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Crescent Capital BDC (CCAP)
NASDAQ:CCAP
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Crescent Capital BDC
(NASDAQ:CCAP)
Rating:61Neutral
Price Target:―
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
$570.38M
Dividend Yield10.92%
Average Volume (3M)130.57K
Price to Earnings (P/E)11.5
Beta (1Y)0.52
Revenue Growth12.83%
EPS Growth-13.29%
CountryUS
Employees230
SectorFinancial
Sector Strength82
IndustryAsset Management
Share Statistics
EPS (TTM)0.45
Shares Outstanding37,061,546
10 Day Avg. Volume173,641
30 Day Avg. Volume130,571
Financial Highlights & Ratios
PEG Ratio-0.40
Price to Book (P/B)0.80
Price to Sales (P/S)0.00
P/FCF Ratio7.33
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue0.87
Enterprise Value/Gross Profit4.17
Enterprise Value/Ebitda19.91
Forecast
1Y Price Target
$17.25Price Target Upside12.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
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: -7.62%|
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
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 |
| 74.74M | 142.59M | 48.38M | 87.28M | 55.40M | EBITDA |
| 138.67M | 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
Negative
15.39
Price Trends
16.05
Negative
17.20
Negative
17.40
Negative
Market Momentum
-0.14
Positive
45.52
Neutral
16.36
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 15.39 is below the 20-day moving average (MA) of 15.88, below the 50-day MA of 16.05, and below the 200-day MA of 17.40, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 45.52 is Neutral, neither overbought nor oversold. The STOCH value of 16.36 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 1 New Risks
1.
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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $626.37M | 24.51 | 7.67% | <0.01% | ― | ― | |
70 Neutral | $583.48M | 6.68 | 18.92% | 7.58% | 69.53% | 60.29% | |
64 Neutral | $12.67B | 9.74 | 7.58% | 17015.08% | 12.21% | -6.96% | |
61 Neutral | $570.38M | 11.51 | 6.70% | 10.92% | 12.83% | -13.29% | |
61 Neutral | $704.79M | 8.62 | 12.10% | 8.54% | 2.31% | -15.06% | |
58 Neutral | $653.94M | ― | -5.45% | 16.51% | 8.24% | -207.60% | |
58 Neutral | $504.75M | 15.47 | -1.88% | 15.03% | 2.30% | -63.97% |
* Financial Sector Average
Performance Comparison
CCAP
Crescent Capital BDC
15.39
-0.82
-5.06%
FDUS
Fidus Investment
20.37
2.58
14.50%
GLAD
Gladstone Capital
26.13
5.85
28.85%
TCPC
BlackRock TCP Capital
7.88
-1.45
-15.54%
VINP
Vinci Partners Investments
9.78
-0.42
-4.12%
CION
CION Investment Corp
9.58
-1.30
-11.95%
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.