BlackRock TCP Capital (TCPC) AI Stock Analysis

• Market Cap: $574.27M
• Dividend Yield: 18.81%
• Average Volume (3M): 648.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: 8.24%
• EPS Growth: -207.60%
• Country: US
• Employees: 19,800
• Sector: Financial
• Sector Strength: 88
• Industry: Asset Management
• EPS (TTM): -0.72
• Shares Outstanding: 85,077,290
• 10 Day Avg. Volume: 416,908
• 30 Day Avg. Volume: 648,787
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.08
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.82
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.00
• Price Target Upside: 3.70% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

BlackRock TCP Capital's overall stock score of 58 reflects a mixed outlook. The company's solid financial performance and robust cash flow are positive factors, while technical analysis indicates bearish momentum. The valuation is challenging with a negative P/E ratio, though the high dividend yield is attractive. Earnings call insights reveal operational challenges, offset by management's shareholder-friendly actions.

Positive Factors

Portfolio Gains

Major portfolio marks included a $4.2 million gain on Securus and a $3.6 million gain on Domo.

Price Target

Analyst's price target improves to $8 from $7.50, representing a 0.80x NAV valuation.

Negative Factors

Analyst Recommendation

Analysts' recommendation remains Underweight due to prolonged credit patch and challenges posed by spreads and funding costs.

Dividend Challenges

The reset dividend still demands a 10.8% return on NAV, which may be challenged by spreads and funding costs.

Earnings Pressure

Given the forward curve, leverage, and credit challenges, TCPC is expected to underearn its base dividend.

BlackRock TCP Capital Business Overview & Revenue Model

Company Description

BlackRock TCP Capital Corp. is a business development company specializing in direct equity and debt investments in middle-market, debt securities, senior secured loans, junior loans, originated loans, mezzanine, senior debt instruments, bonds, and secondary-market investments. It typically invests in communication services, public relations services, television, wireless telecommunication services, apparel, textile mills, restaurants, retailing, energy, oil and gas extraction, Patent owners and Lessors, Federal and Federally- Sponsored Credit agencies, insurance, hospital and healthcare centers, Biotechnology, engineering services, heavy electrical equipment, tax accounting, scientific and related consulting services, charter freight air transportation, Information technology consulting, application hosting services, software diagram and design, computer aided design, communication equipment, electronics manufacturing equipment, computer components, chemicals. It seeks to invest in the United States. The fund typically invests between $10 million and $35 million in companies with enterprise values between $100 million and $1500 million including complex situations. It prefers to make equity investments in companies for an ownership stake.

How the Company Makes Money

BlackRock TCP Capital makes money by earning interest income on the loans it provides to middle-market companies. As a business development company, it raises capital from investors and deploys it into debt investments, primarily senior secured loans. The company generates revenue from the interest payments made by its borrowers, and it also seeks capital appreciation from the equity investments it occasionally makes. TCPC's earnings are driven by the spread between the interest income it receives and the cost of funds, as well as by the fees it earns for managing its portfolio. In addition, the company benefits from its affiliation with BlackRock, which provides access to extensive resources and expertise in asset management.

BlackRock TCP Capital Financial Statement Overview

Summary

BlackRock TCP Capital demonstrates strong financial growth with solid revenue and profit margins, supported by robust cash flow and a debt-free balance sheet. However, historical leverage issues and a decline in EBIT margin necessitate caution.

Income Statement

The income statement shows a robust revenue growth rate of 23.96% from 2023 to 2024, indicating strong top-line expansion. The gross and net profit margins are healthy, reflecting effective cost management. However, the decline in EBIT margin from previous years suggests potential operational challenges.

Balance Sheet

The balance sheet reveals strong equity growth, with a debt-free position in 2024 significantly improving financial stability. The equity ratio has improved, indicating a solid asset base. However, the previous years' high debt-to-equity ratio highlights historical leverage concerns.

Cash Flow

The cash flow statement indicates impressive free cash flow growth, alongside a strong operating cash flow to net income ratio, emphasizing efficient cash generation. The high free cash flow to net income ratio further supports the company's financial health.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
259.44M	209.33M	181.00M	165.11M	172.10M
	Gross Profit
259.44M	209.33M	181.00M	165.11M	172.10M
	EBIT
132.28M	154.61M	127.80M	113.53M	124.46M
	EBITDA
0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
-63.14M	38.47M	-9.23M	133.79M	71.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
91.59M	112.24M	82.44M	19.55M	20.01M
	Total Assets
1.92B	1.70B	1.72B	1.89B	1.67B
	Total Debt
0.00	985.20M	944.01M	1.01B	850.02M
	Net Debt
-91.59M	872.96M	861.57M	992.91M	830.01M
	Total Liabilities
1.14B	1.01B	972.60M	1.06B	907.00M
	Stockholders Equity
785.12M	687.60M	746.75M	829.46M	764.99M
Cash Flow		Free Cash Flow
293.12M	92.45M	203.95M	-82.61M	122.33M
	Operating Cash Flow
293.12M	92.45M	203.95M	-82.61M	122.33M
	Investing Cash Flow
0.00	0.00	151.05M	31.88M	31.88M
	Financing Cash Flow
-313.77M	-62.65M	-141.07M	82.15M	-147.17M

BlackRock TCP Capital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TCPC, the sentiment is Negative. The current price of 6.75 is below the 20-day moving average (MA) of 6.80, below the 50-day MA of 7.55, and below the 200-day MA of 8.08, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 39.01 is Neutral, neither overbought nor oversold. The STOCH value of 33.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TCPC.

BlackRock TCP Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GAIN	71 Outperform	$515.35M	7.30	14.74%	6.86%	-8.68%	-3.76%
GLAD	70 Neutral	$567.18M	5.52	22.43%	7.80%	69.53%	60.29%
Sector *	64 Neutral	$12.64B	9.74	8.05%	17044.60%	12.66%	-4.62%
FDUS	61 Neutral	$662.33M	7.94	12.58%	9.02%	2.31%	-15.06%
CCAP	61 Neutral	$593.36M	8.06	9.93%	10.49%	12.83%	-13.29%
TCPC	58 Neutral	$574.27M	―	-8.57%	18.81%	8.24%	-207.60%
CION	58 Neutral	$527.09M	15.71	3.99%	14.49%	2.30%	-63.97%

BlackRock TCP Capital Corporate Events

BlackRock TCP Capital Announces Q4 2024 Financial Results

On February 27, 2025, BlackRock TCP Capital Corp. announced its financial results for the fourth quarter and year ended December 31, 2024, reporting a net investment income of $0.40 per share for the quarter. The company declared a regular dividend of $0.25 per share and a special dividend of $0.04 per share, payable on March 31, 2025. Additionally, the Adviser agreed to waive one-third of its base management fee for three quarters in 2025. Despite challenges such as higher non-accruals and lower base rates, the company remains optimistic about future prospects and plans to continue declaring special dividends in the upcoming quarters.

BlackRock TCP Capital Announces Q4 2024 Financial Results

On February 27, 2025, BlackRock TCP Capital Corp. announced its financial results for the fourth quarter and year ended December 31, 2024, reporting a net investment income of $0.40 per share for the quarter. The company declared a first quarter regular dividend of $0.25 per share and a special dividend of $0.04 per share, payable on March 31, 2025. Additionally, the Adviser agreed to waive one-third of its base management fee for three quarters starting January 1, 2025. Despite challenges such as higher non-accruals and lower base rates, the company remains optimistic about its future prospects and plans to declare further special dividends in 2025, subject to board approval.