Chicago Atlantic Bdc, Inc. (LIEN)
NASDAQ:LIEN
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Chicago Atlantic BDC
(NASDAQ:LIEN)
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Rating:77Outperform
Price Target:
$11.00
▲(3.29% Upside)
Action:Reiterated
Date:05/16/26
Overall score is driven primarily by strong fundamentals (high margins and conservative leverage) and a constructive earnings call (dividend maintained, strong credit quality with zero nonaccruals, ample liquidity). The biggest offset is cash flow volatility versus reported earnings, with mixed technical momentum and incomplete valuation visibility due to an unusable P/E reading.
Positive Factors
High portfolio yield
A sustained portfolio yield ~15.8% gives durable income generation and pricing power versus peers, supporting net investment income even if funding costs rise. Over the medium term this spread enables above-market NII and margin resilience for the BDC lending model.
Negative Factors
Volatile operating cash flow
Material swings between reported earnings and realized cash flows create uncertainty about consistent free cash generation to fund dividends and new originations. Persistent volatility in operating cash flow undermines predictability of capital allocation over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High portfolio yield
A sustained portfolio yield ~15.8% gives durable income generation and pricing power versus peers, supporting net investment income even if funding costs rise. Over the medium term this spread enables above-market NII and margin resilience for the BDC lending model.
Read all positive factors
Chicago Atlantic BDC (LIEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$225.70M
Dividend Yield13.03%
Average Volume (3M)75.57K
Price to Earnings (P/E)6.2
Beta (1Y)0.28
Revenue Growth92.11%
EPS Growth73.34%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)1.50
Shares Outstanding22,820,590
10 Day Avg. Volume90,057
30 Day Avg. Volume75,572
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)0.78
Price to Sales (P/S)4.34
P/FCF Ratio-11.51
Enterprise Value/Market Cap1.23
Enterprise Value/Revenue5.69
Enterprise Value/Gross Profit6.28
Enterprise Value/Ebitda7.86
Forecast
1Y Price Target
$11.00Price Target Upside3.29% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.51
Revenue Forecast (FY)$62.77M
Chicago Atlantic BDC Business Overview & Revenue Model
Company Description
Silver Spike Investment Corp., is a a business development company. It is a specialty finance company, focuses on investing across the cannabis ecosystem through investments in the form of direct loans to, and equity ownership of, privately held c...
How the Company Makes Money
Chicago Atlantic BDC makes money primarily through investment income earned on the debt instruments it originates and holds. Its key revenue stream is interest income from loans—typically senior secured, often structured with floating interest rat...
Chicago Atlantic BDC Earnings Call Summary
Earnings Call Date:Mar 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 07, 2026
Earnings Call Sentiment Positive
The call emphasized strong portfolio fundamentals—high yields (15.8%), predominantly senior secured loans (99.5%), zero nonaccruals, low leverage (0.08x), a growing pipeline (~$732M), maintained dividend ($0.34) and ample liquidity (~$47.5M). These positives outweighed transitory quarter-over-quarter income declines driven by nonrecurring fees and broad negative market sentiment impacting the BDC sector. Management highlighted disciplined underwriting, limited sector overlap with troubled private credit areas, and positioning to capitalize on cannabis industry M&A and policy developments while acknowledging regulatory uncertainty and market valuation headwinds.Positive Updates
High Yielding Portfolio
Weighted-average yield on debt investments of 15.8% as of 12/31/2025 vs. 10.8% average public BDC yield (difference +5.0 percentage points, ~+46.3% relative), demonstrating above-market pricing power.
Negative Updates
Market Sentiment Pressure on BDCs
Broader BDC market experienced negative investor sentiment with many BDCs trading below NAV by end of 2025; investors focused less on book value and more on potential dividend cuts and loan losses, pressuring valuations.
Read all updates
Q4-2025 Updates
Positive
Negative
High Yielding Portfolio
Weighted-average yield on debt investments of 15.8% as of 12/31/2025 vs. 10.8% average public BDC yield (difference +5.0 percentage points, ~+46.3% relative), demonstrating above-market pricing power.
