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Palmer Square Capital BDC Inc.
(NYSE:PSBD)
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Rating:57Neutral
Price Target:
$10.50
â–²(10.41% Upside)
Action:Reiterated
Date:08/05/26
PSBD’s score is held back primarily by weakened recent profitability and elevated leverage, despite currently positive cash flow. Valuation is supported by a very high dividend yield, but the negative P/E underscores earnings pressure. Technicals are neutral-to-soft (below key moving averages and negative MACD). The latest earnings call adds modest support through strong credit metrics, improved funding costs, liquidity, and buybacks, but declining investment income and NAV keep the overall score in the mid-range.
Positive Factors
Strong Liquidity
A ~$331M liquidity buffer gives durable funding optionality: it supports selective deployment, cushions against borrower stress, enables continued dividends and buybacks, and reduces near-term need to access capital markets, preserving flexibility across 2–6 months and through funding volatility.
Negative Factors
Elevated Leverage
Debt near 1.7x equity amplifies sensitivity to asset‑value swings and increases funding vulnerability. High leverage can force asset sales or reduce distributions if NAV declines persist, constrain capital allocation flexibility, and raise the company’s exposure to rising funding costs over a multi‑quarter horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Liquidity
A ~$331M liquidity buffer gives durable funding optionality: it supports selective deployment, cushions against borrower stress, enables continued dividends and buybacks, and reduces near-term need to access capital markets, preserving flexibility across 2–6 months and through funding volatility.
Read all positive factors
Palmer Square Capital BDC Inc. (PSBD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$296.89M
Dividend Yield16.88%
Average Volume (3M)126.75K
Price to Earnings (P/E)―
Beta (1Y)0.54
Revenue Growth-14.06%
EPS Growth-306.26%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)-1.26
Shares Outstanding31,120,813
10 Day Avg. Volume156,527
30 Day Avg. Volume126,748
Financial Highlights & Ratios
PEG Ratio1.16
Price to Book (P/B)0.84
Price to Sales (P/S)3.52
P/FCF Ratio2.44
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$11.13Price Target Upside16.98% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)-0.05
Revenue Forecast (FY)$103.25M
Palmer Square Capital BDC Inc. Business Overview & Revenue Model
Company Description
Palmer Square Capital BDC, Inc. specializes in providing diverse investment offerings. The firm actively supplies capital to businesses by issuing loans and acquiring their debt instruments. Founded in 2019, its operations are headquartered in Mis...
How the Company Makes Money
PSBD makes money primarily through investment income earned on its portfolio of financings to middle-market borrowers. The core revenue stream is interest income on debt investments (e.g., floating- or fixed-rate loans and other credit instruments...
Palmer Square Capital BDC Inc. Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
Management emphasized portfolio resilience (low nonaccruals, high yields, diversification), improved funding costs, solid liquidity and proactive capital allocation (expanded buybacks). However, the company reported lower investment income (down 13.8% YoY), modest NAV and fair value declines (~0.7% NAV, ~3.6% portfolio fair value QoQ), concentrated realized losses YTD, and sector-specific weakness in software valuations amid subdued deal activity and macro uncertainty. On balance, positive operational actions and credit fundamentals were highlighted as offsetting near-term income and valuation headwinds.Positive Updates
Capital Deployment and Realizations
Deployed $72.4 million of capital in Q2 2026 (21 new commitments, avg ~$3.3M each) and realized ~$109.8 million through repayments and sales, supporting portfolio rotation and liquidity management.
Negative Updates
Decline in Total Investment Income Year-over-Year
Total investment income for Q2 2026 was $27.3 million, down 13.8% from $31.7 million in the comparable prior-year period, driven in part by lower base rates and paydown-related income.
Read all updates
Q2-2026 Updates
Positive
Negative
Capital Deployment and Realizations
Deployed $72.4 million of capital in Q2 2026 (21 new commitments, avg ~$3.3M each) and realized ~$109.8 million through repayments and sales, supporting portfolio rotation and liquidity management.
