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Nuveen Churchill Direct Lending Corp. (NCDL)
NYSE:NCDL
US Market
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Nuveen Churchill Direct Lending Corp. (NCDL) AI Stock Analysis

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NCDL

Nuveen Churchill Direct Lending Corp.

(NYSE:NCDL)

Rating:75Outperform
Price Target:―
Nuveen Churchill Direct Lending Corp. demonstrates strong financial growth and profitability, supported by a robust balance sheet. The technical indicators suggest potential for price improvement, while the valuation is attractive, particularly for dividend-focused investors. The positive earnings call further underscores the company's solid performance and strategic positioning, mitigating some liquidity concerns due to negative cash flow.
Positive Factors
Dividend Coverage
Strong dividend coverage persists, with core ratio totaling 128% in 3Q24 and total dividend coverage ratio at 105%, indicating a healthy cushion.
Insider Buying
An executive buying shares of their stock is viewed positively as it signifies confidence in the business.
Liquidity Improvement
Improvement in liquidity is expected to persist, which is seen as a positive for NCDL’s valuation over time.
Negative Factors
Valuation Discount
The biggest driver of the current valuation discount has been the lack of liquidity in shares since the IPO.

Nuveen Churchill Direct Lending Corp. (NCDL) vs. SPDR S&P 500 ETF (SPY)

Nuveen Churchill Direct Lending Corp. Business Overview & Revenue Model

Company DescriptionNuveen Churchill Direct Lending Corp. (the “Company”) is business development company and was formed on March 13, 2018, as a limited liability company under the laws of the State of Delaware and was converted into a Maryland corporation on June 18, 2019 prior to the commencement of operations. The Company is a closed-end, externally managed, non-diversified management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). The Company's investment objective is to generate attractive risk-adjusted returns primarily through current income by investing primarily in senior secured loans to private equity-owned U.S. middle market companies, which the Company defines as companies with approximately $10.0 million to $100.0 million of earnings before interest, taxes, depreciation and amortization (“EBITDA”). The Company will focus on privately originated debt to performing U.S. middle market companies, with a portfolio expected to comprise primarily of first-lien senior secured debt and unitranche loans (other than last-out positions in unitranche loans) (collectively “Senior Loans”). The Company will also opportunistically invest in junior capital opportunities (second-lien loans, subordinated debt, last-out positions in unitranche loans and equity-related securities) (collectively “Junior Capital Investments”).
How the Company Makes MoneyNCDL generates revenue primarily through interest income from its lending activities. By providing loans to middle-market companies, the company earns interest over the term of the loan, which forms the core of its revenue model. Additionally, NCDL may earn fees associated with the origination, structuring, and management of these loan facilities. The company's partnerships with institutional investors and its integration within the broader Nuveen investment network enhance its capacity to source and manage lending deals, thereby contributing to its earnings.

Nuveen Churchill Direct Lending Corp. Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong quarter for NCDL with robust net investment income, high credit quality, and successful strategic initiatives like the share repurchase program and high portfolio diversification. However, there were challenges such as reduced gross originations and a slight decline in net asset value. Despite these lowlights, the overall sentiment is positive, given the strength and resilience shown in the company's financial performance and strategic positioning.
Q2-2025 Updates
Positive Updates
Strong Net Investment Income
NCDL reported net investment income of $0.46 per share in the second quarter, exceeding the regular quarterly distribution of $0.45 per share.
High Credit Quality and Low Nonaccruals
The portfolio had only one nonaccrual investment, representing 0.2% of total fair value, with strong credit fundamentals reflected by a weighted average internal risk rating of 4.1.
Robust Deal Flow and Pipeline
Churchill closed or committed $6.5 billion across more than 190 transactions in the first half of 2025, with a strong pipeline and deal activity heading into the second half of the year.
Successful Share Repurchase Program
The company completed a nearly $100 million share repurchase program at an attractive discount to NAV, positively impacting NAV per share.
High Portfolio Diversification
The portfolio was highly diversified with 207 companies, and the top 10 portfolio companies represented only 13.6% of total fair value.
Negative Updates
Intentional Reduction in Gross Originations
Gross originations totaled $48 million in the second quarter, down from $166 million in the first quarter, due to intentional leverage reduction and market volatility.
Slight Decline in Total Investment Income
Total investment income decreased to $53.1 million in the second quarter from $53.6 million in the first quarter, primarily due to a modest decline in the investment portfolio.
Net Asset Value Slight Decline
The net asset value per share decreased slightly from $17.96 at March 31 to $17.92 at June 30, due to modest valuation declines and net realized and unrealized losses.
Company Guidance
During the second quarter of 2025, Nuveen Churchill Direct Lending Corp. (NCDL) reported net investment income (NII) of $0.46 per share, surpassing their regular quarterly distribution of $0.45 per share. Gross originations decreased to approximately $48 million from $166 million in the first quarter, reflecting an intentional strategy to reduce leverage. The net asset value per share slightly fell from $17.96 to $17.92 due to modest valuation declines offset by a share repurchase program. The investment portfolio's credit quality remained robust, with a net leverage of 4.9x and interest coverage of 2.3x. Despite market volatility, NCDL's portfolio showed resilience, with nonaccruals at just 0.2% of total investment portfolio fair value. The company successfully rotated out of upper middle-market investments and focused on traditional middle-market senior loans, maintaining a diversified portfolio of 207 companies. NCDL's management remains optimistic about future opportunities, given their scale, differentiated sourcing, and a strong pipeline of high-quality investments.

