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

• Market Cap: $389.69M
• Dividend Yield: 14.1%
• Average Volume (3M): 81.94K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.37
• Revenue Growth: 0.36%
• EPS Growth: -80.23%
• Country: US
• Employees: N/A
• Sector: General
• Sector Strength: N/A
• Industry: Asset Management
• EPS (TTM): 0.43
• Shares Outstanding: 32,125,732
• 10 Day Avg. Volume: 73,314
• 30 Day Avg. Volume: 81,936
• 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: 2.95
• Enterprise Value/Revenue: 10.02
• Enterprise Value/Gross Profit: 15.40
• Enterprise Value/Ebitda: 14.23
• 1Y Price Target: $14.50
• Price Target Upside: 19.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 55 Neutral
• Price Target: $14.00 ▲(15.42% Upside)

Palmer Square Capital BDC Inc.'s overall stock score reflects significant financial challenges, particularly in cash flow and profitability, which are partially offset by a stable balance sheet and attractive dividend yield. The technical outlook is neutral, and recent earnings call and corporate events provide some positive sentiment, but the financial performance remains a critical concern.

Positive Factors

Portfolio Diversification

A highly diversified portfolio across 39 industries with a focus on senior secured loans minimizes risk and enhances stability, supporting long-term growth.

Strong Capital Deployment

Effective capital deployment and income generation reflect robust operational capabilities and strategic execution, underpinning future revenue growth.

Attractive Yield

A yield significantly above market benchmarks indicates strong income potential and attractiveness to income-focused investors, supporting shareholder value.

Negative Factors

Negative Cash Flow

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

Decrease in Investment Income

A decline in investment income suggests challenges in revenue generation, potentially impacting profitability and long-term financial health.

Volatility in Revenue and Profitability

Revenue and profitability volatility can indicate operational inefficiencies, affecting the company's ability to sustain growth and competitive positioning.

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 the interest income received from its lending activities to middle-market companies. The company invests in a diversified portfolio of debt and equity securities, earning returns through interest payments on loans and potential capital appreciation from equity investments. Additionally, PSBD may generate income through fees associated with the origination and structuring of loans. Key revenue streams include interest income, dividend income from equity holdings, and fees from advisory and management services. Significant factors contributing to its earnings include the creditworthiness of portfolio companies, prevailing interest rates, and effective portfolio management strategies. The company may also engage in strategic partnerships with other financial institutions to enhance its investment capabilities and broaden its market reach.

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.

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	114.76M	110.32M	109.18M	-72.84M	20.92M	24.45M
Gross Profit	74.63M	52.31M	101.82M	-81.99M	13.52M	19.49M
EBITDA	80.77M	47.67M	152.32M	0.00	27.68M	31.47M
Net Income	39.56M	47.67M	107.84M	-74.48M	19.06M	26.73M
Balance Sheet
Total Assets	1.31T	1.43B	1.12B	1.06B	1.22B	667.49M
Cash, Cash Equivalents and Short-Term Investments	16.44B	2.77M	65.88M	1.65M	1.09M	682.58K
Total Debt	0.00	804.16M	641.83M	641.31M	649.91M	393.15M
Total Liabilities	809.60B	893.20M	659.86M	694.01M	764.49M	414.35M
Stockholders Equity	505.21B	537.85M	461.96M	363.44M	452.80M	253.14M
Cash Flow
Free Cash Flow	46.41B	-200.60M	57.12M	25.11M	-438.01M	16.19M
Operating Cash Flow	46.41B	-200.60M	57.12M	25.11M	-438.01M	16.19M
Investing Cash Flow	97.55M	-305.05M	-26.65M	35.40M	-519.55M	-586.26M
Financing Cash Flow	-97.76M	201.25M	-30.00M	-24.56M	438.42M	570.75M

Palmer Square Capital BDC Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 12.13 is below the 20-day moving average (MA) of 13.08, below the 50-day MA of 13.31, and below the 200-day MA of 13.39, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 27.08 is Positive, neither overbought nor oversold. The STOCH value of -18.79 is Positive, 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
SAR	68 Neutral	―	9.86	―	13.66%	-1.64%	104.07%
SCM	64 Neutral	378.50M	9.24	―	12.01%	65.75%	14.28%
GAIN	63 Neutral	527.04M	6.37	16.41%	10.88%	33.75%	6.20%
CION	58 Neutral	502.64M	-50.74	―	15.44%	-11.83%	-108.11%
PSBD	55 Neutral	$389.69M	21.60	3.46%	14.10%	0.36%	-80.23%
PNNT	48 Neutral	436.18M	31.03	―	14.37%	-35.46%	-67.15%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

Palmer Square Capital BDC Inc. Corporate Events

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.

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.

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.

Palmer Square Capital BDC Announces June NAV Estimate

Palmer Square Capital BDC Inc. announced that the unaudited estimate of its net asset value per share of common stock was $15.68 as of June 30, 2025. This valuation provides stakeholders with insight into the company’s financial standing at that time, reflecting its market position and potential implications for future performance.

Palmer Square Capital Announces Supplemental Dividend

On June 23, 2025, Palmer Square Capital BDC Inc. announced a supplemental dividend of $0.06 per share for the second quarter of 2025, payable on July 14, 2025, to shareholders of record as of June 27, 2025. This dividend, derived from the company’s excess quarterly undistributed net investment income, is in addition to the previously declared base dividend of $0.36 per share, reflecting Palmer Square’s strong financial performance and commitment to delivering value to its shareholders.

Palmer Square Capital BDC Inc. 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 $16.03 as of May 31, 2025. This financial update provides stakeholders with a snapshot of the company’s valuation, which can influence investor perception and market positioning.