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

• Market Cap: $377.75M
• Dividend Yield: 14.1%
• Average Volume (3M): 83.72K
• Price to Earnings (P/E): 27.6
• 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: -2.47
• Enterprise Value/Market Cap: 2.88
• Enterprise Value/Revenue: 15.27
• Enterprise Value/Gross Profit: 58.02
• Enterprise Value/Ebitda: 77.38
• 1Y Price Target: $12.83
• Price Target Upside: 6.94% 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 ▲(4.17% 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

Dividend Coverage

Strong dividend coverage indicates robust cash flow management, enhancing investor confidence and supporting long-term shareholder value.

Interest Coverage Improvement

Improved interest coverage ratio reflects enhanced debt servicing capability, reducing financial risk and supporting sustainable operations.

Portfolio Diversification

Diversification across industries mitigates risk and enhances stability, positioning the company to better withstand sector-specific downturns.

Negative Factors

Declining Investment Income

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

Net Realized and Unrealized Losses

Losses indicate potential valuation and operational challenges, which could strain financial performance and investor confidence over time.

Non-Accrual Additions

Additions to non-accrual status reflect credit quality issues, raising concerns about asset quality and future cash flow stability.

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

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	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: Neutral
• Last Price: 12.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSBD, the sentiment is Neutral. The current price of 12 is above the 20-day moving average (MA) of 11.84, above the 50-day MA of 11.77, and below the 200-day MA of 12.30, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 54.63 is Neutral, neither overbought nor oversold. The STOCH value of 42.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$472.42M	8.29	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	$552.28M	5.59	18.68%	11.02%	-45.46%	134.73%
CION	63 Neutral	$497.07M	19.02	3.22%	15.77%	-11.01%	-65.56%
SCM	60 Neutral	$380.08M	12.05	8.20%	12.83%	90.34%	-44.25%
PNNT	57 Neutral	$397.65M	12.15	6.83%	16.61%	-3.09%	200.66%
PSBD	55 Neutral	$377.75M	27.62	2.72%	14.10%	-2.38%	-75.49%

Palmer Square Capital BDC Inc. Corporate Events

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.

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.