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BlackRock TCP Capital Corp. (TCPC)
NASDAQ:TCPC
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BlackRock TCP Capital (TCPC) AI Stock Analysis

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TCPC

BlackRock TCP Capital

(NASDAQ:TCPC)

Rating:58Neutral
Price Target:
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
Negative Factors
Credit Workouts
Recent credit workouts have resulted in debt-for-equity swaps, complicating leveraging efforts.
Dividend
The dividend likely faces another leg down, indicating potential for further reduction.
Non-Accrual Investments
TCPC holds ~$66 million of non-accrual investments and ~$102 million of non-income-producing investments, posing portfolio challenges.

BlackRock TCP Capital (TCPC) vs. SPDR S&P 500 ETF (SPY)

BlackRock TCP Capital Business Overview & Revenue Model

Company DescriptionBlackRock 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 MoneyBlackRock 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 Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted progress in reducing nonaccruals, strategic investments, and benefits from the BlackRock-HPS acquisition. However, challenges remain with a decline in NAV, new nonaccruals, and net realized losses. Investment income also decreased compared to the previous quarter.
Q2-2025 Updates
Positive Updates
Reduction in Nonaccruals
Nonaccruals declined to 3.7% of the portfolio's fair market value, down from 4.4% last quarter and 5.6% at the end of 2024.
Successful Portfolio Restructuring
Four large investments were removed from nonaccrual status this quarter, including InMoment, SellerX, Lithium, and Renovo.
Strong New Investments
Invested $178 million in 13 new and 11 existing portfolio companies, focusing on first lien loans and businesses with long-term growth drivers.
Strategic Acquisition Benefits
BlackRock's acquisition of HPS and the creation of the Private Financing Solutions platform enhances investment expertise and resources.
Dividend Declaration
A second quarter dividend of $0.25 and a special dividend of $0.04 per share were declared, payable on September 30.
Negative Updates
Decline in NAV
NAV declined during the quarter due to marks on previously restructured portfolio companies, despite no new credit issues.
Additions to Nonaccrual
Four investments added to nonaccrual status: Thrasio, Fishbowl, Brook & Whittle, and 48forty, due to uneven performance and lower demand.
Net Realized Losses
Net realized losses for the quarter were approximately $66 million or $0.78 per share, driven by restructuring of several investments.
Investment Income Decline
Adjusted net investment income was $0.31 per share, down from $0.36 in the previous quarter.
Company Guidance
During BlackRock TCP Capital Corp.'s second-quarter earnings call for fiscal year 2025, management provided detailed guidance on financial performance and strategic initiatives. The nonaccruals in the portfolio were reduced to 3.7% of the portfolio's fair market value, down from 4.4% in the previous quarter. The net asset value (NAV) experienced a decline, driven by marks on previously restructured companies, while the net realized losses were approximately $66 million or $0.78 per share. Net unrealized gains were $23 million or $0.27 per share. The portfolio's fair market value was approximately $1.8 billion, with a weighted average annual effective yield of 12% for the second quarter. The company's liquidity stood at $566 million, with net regulatory leverage at 1.28x. The Board declared a second-quarter dividend of $0.25 per share and a special dividend of $0.04 per share. Additionally, BlackRock's recent acquisition of HPS and the formation of the Private Financing Solutions platform are expected to enhance TCPC's sourcing, underwriting, and portfolio management capabilities.

BlackRock TCP Capital Financial Statement Overview

Summary
BlackRock TCP Capital exhibits strong financial growth with solid revenue and profit margins, backed by a robust cash flow position. The transition to a debt-free balance sheet enhances financial stability, though historical leverage issues suggest caution. The company's financial health is improving, supported by effective cash management and revenue growth.
Income Statement
75
Positive
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
68
Positive
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
80
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue70.49M20.77M209.33M181.00M165.11M172.10M
Gross Profit603.79K-45.40M209.33M181.00M165.11M172.10M
EBITDA-11.41M-62.62M0.000.000.000.00
Net Income-11.93M-63.14M38.47M-9.23M133.79M71.37M
Balance Sheet
Total Assets1.94B1.92B1.70B1.72B1.89B1.67B
Cash, Cash Equivalents and Short-Term Investments107.32M91.59M112.24M82.44M19.55M20.01M
Total Debt0.001.12B985.20M944.01M1.01B850.02M
Total Liabilities1.20B1.14B1.01B972.60M1.06B907.00M
Stockholders Equity740.48M785.12M687.60M746.75M829.46M764.99M
Cash Flow
Free Cash Flow183.93M293.12M92.45M203.95M-82.61M122.33M
Operating Cash Flow183.93M293.12M92.45M203.95M-82.61M122.33M
Investing Cash Flow-57.23M0.000.00151.05M31.88M31.88M
Financing Cash Flow-271.28M-313.77M-62.65M-141.07M82.15M-147.17M

BlackRock TCP Capital Technical Analysis

Technical Analysis Sentiment
Negative
Last Price7.18
Price Trends
50DMA
7.39
Negative
100DMA
7.24
Negative
200DMA
7.63
Negative
Market Momentum
MACD
-0.06
Negative
RSI
46.12
Neutral
STOCH
70.37
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 7.18 is above the 20-day moving average (MA) of 7.11, below the 50-day MA of 7.39, and below the 200-day MA of 7.63, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 46.12 is Neutral, neither overbought nor oversold. The STOCH value of 70.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TCPC.

BlackRock TCP Capital Risk Analysis

BlackRock TCP Capital disclosed 66 risk factors in its most recent earnings report. BlackRock TCP 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

BlackRock TCP Capital Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$538.89M6.5116.54%10.61%33.75%6.20%
70
Outperform
$587.80M13.315.98%12.15%-7.13%-56.63%
70
Neutral
$583.70M7.7616.23%9.15%47.88%-5.08%
68
Neutral
$18.05B11.7310.24%3.73%9.66%1.70%
68
Neutral
$757.84M9.2811.80%10.57%-14.09%-27.46%
58
Neutral
$606.31M-1.48%18.94%-48.53%73.29%
58
Neutral
$537.01M15.47-1.27%14.58%-11.83%-108.11%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TCPC
BlackRock TCP Capital
7.18
-0.56
-7.24%
FDUS
Fidus Investment
21.39
3.49
19.50%
GLAD
Gladstone Capital
26.21
5.57
26.99%
GAIN
Gladstone Investment
14.14
3.42
31.90%
CCAP
Crescent Capital BDC
15.91
-0.17
-1.06%
CION
CION Investment Corp
10.22
0.14
1.39%

BlackRock TCP Capital Corporate Events

DividendsFinancial Disclosures
BlackRock TCP Capital Announces Q4 2024 Financial Results
Positive
Feb 27, 2025

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.

DividendsFinancial Disclosures
BlackRock TCP Capital Announces Q4 2024 Financial Results
Positive
Feb 27, 2025

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.

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.Date of analysis: Apr 22, 2025