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Rand Capital Corp. (RAND)
NASDAQ:RAND
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Rand Capital
(NASDAQ:RAND)
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Rating:70Outperform
Price Target:―
Rand Capital's overall stock score of 70 reflects its strong balance sheet and attractive valuation, tempered by operational and cash flow volatility. The positive earnings call sentiment and strategic shifts towards income-generating investments support future growth prospects, while technical signals suggest some caution due to mixed momentum indicators.
Rand Capital (RAND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
N/A
Dividend Yield36.21%
Average Volume (3M)3.98K
Price to Earnings (P/E)―
Beta (1Y)0.14
Revenue Growth80.67%
EPS Growth-157.99%
CountryUS
Employees4
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.33
Shares Outstanding2,969,814
10 Day Avg. Volume4,147
30 Day Avg. Volume3,981
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)0.76
Price to Sales (P/S)2.52
P/FCF Ratio3.24
Enterprise Value/Market Cap10.00T>
Enterprise Value/Revenue7.46
Enterprise Value/Gross Profit14.57
Enterprise Value/Ebitda-6.33
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 Earnings Call Summary
Earnings Call Date:Nov 07, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 10, 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.Q3-2025 Updates
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.
Consistent Dividend Payout
The company declared and paid a regular quarterly distribution of $0.29 per share for the third consecutive quarter, emphasizing the importance of a stable income stream for shareholders.
Net Investment Income Growth
Despite a decrease in total investment income, Rand Capital's net investment income grew to $993,000 from $887,000 in the same quarter last year, driven by disciplined expense management.
New Investments and Follow-on Support
The company deployed $2.9 million in new and follow-on investments, including a $2.5 million investment in BlackJet Direct Marketing and a $400,000 follow-on investment in Food Service Supply.
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.
Net Asset Value Decrease
Net asset value decreased to $18.06 per share from $19.10 at the end of the previous quarter, driven by valuation adjustments and dividend payments.
Realized Loss on Tilson Technology Management
A $2.9 million realized loss was recognized following Tilson Technology Management's Chapter 11 process and asset sales.
Increased PIK Interest
39% of investment income was attributable to noncash PIK interest compared with 24% in the same period last year, indicating a reliance on flexible payment terms.
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
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 | 5.82M | 19.68M | 7.34M | 5.77M | 20.79M | 3.04M |
| Gross Profit | 2.98M | 10.13M | 7.34M | -2.54M | 15.56M | 2.41M |
| EBITDA | -6.87M | 0.00 | 8.25M | 0.00 | 85.11K | -399.70K |
| Net Income | -6.83M | 8.83M | 6.53M | -881.85K | 15.80M | 743.77K |
Balance Sheet | ||||||
| Total Assets | 57.64M | 72.46M | 81.02M | 63.48M | 65.64M | 60.97M |
| Cash, Cash Equivalents and Short-Term Investments | 4.42M | 834.80K | 3.30M | 4.91M | 833.88K | 20.37M |
| Total Debt | 0.00 | 600.00K | 16.25M | 2.55M | 0.00 | 10.82M |
| Total Liabilities | 925.59K | 7.12M | 20.21M | 5.76M | 51.69K | 14.86M |
| Stockholders Equity | 56.71M | 65.33M | 60.82M | 57.72M | 60.75M | 46.10M |
Cash Flow | ||||||
| Free Cash Flow | 23.60M | 15.33M | -8.34M | 252.37K | -3.94M | -616.97K |
| Operating Cash Flow | 23.97M | 15.33M | -8.34M | 252.37K | -3.94M | -616.97K |
| Investing Cash Flow | 8.67M | 0.00 | 0.00 | 3.54M | -10.32M | -6.71M |
| Financing Cash Flow | -21.84M | -17.79M | 10.27M | 282.75K | -15.59M | -4.83M |
Rand Capital Technical Analysis
Neutral
14.00
Price Trends
14.43
Negative
15.48
Negative
17.34
Negative
Market Momentum
-0.19
Negative
48.74
Neutral
72.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RAND, the sentiment is Neutral. The current price of 14 is above the 20-day moving average (MA) of 13.88, below the 50-day MA of 14.43, and below the 200-day MA of 17.34, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 48.74 is Neutral, neither overbought nor oversold. The STOCH value of 72.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | ― | -5.68 | -11.50% | 36.21% | 80.67% | -157.99% | |
70 Outperform | $68.46M | 21.19 | 2.25% | 22.78% | -14.76% | ― | |
70 Neutral | $427.17M | 5.68 | 16.23% | 12.01% | 47.88% | -5.08% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | $143.00M | ― | -2.25% | 15.20% | -34.92% | -132.22% | |
58 Neutral | $469.40M | ― | -1.15% | 22.98% | -91.81% | 78.46% | |
48 Neutral | $423.12M | 30.10 | 2.89% | 14.79% | -35.46% | -67.15% |
* Financial Sector Average
RAND
Rand Capital
14.00
-1.63
-10.43%
GLAD
Gladstone Capital
19.15
-4.16
-17.85%
PNNT
Pennantpark Investment
6.38
0.26
4.25%
OFS
OFS Capital
5.17
-1.73
-25.07%
TCPC
BlackRock TCP Capital
5.70
-1.69
-22.87%
MRCC
Monroe Capital
6.58
-0.52
-7.32%
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
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.