Pearl Diver Credit Company Inc. (PDCC) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 18.86%
• Average Volume (3M): 3.31K
• Price to Earnings (P/E): 1.9
• Beta (1Y): 0.13
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.81
• Shares Outstanding: 6,803,959
• 10 Day Avg. Volume: 1,653
• 30 Day Avg. Volume: 3,305
• PEG Ratio: 0.01
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 4.35
• P/FCF Ratio: 3.49
• Enterprise Value/Market Cap: 10.00T>
• Enterprise Value/Revenue: 7.63
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: 10.62
• 1Y Price Target: $13.00
• Price Target Upside: 34.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $11.00 ▲(13.99% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is driven primarily by mixed fundamentals: a strong, low-leverage balance sheet offsets volatile operating profitability and inconsistent cash flow. Valuation metrics are exceptionally cheap with a very high dividend yield, but technicals are notably weak, with the stock in a clear downtrend and deeply bearish momentum.

Positive Factors

Low leverage / strong balance sheet

Consistently minimal leverage and sizable equity (~$132M in 2025) provide durable financial flexibility for an asset manager. This lowers refinancing risk, supports dividend capacity and opportunistic buying, and cushions portfolio drawdowns over a 2–6 month horizon.

Regular NAV transparency

Frequent NAV disclosure gives investors a clear, structural view of underlying portfolio value and performance. For a closed-end credit investor, regular NAV updates improve price discovery and governance, aiding longer-term capital allocation and investor confidence.

Strong 2025 revenue and high net margins

Material revenue growth and sustained high net margins indicate the business can generate meaningful profit when market conditions and realization events align. This underpins long-term distributable earnings potential and supports reinvestment or shareholder distributions.

Negative Factors

Volatile operating profitability

Large swings between operating profit and loss show earnings rely on non-operating items or one-offs, reducing predictability of core performance. For investors this raises risk that future net income may not translate into repeatable cash available for dividends or reinvestment.

Inconsistent cash generation

Wide year-to-year swings in operating and free cash flow make capital planning and dividend coverage uncertain. Structural instability in cash conversion can constrain sustainable distributions and limit ability to fund buybacks or opportunistic investments reliably.

Shrinking/variable asset base

A material decline in assets under management or asset base can reduce fee income and amplify NAV volatility. Persistent or recurrent reductions signal portfolio repositioning or realizations that may impair long-term revenue stability and make performance harder to forecast.

Pearl Diver Credit Company Inc. Business Overview & Revenue Model

Company Description

Pearl Diver Credit Co., Inc. operates as an investment company. It focuses on the investing in collateralized loan obligations securities. The company was founded on April 12, 2023 and is headquartered in New York, NY.

Pearl Diver Credit Company Inc. Financial Statement Overview

Summary

Strong balance sheet with very low leverage and sizable equity supports resilience, but earnings quality and cash conversion are unstable. 2025 revenue and net margin improved sharply, yet operating profitability turned deeply negative and cash flows have swung materially year to year, making results less predictable.

Income Statement

Revenue expanded sharply in 2025 (annual revenue growth of ~135% vs. 2024), and net margins remained strong (net profit margin ~43% in 2025 vs. ~39% in 2024). However, profitability quality looks volatile: operating results swung from strong positive operating profit in 2024 to deeply negative in 2025 (EBITDA/EBIT turned materially negative), despite still reporting positive net income. This divergence suggests elevated non-operating gains and/or one-off items, making earnings less predictable.

Balance Sheet

The balance sheet is conservatively positioned with low leverage: debt is modest relative to equity (debt-to-equity ~0.05 in 2024; essentially near-zero in 2023 and shown near-zero in 2025). Equity remains sizable (~$132M in 2025), supporting financial flexibility. The main watch-out is variability in returns and asset base (assets fell from ~179M in 2024 to ~141M in 2025), which can reflect valuation swings or portfolio/strategy changes typical in asset management.

Cash Flow

Cash generation is inconsistent. 2025 produced strong operating and free cash flow (~$27.8M), a sharp improvement from 2024 when operating and free cash flow were meaningfully negative (~-$9.7M). That said, the year-to-year swing (free cash flow growth deeply negative per the provided metric) highlights volatility, and the business has not shown a stable pattern of converting earnings into steady cash across periods.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023
Income Statement
Total Revenue	9.50M	22.27M	17.49M	2.24M
Gross Profit	0.00	17.56M	17.42M	2.24M
EBITDA	6.82M	-15.99M	15.15M	8.40M
Net Income	6.77M	-19.33M	6.77M	8.38M
Balance Sheet
Total Assets	179.07M	141.35M	179.07M	96.46M
Cash, Cash Equivalents and Short-Term Investments	29.93M	1.03M	188.06K	19.49M
Total Debt	6.64M	6.93M	6.64M	0.00
Total Liabilities	43.86M	9.21M	43.86M	18.76K
Stockholders Equity	164.21M	132.13M	135.22M	96.44M
Cash Flow
Free Cash Flow	-19.54M	27.81M	-9.71M	2.17M
Operating Cash Flow	-19.54M	27.81M	-9.71M	2.17M
Investing Cash Flow	-136.97M	-44.26M	-152.72M	-70.75M
Financing Cash Flow	162.62M	-12.45M	162.62M	88.06M

Pearl Diver Credit Company Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PDCC	64 Neutral	―	1.92	12.77%	18.86%	―	―
MLCI	51 Neutral	$6.90M	-1.17	-25.88%	1.07%	66.65%	-1497.99%
RMCO	50 Neutral	$58.29M	-37.85	-2.51%	0.20%	261.58%	-329.41%
CWD	46 Neutral	$8.70M	-0.28	-1438.14%	―	-62.09%	-99.89%
ATON	40 Underperform	$8.04M	-0.33	-925.11%	―	―	―
BTTC	34 Underperform	$12.27M	>-0.01	-109.09%	―	―	60.78%

Pearl Diver Credit Company Inc. Corporate Events

Pearl Diver Reports January 31, 2026 NAV Update

Pearl Diver Credit Company Inc. reported that its management’s unaudited net asset value per share of common stock stood at $13.73 as of January 31, 2026. This NAV figure provides investors with an updated snapshot of the company’s per-share value at that date, offering a basis for assessing portfolio performance and the valuation of their holdings.

Management’s unaudited net asset value per share of our common stock as of January 31, 2026 was $13.73. That valuation gives shareholders a current reference point for judging the company’s financial position and the relative attractiveness of its shares at that time.

The most recent analyst rating on (PDCC) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Pearl Diver Credit Company Inc. stock, see the PDCC Stock Forecast page.

Pearl Diver Credit Reports Year-End 2025 NAV Update

Pearl Diver Credit Company Inc. reported that its management’s unaudited net asset value per share of common stock was $14.41 as of December 31, 2025, providing investors with an updated measure of the company’s per‑share value at year-end 2025.

The most recent analyst rating on (PDCC) stock is a Hold with a $14.50 price target. To see the full list of analyst forecasts on Pearl Diver Credit Company Inc. stock, see the PDCC Stock Forecast page.