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

• Market Cap: $383.93M
• Dividend Yield: 14.09%
• Average Volume (3M): 114.66K
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.37
• 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: 31,599,373
• 10 Day Avg. Volume: 73,410
• 30 Day Avg. Volume: 114,660
• PEG Ratio: -0.19
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 4.49
• P/FCF Ratio: -2.47
• Enterprise Value/Market Cap: 2.83
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 30.55
• Enterprise Value/Ebitda: 18.90
• 1Y Price Target: $13.50
• Price Target Upside: 11.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.66
• Revenue Forecast (FY): $125.17M

• Rating: 51 Neutral
• Price Target: $12.00 ▼(-1.15% Downside)

Palmer Square Capital BDC Inc.'s overall stock score reflects significant financial performance challenges, particularly in cash flow and profitability. Technical analysis indicates bearish momentum, while valuation is supported by a high dividend yield. The earnings call provided a mixed outlook with some positive elements like dividend coverage and share repurchases, but concerns over net losses and declining investment income weigh on the score.

Positive Factors

Portfolio Diversification

A diversified portfolio across multiple industries reduces risk and enhances stability, providing resilience against sector-specific downturns.

Interest Coverage Improvement

Improved interest coverage indicates better debt servicing ability, enhancing financial stability and reducing default risk.

Strong Dividend Coverage

Strong dividend coverage reflects robust cash generation, ensuring sustainable shareholder returns and signaling financial health.

Negative Factors

Net Losses

Net losses indicate challenges in asset management and can strain financial resources, impacting long-term profitability and growth.

Decline in Investment Income

A decline in investment income suggests reduced revenue streams, potentially affecting cash flow and the ability to fund operations.

Negative Cash Flow

Negative cash flow indicates potential liquidity issues, limiting the company's ability to invest in growth and meet obligations.

Palmer Square Capital BDC Inc. Business Overview & Revenue Model

Company Description

Palmer Square Capital BDC Inc. (PSBD) is a business development company focused on providing flexible capital solutions to private middle-market companies. The firm primarily invests in debt instruments, including senior secured loans, subordinated debt, and equity co-investments. PSBD aims to generate attractive risk-adjusted returns for its shareholders by targeting various sectors, including technology, healthcare, and consumer services, while actively managing a diversified portfolio.

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

Palmer Square Capital BDC Inc. faces significant challenges with inconsistent revenue and profitability, potentially due to market volatility or operational inefficiencies. The balance sheet remains relatively stable with no debt, reducing financial risk, but changes in stockholders' equity and assets suggest some instability. Negative cash flows are a critical concern, indicating potential liquidity issues. The company must focus on stabilizing revenues and improving operational efficiency to enhance its financial position.

Income Statement

Palmer Square Capital BDC Inc. has experienced significant volatility in its revenue and profitability. The company showed a negative revenue growth rate from the previous year, indicating a challenging environment. The gross profit margin is stable, but the net profit margin is inconsistent, highlighting volatility in core operations. EBIT and EBITDA margins have been highly negative, which could indicate operational inefficiencies or restructuring costs.

Balance Sheet

The balance sheet shows a moderate equity ratio, suggesting a balanced capital structure with a manageable level of leverage. The company has eliminated its total debt, significantly reducing financial risk. However, fluctuations in stockholders' equity and total assets over the years highlight potential instability. The return on equity is positive, reflecting some efficiency in generating profits from shareholders' investments.

Cash Flow

The cash flow statement indicates a challenging situation with a significant decline in operating cash flow. Free cash flow has also turned negative, raising concerns about the company's ability to generate cash internally. The operating cash flow to net income ratio is negative, reflecting inefficiencies in converting income into cash. The company has relied on financing to support cash flow, which might not be sustainable in the long term.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.77B	110.32M	153.66M	-49.39M	29.54M	24.45M
Gross Profit	35.60M	52.31M	109.18M	-72.84M	20.92M	19.49M
EBITDA	57.55M	47.67M	107.84M	-74.48M	19.06M	31.47M
Net Income	32.00M	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	151.31B	-200.60M	57.12M	25.11M	-438.01M	16.19M
Operating Cash Flow	151.31B	-200.60M	57.12M	25.11M	-438.01M	16.19M
Investing Cash Flow	113.48B	-305.05M	-26.65M	35.40M	-519.55M	-586.26M
Financing Cash Flow	-103.51B	198.97M	-30.00M	-24.56M	438.42M	570.75M

