Palmer Square Capital BDC Inc. (PSBD) AI Stock Analysis

• Market Cap: $346.31M
• Dividend Yield: 14.1%
• Average Volume (3M): 83.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.41
• Revenue Growth: -2.38%
• EPS Growth: -75.49%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.40
• Shares Outstanding: 31,199,167
• 10 Day Avg. Volume: 122,191
• 30 Day Avg. Volume: 83,715
• PEG Ratio: 1.16
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 3.52
• P/FCF Ratio: <0.01
• Enterprise Value/Market Cap: -6.23
• Enterprise Value/Revenue: -29.44
• Enterprise Value/Gross Profit: -69.63
• Enterprise Value/Ebitda: -4.39
• 1Y Price Target: $11.75
• Price Target Upside: 5.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.57
• Revenue Forecast (FY): $108.83M

• Rating: 52 Neutral
• Price Target: $11.00 ▼(-0.90% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by middling fundamentals: improved 2023–2024 profitability/cash flow but meaningful leverage and volatility, plus data consistency concerns in 2025. Technicals are notably weak (below key moving averages with negative MACD), while valuation is helped by a very high dividend yield but limited by a higher P/E. Earnings-call commentary is modestly supportive due to dividend coverage, liquidity, and low credit stress, despite NAV pressure and softer quarterly income.

Positive Factors

Conservative, diversified portfolio

High senior‑secured weighting and broad industry spread materially reduce downside risk versus unsecured credit. Low top‑10 concentration and modest average hold sizes support loss diversification and ongoing stable cash income generation across credit cycles, aiding dividend durability over months.

Strong liquidity and active balance‑sheet management

Substantial available liquidity and an extended, lower‑cost credit facility lower refinancing risk and give management flexibility to meet redemptions, cover payouts, and selectively deploy into dislocations. This structural buffer supports payout stability and opportunistic growth over the medium term.

High yield originations and demonstrated deployment capability

A high portfolio yield and strong funding spreads create a durable earnings moat for a yield‑driven BDC. Coupled with demonstrated quarterly deployments, this yield profile supports persistent interest income generation, providing structural coverage for the base dividend amid normal market variance.

Negative Factors

Elevated leverage and reporting discontinuities

Sustained historical leverage increases sensitivity to rising funding costs and credit stress, potentially pressuring earnings and distributable income. The anomalous 2025 zero‑debt reporting creates comparability issues and reduces confidence in trend reliability for forecasting capital structure risk over the coming months.

Volatile revenue and cash flows

Large multi‑year swings in operating and free cash flow undermine predictability of distributable earnings and capital allocation. Extraordinary 2025 cash‑flow scale and prior negative years suggest one‑offs and data inconsistencies, complicating reliable dividend and investment planning over the next several quarters.

Realized/unrealized losses and NAV pressure

Material Q4 mark‑to‑market losses and a QoQ NAV decline signal sensitivity to spread widening and repricing of credits. Reduced NAV and portfolio fair‑value declines constrain supplemental distribution capacity, increase capital risk, and may limit opportunistic actions if credit volatility persists in the medium term.

Palmer Square Capital BDC Inc. Business Overview & Revenue Model

Company Description

Palmer Square Capital BDC, Inc. engages in the provision of investment funds. It lends and invests in corporate debt securities of companies. The company was founded in 2019 and is headquartered in Mission Woods, KS.

How the Company Makes Money

Palmer Square Capital BDC Inc. generates revenue primarily through interest income from its investments in debt securities and loans made to middle-market companies. The company earns interest and fees from its portfolio companies, which often include origination fees, management fees, and exit fees upon repayment or refinancing. Additionally, PSBD may receive income from equity co-investments when portfolio companies perform well, resulting in capital gains. The firm also benefits from active management of its investment portfolio, ensuring optimal asset allocation and risk management. Partnerships with financial institutions and investment firms further enhance PSBD's ability to source deals and provide comprehensive financial solutions, contributing to its overall earnings.

Palmer Square Capital BDC Inc. Financial Statement Overview

Summary

Profitability and cash generation improved in 2023–2024, but multi-year revenue/cash-flow volatility and elevated historical leverage are meaningful risks. Large discontinuities in the 2025 annual datapoints (e.g., scale jump/zero-profit and zero-debt readings) reduce confidence in trend quality.

