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BCP Investment Corporation (BCIC)
NASDAQ:BCIC
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BCP Investment Corporation
(NASDAQ:BCIC)
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Rating:55Neutral
Price Target:
$12.50
▲(4.87% Upside)
The overall stock score of 54.8 reflects a balanced view of Portman Ridge Finance's current position. The company's strong equity base and cash flow generation are significant positives, but these are offset by declining revenues and net income. The technical indicators suggest a neutral trend, while the high dividend yield offers some appeal despite negative earnings. The earnings call highlights both strategic successes and ongoing challenges, contributing to a mixed sentiment.
BCP Investment Corporation (BCIC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$157.25M
Dividend Yield18.37%
Average Volume (3M)69.51K
Price to Earnings (P/E)―
Beta (1Y)0.31
Revenue Growth-62.82%
EPS Growth-170.97%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)N/A
Shares Outstanding13,191,929
10 Day Avg. Volume67,912
30 Day Avg. Volume69,509
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)0.85
Price to Sales (P/S)4.85
P/FCF Ratio2.68
Enterprise Value/Market Cap2.02
Enterprise Value/Revenue19.96
Enterprise Value/Gross Profit-198.33
Enterprise Value/Ebitda51.73
Forecast
1Y Price Target
$13.25Price Target Upside11.16% Upside
Rating ConsensusHold
Number of Analyst Covering2
BCP Investment Corporation Business Overview & Revenue Model
Company DescriptionBCP Investment Corp. is a business development company specializing in investments in unitranche loans (including last out), first lien loans, second lien loans, subordinated debt, equity co-investment, mezzanine, buyout in middle market companies. It also makes acquisitions in businesses complementary to the firm's business. The fund primarily invests in healthcare, cargo transport, manufacturing, industrial & environmental services, logistics & distribution, media & telecommunications, real estate, education, automotive, agriculture, aerospace/defense, packaging, electronics, finance, non-durable consumer, consumer products, business services, utilities, insurance, and food and beverage sectors. The fund typically invests $1 million to $20 million in its portfolio companies. The fund provides senior secured term loans from $2 million to $20 million maturing in five to seven years; second lien term loans from $5 million to $15 million maturing in six to eight years; senior unsecured loans $5 million to $23 million maturing in six to eight years; mezzanine loans from $5 million to $15 million maturing in seven to ten years; and equity investments from $1 to $5 million. The fund targets the companies with EBITDA between $5 million and $25 million. While investing in debt securities, it invests in those middle market firms with EBITDA between $10 million and $50 million and/or total debt between $25 million and $150 million. The fund invests in minority, and majority or control equity positions alongside its private equity sponsor partners.
How the Company Makes MoneyPortman Ridge Finance generates revenue through interest income from its debt investments, which typically include secured loans, unsecured loans, and subordinated debt. The company also earns income from equity investments in the form of dividends and capital gains when it sells its equity stakes. Additionally, PTMN may charge fees for originating and managing investments in its portfolio. Significant partnerships with private equity firms and investment advisors contribute to its deal flow and network, enhancing its ability to identify profitable investment opportunities. Overall, PTMN's revenue model is primarily based on earning interest income and capital appreciation from its diversified investment portfolio.
BCP Investment Corporation Earnings Call Summary
Earnings Call Date:―
(Q2-2025)
| Next Earnings Date:―
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative developments. Key positives included increased net investment income, successful merger completion, and a healthy capital market environment. However, these were counterbalanced by a decrease in net asset value, contraction of the portfolio, and continued nonaccrual investments, resulting in a balanced sentiment.Q2-2025 Updates
Positive Updates
Increased Net Investment Income
Net investment income for the second quarter of 2025 was $4.6 million or $0.50 per share, up from $4.3 million or $0.47 per share in the first quarter of 2025.
Successful Merger with Logan Ridge Finance Corporation
The completion of the merger with Logan Ridge Finance Corporation marks a transformational milestone, providing greater scale, broader portfolio diversification, and enhanced financial flexibility.
