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Palmer Square Capital BDC Inc. (PSBD) AI Stock Analysis
Palmer Square Capital BDC Inc.
(NYSE:PSBD)
PSBD scores as neutral overall, led by improving/strong recent cash generation but constrained by inconsistent profitability and balance-sheet comparability concerns. Technicals are mildly supportive (price above key moving averages with positive MACD), while valuation is mixed due to a negative P/E despite a very high dividend yield. Earnings-call commentary adds support via confidence in the base dividend, refinancing benefits, and buybacks, though management flagged macro uncertainty and softer income trends.
Palmer Square Capital BDC Inc. (PSBD) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $303.14M
- Dividend Yield
- 15.47%
- Average Volume (3M)
- 116.41K
- Price to Earnings (P/E)
- -15.7
- Beta (1Y)
- 0.64
- Revenue Growth
- -22.29%
- EPS Growth
- -245.58%
- Country
- US
- Employees
- 0
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Asset Management
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 Missio...
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
The call was broadly positive. Management highlighted solid quarterly earnings, a fully covered base dividend, NAV appreciation, lower leverage, reduced financing costs, strong portfolio diversification and credit metrics, and attractive opportunities in private credit and secondary markets. These positives were tempered by lower year-over-year investment income, a 2.3% decline in portfolio fair value, reduced liquidity, tight spreads, subdued deal activity, and elevated macroeconomic and AI-related uncertainty.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management declared a fourth quarter 2026 base dividend of $0.36 per share, with the supplemental dividend to be determined in the normal course, and remains confident in the sustainability of the base dividend heading into 2027, anticipating paying out any additional excess income through supplementals. If interest rate volatility and geopolitical uncertainty remain elevated, management expects it to continue weighing on deal activity in the fourth quarter, although sponsors ultimately need to transact and activity is expected to improve over time, although the pace of that improvement may be uneven. Share repurchases remain a top near-term priority, with $24.8 million left on the plan after $5.2 million of third-quarter repurchases, while management feels good about 1.63x leverage and does not expect to take it too much higher; recent refinancing activity is expected to be additive to earnings power, and market implied base rate expectations are expected to be supportive as well.
Palmer Square Capital BDC Inc. Financial Statement Overview
Summary
Financials are mixed and volatile. Profitability has been inconsistent with a net loss in 2025 and negative TTM net income/EBIT margin, while the balance sheet shows historically elevated leverage and comparability concerns in TTM. Offsetting this, operating cash flow and free cash flow are positive in 2023–2025 and very strong in TTM, providing recent support despite earnings weakness.
Income Statement
46NeutralBalance Sheet
52NeutralCash Flow
63Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 68.92M | 111.20M | 110.32M | 153.66M | -49.39M | 29.54M |
| Gross Profit | 46.64M | 94.66M | 52.31M | 109.18M | -72.84M | 20.92M |
| EBITDA | 455.54M | 1.78B | 47.67M | 107.84M | -74.48M | 19.06M |
| Net Income | -20.08M | -3.17M | 47.67M | 107.84M | -74.48M | 19.06M |
Balance Sheet | ||||||
| Total Assets | 1.11T | 1.22B | 1.43B | 1.12B | 1.06B | 1.22B |
| Cash, Cash Equivalents and Short-Term Investments | 63.03M | 3.22M | 2.77M | 2.12M | 1.65M | 1.09M |
| Total Debt | 656.62M | 716.51M | 804.16M | 641.83M | 641.31M | 649.91M |
| Total Liabilities | 702.75B | 755.25M | 893.20M | 659.86M | 694.01M | 764.49M |
| Stockholders Equity | 403.44B | 464.12M | 537.84M | 461.96M | 363.44M | 452.80M |
Cash Flow | ||||||
| Free Cash Flow | 107.65B | 160.66M | 106.73M | 57.12M | -39.25M | -438.01M |
| Operating Cash Flow | 107.65B | 160.66M | 106.73M | 57.12M | -39.25M | -438.01M |
| Investing Cash Flow | 64.74B | 0 | -305.05M | -26.65M | 35.40M | -519.55M |
| Financing Cash Flow | -207.15M | -160.21M | 198.97M | -30.00M | 4.40M | 438.42M |
Palmer Square Capital BDC Inc. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSBD, the sentiment is Positive. The current price of 9.89 is above the 20-day moving average (MA) of 9.77, above the 50-day MA of 9.83, and above the 200-day MA of 9.86, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 52.47 is Neutral, neither overbought nor oversold. The STOCH value of 57.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSBD.