Read all positive updates
Company Guidance
Management’s guidance emphasized disciplined capital allocation while highlighting key metrics: Q2 deployment was $72.4M (21 new commitments, avg ~$3.3M) with $109.8M realized through repayments/sales, total investment income $27.3M (down 13.8% YoY) and net investment income $12.0M or $0.39/share (Q2 dividend $0.39/share including $0.03 supplemental; Board declared Q3 base dividend $0.36/share); NAV was $13.21 (down from $13.30) with portfolio fair value ~$1.11B (vs $1.15B, -3.6%), total assets ~$1.1B and net assets $406.2M; liquidity ~$331M, debt-to-equity 1.71x, portfolio 96% senior secured, private credit ~14% of portfolio (median revenue & EBITDA growth ~9%), weighted average total yield to maturity 11.95% (fair value) / 8.43% (amortized cost), new private credit = 24.1% of new investments at a 534 bp spread, nonaccruals ~0.29% (29 bps FV; 149 bps at cost), PIK income ~1.37% of investment income, a $30M share repurchase program ( ~$4M used in Q2; $10M 10b5-1 / $20M open market), and a BDC CLO reset lowering cost of debt to SOFR+1.39% (from SOFR+1.72%) with reinvestment to July 2031 and maturity to July 2039, expected to be fully accretive after refinancing costs beginning in Q4.Palmer Square Capital BDC Inc. Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
57
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.34B | 111.20M | 110.32M | 153.66M | -49.39M | 29.54M |
| Gross Profit | 12.18M | 94.66M | 52.31M | 109.18M | -72.84M | 20.92M |
| EBITDA | 415.45M | 1.78B | 47.67M | 107.84M | -74.48M | 19.06M |
| Net Income | -39.19M | -3.17M | 47.67M | 107.84M | -74.48M | 19.06M |
Balance Sheet | ||||||
| Total Assets | 1.13T | 1.22B | 1.43B | 1.12B | 1.06B | 1.22B |
| Cash, Cash Equivalents and Short-Term Investments | 2.45B | 3.22M | 2.77M | 2.12M | 1.65M | 1.09M |
| Total Debt | 0.00 | 716.51M | 804.16M | 641.83M | 641.31M | 649.91M |
| Total Liabilities | 726.43B | 755.25M | 893.20M | 659.86M | 694.01M | 764.49M |
| Stockholders Equity | 406.15B | 464.12M | 537.84M | 461.96M | 363.44M | 452.80M |
Cash Flow | ||||||
| Free Cash Flow | 50.35B | 160.66M | 106.73M | 57.12M | -39.25M | -438.01M |
| Operating Cash Flow | 50.35B | 160.66M | 106.73M | 57.12M | -39.25M | -438.01M |
| Investing Cash Flow | 40.33B | 0.00 | -305.05M | -26.65M | 35.40M | -519.55M |
| Financing Cash Flow | -51.19B | -160.21M | 198.97M | -30.00M | 4.40M | 438.42M |
Palmer Square Capital BDC Inc. Technical Analysis
Neutral
9.51
Price Trends
10.19
Negative
10.15
Negative
10.49
Negative
Market Momentum
-0.16
Negative
49.15
Neutral
41.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSBD, the sentiment is Neutral. The current price of 9.51 is below the 20-day moving average (MA) of 9.88, below the 50-day MA of 10.19, and below the 200-day MA of 10.49, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 49.15 is Neutral, neither overbought nor oversold. The STOCH value of 41.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PSBD.
Palmer Square Capital BDC Inc. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $421.81M | 9.93 | 9.17% | 9.39% | -46.94% | -51.89% | |
57 Neutral | $296.89M | -9.17 | -6.84% | 16.93% | -14.06% | -306.26% | |
57 Neutral | $643.12M | 3.44 | 34.04% | 6.02% | -54.43% | 163.70% | |
56 Neutral | $217.10M | 9.07 | 6.38% | 21.11% | 6.21% | -42.00% | |
53 Neutral | $214.82M | 15.70 | 0.01% | 29.18% | 122.81% | 43.00% | |
50 Neutral | $296.74M | -149.00 | -0.13% | 23.83% | -11.90% | 84.61% |
* Financial Sector Average
PSBD
Palmer Square Capital BDC Inc.