Income Statement

Profitability improved meaningfully after a loss in 2022, with strong profits in 2023 and solid profitability in 2024 (healthy profit margins). However, revenue has been volatile (sharp growth in 2023 followed by a decline in 2024), and the 2025 annual figures appear inconsistent (very large revenue with zero profit), which reduces confidence in the latest period’s earnings quality and trend.

Balance Sheet

Leverage is elevated in the historical annual data, with debt running around ~1.4x–1.8x equity from 2021–2024, which increases sensitivity to credit conditions and funding costs. Equity grew over time and returns on equity were strong in 2023 but cooled in 2024; 2022 showed negative profitability. The 2025 annual balance sheet shows zero debt alongside a very large asset/equity base, which is a major discontinuity versus prior years and raises comparability concerns.

Cash Flow

Cash generation is generally supportive in the profitable years: 2023 and 2024 show positive operating and free cash flow, and cash flow is roughly in line with reported earnings. That said, cash flow has been highly volatile (large negative operating cash flow in 2021 and negative again in 2022), and the 2025 annual cash flow is extraordinarily large versus the historical scale, suggesting potential one-offs or data consistency issues.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	111.20M	110.32M	153.66M	-49.39M	29.54M
Gross Profit	94.66M	52.31M	109.18M	-72.84M	20.92M
EBITDA	1.78B	47.67M	107.84M	-74.48M	19.06M
Net Income	-3.17M	47.67M	107.84M	-74.48M	19.06M
Balance Sheet
Total Assets	1.22T	1.43B	1.12B	1.06B	1.22B
Cash, Cash Equivalents and Short-Term Investments	3.22B	2.77M	2.12M	1.65M	1.09M
Total Debt	716.51M	804.16M	641.83M	641.31M	649.91M
Total Liabilities	755.25B	893.20M	659.86M	694.01M	764.49M
Stockholders Equity	464.12B	537.84M	461.96M	363.44M	452.80M
Cash Flow
Free Cash Flow	160.66B	106.73M	57.12M	-39.25M	-438.01M
Operating Cash Flow	160.66B	106.73M	57.12M	-39.25M	-438.01M
Investing Cash Flow	156.96B	-305.05M	-26.65M	35.40M	-519.55M
Financing Cash Flow	-165.42M	198.97M	-30.00M	4.40M	438.42M

Palmer Square Capital BDC Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSBD, the sentiment is Negative. The current price of 11.1 is below the 20-day moving average (MA) of 11.13, below the 50-day MA of 11.59, and below the 200-day MA of 12.24, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 46.51 is Neutral, neither overbought nor oversold. The STOCH value of 85.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PSBD.

Palmer Square Capital BDC 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%
CION	63 Neutral	$418.53M	3.44	3.22%	15.77%	-11.01%	-65.56%
GAIN	61 Neutral	$545.96M	2.10	22.16%	11.02%	-45.46%	134.73%
SCM	60 Neutral	$289.47M	13.90	8.20%	12.83%	90.34%	-44.25%
GLAD	59 Neutral	$414.36M	19.71	7.40%	9.31%	41.12%	-40.68%
PNNT	59 Neutral	$329.75M	10.64	5.38%	16.61%	-3.09%	200.66%
PSBD	52 Neutral	$346.31M	-123.58	2.72%	14.10%	-2.38%	-75.49%

Palmer Square Capital BDC Inc. Corporate Events

Palmer Square Capital BDC Posts Q4 2025 Results, Dividend

Palmer Square Capital BDC Inc. reported fourth-quarter and full-year 2025 results on Feb. 26, 2026, showing total investment income of $29.8 million and net investment income of $13.1 million, or $0.41 per share, with net asset value sliding to $14.85 per share and total net realized and unrealized losses widening to $18.4 million. As of Dec. 31, 2025, the $1.2 billion portfolio remained highly diversified and largely senior secured and floating-rate, with a low 0.09% non-accrual rate, while the board declared a first-quarter 2026 base dividend of $0.36 per share and management emphasized disciplined underwriting, solid credit performance and sufficient liquidity supported by $311.3 million of available capacity against $21.5 million of unfunded commitments.

