overall stock score reflects a solid financial foundation and attractive valuation, tempered by technical weakness and mixed earnings results. Strong dividend yield and effective portfolio management are significant positives, but challenges in revenue consistency and external risks pose concerns. The technical indicators suggest a bearish trend, which could impact short-term performance.

Positive Factors

Earnings Performance

CCAP reported a large beat to estimates and consensus, driven by accelerated OID from payoffs and higher fee income.

Price Target

The analyst increases the price objective to $20 due to solid credit and revised earnings forecast.

Negative Factors

NAV Impact

Credit impacts consumed approximately $0.22 of NAV per share related to the Logan JV and individual credits.

Portfolio Yield

The portfolio yield declined to -60 bps, which puts some pressure on estimates.

Crescent Capital BDC (CCAP) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$531.09M

Dividend Yield11.35%

Average Volume (3M)207.47K

Price to Earnings (P/E)10.7

Beta (1Y)0.51

Revenue Growth12.83%

EPS Growth-13.29%

CountryUS

Employees230

SectorFinancial

Sector Strength74

IndustryAsset Management

Share Statistics

EPS (TTM)0.45

Shares Outstanding37,061,546

10 Day Avg. Volume309,660

30 Day Avg. Volume207,475

Financial Highlights & Ratios

PEG Ratio-0.31

Price to Book (P/B)0.64

Price to Sales (P/S)0.00

P/FCF Ratio14.12

Enterprise Value/Market Cap1.96

Enterprise Value/Revenue1.50

Enterprise Value/Gross Profit6.31

Enterprise Value/Ebitda4.15

Forecast

1Y Price Target

$17.20

Price Target Upside16.22% 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 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 Earnings Call Summary

Earnings Call Date:May 14, 2025

(Q1-2025)

% Change Since: -10.84%|

Next Earnings Date:Aug 06, 2025

Earnings Call Sentiment Neutral

Crescent Capital BDC showcased strong portfolio management and dividend consistency, supported by a diversified and sponsor-backed portfolio. However, the quarter was marked by a decline in net investment income, increased non-accruals, and market volatility due to tariff announcements, which tempered growth prospects.

Q1-2025 Updates

Positive Updates

Portfolio Diversification and Stability

Crescent Capital BDC ended the quarter with over $1.6 billion of investments across a diversified portfolio of 191 companies, maintaining a focus on first lien loans which constitute 91% of the portfolio. The diversification helps mitigate the impact of one-off credit events.

Dividend Consistency

Crescent Capital declared a second quarter 2025 regular dividend of $0.42 per share and a special dividend of $0.05 per share. The company has consistently earned its dividends since inception, marking the 37th consecutive quarter of regular dividend earnings.

Strong Sponsor Backing

99% of Crescent Capital's debt portfolio is in sponsor-backed companies. The portfolio is supported by well-capitalized private equity sponsors, ensuring a weighted average loan-to-value of 39%.

Attractive New Investments

Gross deployment in Q1 totaled $105 million, with 98% in first lien investments. New investments have a weighted average spread of 565 basis points, reflecting attractive opportunities.

Capitalization and Liquidity Management

Crescent Capital adjusted its SPV asset facility from $500 million to $400 million, reducing the spread by 50 basis points, which helps minimize interest expenses.

Negative Updates

Decline in Net Investment Income

Net investment income decreased to $16.6 million or $0.45 per share from $20.5 million or $0.55 per share in the previous quarter. This decline was driven by lower base rates, non-recurring income runoff, and reduced dividend income from the Logan JV.

Increased Non-Accruals

Loans on non-accrual increased to 3.5% of debt investments at cost, and 1.8% at fair value. Four new names were added to non-accrual, representing less than 1.2% of the total portfolio at fair value, due to one-off credit events.

Logan JV Dividend Decline

Dividend income from the Logan JV declined by $0.03 per share quarter-over-quarter. The reinvestment period for the JV's largest holding, a middle market CLO, was ended early, impacting income.

Market Volatility and Tariff Impacts

The announcement of tariffs by the White House tempered expectations for a sustained pickup in M&A, affecting deal activity and creating uncertainty in the market.

