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Logan Ridge Finance (LRFC)
NASDAQ:LRFC
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Logan Ridge Finance
(NASDAQ:LRFC)
54Neutral
Logan Ridge Finance (LRFC) vs. S&P 500 (SPY)
Market Cap
$56.31M
Dividend Yield6.51%
Average Volume (3M)7.97K
Price to Earnings (P/E)―
Beta (1Y)0.27
Revenue Growth678.57%
EPS Growth98.81%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength84
IndustryAsset Management
Share Statistics
EPS (TTM)-0.06
Shares Outstanding2,655,898
10 Day Avg. Volume4,328
30 Day Avg. Volume7,967
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.80
Price to Cash Flow (P/CF)3.50
P/FCF Ratio2.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Logan Ridge Finance Business Overview & Revenue Model
Company DescriptionLogan Ridge Finance Corporation, formerly known as, Capitala Finance Corp. is a Business Development Company specializing in senior subordinated debt and unitranche debt, unitranche loan, first-lien and second-lien loans, lower middle market and middle market, equity co-investment in sponsored companies. The fund targets companies in the Aerospace, defense, business services, education, food and beverage, Industrial & Environmental Services, logistics, distribution, media, telecommunication, manufacturing, consumer goods and health-care industries. It typically considers investments in the United States. The fund invests $5 million and $50 million per transaction in companies with EBITDA between $5 million to $50 million and enterprise value less than $250 million. The fund makes minority equity co-investments, alongside management or financial sponsors.
How the Company Makes MoneyLogan Ridge Finance Corporation generates revenue through interest income from its debt investments, capital gains from equity investments, and management fees associated with its investment activities. The company earns interest by providing loans to businesses, which forms a significant portion of its income. Additionally, LRFC may realize capital gains when it exits its equity positions in portfolio companies. The firm also benefits from partnerships with institutional investors and other financial entities, which can enhance its deal flow and investment opportunities.
Logan Ridge Finance Financial Statement Overview
Summary
Logan Ridge Finance presents a mixed financial picture. The income statement reflects challenges in achieving consistent profitability, while the balance sheet suggests moderate financial stability with a notable leverage risk. The cash flow statements provide a more positive outlook, with strong cash generation being a key strength. The company needs to focus on improving profitability to complement its cash flow performance and reduce financial leverage to enhance overall financial health.Income Statement
Logan Ridge Finance has shown inconsistent revenue trends with significant fluctuations over the past years. The gross profit has been positive recently, indicating some improvements in profitability. However, the net profit margin remains concerningly low or negative, as net income has not been generated in recent periods. The EBIT margin has improved, suggesting better operational efficiency, but the lack of EBITDA data for the latest year limits comprehensive analysis. Overall, the income statement reflects a company striving for profitability amidst high volatility.45
Neutral
Balance Sheet
The balance sheet of Logan Ridge Finance indicates a relatively stable stockholders' equity, but the debt levels are significant, leading to a moderate debt-to-equity ratio. The equity ratio shows that a reasonable portion of assets is financed by equity, which is a positive indicator of financial stability. However, the high total liabilities compared to assets suggest potential risks in financial leverage. The return on equity is not calculable due to negative net income, limiting a complete assessment of shareholder returns.50
Neutral
Cash Flow
Logan Ridge Finance's cash flow statements show that operating cash flow has remained positive, indicating robust cash generation capabilities. The free cash flow has also been positive, which is encouraging for potential reinvestment and debt servicing. The operating cash flow to net income and free cash flow to net income ratios are not applicable due to the absence of positive net income, but the cash flow generation suggests underlying operational strengths despite income statement weaknesses.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 18.26M | 3.78M | 13.67M | 4.04M | -30.79M | Gross Profit |
| 18.26M | 3.78M | 9.31M | -1.22M | -61.57M | EBIT |
| 14.02M | 1.92M | -4.21M | -1.92M | -35.45M | EBITDA |
| 0.00 | 3.78M | 0.00 | 14.74M | 2.40M | Net Income Common Stockholders |
| -29.00K | -2.48M | -12.02M | -1.92M | -35.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 15.02M | 22.31M | 6.79M | 39.06M | 49.94M | Total Assets |
| 192.67M | 197.09M | 214.71M | 242.22M | 328.00M | Total Debt |
| 7.06M | 101.52M | 117.08M | 122.80M | 213.49M | Net Debt |
| -7.95M | 97.62M | 110.28M | 83.75M | 163.55M | Total Liabilities |
| 107.57M | 107.91M | 119.70M | 135.19M | 219.05M | Stockholders Equity |
| 85.10M | 89.17M | 95.00M | 107.03M | 108.95M |
| Cash Flow | Free Cash Flow | |||
| 13.94M | 16.83M | -25.61M | 82.24M | 53.11M | Operating Cash Flow |
| 13.94M | 16.83M | -25.61M | 82.24M | 53.11M | Investing Cash Flow |
| 0.00 | 0.00 | -13.66M | 80.18M | 54.69M | Financing Cash Flow |
| -2.81M | -19.73M | -6.66M | -93.13M | -65.49M |
Logan Ridge Finance Technical Analysis
Negative
21.20
Price Trends
23.60
Negative
24.01
Negative
23.05
Negative
Market Momentum
-0.60
Positive
33.23
Neutral
28.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LRFC, the sentiment is Negative. The current price of 21.2 is below the 20-day moving average (MA) of 22.60, below the 50-day MA of 23.60, and below the 200-day MA of 23.05, indicating a bearish trend. The MACD of -0.60 indicates Positive momentum. The RSI at 33.23 is Neutral, neither overbought nor oversold. The STOCH value of 28.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LRFC.
