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Rand Capital Corp. (RAND)
NASDAQ:RAND
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Rand Capital
(NASDAQ:RAND)
70Outperform
Rand Capital (RAND) vs. S&P 500 (SPY)
Market Cap
$54.11M
Dividend Yield27.83%
Average Volume (3M)6.48K
Price to Earnings (P/E)5.7
Beta (1Y)0.28
Revenue Growth134.64%
EPS Growth35.26%
CountryUS
Employees4
SectorFinancial
Sector Strength87
IndustryAsset Management
Share Statistics
EPS (TTM)0.29
Shares Outstanding2,969,814
10 Day Avg. Volume3,386
30 Day Avg. Volume6,478
Financial Highlights & Ratios
PEG Ratio-2.39
Price to Book (P/B)0.80
Price to Sales (P/S)0.00
P/FCF Ratio2.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
Rand Capital Business Overview & Revenue Model
Company DescriptionRand Capital (RAND) is a publicly traded business development company that focuses on providing capital and strategic support to small to medium-sized businesses across various sectors. The company primarily invests in companies with innovative products, services, or technologies, offering both debt and equity financing solutions to foster their growth and success.
How the Company Makes MoneyRand Capital makes money primarily through the interest and dividends earned on its investment portfolio of debt and equity securities. The company generates revenue from the capital gains realized from the sale of these investments. Rand Capital strategically invests in companies with high growth potential, which allows it to benefit from the appreciation in the value of its investments. Additionally, the company may engage in partnerships with other investment firms or venture capitalists to co-invest in promising businesses, further enhancing its revenue potential. The performance of its investment portfolio, market conditions, and effective management of its investment strategies are significant factors contributing to its earnings.
Rand Capital Financial Statement Overview
Summary
Rand Capital's financial performance is marked by a strong balance sheet with a high equity ratio and a debt-free position. However, the volatility in income statement metrics, inconsistent revenue growth, and the negative EBIT margins reflect operational challenges. The cash flow has shown improvements, notably in free cash flow, but remains unstable, impacting overall financial health.Income Statement
Rand Capital has shown significant volatility in its income statement metrics. The gross profit margin is consistently strong due to the nature of Asset Management, but net profit margin has been erratic, with recent profitability largely driven by non-operating income. Revenue growth has been inconsistent, peaking in 2023, then declining sharply in 2024, suggesting instability in revenue streams. EBIT margins have been negative in the most recent year, reflecting operational challenges.55
Neutral
Balance Sheet
The balance sheet of Rand Capital is relatively strong, with a high equity ratio indicating financial stability. The company has a debt-free position as of 2024, reducing financial risk. However, the return on equity has been inconsistent due to fluctuating net income, which could impact future returns.70
Positive
Cash Flow
Cash flow metrics reveal some improvements, with a positive shift in free cash flow in 2024. However, the operating cash flow to net income ratio was negative in prior years, indicating cash flow challenges. The company needs to stabilize its cash flows to ensure sustainable operations.65
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 217.96K | 10.13M | 7.34M | 5.77M | 20.79M | 3.04M | Gross Profit |
| -1.85M | 10.13M | 7.34M | -2.54M | 15.56M | 2.41M | EBIT |
| 4.98M | 8.78M | 4.20M | 10.61M | 15.60M | 2.07M | EBITDA |
| -140.95K | 0.00 | 8.25M | 0.00 | 85.11K | -399.70K | Net Income Common Stockholders |
| 8.65M | 8.83M | 6.53M | -881.85K | 15.80M | 743.77K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 759.18K | 834.80K | 3.30M | 4.91M | 833.88K | 20.37M | Total Assets |
| 84.36M | 72.46M | 81.02M | 63.48M | 65.64M | 60.97M | Total Debt |
| 19.20M | 0.00 | 16.25M | 2.55M | 0.00 | 10.82M | Net Debt |
| 18.44M | -834.80K | 12.95M | 1.18M | -833.88K | -9.54M | Total Liabilities |
| 22.79M | 7.12M | 20.21M | 5.76M | 51.69K | 14.86M | Stockholders Equity |
| 61.57M | 65.33M | 60.82M | 57.72M | 60.75M | 46.10M |
| Cash Flow | Free Cash Flow | ||||
| 23.15M | 15.33M | -8.34M | 252.37K | -3.94M | -616.97K | Operating Cash Flow |
| 23.15M | 15.33M | -8.34M | 252.37K | -3.94M | -616.97K | Investing Cash Flow |
| 4.41M | 0.00 | 0.00 | 3.54M | -10.32M | -6.71M | Financing Cash Flow |
| -23.73M | -17.79M | 10.27M | 282.75K | -15.59M | -4.83M |
Rand Capital Technical Analysis
Negative
18.22
Price Trends
19.71
Negative
20.72
Negative
17.27
Positive
Market Momentum
-0.36
Positive
42.27
Neutral
12.95
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RAND, the sentiment is Negative. The current price of 18.22 is below the 20-day moving average (MA) of 18.92, below the 50-day MA of 19.71, and above the 200-day MA of 17.27, indicating a neutral trend. The MACD of -0.36 indicates Positive momentum. The RSI at 42.27 is Neutral, neither overbought nor oversold. The STOCH value of 12.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RAND.