Strong Performance and Credit Strength
Logan Ridge delivered strong results for the second quarter with net investment income of $1.2 million or $0.47 per share, up from $0.9 million or $0.35 per share in the first quarter of 2025, driven by $3.8 million net deployment activity and no new investments on nonaccrual.
Healthy Capital Markets
Increased deal volume and a healthy mix of new LBO sale processes and refinancings, pointing to a robust capital market environment.
Introduction of Sustainable Dividend Policy
The Board approved a base distribution of $0.47 per share and a supplemental cash distribution of $0.02 per share, with a stable base distribution anticipated to be sustainable across market cycles.
Negative Updates
Decrease in Net Asset Value (NAV)
Net asset value as of June 30, 2025, was $164.7 million, representing a decrease of $8.8 million from the previous quarter, primarily due to net realized and unrealized losses of $9.1 million.
Portfolio Contraction and Net Repayment
Originations for the second quarter were $10.9 million, while repayment and sales were $17.0 million, resulting in net repayment and sales of approximately $6.1 million.
Nonaccrual Investments
Six investments were on nonaccrual status at the end of the second quarter, representing 2.1% and 4.8% of the company's investment portfolio at fair value and cost, respectively.
Realized Losses
The realized loss was $15 million, with significant portions attributed to ProAir ($6 million) and Anthem restructuring.
Company Guidance
During the second quarter of 2025, Portman Ridge Finance Corporation reported a net investment income of $4.6 million or $0.50 per share, an increase from $4.3 million or $0.47 per share in the previous quarter. The company completed a merger with Logan Ridge Finance Corporation, enhancing its scale and diversification, with Logan Ridge contributing a net investment income of $1.2 million or $0.47 per share, up from $0.9 million or $0.35 per share in Q1 2025. Portman Ridge maintained a high-quality portfolio, with 86.9% of its debt securities portfolio based on floating rates linked to interest rate indices like SOFR, despite a slight decline in these rates affecting net investment income. The company realized originations of $10.9 million and repayments and sales of $17.0 million, resulting in net repayments and sales of $6.1 million. The overall yield on new investments was 11.5%, slightly above the portfolio's yield of 10.7%. The investment portfolio remained highly diversified across 69 portfolio companies and 25 industries, with an average par balance of $2.6 million. Nonaccrual investments at the end of Q2 2025 represented 2.1% and 4.8% of the investment portfolio at fair value and cost, respectively. The Board approved a base distribution of $0.47 per share and a supplemental cash distribution of $0.02 per share. The company is rebranding to BCP Investment Corporation, with a NASDAQ ticker change to BCIC anticipated in the coming weeks. The company ended the quarter with a net asset value of $164.7 million or $17.89 per share, a decrease from the previous quarter, primarily due to realized and unrealized losses. The gross and net leverage ratios stood at 1.6x and 1.4x, respectively, with $255.4 million in borrowings at a weighted average interest rate of 6%.BCP Investment Corporation Financial Statement Overview
Summary
Portman Ridge Finance shows strengths in maintaining a strong equity base and generating positive free cash flow. However, declining revenues and net income suggest potential operational inefficiencies or market pressures. The elimination of debt reduces financial risk, providing a more stable financial foundation despite recent profitability issues.Income Statement
