Palmer Square Capital BDC Inc. (PSBD)
NYSE:PSBD
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Palmer Square Capital BDC Inc.
(NYSE:PSBD)
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Rating:55Neutral
Price Target:
$11.00
▲(1.38% Upside)
Action:Reiterated
Date:05/22/26
PSBD scores slightly below neutral primarily due to weakened recent profitability and elevated NAV/mark-to-market volatility, despite positive current cash generation. The earnings call was constructive on liquidity, credit quality, and commitment to distributions/repurchases, but near-term earnings and NAV headwinds remain meaningful. Technicals are broadly neutral, while valuation is supported by a very high yield but constrained by negative earnings (negative P/E).
Positive Factors
High-quality, senior-secured portfolio
A portfolio concentrated in senior-secured first‑lien loans with negligible fair‑value nonaccruals and broad industry diversification materially reduces downside credit risk versus unsecured strategies. This structural credit quality supports steadier interest income and lower loss rates through cycles.
Negative Factors
Material NAV decline and mark volatility
A meaningful NAV contraction erodes the equity buffer that protects creditors and supports dividends. For a BDC, sustained mark‑to‑market volatility constrains capital flexibility, can raise leverage ratios mechanically, and makes payout sustainability and future capital raises more challenging.
Read all positive and negative factors
Positive Factors
Negative Factors
High-quality, senior-secured portfolio
A portfolio concentrated in senior-secured first‑lien loans with negligible fair‑value nonaccruals and broad industry diversification materially reduces downside credit risk versus unsecured strategies. This structural credit quality supports steadier interest income and lower loss rates through cycles.
Read all positive factors
Palmer Square Capital BDC Inc. (PSBD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$336.73M
Dividend Yield14.1%
Average Volume (3M)113.83K
Price to Earnings (P/E)―
Beta (1Y)0.52
Revenue Growth-14.06%
EPS Growth-306.26%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)-1.04
Shares Outstanding31,120,813
10 Day Avg. Volume112,910
30 Day Avg. Volume113,829
Financial Highlights & Ratios
PEG Ratio1.16
Price to Book (P/B)0.84
Price to Sales (P/S)3.52
P/FCF Ratio2.44
Enterprise Value/Market Cap3.08
Enterprise Value/Revenue17.00
Enterprise Value/Gross Profit50.78
Enterprise Value/Ebitda-48.41
Forecast
1Y Price Target
$11.00Price Target Upside1.38% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.7
Revenue Forecast (FY)$106.32M
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
PSBD makes money primarily through investment income generated by its portfolio. The key revenue stream is interest income earned on debt investments (typically floating- or fixed-rate loans) made to portfolio companies; this includes cash-pay int...
Palmer Square Capital BDC Inc. Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but balanced picture. Positives include strong portfolio credit metrics (96% senior secured exposure, low nonaccruals), attractive yields (11.73% YTM at fair value), ample liquidity (~$325 million), active capital deployment and share repurchases, and early signs of market stabilization in April. Negatives include a meaningful NAV decline (~-10.4%), a reduction in portfolio fair value (~-4.1%), lower investment income (total investment income down 16% YoY), and substantial realized and unrealized losses ($48.3 million) driven largely by software/tech dislocation and macro/geopolitical volatility. Management emphasized transparency, conservative underwriting, and opportunistic positioning should spreads remain wider, while acknowledging near-term pressures on earnings and NAV.Positive Updates
Capital Deployment and Deal Activity
Deployed $109.4 million of capital in Q1 (42 new commitments at an average of ~$2.1 million), realized approximately $79.9 million through repayments and sales, and reported early signs of a pickup in new-issue and refinancing activity in April. Board confirmed a Q2 base dividend of $0.36 per share.
Negative Updates
Material NAV Decline
NAV per share decreased from $14.85 at the end of 2025 to $13.30 as of March 2026, a decline of $1.55 per share, or approximately -10.4%.
Read all updates
Q1-2026 Updates
Positive
Negative
Capital Deployment and Deal Activity
Deployed $109.4 million of capital in Q1 (42 new commitments at an average of ~$2.1 million), realized approximately $79.9 million through repayments and sales, and reported early signs of a pickup in new-issue and refinancing activity in April. Board confirmed a Q2 base dividend of $0.36 per share.