Rand Capital Risk Analysis
Rand Capital disclosed 42 risk factors in its most recent earnings report. Rand Capital reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rand Capital Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $54.11M | 5.75 | 13.04% | 27.83% | 134.64% | 35.26% | |
70 Outperform | $113.68M | 3.76 | 19.56% | 16.03% | -49.04% | ― | |
64 Neutral | $12.60B | 9.73 | 7.92% | 16985.68% | 12.21% | -5.61% | |
52 Neutral | $46.75M | ― | -8.58% | 7.84% | 678.57% | 98.81% | |
48 Neutral | $111.54M | 41.01 | -5.47% | 20.96% | -37.27% | -153.39% | |
48 Neutral | $125.26M | 26.28 | 3.56% | 13.09% | 32.38% | -90.38% | |
45 Neutral | $124.12M | ― | -9.96% | ― | 90.08% | -893.47% |
* Financial Sector Average
Performance Comparison
RAND
Rand Capital
18.80
7.30
63.48%
PTMN
Portman Ridge Finance
12.26
-4.90
-28.55%
SSSS
SuRo Capital
5.58
1.78
46.84%
OFS
OFS Capital
8.54
0.40
4.91%
LRFC
Logan Ridge Finance
17.66
-3.53
-16.66%
GECC
Great Elm Capital
10.85
1.84
20.42%
Rand Capital Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: -2.67%|
Next Earnings Date:Aug 11, 2025
Earnings Call Sentiment Neutral
The earnings call reflects strong financial management with significant increases in net investment income, successful portfolio exits, and a robust balance sheet. However, challenges such as a decline in total investment income, reduced portfolio value, and economic uncertainties pose risks. Despite these issues, the company remains well-positioned for future opportunities.Q1-2025 Updates
Positive Updates
Significant Increase in Net Investment Income
Net investment income increased by 45% year-over-year, reaching $1.2 million or $0.42 per share, supported by non-recurring fee income and a 36% reduction in total expenses.
Strong Balance Sheet and Liquidity
Ended the quarter with nearly $5 million in cash and over $22 million in available credit capacity after repaying $600,000 in revolver debt.
Successful Portfolio Exits
Realized a gain of $925,000 from portfolio redemptions and exited investments in Mattison Avenue Holdings, Pressure Pro, and HDI Acquisition, resulting in full repayment of debt instruments.
Dividend Payment and Share Issuance
Paid a Q4 2024 dividend in January 2025, which included a stock component, resulting in the issuance of approximately 389,000 new shares, and declared a Q2 dividend of $0.29 per share.
Portfolio Valuation and Income Generation Strategy
Portfolio stood at a fair value of approximately $62 million, with debt investments representing 72%, supporting greater earning stability with an annualized weighted average yield of 12.2%.
Share Repurchase Program
The board renewed the company’s share repurchase program, authorizing the repurchase of up to $1.5 million in additional Rand Capital common stock.
Negative Updates
Decline in Total Investment Income
Total investment income for the quarter was $2 million, representing a decline of $59,000 or 3% from the prior year period, due to lower dividend income and an 8% reduction in interest income.
Reduction in Portfolio Value
Portfolio value declined from year-end 2024, primarily due to the repayment of loans from three portfolio companies and valuation adjustments in certain holdings.
Decreased Net Asset Value Per Share
Net asset value per share decreased from $25.31 at year-end 2024 to $21.99 at quarter-end, impacted by the issuance of new shares.
Economic and Political Uncertainty
Slowed down new investment opportunities due to ongoing macroeconomic and political uncertainty, affecting the broader market and portfolio company operations.
Company Guidance
In Rand Capital Corporation’s first quarter 2025 financial results call, the company reported a 45% year-over-year increase in net investment income, reaching $1.2 million or $0.42 per share, despite a modest decline in total investment income. The net asset value per share decreased to $21.99 from $25.31 at year-end 2024, reflecting the issuance of additional shares due to the fourth quarter dividend. Rand Capital realized a gain of $925,000 from portfolio redemptions and repaid $600,000 of revolver debt, ending the quarter with $5 million in cash and over $22 million in available credit capacity. The portfolio's fair value was approximately $62 million, with debt investments comprising 72% and yielding an annualized weighted average of 12.2%. The company made a $375,000 follow-on investment in ITA and exited three investments, resulting in full principal repayment and additional gains. The quarterly cash dividend was maintained at $0.29 per share, and the share repurchase program was renewed, authorizing the repurchase of up to $1.5 million in common stock.Rand Capital Corporate Events
Other
Rand Capital to Present Investor Slides in March 2025
Neutral
Mar 18, 2025
Rand Capital Corporation announced that it will present its investor presentation slides to analysts and investors starting March 18, 2025. These slides will be available on the company’s website but are not incorporated by reference into any registration statement or other documents filed under the Securities Act of 1933 or the Exchange Act.
DividendsBusiness Operations and StrategyFinancial Disclosures
Rand Capital Reports Strong 2024 Financial Results
Positive
Mar 10, 2025
Rand Capital reported strong financial results for 2024, with a 17% increase in investment income to $8.6 million, driven by an expanded debt investment portfolio. The company increased its regular quarterly cash dividend by 16% and declared total dividends of $5.03 per share. Rand’s strategic focus on debt investments, which now make up 75% of its portfolio, has improved yields and net interest income. The company reduced its outstanding bank debt by $15.7 million and invested nearly $14 million in income-generating investments, positioning itself for continued growth in 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.