Palmer Square Capital BDC Inc. (PSBD)
NYSE:PSBD
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Palmer Square Capital BDC Inc.
(NYSE:PSBD)
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Rating:53Neutral
Price Target:
$11.00
â–²(8.37% Upside)
Action:ReiteratedDate:03/20/26
The score is driven primarily by mixed fundamentals—improved profitability/cash flow but elevated leverage and data consistency concerns—plus weak technical momentum. High dividend yield and earnings-call support for continued (and supplemental) distributions help offset, but NAV pressure and income declines keep the score in the middle range.
Positive Factors
Conservative, diversified portfolio
High senior‑secured weighting and broad industry spread materially reduce downside risk versus unsecured credit. Low top‑10 concentration and modest average hold sizes support loss diversification and ongoing stable cash income generation across credit cycles, aiding dividend durability over months.
Negative Factors
Elevated leverage and reporting discontinuities
Sustained historical leverage increases sensitivity to rising funding costs and credit stress, potentially pressuring earnings and distributable income. The anomalous 2025 zero‑debt reporting creates comparability issues and reduces confidence in trend reliability for forecasting capital structure risk over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative, diversified portfolio
High senior‑secured weighting and broad industry spread materially reduce downside risk versus unsecured credit. Low top‑10 concentration and modest average hold sizes support loss diversification and ongoing stable cash income generation across credit cycles, aiding dividend durability over months.
Read all positive factors
Palmer Square Capital BDC Inc. (PSBD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$316.67M
Dividend Yield14.1%
Average Volume (3M)90.36K
Price to Earnings (P/E)―
Beta (1Y)0.39
Revenue Growth-2.38%
EPS Growth-75.49%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)-0.16
Shares Outstanding31,199,167
10 Day Avg. Volume93,359
30 Day Avg. Volume90,364
Financial Highlights & Ratios
PEG Ratio1.16
Price to Book (P/B)<0.01
Price to Sales (P/S)3.52
P/FCF Ratio36.95
Enterprise Value/Market Cap-6.89
Enterprise Value/Revenue-29.78
Enterprise Value/Gross Profit-70.45
Enterprise Value/Ebitda-4.45
Forecast
1Y Price Target
$11.17Price Target Upside10.05% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)1.54
Revenue Forecast (FY)$108.83M
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
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Palmer Square Capital BDC Inc. Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call presented a mix of clear strengths (solid liquidity, conservative portfolio construction, high yields, low non-accruals, active balance sheet optimization, dividend coverage and platform flexibility) alongside near-term headwinds (a YoY decline in investment income, Q4 realized/unrealized losses, NAV and portfolio fair value declines, and heightened sector volatility driven by AI concerns). Management emphasized disciplined underwriting, diversification, selective deployment, and opportunistic rotation into dislocated credits. Given the company's defensive posture, ample liquidity, low credit stress metrics, and proactive balance sheet actions that mitigate the near-term impacts, the positive operational and structural attributes modestly outweigh the quarter-specific negative results and market uncertainty.Positive Updates
Strong Capital Deployment and Activity
Deployed $91.4 million of capital in Q4 2025 across 24 new commitments (average ~ $3.4M) while realizing ~$148.3 million via repayments and sales.
Negative Updates
Decline in Investment Income
Total investment income fell 14.5% YoY to $29.8M in Q4 2025 (vs. $34.9M prior year), reflecting mix of contractual income, paydowns and selective fee income.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Capital Deployment and Activity
Deployed $91.4 million of capital in Q4 2025 across 24 new commitments (average ~ $3.4M) while realizing ~$148.3 million via repayments and sales.
