Chicago Atlantic BDC (LIEN) AI Stock Analysis

• Market Cap: $248.74M
• Dividend Yield: 13.35%
• Average Volume (3M): 25.00K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.26
• Revenue Growth: 315.14%
• EPS Growth: 116.85%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.42
• Shares Outstanding: 22,820,590
• 10 Day Avg. Volume: 31,977
• 30 Day Avg. Volume: 25,004
• PEG Ratio: -0.62
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 7.02
• P/FCF Ratio: -25.04
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 4.50
• Enterprise Value/Gross Profit: 4.56
• Enterprise Value/Ebitda: 5.44
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ―

Chicago Atlantic BDC exhibits a strong financial foundation with zero debt, high equity, and impressive revenue growth. The earnings call's positive outlook and strategic initiatives further bolster confidence. However, negative technical indicators and cash flow challenges introduce caution. The attractive valuation and high dividend yield offer compelling potential for investors.

Positive Factors

Revenue Growth

The substantial revenue growth indicates robust demand for the company's financial solutions, enhancing its market position and long-term profitability.

Balance Sheet Health

A debt-free balance sheet with high cash reserves provides financial stability and flexibility, enabling strategic investments and resilience against economic fluctuations.

Strategic Initiatives

The new credit facility enhances liquidity and supports future growth, allowing the company to capitalize on emerging opportunities and expand its portfolio.

Negative Factors

Cash Flow Challenges

Negative cash flow growth can constrain operational flexibility, potentially impacting the company's ability to reinvest in growth and manage unforeseen expenses.

Leadership Changes

Frequent leadership changes can disrupt strategic continuity and create uncertainty, affecting long-term strategic execution and stakeholder confidence.

Cannabis Industry Challenges

Regulatory challenges in the cannabis sector can limit growth potential and increase risk, affecting the company's ability to expand in this market.

Chicago Atlantic BDC Business Overview & Revenue Model

Company Description

Chicago Atlantic BDC (LIEN) is a business development company that primarily focuses on providing financing solutions to middle-market companies in various sectors. The firm is engaged in offering secured loans and investments, catering to companies that require specialized financing solutions. With its expertise in credit and investment management, Chicago Atlantic BDC aims to support the growth and operational needs of its clients by offering bespoke financial products.

How the Company Makes Money

Chicago Atlantic BDC makes money through interest income and fee income generated from its portfolio of secured loans and investments. The company extends credit to middle-market companies, typically in the form of senior secured loans, which generate interest income over the term of the loan. Additionally, the firm may earn origination fees, commitment fees, or other related fees associated with the structuring and management of these financial products. Chicago Atlantic BDC's revenue is further supported by its strategic partnerships and expertise in credit analysis and risk management, allowing it to identify and invest in lucrative opportunities while maintaining a focus on capital preservation and yield generation.

Chicago Atlantic BDC Financial Statement Overview

Summary

Chicago Atlantic BDC demonstrates strong growth with a 79.1% revenue increase and a net profit margin improvement to 53.5%. The balance sheet is robust with zero debt and substantial cash reserves, reflected in a high equity ratio of 97.3%. However, operational cash flow challenges, indicated by negative free cash flow growth, and the absence of EBIT/EBITDA insights are concerns.

Income Statement

The company demonstrated strong revenue growth with a 79.1% increase from the previous year. Gross profit margin remains robust at 100% due to zero cost of goods sold, but the absence of EBIT and EBITDA margins highlights a potential lack of operational efficiency insights. Net profit margin improved from negative in 2022 to 53.5% in 2024, indicating enhanced profitability.

Balance Sheet

With no debt, the company maintains a solid balance sheet, reflected in a debt-to-equity ratio of 0. Return on equity is strong at 3.2%, and the equity ratio is high at 97.3%, signifying financial stability and low leverage risk. The substantial cash reserves further enhance its financial stability.

