Rand Capital Corp. (RAND)
NASDAQ:RAND
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Rand Capital
(NASDAQ:RAND)
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Rating:72Outperform
Price Target:
$12.50
▲(8.70% Upside)
Action:ReiteratedDate:04/05/26
The score is driven mainly by solid underlying financial strength (low leverage and good cash generation) but tempered by highly inconsistent revenue/earnings quality. Valuation is a strong positive (low P/E and high dividend yield), while technical signals are neutral-to-mixed with longer-term trend pressure.
Positive Factors
Conservative capital structure
Persistently minimal debt and a large equity base provide structural financial resilience, lowering bankruptcy risk and preserving flexibility to support portfolio companies or opportunistic deploys. Over 2–6 months this reduces refinancing pressure and improves ability to withstand market stress.
Negative Factors
Revenue and earnings volatility
Large year-to-year swings in revenue and net income indicate earnings are heavily influenced by one-time realizations and valuation adjustments rather than stable interest/dividend streams. This undermines predictability of distributable earnings and complicates medium-term cash planning.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative capital structure
Persistently minimal debt and a large equity base provide structural financial resilience, lowering bankruptcy risk and preserving flexibility to support portfolio companies or opportunistic deploys. Over 2–6 months this reduces refinancing pressure and improves ability to withstand market stress.
Read all positive factors
Rand Capital (RAND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
N/A
Dividend Yield16.23%
Average Volume (3M)2.74K
Price to Earnings (P/E)7.7
Beta (1Y)0.04
Revenue Growth-72.52%
EPS Growth-184.36%
CountryUS
Employees4
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.37
Shares Outstanding2,969,814
10 Day Avg. Volume2,145
30 Day Avg. Volume2,744
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.64
Price to Sales (P/S)7.48
P/FCF Ratio-3.14K
Enterprise Value/Market Cap10.00T>
Enterprise Value/Revenue-9.44
Enterprise Value/Gross Profit-8.61
Enterprise Value/Ebitda-5.27
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Rand Capital Business Overview & Revenue Model
Company Description
Rand Capital Corporation is a business development company and regulated investment company specializing in private equity investments. The firm prefers to make investments through equity or debt instruments in lower middle market and in small to ...
How the Company Makes Money
Rand Capital makes money primarily from returns generated on its investment portfolio. Key revenue/earnings components typically include: (1) interest income from debt investments (such as loans or other interest-bearing securities) made to portfo...
Rand Capital Earnings Call Summary
Earnings Call Date:Nov 07, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted Rand Capital's strong liquidity position and consistent dividend payout despite challenges such as a decline in total investment income and net asset value. The company demonstrated disciplined expense management leading to growth in net investment income. However, challenges such as a slowdown in originations, realized losses, and increased reliance on PIK interest suggest a cautious outlook. Overall, while there are positive elements, the challenges faced are significant.Positive Updates
Strong Liquidity and No Debt
Rand Capital finished the quarter with nearly $28 million in liquidity and no debt outstanding under senior credit facilities, providing significant flexibility in a challenging market environment.
Negative Updates
Decline in Total Investment Income
Total investment income was $1.6 million, down from $2.2 million in the previous year's quarter, reflecting debt repayments and a slowdown in originations.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Liquidity and No Debt
Rand Capital finished the quarter with nearly $28 million in liquidity and no debt outstanding under senior credit facilities, providing significant flexibility in a challenging market environment.
Read all positive updates
Company Guidance
During Rand Capital Corporation's third-quarter fiscal year 2025 financial results conference call, several key metrics and guidance were provided. The company reported $2.9 million in new and follow-on investments, maintaining a strong liquidity position with nearly $28 million available and no debt outstanding under its senior credit facilities. Despite a decline in total investment income to $1.6 million from $2.2 million year-over-year, Rand managed to grow net investment income to $993,000, up from $887,000 in the prior year, through effective expense management. The company declared a regular quarterly dividend of $0.29 per share for the third consecutive quarter, supported by a portfolio with a fair value of $44.3 million spread across 19 companies. The portfolio comprises 83% debt and 17% equity, with a weighted average yield of 12.2%. The call emphasized Rand's disciplined approach to navigating a challenging market environment, leveraging its liquidity and balance sheet strength to support shareholder dividends and prepare for future opportunities.Rand Capital Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
80
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.47M | 11.22M | 9.14M | 682.44K | 17.21M |
| Gross Profit | 4.77M | 10.13M | 8.09M | 612.48K | 16.59M |
| EBITDA | -7.86M | 8.81M | 6.85M | -545.83K | 15.77M |
| Net Income | -8.04M | 8.83M | 6.53M | -881.85K | 15.80M |
Balance Sheet | |||||
| Total Assets | 53.20M | 72.46M | 81.02M | 63.48M | 65.64M |
| Cash, Cash Equivalents and Short-Term Investments | 4.21M | 834.80K | 3.30M | 1.37M | 833.88K |
| Total Debt | 0.00 | 600.00K | 16.25M | 2.55M | 0.00 |
| Total Liabilities | 1.01M | 7.12M | 20.21M | 5.76M | 4.90M |
| Stockholders Equity | 52.18M | 65.33M | 60.82M | 57.72M | 60.75M |
Cash Flow | |||||
| Free Cash Flow | -10.67K | 15.33M | 6.12M | 252.37K | 6.38M |
| Operating Cash Flow | -10.67K | 15.33M | 6.12M | 252.37K | 6.38M |
| Investing Cash Flow | 990.80K | 0.00 | -14.46M | 3.54M | -10.32M |
| Financing Cash Flow | -7.88M | -17.79M | 10.27M | 282.75K | -15.59M |
Rand Capital Technical Analysis
Negative
11.50
Price Trends
11.19
Positive
11.87
Negative
13.11
Negative
Market Momentum
0.06
Positive
47.75
Neutral
34.00
Neutral
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 11.5 is below the 20-day moving average (MA) of 11.53, above the 50-day MA of 11.19, and below the 200-day MA of 13.11, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 47.75 is Neutral, neither overbought nor oversold. The STOCH value of 34.00 is Neutral, 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 2 risk factors in its most recent earnings report. Rand Capital reported the most risks in the "Tech & Innovation" 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ― | 7.70 | -19.46% | 16.23% | -72.52% | -184.36% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
59 Neutral | $105.30M | ― | -2.90% | 14.03% | -34.92% | -132.22% | |
58 Neutral | $293.18M | 10.64 | 5.42% | 16.61% | -3.09% | 200.66% | |
56 Neutral | $414.81M | 19.71 | 7.50% | 9.31% | 41.12% | -40.68% | |
54 Neutral | $47.70M | -1.93 | -23.38% | 25.87% | -14.76% | ― | |
53 Neutral | $316.24M | -5.23 | -12.44% | 21.13% | -91.81% | 78.46% |
* Financial Sector Average
RAND
Rand Capital
11.33
-4.99
-30.57%
GLAD
Gladstone Capital
18.36
-4.31
-19.00%
PNNT
Pennantpark Investment
4.49
-1.00
-18.27%
OFS
OFS Capital
3.56
-3.57
-50.04%
TCPC
BlackRock TCP Capital
3.75
-2.17
-36.63%
MRCC
Monroe Capital
4.86
-1.51
-23.76%
Rand Capital Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Rand Capital Reports 2025 Results, Highlights Strengthened Liquidity
Neutral
Mar 5, 2026
For the fourth quarter and full year ended December 31, 2025, Rand Capital reported total investment income of $1.3 million for the quarter and $6.5 million for the year, reflecting lower interest income following portfolio repayments and slower d...
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.