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

• Market Cap: $368.93M
• Dividend Yield: 14.1%
• Average Volume (3M): 83.72K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.40
• Revenue Growth: -2.38%
• EPS Growth: -75.49%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.43
• Shares Outstanding: 31,478,949
• 10 Day Avg. Volume: 122,191
• 30 Day Avg. Volume: 83,715
• PEG Ratio: -0.19
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 4.49
• P/FCF Ratio: 4.64
• Enterprise Value/Market Cap: -10.40
• Enterprise Value/Revenue: -53.86
• Enterprise Value/Gross Profit: -204.65
• Enterprise Value/Ebitda: -272.94
• 1Y Price Target: $12.83
• Price Target Upside: 8.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $12.50 ▲(5.31% Upside)

The score is driven primarily by mixed financial performance (improved profitability/cash flow but weakening TTM revenue/margins and balance-sheet comparability issues). Earnings-call fundamentals are supportive on dividend coverage and improved interest coverage but tempered by losses and lower investment income, while technicals are only mildly positive and valuation is balanced between a very high yield and a high P/E.

Positive Factors

Improved Cash Generation

PSBD moved from negative operating cash flow in 2021–2022 to positive operating and free cash flow in 2023–TTM. This structural improvement supports dividend funding and buybacks, enhancing capital allocation flexibility and the durability of payouts vs earlier periods.

Dividend Coverage by NII

Net investment income covering both base and total dividends, including a supplemental, indicates core earnings currently fund distributions. For a BDC, consistent NII coverage is a durable indicator of earnings quality and reduces reliance on capital markets to sustain payouts over the medium term.

Expanded Credit Facility and Liquidity

Raising the credit facility to $200M with a 2030 maturity materially strengthens structural liquidity and funding runway. This enhances the firm's ability to deploy capital, support portfolio companies in stressed periods, and lowers near-term refinancing risk—improving operational resilience.

Negative Factors

Revenue Decline and Margin Compression

A 9.3% TTM revenue decline alongside margin compression weakens the core interest-and-fees income engine for a BDC. Sustained revenue and margin deterioration would reduce net investment income, limit excess cash for supplements/buybacks, and heighten vulnerability to credit losses over months.

Balance-Sheet Inconsistency and Leverage

Material leverage in reported annual periods but a TTM presentation showing no debt creates comparability and data-quality issues. High historical leverage raises sensitivity to funding and credit cycles; inconsistent reporting reduces visibility into sustainable capital structure and risk tolerance.

Portfolio Credit Losses and Non-Accruals

Net realized/unrealized losses of $10.3M and noted non-accrual additions signal persistent credit risk within the portfolio. Such losses can pressure NAV and earnings, require provisioning, and increase volatility in distributable income, undermining dividend durability if trends persist.

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

Financials show a rebound from the 2022 loss to positive profitability and improved operating/free cash flow in 2023–TTM, supporting earnings quality. Offsetting this, TTM shows revenue down 9.3% and margin compression, and the balance-sheet picture is less reliable due to noted leverage in annual periods versus a no-debt TTM presentation, reducing confidence in trend durability.

Income Statement

Profitability has been volatile: the company swung from a large loss in 2022 to strong profitability in 2023–2024, but TTM (Trailing-Twelve-Months) shows a sharp compression in profitability alongside a revenue decline (down 9.3%). While earnings are still positive in TTM, the low margin profile vs. prior years and the uneven revenue trajectory reduce confidence in the durability of current earnings.

Balance Sheet

Leverage has been meaningful in the annual periods (debt running well above equity in recent years), which increases sensitivity to credit and funding conditions. Returns on equity were strong in 2023 and solid in 2024, but the prior 2022 loss highlights downside risk. TTM (Trailing-Twelve-Months) shows no debt and a very large equity base versus prior years, suggesting potential reporting/scale inconsistencies that limit comparability and raise data-quality risk for balance-sheet trend analysis.