Cash Flow

The company experienced a negative free cash flow growth rate, moving from positive free cash flow in 2023 to negative in 2024, which could indicate operational cash constraints. The operating cash flow to net income ratio is negative, showing cash flow challenges despite profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.90M	17.97M	10.03M	4.05M	10.07K	0.00
Gross Profit	39.41M	17.97M	10.03M	4.05M	10.07K	0.00
EBITDA	33.01M	9.62M	0.00	0.00	0.00	0.00
Net Income	33.01M	9.62M	7.34M	1.71M	-563.37K	-958.29K
Balance Sheet
Total Assets	327.25B	309.56M	88.58M	86.97M	85.03M	276.26K
Cash, Cash Equivalents and Short-Term Investments	10.46B	23.93M	32.61M	35.13M	84.77M	0.00
Total Debt	11.00B	0.00	0.00	0.00	0.00	0.00
Total Liabilities	24.33B	8.40M	3.02M	495.55K	479.70K	435.97K
Stockholders Equity	302.92B	301.16M	85.55M	86.48M	84.55M	-159.72K
Cash Flow
Free Cash Flow	22.80M	-5.03M	5.75M	-50.15M	-509.11K	0.00
Operating Cash Flow	22.80M	-5.03M	5.75M	-50.15M	-509.11K	0.00
Investing Cash Flow	-36.85M	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	-5.61M	-3.64M	-8.26M	85.27M	85.28M	0.00

Chicago Atlantic BDC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LIEN, the sentiment is Positive. The current price of 10.9 is above the 20-day moving average (MA) of 10.37, above the 50-day MA of 10.40, and above the 200-day MA of 10.22, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 67.47 is Neutral, neither overbought nor oversold. The STOCH value of 95.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LIEN.

Chicago Atlantic BDC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LIEN	75 Outperform	$248.74M	7.54	17.13%	13.35%	315.14%	116.85%
NEWT	68 Neutral	$303.32M	4.73	17.74%	7.12%	6.38%	25.69%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SCM	64 Neutral	$354.31M	11.24	8.20%	13.22%	90.34%	-44.25%
TPVG	59 Neutral	$257.35M	7.57	9.43%	17.38%	206.13%	298.86%
MRCC	54 Neutral	$137.58M	―	-2.25%	15.58%	-34.92%	-132.22%
SSSS	45 Neutral	$234.34M	5.05	35.45%	5.41%	―	―

Chicago Atlantic BDC Corporate Events

Chicago Atlantic BDC Reports Strong 2024 Financial Results

On March 31, 2025, Chicago Atlantic BDC, Inc. reported its financial results for the fourth quarter and full year ended December 31, 2024. The company achieved a total investment income of $12.7 million for the fourth quarter and $21.7 million for the full year. Following the acquisition of a loan portfolio from Chicago Atlantic Loan Portfolio, LLC, the company was renamed and its ticker symbol changed to ‘LIEN’. The acquisition significantly increased the company’s net assets and investment portfolio, with a fair value of $275.2 million as of December 31, 2024. Additionally, the company declared dividends and secured a $100 million credit facility, enhancing its financial position and operational capabilities.

Chicago Atlantic BDC Announces Major Leadership Changes

On March 13, 2025, Chicago Atlantic BDC, Inc. announced significant leadership changes with the resignation of Frederick Herbst and Jason Papastavrou as Directors, and Andreas Bodmeier as CEO. They were replaced by Supurna VedBrat, Patrick McCauley, and Peter Sack respectively, each bringing extensive experience in finance and management. Additionally, the company announced a press release regarding its cash dividend for the quarter ending March 31, 2025, and plans to release its financial results for the fourth quarter and year ended December 31, 2024, on March 31, 2025, followed by a conference call.

Chicago Atlantic BDC Names New CFO Amidst Credit Deal

On February 11, 2025, Chicago Atlantic BDC, Inc. entered into a $100 million senior secured revolving credit agreement, providing substantial liquidity and flexibility for future portfolio growth. The agreement, secured by a first-priority interest in the company’s assets, matures in March 2028 and is designed to support the company’s strategic goals amidst robust lending opportunities. Additionally, the board approved clarifications to an expense limitation agreement, excluding costs related to the credit facility from the expense cap. Furthermore, a significant management change occurred on February 14, 2025, with Martin Rodgers appointed as the new Chief Financial Officer, succeeding Umesh Mahajan, who resigned to focus on his role as Co-Chief Investment Officer.