Palmer Square Capital BDC Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.14
• 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 12.14 is below the 20-day moving average (MA) of 12.38, below the 50-day MA of 12.66, and below the 200-day MA of 13.13, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 42.29 is Neutral, neither overbought nor oversold. The STOCH value of 26.59 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
GAIN	70 Outperform	$551.09M	5.58	18.68%	10.72%	-45.46%	134.73%
GLAD	70 Neutral	$427.17M	5.68	16.23%	12.01%	47.88%	-5.08%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SCM	64 Neutral	$336.73M	8.22	10.88%	13.54%	65.75%	14.28%
CION	58 Neutral	$508.37M	19.29	3.22%	16.34%	-11.01%	-65.56%
PSBD	51 Neutral	$383.93M	27.97	2.72%	14.09%	-2.38%	-75.49%
PNNT	48 Neutral	$423.12M	30.10	2.89%	14.79%	-35.46%	-67.15%

Palmer Square Capital BDC Inc. Corporate Events

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.

Palmer Square Capital BDC Inc. Updates Q3 NAV

Palmer Square Capital BDC Inc. announced that the unaudited estimate of its net asset value per share of common stock was $15.39 as of September 30, 2025. This financial update provides stakeholders with insight into the company’s valuation and financial health at the end of the third quarter of 2025.

The most recent analyst rating on (PSBD) stock is a Hold 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 Supplemental Dividend

On September 23, 2025, Palmer Square Capital BDC Inc. announced a third quarter 2025 supplemental dividend of $0.06 per share, payable on October 13, 2025, to shareholders of record as of September 25, 2025. This supplemental dividend is derived from the company’s excess quarterly undistributed net investment income, above the previously declared base dividend of $0.36 per share, highlighting the company’s robust financial performance and commitment to shareholder returns.

The most recent analyst rating on (PSBD) stock is a Hold with a $14.00 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 Reports August NAV Estimate

Palmer Square Capital BDC Inc. reported an unaudited estimate of its net asset value per share at $15.94 as of August 31, 2025. This financial update provides stakeholders with insight into the company’s valuation, potentially impacting investor perceptions and market positioning.

The most recent analyst rating on (PSBD) stock is a Hold with a $14.00 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 to Present Investment Strategies

On September 4, 2025, Palmer Square Capital BDC Inc. will present at its investor forum, showcasing its differentiated platform and investment strategies. The company emphasizes its ability to identify attractive investment opportunities and manage risks effectively, which is crucial given the current economic uncertainties and geopolitical tensions. The presentation will highlight the firm’s strong performance in the CLO market and its strategic focus on maintaining liquidity and minimizing interest rate duration, aiming to deliver returns that exceed yield expectations.

The most recent analyst rating on (PSBD) stock is a Hold with a $14.50 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 July NAV Estimate

Palmer Square Capital BDC Inc. announced that the unaudited estimate of its net asset value per share of common stock was $15.93 as of July 31, 2025. This valuation provides stakeholders with insight into the company’s financial standing at that date, potentially impacting investor perceptions and market positioning.

The most recent analyst rating on (PSBD) stock is a Buy with a $17.00 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’s Earnings Call: Mixed Sentiments and Strategic Moves

Palmer Square Capital BDC Inc. recently held its earnings call, revealing a mixed sentiment among stakeholders. The company showcased strong capital deployment and attractive yields, outperforming market indexes, which indicates effective portfolio management and diversification strategies. However, challenges were noted with a decrease in total investment income, NAV per share, and portfolio fair value. Despite these hurdles, the company’s proactive measures, such as stock repurchase and maintaining a high yield, offer positive signals to investors.

Palmer Square Capital BDC Reports Q2 2025 Financial Results

On August 6, 2025, Palmer Square Capital BDC Inc. announced its financial results for the second quarter of 2025, reporting a total investment income of $31.7 million, a decrease from the previous year. The company declared a third quarter base dividend of $0.36 per share, with a supplemental dividend expected in September. Despite a volatile macroeconomic environment, the company maintained a strong performance, leveraging its $35-billion platform to access primary and secondary markets for loans. The announcement reflects the company’s strategic focus on credit markets, aiming to deliver attractive returns for shareholders.

The most recent analyst rating on (PSBD) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on Palmer Square Capital BDC Inc. stock, see the PSBD Stock Forecast page.