Portman Ridge Finance (PTMN) AI Stock Analysis

• Market Cap: $160.55M
• Dividend Yield: 17.95%
• Average Volume (3M): 52.81K
• Price to Earnings (P/E): 41.0
• Beta (1Y): 0.28
• Revenue Growth: -62.82%
• EPS Growth: -170.97%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 69
• Industry: Asset Management
• EPS (TTM): 0.50
• Shares Outstanding: 13,191,929
• 10 Day Avg. Volume: 66,944
• 30 Day Avg. Volume: 52,814
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.98
• Enterprise Value/Revenue: 19.96
• Enterprise Value/Gross Profit: -198.33
• Enterprise Value/Ebitda: 51.73
• 1Y Price Target: $13.25
• Price Target Upside: 7.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: $12.50 ▲(1.87% Upside)

Portman Ridge Finance's overall stock score is driven by a strong equity base and positive cash flow, but tempered by declining revenues and net income. The technical analysis suggests a neutral to slightly bullish short-term trend, while the valuation indicates potential overvaluation concerns. The earnings call highlighted both positive developments, such as increased net investment income and a successful merger, and challenges, including a decrease in net asset value and portfolio contraction.

Portman Ridge Finance Business Overview & Revenue Model

Company Description

Portman Ridge Finance Corporation is a business development company specializing in investments in unitranche loans (including last out), first lien loans, second lien loans, subordinated debt, equity co-investment, buyout in middle market companies. It also makes acquisitions in businesses complementary to the firm's business. It primarily invests in healthcare, cargo transport, manufacturing, industrial & environmental services, logistics & distribution, media & telecommunications, real estate, education, automotive, agriculture, aerospace/defense, packaging, electronics, finance, non-durable consumer, consumer products, business services, utilities, insurance, and food and beverage sectors. The fund typically invests $1 million to $20 million in its portfolio companies. It provides senior secured term loans from $2 million to $20 million maturing in five to seven years; second lien term loans from $5 million to $15 million maturing in six to eight years; senior unsecured loans $5 million to $23 million maturing in six to eight years; mezzanine loans from $5 million to $15 million maturing in seven to ten years; and equity investments from $1 to $5 million. The fund targets the companies with EBITDA between $5 million and $25 million. While investing in debt securities, it invests in those middle market firms with EBITDA between $10 million and $50 million and/or total debt between $25 million and $150 million. It invests in minority, and majority or control equity positions alongside its private equity sponsor partners.

How the Company Makes Money

Portman Ridge Finance generates revenue through interest income from its debt investments, which typically include secured loans, unsecured loans, and subordinated debt. The company also earns income from equity investments in the form of dividends and capital gains when it sells its equity stakes. Additionally, PTMN may charge fees for originating and managing investments in its portfolio. Significant partnerships with private equity firms and investment advisors contribute to its deal flow and network, enhancing its ability to identify profitable investment opportunities. Overall, PTMN's revenue model is primarily based on earning interest income and capital appreciation from its diversified investment portfolio.

Portman Ridge Finance Financial Statement Overview

Summary

Portman Ridge Finance shows strengths in maintaining a strong equity base and generating positive free cash flow. However, challenges are apparent with declining revenues and net income, suggesting potential operational inefficiencies or market pressures. The elimination of debt reduces financial risk, providing a more stable financial foundation despite recent profitability issues.

Income Statement

The income statement reveals fluctuating revenue trends with a recent decline from $58.4M in 2023 to $46.9M in 2024, indicating a revenue contraction. Gross profit margin remained stable at 100% due to equivalent gross profit and revenue figures. EBIT margin declined slightly from 92.6% in 2023 to 92.2% in 2024, reflecting tighter operational efficiency. Net income has dropped significantly to zero in 2024 from $11.4M in 2023, impacting the net profit margin negatively.

Balance Sheet

The balance sheet shows a strong equity position with stockholders' equity at $178.5M against total assets of $453.6M, resulting in a healthy equity ratio of 39.4%. The company has significantly reduced its debt, leading to a zero debt-to-equity ratio, which minimizes leverage risk. However, the decline in stockholders' equity from $213.5M in 2023 suggests challenges in maintaining asset growth.

