Chicago Atlantic Bdc, Inc. (LIEN)
NASDAQ:LIEN
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Chicago Atlantic BDC
(NASDAQ:LIEN)
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Rating:82Outperform
Price Target:
$11.50
▲(7.98% Upside)
Action:Reiterated
Date:06/02/26
The score is driven primarily by strong fundamentals (high margins and conservative leverage) and a favorable earnings-call backdrop (record NII, strong originations, zero nonaccruals, and disciplined low-leverage growth). Valuation is also a major positive with a low P/E and high dividend yield. Offsetting factors are inconsistent cash flow conversion and, to a lesser extent, elevated (but not extreme) technical readings that suggest momentum is positive but not risk-free.
Positive Factors
High portfolio yields & senior-secured focus
Sustained ~15.8% gross yield on debt, combined with a portfolio that is entirely senior secured and largely fixed‑rate or floored, provides durable interest income and loss protection. This structural mix supports long‑term NII stability and underwriting resilience vs. peers.
Negative Factors
Volatile cash flow conversion
Material divergence between reported earnings and year-to-year cash flow raises concerns about the timing and reliability of cash conversion. Inconsistent operating cash generation can strain dividend coverage, capital deployment timing, and reliance on external financing over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High portfolio yields & senior-secured focus
Sustained ~15.8% gross yield on debt, combined with a portfolio that is entirely senior secured and largely fixed‑rate or floored, provides durable interest income and loss protection. This structural mix supports long‑term NII stability and underwriting resilience vs. peers.
Read all positive factors
Chicago Atlantic BDC (LIEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$223.41M
Dividend Yield13.03%
Average Volume (3M)66.75K
Price to Earnings (P/E)6.5
Beta (1Y)0.29
Revenue Growth92.11%
EPS Growth73.34%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)1.50
Shares Outstanding22,820,590
10 Day Avg. Volume63,224
30 Day Avg. Volume66,751
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)0.78
Price to Sales (P/S)4.34
P/FCF Ratio-11.51
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue5.74
Enterprise Value/Gross Profit6.34
Enterprise Value/Ebitda7.93
Forecast
1Y Price Target
$11.00Price Target Upside3.29% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.51
Revenue Forecast (FY)$62.77M
Chicago Atlantic BDC Business Overview & Revenue Model
Company Description
Silver Spike Investment Corp., is a a business development company. It is a specialty finance company, focuses on investing across the cannabis ecosystem through investments in the form of direct loans to, and equity ownership of, privately held c...
How the Company Makes Money
Chicago Atlantic BDC makes money primarily through investment income earned on the debt instruments it originates and holds. Its key revenue stream is interest income from loans—typically senior secured, often structured with floating interest rat...
Chicago Atlantic BDC Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 07, 2026
Earnings Call Sentiment Positive
The call emphasized record financial performance, strong portfolio yields, conservative leverage, and meaningful origination momentum—particularly notable given regulatory tailwinds for the cannabis market. Key positives include record NII and funding activity, high senior-secured yields, zero nonaccruals, and a large $810M pipeline. Offsetting items include a $1.4M net unrealized loss from spread widening, higher interest expense and operating costs, modest cash on hand, and some execution uncertainty around accessing additional capital under the shelf. On balance, the highlights are more numerous and material than the lowlights, indicating solid operational execution and a favorable positioning to benefit from improving industry dynamics.Positive Updates
Record Net Investment Income and EPS
Net investment income reached a record $10.0 million, or $0.44 per share, up from $8.3 million or $0.36 per share in Q4 2025 (NII increase ~20.5%; EPS increase ~22.2%).
Negative Updates
Net Unrealized Loss from Spread Widening
Recognized a net unrealized loss of $1.4 million for the quarter attributed to widening credit spreads rather than underlying borrower credit deterioration.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Net Investment Income and EPS
Net investment income reached a record $10.0 million, or $0.44 per share, up from $8.3 million or $0.36 per share in Q4 2025 (NII increase ~20.5%; EPS increase ~22.2%).
