BlackRock TCP Capital (TCPC) AI Stock Analysis

• Market Cap: $529.78M
• Dividend Yield: 20.76%
• Average Volume (3M): 562.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: -48.53%
• EPS Growth: 73.29%
• Country: US
• Employees: 19,800
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.31
• Shares Outstanding: 85,036,470
• 10 Day Avg. Volume: 932,881
• 30 Day Avg. Volume: 562,158
• PEG Ratio: 0.05
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 33.42
• P/FCF Ratio: 2.37
• Enterprise Value/Market Cap: 3.25
• Enterprise Value/Revenue: 11.57
• Enterprise Value/Gross Profit: 19.46
• Enterprise Value/Ebitda: -150.98
• 1Y Price Target: $6.75
• Price Target Upside: 6.97% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• 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

Strong Portfolio Performance

A high percentage of senior secured loans in the portfolio provides stability and reduces risk, ensuring consistent income and protecting against defaults.

Management Fee Waiver

The fee waiver demonstrates management's commitment to shareholder interests, potentially improving net income and investor confidence over the medium term.

Cash Flow Strength

Strong cash flow generation supports operational flexibility, enabling the company to invest in growth opportunities and maintain dividend payouts.

Negative Factors

Increased Non-Accruals

Rising non-accruals indicate potential credit quality issues, which can lead to reduced income and increased risk of defaults, impacting financial stability.

Significant Investment Markdowns

Investment markdowns reduce asset values and shareholder equity, potentially affecting investor confidence and the company's ability to raise capital.

Dividend Reduction

Dividend cuts may signal financial strain and can lead to decreased investor trust, impacting the company's attractiveness to income-focused investors.

BlackRock TCP Capital Business Overview & Revenue Model

Company Description

BlackRock TCP Capital Corp. (TCPC) is a specialty finance company that primarily invests in senior secured loans to middle-market companies. It operates as a business development company (BDC) and is managed by Tennenbaum Capital Partners, LLC, a subsidiary of BlackRock, Inc. The company focuses on providing a stable and attractive yield to its investors through a diversified portfolio of debt instruments, with an emphasis on maintaining a high level of credit quality.

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 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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	148.81M	20.77M	209.33M	181.00M	165.11M	172.10M
Gross Profit	88.47M	-45.40M	209.33M	181.00M	165.11M	172.10M
EBITDA	-11.41M	-62.62M	0.00	0.00	0.00	0.00
Net Income	-11.93M	-63.14M	38.47M	-9.23M	133.79M	71.37M
Balance Sheet
Total Assets	1.94B	1.92B	1.70B	1.72B	1.89B	1.67B
Cash, Cash Equivalents and Short-Term Investments	107.32M	91.59M	112.24M	82.44M	19.55M	20.01M
Total Debt	0.00	1.12B	985.20M	944.01M	1.01B	850.02M
Total Liabilities	1.20B	1.14B	1.01B	972.60M	1.06B	907.00M
Stockholders Equity	740.48M	785.12M	687.60M	746.75M	829.46M	764.99M
Cash Flow
Free Cash Flow	183.93M	293.12M	92.45M	203.95M	-82.61M	122.33M
Operating Cash Flow	183.93M	293.12M	92.45M	203.95M	-82.61M	122.33M
Investing Cash Flow	-57.23M	0.00	0.00	151.05M	31.88M	31.88M
Financing Cash Flow	-271.28M	-313.77M	-62.65M	-141.07M	82.15M	-147.17M

BlackRock TCP Capital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 6.31 is below the 20-day moving average (MA) of 6.70, below the 50-day MA of 6.85, and below the 200-day MA of 7.22, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 33.10 is Neutral, neither overbought nor oversold. The STOCH value of 5.73 is Positive, 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
GLAD	70 Neutral	499.30M	6.64	―	10.01%	47.88%	-5.08%
FDUS	68 Neutral	721.75M	8.84	11.41%	11.04%	-14.09%	-27.46%
CCAP	68 Neutral	568.52M	12.87	9.94%	12.61%	-7.13%	-56.63%
GAIN	63 Neutral	527.43M	6.37	16.41%	10.85%	33.75%	6.20%
TCPC	58 Neutral	$529.78M	―	-1.48%	20.76%	-48.53%	73.29%
CION	58 Neutral	504.20M	-50.89	―	15.39%	-11.83%	-108.11%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.