Logan Ridge Finance Risk Analysis
Logan Ridge Finance disclosed 94 risk factors in its most recent earnings report. Logan Ridge Finance 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
Logan Ridge Finance Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $14.73B | 8.82 | 12.40% | 8.92% | 19.95% | -10.57% | |
74 Outperform | $5.11B | 9.86 | 19.26% | 5.36% | 51.80% | 12.05% | |
68 Neutral | $701.58M | 8.41 | 12.58% | 8.51% | 2.31% | -15.06% | |
63 Neutral | $14.39B | 9.81 | 8.95% | 4.37% | 16.38% | -11.64% | |
58 Neutral | $684.87M | ― | -8.57% | 16.20% | 8.24% | -207.60% | |
54 Neutral | $56.31M | ― | -0.03% | 6.51% | 678.57% | 98.81% | |
53 Neutral | $458.38M | 28.11 | 3.28% | 13.39% | ― | -66.59% |
* Financial Sector Average
Performance Comparison
LRFC
Logan Ridge Finance
21.20
0.05
0.24%
FDUS
Fidus Investment
20.20
2.85
16.43%
MAIN
Main Street Capital
55.93
12.48
28.72%
PNNT
Pennantpark Investment
7.02
1.01
16.81%
ARCC
Ares Capital
21.52
2.93
15.76%
TCPC
BlackRock TCP Capital
7.84
-0.78
-9.05%
Logan Ridge Finance Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: -12.65% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
Logan Ridge Finance Corporation reported a strong financial performance for 2024, with record investment income and strategic achievements such as the successful sale of major equity positions and a merger with Portman Ridge. Despite a slight decrease in net asset value and stable non-accrual investments, the overall sentiment is positive due to significant strides in portfolio management and financial flexibility.Highlights
Record Investment Income
Logan Ridge achieved the highest total investment income and net investment income in its history, at $20.9 million, $4.2 million, and $1.56 per share, respectively.
Strategic Equity Portfolio Rotation
Successful sale of the largest equity position, Nth Degree, for $17.5 million in cash, and the exit of the second largest non-yielding equity investment in GA Communications.
Merger with Portman Ridge
Announced an accretive merger with Portman Ridge Finance Corporation, expected to create greater scale and operating efficiencies.
No New Non-Accruals
Ended the year with no new non-accruals during the fourth quarter of 2024.
Strengthened Balance Sheet
Amended and extended the revolving credit facility with KeyBanc, reducing the cost of financing and increasing financial flexibility.
Dividend Announcement
Board of directors approved a dividend of $0.36 per share for the fourth quarter of 2024, consistent with the prior quarter.
Lowlights
Decrease in Net Asset Value
Net asset value decreased by $1.2 million or 1.4% compared to the prior quarter, with a per share decrease of $0.27 or 0.6%.
Stable Non-Accrual Investments
Four debt investments across three portfolio companies remained on non-accrual status, representing 9.0% and 4.6% of the investment portfolio at cost and fair value, respectively.
Company Guidance
During the fourth quarter and full year 2024 earnings call for Logan Ridge Finance Corporation, the company reported record financial performance, including the highest total investment income and net investment income in its history, at $20.9 million, $4.2 million, and $1.56 per share, respectively. Key achievements included the sale of a significant equity position, Nth Degree, for $17.5 million, and the exit of another major non-yielding equity investment in GA Communications. The company also successfully amended its revolving credit facility, enhancing its financial flexibility. The merger with Portman Ridge Finance Corporation was a focal point, with expectations of improved scale and efficiencies. As of December 31, 2024, the fair value of Logan's portfolio was approximately $172.3 million, with 83.3% in debt investments bearing a weighted average annualized yield of 10.7%. The board approved a dividend of $0.36 per share for the fourth quarter, maintaining the prior quarter's rate. The company ended the year with $15 million in cash and cash equivalents and $26.2 million in unused borrowing capacity.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.