Read all positive updates
Company Guidance
The company guided to a disciplined, low‑leverage growth plan—maintaining its $0.34 quarterly dividend, staying well below the BDC average 1.3x debt/equity (currently 0.18x with $54.5M drawn), and aiming to opportunistically use available financing (May 13 liquidity ~$51.5M: $50M revolver capacity + $1.5M cash; shelf registration for up to $500M) and, possibly, full revolver utilization by year‑end—while preserving strict underwriting. Key portfolio metrics underpinning that guidance include a gross weighted average debt yield of ~15.8% (vs. 10.8% public BDC avg), 100% of debt senior secured, ~94% fixed‑rate or floored, only 1.3% exposure to sub‑debt/equity (vs. 25.5% peer avg), no nonaccruals (industry avg 3.4%), and minimal software exposure (2.6%). Recent activity and expectations driving growth: Q1 funded $93.9M across 7 companies (3 new), net investment income of $10.0M or $0.44/share, net deployments $32M, $63.4M in repayments/refis (including a $38.3M refinancing), $13.7M unfunded commitments, and an $810M origination pipeline (≈$482M cannabis, $328M non‑cannabis). They also noted limited rate sensitivity (a 100 bp benchmark drop would cut interest income by <15 bps) and expect regulatory tailwinds and increased M&A to lift originations, but will remain conservative and focused on downside protection.Chicago Atlantic BDC Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 48.69M | 54.30M | 17.97M | 10.03M | 4.05M | 10.07K |
| Gross Profit | 44.09M | 41.95M | 17.97M | 10.03M | 4.05M | 10.07K |
| EBITDA | 35.22M | 34.53M | 9.62M | 7.34M | 0.00 | -563.37K |
| Net Income | 34.20M | 33.28M | 9.62M | 7.34M | 1.71M | -563.37K |
Balance Sheet | ||||||
| Total Assets | 373.13M | 342.00M | 309.56M | 88.58M | 86.97M | 85.03M |
| Cash, Cash Equivalents and Short-Term Investments | 3.35M | 2.93M | 23.93M | 32.61M | 35.13M | 84.77M |
| Total Debt | 54.50M | 25.00M | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 68.95M | 38.59M | 8.40M | 3.02M | 495.55K | 479.70K |
| Stockholders Equity | 304.18M | 303.41M | 301.16M | 85.55M | 86.48M | 84.55M |
Cash Flow | ||||||
| Free Cash Flow | -13.76M | -20.48M | -5.03M | 5.75M | -50.15M | -509.11K |
| Operating Cash Flow | -13.76M | -20.48M | -5.03M | 5.75M | -50.15M | -509.11K |
| Investing Cash Flow | 23.91B | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | 22.47M | -519.92K | -3.64M | -8.26M | 85.27M | 85.28M |
Chicago Atlantic BDC Technical Analysis
Positive
10.65
Price Trends
9.50
Positive
9.66
Positive
9.74
Positive
Market Momentum
0.12
Positive
53.90
Neutral
18.18
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LIEN, the sentiment is Positive. The current price of 10.65 is above the 20-day moving average (MA) of 9.71, above the 50-day MA of 9.50, and above the 200-day MA of 9.74, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 53.90 is Neutral, neither overbought nor oversold. The STOCH value of 18.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LIEN.
Chicago Atlantic BDC Risk Analysis
Chicago Atlantic BDC disclosed 1 risk factors in its most recent earnings report. Chicago Atlantic BDC 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
Chicago Atlantic BDC Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $223.41M | 6.53 | 11.28% | 13.03% | 92.11% | 73.34% | |
70 Outperform | $358.20M | 1.70 | 80.64% | 5.39% | ― | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $381.80M | 6.39 | 17.20% | 6.55% | 20.30% | 19.12% | |
53 Neutral | $252.71M | 10.66 | ― | 12.83% | 6.21% | -42.00% | |
49 Neutral | $218.02M | 5.08 | 12.12% | 17.28% | 18.91% | 14.29% |
* Financial Sector Average
LIEN
Chicago Atlantic BDC
9.79
1.25
14.60%
NEWT
Newtek Business
13.23
3.01
29.50%
SSSS
SuRo Capital
13.74
6.65
93.66%
SCM
Stellus Capital
8.73
-3.20
-26.80%
TPVG
TriplePoint Venture Growth
5.37
-0.83
-13.32%
Chicago Atlantic BDC Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresRegulatory Filings and Compliance
Chicago Atlantic BDC Posts Record Q1 Results, Declares Dividend
Positive
May 14, 2026
On May 14, 2026, Chicago Atlantic BDC reported first-quarter 2026 results showing total gross investment income of $16.7 million and net investment income of $10.0 million, or $0.44 per share, alongside a record investment portfolio of $364.0 mill...
Executive/Board Changes
Chicago Atlantic BDC Announces Resignation of Board Director
Positive
Apr 14, 2026
On April 10, 2026, Chicago Atlantic BDC, Inc. announced that director Patrick McCauley resigned from its board, effective immediately, to pursue other opportunities. The company stated that McCauley’s departure did not involve any disagreeme...
Business Operations and StrategyDividendsFinancial Disclosures
Chicago Atlantic BDC Reports Strong 2025 Results, Declares Dividend
Positive
Mar 19, 2026
Chicago Atlantic BDC, Inc. reported fourth-quarter and full-year 2025 results on March 19, 2026, posting Q4 total investment income of $14.2 million and net investment income of $8.3 million, or $0.36 per share, with no loans on non-accrual and a ...
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.