Read all positive updates
Company Guidance
Guidance from the call emphasized sustaining distributions and opportunistic capital allocation: the Board confirmed a Q2 base dividend of $0.36 per share (supplemental to follow) after reporting Q1 total investment income of $26.2M, net investment income of $11.0M ($0.35/share), and a $0.37-per-share dividend in Q1 (including $0.01 supplemental and ~ $0.02 spillover), with March NAV of $13.30 (yield on NAV 11.1%, stock yield 13.5% as of 4/30). Management said activity is beginning to pick up in April, expects a more normalized Q2 absent further rate cuts, and will prioritize distributions, share repurchases (140,149 shares for ~$1.6M with ~$4.2M remaining availability; manager bought 67,875 shares for ~$800K), and select reinvestment into wider spreads; they also noted the CLO issued in 2024 exits its noncall in July 2026 and may be refinanced. Key balance-sheet and portfolio metrics cited to support this posture included total assets ~$1.2B, net assets $413.8M, debt-to-equity 1.7x, available liquidity ~$325.3M, portfolio fair value ~$1.15B (vs $1.2B YE‑2025, -4.1%), (also cited invested capital of $1.094B and deployed $109.4M in Q1), weighted avg yield-to-maturity (FV) 11.73% (amortized cost 8.26%), 96% senior secured, 44 industries, 10 largest = 10.64% of portfolio, avg hold ~$4.4M, FV-weighted avg EBITDA $452M with 5.5x senior secured leverage and 2.4x interest coverage, nonaccruals <1bp FV (90bp at cost), PIK income 1.64%, internal rating 3.6, and the company paid down ~ $14M on credit facilities in Q1 to manage leverage.Palmer Square Capital BDC Inc. Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
55
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 61.03M | 111.20M | 110.32M | 153.66M | -49.39M | 29.54M |
| Gross Profit | 20.43M | 94.66M | 52.31M | 109.18M | -72.84M | 20.92M |
| EBITDA | -21.43M | 1.78B | 47.67M | 107.84M | -74.48M | 19.06M |
| Net Income | -32.02M | -3.17M | 47.67M | 107.84M | -74.48M | 19.06M |
Balance Sheet | ||||||
| Total Assets | 1.17T | 1.22B | 1.43B | 1.12B | 1.06B | 1.22B |
| Cash, Cash Equivalents and Short-Term Investments | 1.49B | 3.22M | 2.77M | 2.12M | 1.65M | 1.09M |
| Total Debt | 702.31M | 716.51M | 804.16M | 641.83M | 641.31M | 649.91M |
| Total Liabilities | 752.34B | 755.25M | 893.20M | 659.86M | 694.01M | 764.49M |
| Stockholders Equity | 413.78B | 464.12M | 537.84M | 461.96M | 363.44M | 452.80M |
Cash Flow | ||||||
| Free Cash Flow | 55.61M | 160.66M | 106.73M | 57.12M | -39.25M | -438.01M |
| Operating Cash Flow | 55.61M | 160.66M | 106.73M | 57.12M | -39.25M | -438.01M |
| Investing Cash Flow | 68.44M | 0.00 | -305.05M | -26.65M | 35.40M | -519.55M |
| Financing Cash Flow | -125.43M | -160.21M | 198.97M | -30.00M | 4.40M | 438.42M |
Palmer Square Capital BDC Inc. Technical Analysis
Positive
10.85
Price Trends
10.50
Positive
10.79
Positive
11.27
Negative
Market Momentum
0.03
Positive
52.99
Neutral
55.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSBD, the sentiment is Positive. The current price of 10.85 is above the 20-day moving average (MA) of 10.84, above the 50-day MA of 10.50, and below the 200-day MA of 11.27, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 52.99 is Neutral, neither overbought nor oversold. The STOCH value of 55.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSBD.
Palmer Square Capital BDC Inc. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $428.14M | 6.11 | 9.10% | 9.31% | -46.94% | -51.89% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
59 Neutral | $633.17M | 2.98 | 34.04% | 11.02% | -54.43% | 163.70% | |
55 Neutral | $336.73M | -2.05 | -0.03% | 14.10% | -14.06% | -306.26% | |
53 Neutral | $262.84M | 40.25 | ― | 12.83% | 6.21% | -42.00% | |
52 Neutral | $326.12M | -3.77 | -0.13% | 15.77% | -11.90% | 84.61% | |
50 Neutral | $248.13M | -30.83 | 0.01% | 16.61% | 122.81% | 43.00% |
* Financial Sector Average
PSBD
Palmer Square Capital BDC Inc.
10.82
-1.38
-11.30%
GLAD
Gladstone Capital
18.95
-4.88
-20.48%
GAIN
Gladstone Investment
15.90
2.66
20.12%
PNNT
Pennantpark Investment
3.80
-1.78
-31.90%
SCM
Stellus Capital
9.08
-2.69
-22.85%
CION
CION Investment Corp
6.55
-1.50
-18.67%
Palmer Square Capital BDC Inc. Corporate Events
Business Operations and StrategyStock Buyback
Palmer Square Capital BDC Expands Share Repurchase Program
Positive
May 21, 2026
On May 21, 2026, Palmer Square Capital BDC Inc. announced that its board approved a significant increase and extension of its open-market share repurchase program. The authorization adds $30 million of capacity and pushes the program’s expir...
Financial Disclosures
Palmer Square Capital BDC Issues April 2026 NAV Estimate
Neutral
May 14, 2026
Palmer Square Capital BDC Inc. reported that its management’s unaudited estimate of net asset value per share for its common stock was $13.59 as of April 30, 2026. This NAV estimate provides investors with an updated snapshot of the BDC̵...
DividendsFinancial Disclosures
Palmer Square Capital BDC Posts Lower Q1 2026 Results
Negative
May 7, 2026
Palmer Square Capital BDC Inc. reported first-quarter 2026 results on May 6, 2026, with total investment income falling to $26.2 million from $31.2 million a year earlier and net investment income slipping to $11.0 million, or $0.35 per share. Net...
Financial Disclosures
Palmer Square Capital BDC Updates Q1 2026 NAV Estimate
Neutral
Apr 14, 2026
Management of Palmer Square Capital BDC Inc. reported an unaudited estimate of the company’s net asset value per share at $13.30 as of March 31, 2026. This estimated NAV level provides investors with an updated snapshot of the BDC’s un...
DividendsFinancial Disclosures
Palmer Square Capital BDC Declares Supplemental Q1 Dividend
Positive
Mar 19, 2026
On March 19, 2026, Palmer Square Capital BDC Inc. announced that its board declared a first-quarter 2026 supplemental dividend of $0.01 per share, payable on April 9, 2026, to shareholders of record as of March 27, 2026. The supplemental payout, w...
Financial Disclosures
Palmer Square Capital BDC Reports Unaudited February 2026 NAV
Neutral
Mar 16, 2026
Management of Palmer Square Capital BDC Inc. reported an unaudited estimate of the company’s net asset value per share at $13.82 as of February 28, 2026. This updated NAV figure provides investors with an interim view of the BDC’s port...
DividendsFinancial Disclosures
Palmer Square Capital BDC Posts Q4 2025 Results, Dividend
Neutral
Feb 26, 2026
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 $1...
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.