The company’s portfolio and investment income declined year over year, but yield to maturity rose to 11.30% and distributions of $0.43 per share were paid for the fourth quarter of 2025. Debt-to-equity remained stable at 1.54x, and PSBD’s focus on senior secured loans, broad sector diversification across 42 industries and minimal payment-in-kind income underpinned its positioning in a still-normalizing credit environment.

The most recent analyst rating on (PSBD) stock is a Buy with a $13.50 price target. To see the full list of analyst forecasts on Palmer Square Capital BDC Inc. stock, see the PSBD Stock Forecast page.

Palmer Square Capital BDC Updates Estimated Net Asset Value

Palmer Square Capital BDC Inc. reported that management’s unaudited estimate of its net asset value per share was $14.48 as of January 31, 2026. This updated NAV figure provides investors with an indication of the company’s underlying portfolio value at that date and serves as a key metric for assessing performance and valuation of the BDC’s shares.

The announcement of the estimated NAV per share may influence how shareholders and potential investors evaluate Palmer Square Capital BDC Inc.’s financial position relative to its market price. It also offers stakeholders a snapshot of the company’s asset quality and balance sheet strength at the start of 2026, informing ongoing investment and capital allocation decisions.

The most recent analyst rating on (PSBD) stock is a Buy with a $13.50 price target. To see the full list of analyst forecasts on Palmer Square Capital BDC Inc. stock, see the PSBD Stock Forecast page.

Palmer Square Capital BDC Announces Year-End 2025 NAV

Palmer Square Capital BDC Inc., a business development company focused on providing capital to corporate borrowers, reported an unaudited estimated net asset value (NAV) per share of its common stock of $14.83 as of December 31, 2025. This estimated NAV figure offers investors an updated snapshot of the company’s per-share asset value at year-end 2025, serving as a key metric for assessing portfolio performance and the underlying value of shareholders’ interests.

The most recent analyst rating on (PSBD) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Palmer Square Capital BDC Inc. stock, see the PSBD Stock Forecast page.

Palmer Square Capital BDC Declares Q4 Supplemental Dividend

On December 23, 2025, Palmer Square Capital BDC Inc. announced that its board declared a supplemental dividend of $0.07 per share for the fourth quarter of 2025, payable on January 14, 2026 to shareholders of record as of December 29, 2025. The supplemental distribution, funded from quarterly undistributed net investment income above the previously declared fourth-quarter base dividend of $0.36 per share, underscored the company’s ability to generate income in excess of its regular payout, signaling solid portfolio performance and providing an incremental cash benefit to income-focused investors.

The most recent analyst rating on (PSBD) stock is a Hold with a $12.50 price target. To see the full list of analyst forecasts on Palmer Square Capital BDC Inc. stock, see the PSBD Stock Forecast page.

Palmer Square Capital BDC stockholders back board, auditor

On December 18, 2025, Palmer Square Capital BDC Inc. held its 2025 Annual Meeting of Stockholders, where 24,321,806 of the 31,478,948 eligible common shares were represented in person or by proxy. Stockholders elected two Class I directors, Christopher D. Long and Megan L. Webber, to serve until the 2028 annual meeting or until their successors are duly elected and qualified, and ratified the appointment of PricewaterhouseCoopers LLP as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2025, signaling continued support for the firm’s existing leadership and audit arrangements.

The most recent analyst rating on (PSBD) stock is a Hold with a $12.50 price target. To see the full list of analyst forecasts on Palmer Square Capital BDC Inc. stock, see the PSBD Stock Forecast page.

Palmer Square Capital BDC Reports November NAV Update

On November 30, 2025, Palmer Square Capital BDC Inc. reported an unaudited estimate of its net asset value per share of common stock at $15.31. This financial update provides stakeholders with insight into the company’s valuation and financial health as of the specified date.

The most recent analyst rating on (PSBD) stock is a Hold with a $12.50 price target. To see the full list of analyst forecasts on Palmer Square Capital BDC Inc. stock, see the PSBD Stock Forecast page.