Read all positive updates
Company Guidance
Management guided that it will maintain the $0.34 quarterly dividend (sixth consecutive quarter; $1.36 total dividends paid in 2025) and highlighted ample liquidity and low leverage to support deployment: approximately $47.5–48.0 million of liquidity as of 03/18/2026 (≈$22.0 million cash and $25.5 million undrawn capacity on a $100.0 million credit facility), only $25.0 million of debt outstanding at 12/31/2025, a 0.08x debt-to-equity ratio (vs. 1.2x BDC average), and no nonaccruals (vs. 3.3% industry average). They reiterated strong portfolio and income metrics—39 investments, 25% non‑cannabis, average debt-investment size ~2.4% of the debt portfolio, gross weighted‑average yield 15.8% (vs. 10.8% public BDC avg), 99.5% senior secured (vs. 24.9% average), 73% fixed or floating at floor (only 27% rate‑sensitive), a calculated 100 bp rate drop impact to NII of ~1%—and reported Q4 gross investment income $14.2M, NII $8.3M ($0.36/share), FY NII $1.45/share, net assets $303.4M (NAV $13.30/share), Q4 originations $31.7M (7 investments, 4 new borrowers; 100% senior secured, 89% floating at floor), unfunded commitments ~$25.0M, 2026 YTD funded $93.9M with $55.7M payoffs (≈$40M net originations), and a $732M pipeline (≈$616M cannabis, $116M non‑cannabis).Chicago Atlantic BDC Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 48.69M | 54.30M | 17.97M | 10.03M | 4.05M | 10.07K |
| Gross Profit | 44.09M | 41.95M | 17.97M | 10.03M | 4.05M | 10.07K |
| EBITDA | 35.22M | 34.53M | 9.62M | 7.34M | 0.00 | -563.37K |
| Net Income | 34.20M | 33.28M | 9.62M | 7.34M | 1.71M | -563.37K |
Balance Sheet | ||||||
| Total Assets | 373.13M | 342.00M | 309.56M | 88.58M | 86.97M | 85.03M |
| Cash, Cash Equivalents and Short-Term Investments | 3.35M | 2.93M | 23.93M | 32.61M | 35.13M | 84.77M |
| Total Debt | 54.50M | 25.00M | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 68.95M | 38.59M | 8.40M | 3.02M | 495.55K | 479.70K |
| Stockholders Equity | 304.18M | 303.41M | 301.16M | 85.55M | 86.48M | 84.55M |
Cash Flow | ||||||
| Free Cash Flow | -13.76M | -20.48M | -5.03M | 5.75M | -50.15M | -509.11K |
| Operating Cash Flow | -13.76M | -20.48M | -5.03M | 5.75M | -50.15M | -509.11K |
| Investing Cash Flow | 23.91B | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | 22.47M | -519.92K | -3.64M | -8.26M | 85.27M | 85.28M |
Chicago Atlantic BDC Technical Analysis
Positive
10.65
Price Trends
9.43
Positive
9.67
Positive
9.73
Positive
Market Momentum
0.12
Negative
61.47
Neutral
68.96
Neutral
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 10.65 is above the 20-day moving average (MA) of 9.44, above the 50-day MA of 9.43, and above the 200-day MA of 9.73, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 61.47 is Neutral, neither overbought nor oversold. The STOCH value of 68.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LIEN.
Chicago Atlantic BDC Risk Analysis
Chicago Atlantic BDC disclosed 1 risk factors in its most recent earnings report. Chicago Atlantic 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
Chicago Atlantic BDC Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $225.70M | 6.24 | 11.28% | 13.03% | 92.11% | 73.34% | |
70 Outperform | $364.20M | 0.44 | <0.01% | 5.39% | ― | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $386.13M | 6.37 | 17.20% | 6.55% | 20.30% | 19.12% | |
53 Neutral | $262.84M | 40.25 | ― | 12.83% | 6.21% | -42.00% | |
49 Neutral | $224.92M | 8.18 | 12.12% | 17.28% | 18.91% | 14.29% |
* Financial Sector Average
LIEN
Chicago Atlantic BDC
9.89
0.98
10.99%
NEWT
Newtek Business
13.38
3.31
32.80%
SSSS
SuRo Capital
13.97
7.94
131.75%
SCM
Stellus Capital
9.08
-2.69
-22.85%
TPVG
TriplePoint Venture Growth
5.54
-0.16
-2.86%
Chicago Atlantic BDC Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresRegulatory Filings and Compliance
Chicago Atlantic BDC Posts Record Q1 Results, Declares Dividend
Positive
May 14, 2026
On May 14, 2026, Chicago Atlantic BDC reported first-quarter 2026 results showing total gross investment income of $16.7 million and net investment income of $10.0 million, or $0.44 per share, alongside a record investment portfolio of $364.0 mill...
Executive/Board Changes
Chicago Atlantic BDC Announces Resignation of Board Director
Positive
Apr 14, 2026
On April 10, 2026, Chicago Atlantic BDC, Inc. announced that director Patrick McCauley resigned from its board, effective immediately, to pursue other opportunities. The company stated that McCauley’s departure did not involve any disagreeme...
Business Operations and StrategyDividendsFinancial Disclosures
Chicago Atlantic BDC Reports Strong 2025 Results, Declares Dividend
Positive
Mar 19, 2026
Chicago Atlantic BDC, Inc. reported fourth-quarter and full-year 2025 results on March 19, 2026, posting Q4 total investment income of $14.2 million and net investment income of $8.3 million, or $0.36 per share, with no loans on non-accrual and a ...
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.