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

• Market Cap: $452.90M
• Dividend Yield: 12.58%
• Average Volume (3M): 42.04K
• Price to Earnings (P/E): 27.8
• Beta (1Y): 0.38
• Revenue Growth: 1.13%
• EPS Growth: -86.09%
• Country: US
• Employees: N/A
• Sector: General
• Sector Strength: N/A
• Industry: Asset Management
• EPS (TTM): 0.40
• Shares Outstanding: 32,373,245
• 10 Day Avg. Volume: 51,473
• 30 Day Avg. Volume: 42,038
• PEG Ratio: -0.59
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: <0.01
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 6.00
• Enterprise Value/Ebitda: 1.03
• 1Y Price Target: $14.10
• Price Target Upside: 0.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 53 Neutral
• Price Target: $15.00 ▲(7.22%Upside)

Palmer Square Capital BDC Inc.'s overall score is influenced primarily by its financial performance challenges, including inconsistent revenue and negative cash flows. While technical analysis and corporate events provide some positive signals, the high P/E ratio and market volatility impact the valuation negatively. Nonetheless, the strong dividend yield offers a counterbalance for income-seeking investors.

Positive Factors

Investment Strategy

PSBD's unique strategy of investing across the liquid and private markets can generate attractive risk-adjusted returns.

Liquidity

Available liquidity was solid at $200M, with no debt maturities until 2028.

Negative Factors

Dividend

Lower base rates plus spread pressure drove PSBD to reduce the quarterly core dividend by 14%.

Financial Performance

Palmer Square Capital BDC lost $0.26/share equating to an ROE of -6.4% as it generated net losses of $21.3M, primarily due to marks driven by spread widening.

Profitability

Palmer Square reported core profitability was weaker than expected, and the core dividend was reset lower.

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. 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	125.74M	109.18M	-72.84M	20.92M	24.45M
Gross Profit	107.53M	101.82M	-81.99M	13.52M	19.49M
EBITDA	47.67M	152.32M	0.00	27.68M	31.47M
Net Income	47.67M	107.84M	-74.48M	19.06M	26.73M
Balance Sheet
Total Assets	1.43B	1.12B	1.06B	1.22B	667.49M
Cash, Cash Equivalents and Short-Term Investments	2.77M	65.88M	1.65M	1.09M	682.58K
Total Debt	804.16M	641.83M	641.31M	649.91M	393.15M
Total Liabilities	893.20M	659.86M	694.01M	764.49M	414.35M
Stockholders Equity	537.84M	461.96M	363.44M	452.80M	253.14M
Cash Flow
Free Cash Flow	-200.60M	57.12M	25.11M	-438.01M	16.19M
Operating Cash Flow	106.73M	57.12M	25.11M	-438.01M	16.19M
Investing Cash Flow	-305.05M	-26.65M	35.40M	-519.55M	-586.26M
Financing Cash Flow	201.25M	-30.00M	-24.56M	438.42M	570.75M

Palmer Square Capital BDC Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13.99
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 13.99 is below the 20-day moving average (MA) of 14.04, above the 50-day MA of 13.76, and below the 200-day MA of 14.06, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 51.33 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 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
GAIN	72 Outperform	$519.11M	7.99	13.17%	10.67%	33.42%	-28.30%
SAR	68 Neutral	$359.54M	10.31	9.27%	14.17%	-24.05%	28.25%
SCM	64 Neutral	$419.42M	10.42	10.83%	10.76%	17.67%	128.48%
CION	58 Neutral	$533.28M	15.47	-1.88%	15.19%	2.30%	-63.97%
Sector *	56 Neutral	$6.14B	22.14	-28.61%	4.89%	10.73%	-32.66%
PSBD	53 Neutral	$452.90M	27.79	3.05%	12.58%	1.13%	-86.09%
PNNT	48 Neutral	$482.54M	49.90	1.95%	12.99%	―	-66.59%

Palmer Square Capital BDC Inc. Corporate Events

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.

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 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.

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 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.

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 Reports Q1 2025 Financial Results

Palmer Square Capital BDC Inc. announced its financial results for the first quarter of 2025, reporting a total investment income of $31.2 million, a decrease from the previous year’s $34.8 million. The company declared a second quarter base dividend of $0.36 per share and plans to announce a supplemental dividend in June. Despite a challenging macroeconomic environment, Palmer Square Capital BDC remains focused on shareholder alignment and transparency, with a portfolio primarily consisting of senior secured debt investments. The company’s net asset value per share decreased to $15.85 from $16.50 at the end of 2024, and it experienced total net realized and unrealized losses of $21.3 million compared to gains in the same period last year.