Cash Flow

Cash generation improved meaningfully versus the negative operating cash flow seen in 2021–2022, with positive operating and free cash flow in 2023–TTM (Trailing-Twelve-Months). Free cash flow has generally tracked net income closely across periods, supporting earnings quality. However, operating cash flow has been choppy historically and annual free cash flow declined modestly in 2024, indicating some variability in underlying cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	71.20M	110.32M	153.66M	-49.39M	29.54M	24.45M
Gross Profit	18.74M	52.31M	109.18M	-72.84M	20.92M	19.49M
EBITDA	14.05M	47.67M	107.84M	-74.48M	19.06M	31.47M
Net Income	14.05M	47.67M	107.84M	-74.48M	19.06M	26.73M
Balance Sheet
Total Assets	1.28T	1.43B	1.12B	1.06B	1.22B	667.49M
Cash, Cash Equivalents and Short-Term Investments	4.20B	2.77M	2.12M	1.65M	1.09M	682.58K
Total Debt	0.00	804.16M	641.83M	641.31M	649.91M	393.15M
Total Liabilities	791.08B	893.20M	659.86M	694.01M	764.49M	414.35M
Stockholders Equity	490.45B	537.84M	461.96M	363.44M	452.80M	253.14M
Cash Flow
Free Cash Flow	42.04M	106.73M	57.12M	-39.25M	-438.01M	16.19M
Operating Cash Flow	42.04M	106.73M	57.12M	-39.25M	-438.01M	16.19M
Investing Cash Flow	102.90M	-305.05M	-26.65M	35.40M	-519.55M	-586.26M
Financing Cash Flow	-142.52M	198.97M	-30.00M	4.40M	438.42M	570.75M

Palmer Square Capital BDC Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 11.87 is below the 20-day moving average (MA) of 11.90, above the 50-day MA of 11.83, and below the 200-day MA of 12.29, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 41.76 is Neutral, neither overbought nor oversold. The STOCH value of 31.70 is Neutral, 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
GLAD	70 Outperform	$465.64M	8.17	11.86%	9.31%	41.12%	-40.68%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GAIN	67 Neutral	$548.31M	5.55	18.68%	11.02%	-45.46%	134.73%
CION	63 Neutral	$480.54M	18.38	3.22%	15.77%	-11.01%	-65.56%
SCM	60 Neutral	$369.95M	11.73	8.20%	12.83%	90.34%	-44.25%
PSBD	55 Neutral	$368.93M	26.98	2.72%	14.10%	-2.38%	-75.49%
PNNT	55 Neutral	$380.68M	11.63	6.83%	16.61%	-3.09%	200.66%

Palmer Square Capital BDC Inc. Corporate Events

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.

Palmer Square Capital BDC Updates Net Asset Value

Palmer Square Capital BDC Inc. announced that the unaudited estimate of its net asset value per share of common stock was $15.27 as of October 31, 2025. This valuation provides stakeholders with an updated financial metric, potentially impacting investor perceptions and market positioning.

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 Q3 2025 Financial Results

On November 5, 2025, Palmer Square Capital BDC Inc. announced its financial results for the third quarter of 2025, reporting a total investment income of $31.7 million, a decrease from the previous year. The company declared a fourth quarter base dividend of $0.36 per share, with a supplemental dividend expected in December. Despite a decline in net investment income and an increase in net losses, the company remains optimistic about its strategic focus on high-quality assets and disciplined capital deployment, which it believes positions it well in a dynamic market environment.

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 Inc. Expands Credit Facility

On November 4, 2025, Palmer Square Capital BDC Inc.‘s subsidiary, Palmer Square BDC Funding II LLC, amended its credit facility with Wells Fargo Bank and U.S. Bank, increasing the facility amount to $200 million and extending the maturity date to November 4, 2030. The amendment also adjusted the applicable spread and non-usage fee, potentially enhancing the company’s financial flexibility and operational capacity.

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.