9.97
-2.27
-18.58%
GLAD
Gladstone Capital
19.08
-5.76
-23.18%
GAIN
Gladstone Investment
16.45
3.35
25.55%
PNNT
Pennantpark Investment
3.48
-2.56
-42.37%
SCM
Stellus Capital
8.08
-4.23
-34.34%
CION
CION Investment Corp
6.23
-2.13
-25.51%
Palmer Square Capital BDC Inc. Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Palmer Square Capital BDC Reports Strong Q2 Results
Positive
Aug 5, 2026
Palmer Square Capital BDC Inc. reported second quarter 2026 results on August 5, 2026, posting total investment income of $27.3 million and net investment income of $12.0 million, or $0.39 per share, with net asset value at $13.21 per share and to...
Financial Disclosures
Palmer Square Capital BDC Announces Mid-Year NAV Update
Neutral
Jul 15, 2026
Management of Palmer Square Capital BDC Inc. reported an unaudited estimate of the company’s net asset value per share at $13.21 as of June 30, 2026. This NAV estimate offers investors an updated view of the firm’s underlying portfolio...
Business Operations and StrategyPrivate Placements and Financing
Palmer Square BDC Lowers Commitments on Credit Facility
Positive
Jun 25, 2026
Palmer Square BDC Funding I LLC, a wholly owned subsidiary of Palmer Square Capital BDC Inc., has reduced the aggregate commitments under its syndicated credit facility to $350 million from $525 million, effective July 1, 2026, while leaving all o...
DividendsFinancial Disclosures
Palmer Square Capital BDC Declares Q2 Supplemental Dividend
Positive
Jun 24, 2026
On June 24, 2026, Palmer Square Capital BDC Inc. announced that its board declared a second quarter 2026 supplemental dividend of $0.03 per share, payable on July 13, 2026, to shareholders of record as of June 26, 2026. This payout comes on top of...
Business Operations and StrategyPrivate Placements and Financing
Palmer Square Capital BDC Prices CLO Refinancing Transaction
Positive
Jun 18, 2026
On June 18, 2026, Palmer Square Capital BDC Inc., via its Cayman Islands subsidiary Palmer Square BDC CLO 1, Ltd., priced the refinancing of a $300 million term debt securitization, with the CLO reset expected to close on July 15, 2026. The transa...
Financial Disclosures
Palmer Square Capital BDC Updates Net Asset Value Estimate
Neutral
Jun 12, 2026
Palmer Square Capital BDC Inc. reported that management’s unaudited estimate of the company’s net asset value per share was $13.63 as of May 31, 2026. This updated valuation provides investors with an indication of the BDC’s unde...
Business Operations and StrategyStock Buyback
Palmer Square Capital BDC Expands Share Repurchase Program
Positive
May 21, 2026
On May 21, 2026, Palmer Square Capital BDC Inc. announced that its board approved a significant increase and extension of its open-market share repurchase program. The authorization adds $30 million of capacity and pushes the program’s expir...
Financial Disclosures
Palmer Square Capital BDC Issues April 2026 NAV Estimate
Neutral
May 14, 2026
Palmer Square Capital BDC Inc. reported that its management’s unaudited estimate of net asset value per share for its common stock was $13.59 as of April 30, 2026. This NAV estimate provides investors with an updated snapshot of the BDC̵...
DividendsFinancial Disclosures
Palmer Square Capital BDC Posts Lower Q1 2026 Results
Negative
May 7, 2026
Palmer Square Capital BDC Inc. reported first-quarter 2026 results on May 6, 2026, with total investment income falling to $26.2 million from $31.2 million a year earlier and net investment income slipping to $11.0 million, or $0.35 per share. Net...
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.