Company Guidance

During Crescent Capital BDC's first-quarter 2025 earnings call, the company provided guidance highlighting a net investment income (NII) of $16.6 million, or $0.45 per share, which marked a decrease from the previous quarter's $20.5 million, or $0.55 per share. This decline was attributed to lower base rates, the roll-off of non-recurring items, reduced dividend income from the Logan JV, and an increase in loans on non-accrual to 3.5% and 1.8% of debt investments at cost and fair value, respectively. The company's investments totaled over $1.6 billion across 191 companies, with a focus on diversification and first lien loans comprising 91% of the portfolio. Crescent declared a regular dividend of $0.42 per share for the second quarter and a special dividend of $0.05 per share. Despite market volatility, the company remains focused on disciplined underwriting and long-term stability, maintaining a weighted average portfolio risk rating of 2.1. The guidance also noted potential tailwinds from portfolio leverage and facility repricing.

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

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Neutral

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
165.66M	142.44M	147.33M	20.22M	93.99M	46.53M
	Gross Profit
165.13M	83.50M	92.46M	-243.00K	84.93M	39.77M
	EBIT
162.05M	74.74M	84.11M	48.38M	69.64M	55.40M
	EBITDA
78.32M	74.74M	84.11M	45.44M	87.28M	0.00
	Net Income Common Stockholders
62.27M	73.65M	83.84M	15.54M	83.63M	54.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
30.53M	10.13M	7.78M	6.40M	10.07M	1.90M
	Total Assets
1.67B	1.66B	1.63B	1.30B	1.32B	1.05B
	Total Debt
0.00	875.84M	844.78M	654.46M	631.04M	471.93M
	Net Debt
-30.53M	865.71M	837.00M	648.06M	620.97M	470.04M
	Total Liabilities
939.38M	915.64M	884.78M	690.34M	665.52M	494.15M
	Stockholders Equity
727.12M	740.64M	742.59M	612.54M	652.28M	560.00M
Cash Flow		Free Cash Flow
51.08M	58.91M	92.30M	27.95M	-157.65M	-61.80M
	Operating Cash Flow
51.08M	58.91M	92.30M	27.95M	-157.65M	-61.80M
	Investing Cash Flow
-47.88M	-23.85M	0.00	-30.43M	-186.11B	-106.30M
	Financing Cash Flow
-5.18M	-43.47M	-84.99M	-34.41M	166.32M	63.22M

Crescent Capital BDC Technical Analysis

Technical Analysis Sentiment

Negative

Last Price14.80

Price Trends

50DMA

15.38

Negative

100DMA

16.64

Negative

200DMA

17.22

Negative

Market Momentum

MACD

-0.31

Positive

RSI

34.82

Neutral

STOCH

27.66

Neutral

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 14.8 is below the 20-day moving average (MA) of 15.11, below the 50-day MA of 15.38, and below the 200-day MA of 17.22, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 34.82 is Neutral, neither overbought nor oversold. The STOCH value of 27.66 is Neutral, 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 1 New Risks

We are subject to risks related to inflation. Q2, 2022

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
VINP	73 Outperform	$594.50M	23.56	7.67%	6.38%	―	―
GLAD	70 Neutral	$596.21M	6.83	18.92%	7.41%	69.53%	60.29%
Sector *	64 Neutral	$12.87B	9.76	7.85%	78.04%	12.07%	-7.94%
CCAP	61 Neutral	$531.09M	10.72	6.70%	11.35%	12.83%	-13.29%
FDUS	61 Neutral	$684.13M	8.36	12.10%	11.05%	2.31%	-15.06%
TCPC	58 Neutral	$660.74M	―	-5.45%	14.93%	8.24%	-207.60%
CION	58 Neutral	$483.84M	15.47	-1.88%	15.89%	2.30%	-63.97%

* Financial Sector Average

Performance Comparison

CCAP

Crescent Capital BDC

14.33

-2.34

-14.04%

FDUS

Fidus Investment

19.60

2.23

12.84%

GLAD

Gladstone Capital

26.50

5.59

26.73%

TCPC

BlackRock TCP Capital

7.28

-1.86

-20.35%

VINP

Vinci Partners Investments

9.70

-0.36

-3.58%

CION

CION Investment Corp

9.20

-1.48

-13.86%

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.