The income statement reveals fluctuating revenue trends with a recent decline from $58.4M in 2023 to $46.9M in 2024, indicating a revenue contraction. Gross profit margin remained stable at 100% due to equivalent gross profit and revenue figures. EBIT margin declined slightly from 92.6% in 2023 to 92.2% in 2024, reflecting tighter operational efficiency. Net income has dropped significantly to zero in 2024 from $11.4M in 2023, impacting the net profit margin negatively.45
Neutral
Balance Sheet
The balance sheet shows a strong equity position with stockholders' equity at $178.5M against total assets of $453.6M, resulting in a healthy equity ratio of 39.4%. The company has significantly reduced its debt, leading to a zero debt-to-equity ratio, which minimizes leverage risk. However, the decline in stockholders' equity from $213.5M in 2023 suggests challenges in maintaining asset growth.52
Neutral
Cash Flow
Cash flow analysis indicates stable free cash flow at $56.6M in 2024. The company has managed positive operating cash flow of $56.6M, although it has decreased significantly from $120.9M in 2023. The operating cash flow to net income ratio is not calculable due to zero net income, but the substantial free cash flow to net income in previous years highlights efficient cash generation capabilities.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.95M | 31.25M | 43.35M | 37.64M | 75.83M | 50.37M |
| Gross Profit | -1.60M | 17.91M | 37.71M | 19.80M | 57.62M | 39.55M |
| EBITDA | 6.15M | 15.50M | 10.97M | 46.80M | 41.51M | 41.70M |
| Net Income | -8.30M | -5.93M | 11.38M | -21.00M | 26.03M | 31.57M |
Balance Sheet | ||||||
| Total Assets | 428.00M | 453.63M | 549.24M | 619.49M | 648.30M | 600.18M |
| Cash, Cash Equivalents and Short-Term Investments | 11.22M | 17.53M | 26.91M | 5.15M | 28.92M | 6.99M |
| Total Debt | 253.66M | 265.14M | 322.41M | 373.31M | 347.19M | 373.31M |
| Total Liabilities | 263.27M | 275.14M | 335.72M | 387.36M | 368.18M | 383.91M |
| Stockholders Equity | 164.73M | 178.49M | 213.52M | 232.12M | 280.12M | 216.26M |
Cash Flow | ||||||
| Free Cash Flow | 37.36M | 56.63M | 120.90M | -33.10M | 61.15M | 121.68M |
| Operating Cash Flow | 37.36M | 56.63M | 120.90M | -33.10M | 61.15M | 121.68M |
| Investing Cash Flow | 15.92M | 47.27M | 98.76M | -61.24M | 48.90M | 97.06B |
| Financing Cash Flow | -53.70M | -88.25M | -82.47M | -2.11M | -75.71M | -43.88M |
BCP Investment Corporation Technical Analysis
Negative
11.92
Price Trends
12.06
Negative
11.88
Positive
12.93
Negative
Market Momentum
>-0.01
Positive
42.22
Neutral
24.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCIC, the sentiment is Negative. The current price of 11.92 is below the 20-day moving average (MA) of 12.13, below the 50-day MA of 12.06, and below the 200-day MA of 12.93, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.22 is Neutral, neither overbought nor oversold. The STOCH value of 24.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BCIC.
BCP Investment Corporation Risk Analysis
BCP Investment Corporation disclosed 72 risk factors in its most recent earnings report. BCP Investment Corporation 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
BCP Investment Corporation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | 104.51M | 10.32 | ― | 17.44% | -53.07% | ― | |
69 Neutral | 151.66M | 79.16 | ― | 14.29% | -17.51% | -75.48% | |
59 Neutral | 235.09M | 5.70 | ― | 19.38% | 377.90% | ― | |
55 Neutral | $157.25M | ― | -4.79% | 18.37% | -62.82% | -170.97% | |
48 Neutral | 130.84M | 7.30 | ― | 13.35% | 52.57% | 13.36% | |
45 Neutral | 131.10M | -73.36 | -0.86% | 25.00% | -569.90% | -144.29% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
BCIC
BCP Investment Corporation
11.92
-3.69
-23.64%
OXSQ
Oxford Square Capital
1.68
-0.69
-29.11%
OFS
OFS Capital
7.80
0.71
10.01%
TPVG
TriplePoint Venture Growth
5.83
-0.25
-4.11%
MRCC
Monroe Capital
7.00
-0.17
-2.37%
GECC
Great Elm Capital
11.31
2.55
29.11%
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.