Cash Flow

Cash flow analysis indicates stable free cash flow at $56.6M in 2024. The company has managed positive operating cash flow of $56.6M, although it has decreased significantly from $120.9M in 2023. The operating cash flow to net income ratio is not calculable due to zero net income, but the substantial free cash flow to net income in previous years highlights efficient cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.95M	31.25M	43.35M	37.64M	75.83M	50.37M
Gross Profit	-1.60M	17.91M	37.71M	19.80M	57.62M	39.55M
EBITDA	6.15M	15.50M	10.97M	46.80M	41.51M	41.70M
Net Income	-8.30M	-5.93M	11.38M	-21.00M	26.03M	31.57M
Balance Sheet
Total Assets	428.00M	453.63M	549.24M	619.49M	648.30M	600.18M
Cash, Cash Equivalents and Short-Term Investments	11.22M	17.53M	26.91M	5.15M	28.92M	6.99M
Total Debt	253.66M	265.14M	322.41M	373.31M	347.19M	373.31M
Total Liabilities	263.27M	275.14M	335.72M	387.36M	368.18M	383.91M
Stockholders Equity	164.73M	178.49M	213.52M	232.12M	280.12M	216.26M
Cash Flow
Free Cash Flow	37.36M	56.63M	120.90M	-33.10M	61.15M	121.68M
Operating Cash Flow	37.36M	56.63M	120.90M	-33.10M	61.15M	121.68M
Investing Cash Flow	15.92M	47.27M	98.76M	-61.24M	48.90M	97.06B
Financing Cash Flow	-53.70M	-88.25M	-82.47M	-2.11M	-75.71M	-43.88M

Portman Ridge Finance Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PTMN, the sentiment is Positive. The current price of 12.27 is above the 20-day moving average (MA) of 11.96, above the 50-day MA of 11.98, and below the 200-day MA of 13.31, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 60.43 is Neutral, neither overbought nor oversold. The STOCH value of 14.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PTMN.

Portman Ridge Finance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OFS	70 Outperform	$109.86M	10.72	6.82%	16.35%	-53.07%	―
MRCC	69 Neutral	$151.45M	79.16	1.01%	14.14%	-17.51%	-75.48%
Sector *	61 Neutral	C$15.82B	6.66	15.12%	5.92%	28.62%	-7.32%
TPVG	59 Neutral	$256.46M	6.17	11.78%	18.66%	377.90%	―
PTMN	55 Neutral	$160.55M	41.01	-4.79%	17.95%	-62.82%	-170.97%
OXSQ	51 Neutral	$174.80M	602.56	-0.87%	18.92%	-569.90%	-144.29%
GECC	48 Neutral	$129.57M	7.14	13.18%	12.91%	52.57%	13.36%

Portman Ridge Finance Corporate Events

Portman Ridge Finance Announces Name Change to BCP

On August 20, 2025, Portman Ridge Finance Corporation announced a name change to BCP Investment Corporation, effective post-market close on August 22, 2025. This change, made under Delaware law, does not affect the rights of security holders or alter the company’s bylaws. The company’s common stock will switch its NASDAQ ticker from ‘PTMN’ to ‘BCIC’ on August 25, 2025.

Portman Ridge Completes Merger with Logan Ridge

On July 15, 2025, Portman Ridge Finance Corporation completed its merger with Logan Ridge Finance Corporation, resulting in a combined company with total assets exceeding $600 million. The merger, announced earlier in January 2025, involved the issuance of approximately 4.0 million shares of Portman Ridge’s common stock to Logan Ridge’s former stockholders. Following the merger, Portman Ridge plans to rebrand as BCP Investment Corporation and aims to leverage the enhanced scale and diversified portfolio to deliver better returns. The company also assumed obligations related to Logan Ridge’s 2026 Senior Notes and 2032 Convertible Notes, further aligning its interests with shareholders through a stock repurchase program.

Portman Ridge Finance Shareholders Approve Merger with Logan Ridge

On June 27, 2025, Portman Ridge Finance Corporation announced that its shareholders approved the issuance of common stock for the merger with Logan Ridge Finance Corporation, with 88% voting in favor. The merger, expected to close by July 15, 2025, will result in the rebranding of the combined entity as BCP Investment Corporation, introducing a monthly distribution framework and a share repurchase initiative to enhance shareholder value.

Portman Ridge Finance Elects New Board Members

On June 24, 2025, Portman Ridge Finance Corporation held its annual meeting of stockholders, where two key proposals were voted upon. The stockholders elected George Grunebaum, Dean C. Kehler, and Matthew Westwood to the Board of Directors, with their terms set to last until the 2028 annual meeting. Additionally, the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified. These decisions are expected to impact the company’s governance and financial oversight, reinforcing its commitment to maintaining strong leadership and financial integrity.

Portman Ridge Finance Merger Receives Proxy Advisory Support

On June 3, 2025, Portman Ridge Finance Corporation and Logan Ridge Finance Corporation announced that leading independent proxy advisory firms, ISS and Glass Lewis, recommended shareholders vote in favor of their proposed merger. The merger aims to consolidate the two entities, enhancing scale, diversification, and market liquidity, with Portman Ridge as the surviving entity. This strategic move is expected to generate meaningful earnings accretion and strengthen their position in executing growth transactions among publicly traded business development companies.