Nuveen Churchill Direct Lending Corp. Financial Statement Overview

Summary
Nuveen Churchill Direct Lending Corp. exhibits strong financial performance with significant revenue growth and high profit margins. The balance sheet is robust, highlighted by asset growth and improved debt-to-equity ratios. However, negative cash flow in 2024 poses potential liquidity concerns that could impact future operations.
Income Statement
85
Very Positive
Nuveen Churchill Direct Lending Corp. has demonstrated strong revenue growth over recent years, increasing from $13.7 million in 2020 to $224 million in 2024. The gross profit and EBIT margins are notably high, reflecting strong operational efficiency. However, the absence of EBITDA data in the latest period limits a complete profitability analysis.
Balance Sheet
78
Positive
The company's balance sheet is solid, with total assets growing significantly from $353 million in 2020 to $2.14 billion in 2024. The debt-to-equity ratio has improved substantially, with no debt reported in the latest period, indicating financial stability. High stockholders' equity provides a strong equity ratio, though the rapid increase in liabilities in recent years poses a potential risk.
Cash Flow
70
Positive
Cash flow from operations has shown fluctuations, with a significant negative operating cash flow in 2024. Free cash flow has also deteriorated, moving from positive in prior years to negative in the most recent period. This indicates potential liquidity challenges, despite historically positive cash flow metrics.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue158.82M186.00M153.80M82.19M37.11M13.71M
Gross Profit129.70M111.42M141.85M73.80M32.60M11.79M
EBITDA120.84M116.48M137.14M42.98M37.09M6.63M
Net Income109.52M116.32M75.94M17.29M27.27M2.15M
Balance Sheet
Total Assets2.07B2.14B1.73B1.25B820.92M353.46M
Cash, Cash Equivalents and Short-Term Investments44.01M43.25M67.44M39.32M35.19M12.61M
Total Debt0.001.11B943.94M699.77M2.65M188.28M
Total Liabilities1.19B1.17B982.98M287.00K193.00K195.82M
Stockholders Equity887.74M970.32M747.88M1.25B820.92M157.64M
Cash Flow
Free Cash Flow16.92M-297.20M73.05M25.14M41.32M7.52M
Operating Cash Flow16.92M-297.20M73.05M25.14M41.32M7.52M
Investing Cash Flow76.47M0.00-442.57M-452.99M-429.62M-159.25M
Financing Cash Flow-125.08M273.06M397.65M431.93M411.70M161.33M

Nuveen Churchill Direct Lending Corp. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price15.96
Price Trends
50DMA
16.36
Negative
100DMA
15.87
Positive
200DMA
15.93
Positive
Market Momentum
MACD
-0.11
Negative
RSI
45.96
Neutral
STOCH
47.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NCDL, the sentiment is Neutral. The current price of 15.96 is below the 20-day moving average (MA) of 16.01, below the 50-day MA of 16.36, and above the 200-day MA of 15.93, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 45.96 is Neutral, neither overbought nor oversold. The STOCH value of 47.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NCDL.

Nuveen Churchill Direct Lending Corp. Risk Analysis

Nuveen Churchill Direct Lending Corp. disclosed 3 risk factors in its most recent earnings report. Nuveen Churchill Direct Lending Corp. reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Nuveen Churchill Direct Lending Corp. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$1.14B7.2517.31%12.57%31.43%30.85%
75
Outperform
$790.69M8.7610.37%12.53%13.19%-18.24%
71
Outperform
$910.52M10.258.95%9.82%5.87%-12.64%
67
Neutral
$1.01B11.806.60%12.82%-17.05%-40.15%
66
Neutral
$1.02B9.419.42%11.49%-3.29%-16.86%
63
Neutral
$1.02B12.177.37%11.99%55.25%-47.71%
55
Neutral
$6.29B4.66-20.95%6.01%10.84%8.15%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NCDL
Nuveen Churchill Direct Lending Corp.
15.96
0.59
3.84%
PFLT
Pennantpark $
10.26
0.09
0.88%
SLRC
SLR Investment Corp.
16.70
2.52
17.77%
CGBD
TCG BDC
13.79
-1.20
-8.01%
BCSF
Bain Capital Specialty Finance
15.67
0.61
4.05%
TRIN
Trinity Capital
16.23
4.18
34.69%

Nuveen Churchill Direct Lending Corp. Corporate Events

DividendsFinancial Disclosures
Nuveen Churchill Reports Strong 2024 Financial Results
Positive
Feb 27, 2025

Nuveen Churchill Direct Lending Corp. reported its financial results for the full year and fourth quarter ending December 31, 2024, on February 27, 2025. The company achieved a net investment income of $0.56 per share for the fourth quarter and declared a first-quarter regular distribution of $0.45 per share. The company experienced a strong year with over $950 million in new investments, reflecting a 40% increase year-over-year. NCDL’s portfolio saw an increase in fair value to $2.08 billion across 210 companies, and the company remains well-positioned with ample liquidity and no near-term debt maturities. The financial results indicate a robust performance with a return on equity of over 12% for the year, supported by high-quality new originations and strategic balance sheet optimization.

Executive/Board Changes
Nuveen Churchill Board Member Michael Perry Resigns
Neutral
Feb 14, 2025

On February 10, 2025, Michael Perry resigned from the Board of Directors of Nuveen Churchill Direct Lending Corp., effective immediately, without any expressed disagreement with the company’s practices. Following his resignation, the Board reduced its size from seven to six directors, indicating a streamlined governance approach.

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.Date of analysis: Apr 22, 2025