Company Overview
Crescent Capital BDC, Inc. operates as a business development company focused on private equity, buyouts, and loan fund strategies, with a primary specialization in directly investing within the United States middle market. The company functions within the Financial Services sector, specifically under the Asset Management industry, positioning it as a manager of capital for specialized lending and investment activities rather than a traditional commercial enterprise. Its current market capitalization stands at $454.52M, while its annual revenue generated over the trailing twelve months is $167.28M. The employee count is listed as N/A, which reflects the nature of BDC structures where headcount metrics may not be publicly disclosed in standard formats. These valuation and revenue figures indicate that the company maintains a mid-sized footprint within the broader asset management landscape, balancing significant capital deployment capabilities with a revenue stream that supports its debt obligations and operational expenses.
Financial Health
The company reports revenue of $167.28M for the trailing twelve months, accompanied by a net income of $34.51M, while specific EBITDA figures are not disclosed in the available data. The substantial gap between the $167.28M revenue and the $34.51M net income reveals a cost structure where operating expenses, interest costs, and management fees consume a significant portion of top-line earnings, leaving a profit margin of 20.6%. Despite the lack of reported EBITDA, the firm generates $48.25M in free cash flow, which provides a buffer for debt servicing and potential capital distributions. This positive free cash flow indicates a degree of financial flexibility, though the company holds only $5.04M in cash against a total debt load of $873.76M. The balance sheet is clearly leveraged, evidenced by a debt-to-equity ratio of 123.76, which is typical for BDCs but highlights reliance on borrowed capital to finance investments. A current ratio of 1.27 suggests that the company possesses sufficient current assets to cover its short-term liabilities, maintaining a conservative stance on immediate liquidity requirements. Return on Equity stands at 4.8% and Return on Assets is also 4.8%, metrics that reveal management effectiveness in generating returns on the capital deployed and the asset base, respectively, within the constraints of high leverage.
Valuation Assessment
The trailing twelve-month P/E ratio is 13.24, while the forward P/E ratio is projected at 7.95, implying that the market expects a significant compression in earnings or a re-rating of the stock price in the coming year. The price-to-book ratio of 0.64 indicates that the market is valuing the company at a discount to its book value, suggesting that investors may be pricing in risks related to its leverage or asset quality. Alternative valuation metrics such as the price-to-sales ratio of 2.72 and the unavailable EV/EBITDA provide context for relative valuation against peers, though the high P/S ratio relative to the low P/B suggests a premium on sales that is not fully reflected in current equity value. The stock has traded between a 52-week high of $17.97 and a 52-week low of $12.27, and without the specific current price, the relative position cannot be calculated, but the wide range demonstrates significant volatility over the past year. With a beta of 0.60, the stock exhibits lower price volatility relative to the broader market, moving less than half as much as the benchmark index during periods of market fluctuation.
Growth & Income
Revenue growth over the last year declined by 12.1%, while earnings growth contracted by 14.9%, indicating that earnings are shrinking at a faster rate than revenue due to margin compression or increased cost pressures. As a dividend payer, the company offers a dividend yield of 13.6%, supported by a payout ratio of 180.7%, which signals that the dividend is currently being funded by capital returns or reserves rather than operating earnings alone. This unsustainable payout ratio suggests that the company relies on non-operating cash sources to maintain its current dividend levels, a common but risky characteristic for BDCs facing declining earnings. The overall growth and income profile is characterized by negative earnings momentum and a high-yield dividend that exceeds the company's ability to fund it from current profits.