Read all positive updates
Company Guidance
Guidance from the call emphasized maintaining the formalized base dividend and returning excess earnings via supplemental distributions (Q1 2026 base dividend declared at $0.36/share; Q4 total dividend was $0.43/share including a $0.07 supplemental), a continued defensive but opportunistic investment stance, and active right‑side balance sheet management (evaluating CLO refinancing and other H1 2026 initiatives). Key metrics cited to frame that guidance include January NAV $14.48 (Q4 NAV $14.85 vs Q3 $15.39), Q4 total and net investment income $29.8M and $13.1M (NII $0.41/share), Q4 deployments $91.4M across 24 new commitments (avg ~$3.4M) with $148.3M in realizations, available liquidity ~$311.3M, debt/equity 1.54x, total assets ≈$1.2B and net assets $464.1M. Portfolio and underwriting guardrails they will lean on: fair‑value portfolio ≈$1.2B, 95% senior secured, avg hold ~$4.7M, weighted avg YTM (fair value) 11.30% (amortized cost 8.15%), first‑lien borrowers’ avg EBITDA $436M, senior secured leverage 5.5x, interest coverage 2.6x, non‑accruals 9 bps (FV) / 134 bps (cost), PIK ~1.45%, average internal rating 3.6; capital return options include a $5M open‑market repurchase authorization (not yet used) and the shares were yielding ~15.7% vs an 11.6% yield on NAV as of Feb 2026.Palmer Square Capital BDC Inc. Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
44
Neutral
Cash Flow
60
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 111.20M | 110.32M | 153.66M | -49.39M | 29.54M |
| Gross Profit | 94.66M | 52.31M | 109.18M | -72.84M | 20.92M |
| EBITDA | 1.78B | 47.67M | 107.84M | -74.48M | 19.06M |
| Net Income | -3.17M | 47.67M | 107.84M | -74.48M | 19.06M |
Balance Sheet | |||||
| Total Assets | 1.22T | 1.43B | 1.12B | 1.06B | 1.22B |
| Cash, Cash Equivalents and Short-Term Investments | 3.22B | 2.77M | 2.12M | 1.65M | 1.09M |
| Total Debt | 716.51M | 804.16M | 641.83M | 641.31M | 649.91M |
| Total Liabilities | 755.25B | 893.20M | 659.86M | 694.01M | 764.49M |
| Stockholders Equity | 464.12B | 537.84M | 461.96M | 363.44M | 452.80M |
Cash Flow | |||||
| Free Cash Flow | 10.60M | 106.73M | 57.12M | -39.25M | -438.01M |
| Operating Cash Flow | 10.60M | 106.73M | 57.12M | -39.25M | -438.01M |
| Investing Cash Flow | 156.96B | -305.05M | -26.65M | 35.40M | -519.55M |
| Financing Cash Flow | -165.42M | 198.97M | -30.00M | 4.40M | 438.42M |
Palmer Square Capital BDC Inc. Technical Analysis
Neutral
10.15
Price Trends
10.58
Negative
10.98
Negative
11.59
Negative
Market Momentum
-0.20
Negative
48.81
Neutral
31.51
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 10.15 is above the 20-day moving average (MA) of 10.08, below the 50-day MA of 10.58, and below the 200-day MA of 11.59, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 48.81 is Neutral, neither overbought nor oversold. The STOCH value of 31.51 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $582.99M | 2.10 | 24.70% | 11.02% | -45.46% | 134.73% | |
58 Neutral | $295.79M | 10.64 | 5.42% | 16.61% | -3.09% | 200.66% | |
56 Neutral | $414.36M | 19.71 | 7.50% | 9.31% | 41.12% | -40.68% | |
55 Neutral | $272.97M | 13.30 | 0.03% | 12.83% | 90.34% | -44.25% | |
53 Neutral | $316.67M | -123.58 | >-0.01% | 14.10% | -2.38% | -75.49% | |
53 Neutral | $356.51M | -24.53 | -2.75% | 15.77% | -11.01% | -65.56% |
* Financial Sector Average
PSBD
Palmer Square Capital BDC Inc.
10.15
-0.54
-5.01%
GLAD
Gladstone Capital
18.34
-2.82
-13.31%
GAIN
Gladstone Investment
14.64
4.04
38.11%
PNNT
Pennantpark Investment
4.53
-0.54
-10.58%
SCM
Stellus Capital
9.43
-0.90
-8.74%
CION
CION Investment Corp
7.06
-0.45
-6.02%
Palmer Square Capital BDC Inc. Corporate Events
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...
Financial Disclosures
Palmer Square Capital BDC Updates Estimated Net Asset Value
Neutral
Feb 18, 2026
Palmer Square Capital BDC Inc. reported that management’s unaudited estimate of its net asset value per share was $14.48 as of January 31, 2026. This updated NAV figure provides investors with an indication of the company’s underlying ...
Financial Disclosures
Palmer Square Capital BDC Announces Year-End 2025 NAV
Neutral
Jan 15, 2026
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 estimat...
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.