Palmer Square Capital BDC Inc. Peers Comparison
Overall Rating
LIEN73Outperform
CION65Neutral
CCAP62Neutral
TCPC60.5Neutral- PSBD59Neutral
SAR51Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| LIEN | 73Outperform | $209.95M | 6.54 | 10.45% | 14.96% | 47.16% | 34.42% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| CION | 65Neutral | $346.88M | -15.71 | -2.03% | 20.61% | 3.63% | ― |
| CCAP | 62Neutral | $355.20M | -105.00 | -0.46% | 16.72% | -28.84% | -107.31% |
| TCPC | 61Neutral | $366.66M | -1.81 | -24.32% | 17.80% | -141.00% | -809.18% |
| PSBD | 59Neutral | $306.21M | -15.70 | -0.02% | 15.47% | -22.29% | -245.58% |
| SAR | 51Neutral | $216.28M | -51.60 | -1.08% | 25.19% | -10.96% | -110.82% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| PSBD | Palmer Square Capital BDC Inc. | 9.89 | -0.54 | -5.20% | |
| SAR | Saratoga Investment | 12.90 | -5.62 | -30.35% | |
| TCPC | BlackRock TCP Capital Corp. | 4.27 | -0.45 | -9.55% | |
| CCAP | Crescent Capital Bdc, Inc. | 9.45 | -2.69 | -22.15% | |
| LIEN | Chicago Atlantic Bdc, Inc. | 9.09 | 0.25 | 2.83% | |
| CION | Cion Investment Corp. | 6.60 | -1.48 | -18.33% |
Palmer Square Capital BDC Inc. Corporate Events
Palmer Square Capital BDC Reports Third-Quarter 2026 Results
NeutralOn November 4, 2026, Palmer Square Capital BDC Inc. reported results for the quarter ended September 30, 2026. Total investment income fell to $26.6 million from $31.7 million a year earlier, while net investment income declined to $11.6 million, or...
Palmer Square Capital BDC Updates Net Asset Value Estimate
NeutralAs of September 30, 2026, management of Palmer Square Capital BDC Inc. estimated the unaudited net asset value per share of its common stock at $13.34. This update offers investors a snapshot of the company’s underlying portfolio value at that...
Palmer Square Capital BDC Declares Q3 Supplemental Dividend
PositiveOn September 22, 2026, Palmer Square Capital BDC Inc. announced that its board declared a third-quarter 2026 supplemental dividend of $0.02 per share, payable on October 13, 2026, to shareholders of record as of September 25, 2026. The supplemental p...
Palmer Square Capital BDC Reports Updated NAV Estimate
NeutralPalmer Square Capital BDC Inc. reported that management’s unaudited estimate of the company’s net asset value per share of common stock was $13.66 as of August 31, 2026. This estimated NAV figure offers shareholders an updated view of the...
Palmer Square Capital BDC Updates July 2026 NAV Estimate
NeutralPalmer Square Capital BDC Inc. reported that management’s unaudited estimate of the company’s net asset value per share was $13.39 as of July 31, 2026. This updated NAV figure offers investors a snapshot of the company’s underlying...
Palmer Square Capital BDC Announces Key Compliance Appointment
NeutralOn August 3, 2026, Palmer Square Capital BDC Inc.’s board unanimously appointed Ben Wiesenfeld as Chief Compliance Officer, effective immediately, succeeding Scott Betz, who continues with the company as Chief Operating Officer from the same da...
Palmer Square Capital BDC Reports Strong Q2 Results
PositivePalmer 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 total...
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: Nov 04, 2026