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Logan Ridge Finance (LRFC)
NASDAQ:LRFC
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Logan Ridge Finance
(NASDAQ:LRFC)
Rating:52Neutral
Price Target:―
Logan Ridge Finance (LRFC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$47.06M
Dividend Yield7.79%
Average Volume (3M)11.38K
Price to Earnings (P/E)―
Beta (1Y)0.30
Revenue Growth678.57%
EPS Growth98.81%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength83
IndustryAsset Management
Share Statistics
EPS (TTM)0.35
Shares Outstanding2,655,973
10 Day Avg. Volume11,112
30 Day Avg. Volume11,375
Financial Highlights & Ratios
PEG Ratio-16.29
Price to Book (P/B)0.55
Price to Sales (P/S)0.00
P/FCF Ratio3.35
Enterprise Value/Market Cap0.82
Enterprise Value/Revenue1.48
Enterprise Value/Gross Profit2.68
Enterprise Value/Ebitda-2.59
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 (LRFC) is a business development company that provides customized financing solutions to small and mid-sized businesses across various sectors. The company primarily focuses on offering debt and equity investments, helping businesses to grow while generating returns for its investors. LRFC's core services include senior secured loans, mezzanine debt, and equity co-investments.
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 shows mixed financial health, with inconsistent revenue and low net profit margins, indicating struggles in achieving consistent profitability. The balance sheet presents moderate stability with substantial debt. However, strong cash flow generation highlights operational robustness, providing a positive aspect despite overall financial challenges.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 | |||
| 5.26M | 3.78M | 13.67M | 4.04M | -30.79M | Gross Profit |
| 5.26M | 3.78M | 9.31M | -1.22M | -61.57M | EBIT |
| -29.00K | 1.92M | -4.21M | -1.92M | -35.45M | EBITDA |
| 8.87M | 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
17.72
Price Trends
18.96
Negative
21.32
Negative
22.05
Negative
Market Momentum
-0.30
Negative
41.18
Neutral
37.33
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 17.72 is above the 20-day moving average (MA) of 17.60, below the 50-day MA of 18.96, and below the 200-day MA of 22.05, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 41.18 is Neutral, neither overbought nor oversold. The STOCH value of 37.33 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $113.48M | 3.76 | 19.56% | 16.06% | -49.04% | ― | |
69 Neutral | $137.36M | 19.51 | 3.63% | 15.77% | 127.09% | 2519.30% | |
64 Neutral | $12.64B | 9.78 | 7.67% | 17015.08% | 12.23% | -6.02% | |
52 Neutral | $47.06M | ― | -8.58% | 7.79% | 678.57% | 98.81% | |
48 Neutral | $108.96M | 41.01 | -5.47% | 21.45% | -37.27% | -153.39% | |
48 Neutral | $122.83M | 25.78 | 3.56% | 13.35% | 32.38% | -90.38% | |
45 Neutral | $150.26M | ― | -9.96% | ― | 90.08% | -893.47% |
* Financial Sector Average
Performance Comparison
LRFC
Logan Ridge Finance
17.72
-3.32
-15.78%
PTMN
Portman Ridge Finance
11.84
-5.08
-30.02%
SSSS
SuRo Capital
6.38
2.21
53.00%
OFS
OFS Capital
8.47
0.27
3.29%
MRCC
Monroe Capital
6.34
-0.26
-3.94%
GECC
Great Elm Capital
10.64
1.77
19.95%
Logan Ridge Finance Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 1.84%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Negative
The earnings call presented a mixed picture. While there were notable achievements, such as the successful exit from GA Communications and increased investment in the BC Partners Credit platform, these were overshadowed by significant challenges, including decreased investment income, a decline in net asset value, and continued issues with non-accrual investments. The potential merger with Portman Ridge offers some optimism, but the current financial setbacks and portfolio challenges weigh heavily on the sentiment.Q1-2025 Updates
Positive Updates
Successful Exit from GA Communications
Logan Ridge Finance Corporation successfully exited its second largest non-yielding equity investment in GA Communications, reducing the legacy equity portfolio to 10.8% from 13.8% the previous quarter and 18.2% a year prior.
Increased Investment in BC Partners Credit Platform
71.8% of Logan Ridge's investment portfolio at fair value is now invested in assets originated by the BC Partners Credit platform, up from 66.7% at the end of the last quarter.
Potential Benefits from Portman Ridge Merger
The proposed merger with Portman Ridge is expected to offer increased scale, improved liquidity, and enhanced operational efficiencies.
Negative Updates
Decreased Investment Income
Logan Ridge reported $4.6 million in investment income, a decrease of $0.8 million from $5.4 million in the prior quarter.
Net Asset Value Decline
The net asset value decreased by $6.3 million or 7.4% compared to the prior quarter, largely due to a $4.4 million write-down on the legacy investment in Sequoia.
Non-Accrual Challenges
The company had four debt investments on non-accrual status, with a fair value of $3.7 million, consistent with the previous quarter, indicating ongoing challenges in recovering these investments.
Company Guidance
During the first quarter of 2025, Logan Ridge Finance Corporation made significant progress in optimizing its portfolio, achieving net deployment of $2.7 million despite the large write-down of $4.4 million on its legacy investment in Sequoia Healthcare. As of March 31, 2025, the fair value of Logan's portfolio was approximately $169.6 million, with 71.8% of the portfolio originating from the BC Partners Credit platform. The equity portfolio was reduced to 12% of the total portfolio at fair value, down from 13.8% in the previous quarter. Logan Ridge reported a decrease in investment income to $4.6 million, with net investment income standing at $0.9 million, and a net asset value of $78.8 million, a 7.4% decline from the prior quarter. With $5.1 million in cash and $31.5 million in unused borrowing capacity, the company is poised for further strategic investments. As part of its long-term strategy, Logan Ridge is pursuing a merger with Portman Ridge, aimed at enhancing scale and operational efficiency.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.