BAIN CAPITAL SPECIALTY FINAN (BCSF) Stock Fundamental Analysis
NYSE:BCSF - New York Stock Exchange, Inc. - US05684B1070 - Common Stock - Currency: USD
BCSF gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 233 industry peers in the Capital Markets industry. There are concerns on the financial health of BCSF while its profitability can be described as average. BCSF has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year BCSF was profitable.
BCSF had a positive operating cash flow in the past year.
BCSF had positive earnings in each of the past 5 years.
In multiple years BCSF reported negative operating cash flow during the last 5 years.
1.2 Ratios
BCSF has a Return On Assets of 4.27%. This is in the better half of the industry: BCSF outperforms 64.38% of its industry peers.
BCSF has a Return On Equity of 9.86%. This is comparable to the rest of the industry: BCSF outperforms 58.37% of its industry peers.
BCSF has a Return On Invested Capital of 4.17%. This is comparable to the rest of the industry: BCSF outperforms 53.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BCSF is below the industry average of 7.84%.
The last Return On Invested Capital (4.17%) for BCSF is above the 3 year average (4.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 9.86% | ||
| ROIC | 4.17% |
ROA(3y)4.53%
ROA(5y)3.71%
ROE(3y)10.26%
ROE(5y)8.49%
ROIC(3y)4.13%
ROIC(5y)3.56%
1.3 Margins
BCSF has a better Profit Margin (39.60%) than 83.69% of its industry peers.
In the last couple of years the Profit Margin of BCSF has declined.
Looking at the Operating Margin, with a value of 48.20%, BCSF belongs to the top of the industry, outperforming 81.12% of the companies in the same industry.
In the last couple of years the Operating Margin of BCSF has grown nicely.
BCSF has a Gross Margin of 52.03%. This is comparable to the rest of the industry: BCSF outperforms 57.94% of its industry peers.
In the last couple of years the Gross Margin of BCSF has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.2% | ||
| PM (TTM) | 39.6% | ||
| GM | 52.03% |
OM growth 3Y2.21%
OM growth 5Y2.08%
PM growth 3Y-12.39%
PM growth 5Y-3.82%
GM growth 3Y2.62%
GM growth 5Y2.37%
2. Health
2.1 Basic Checks
Compared to 1 year ago, BCSF has about the same amount of shares outstanding.
Compared to 5 years ago, BCSF has more shares outstanding
BCSF has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.67, we must say that BCSF is in the distress zone and has some risk of bankruptcy.
BCSF has a Altman-Z score (0.67) which is comparable to the rest of the industry.
The Debt to FCF ratio of BCSF is 49.49, which is on the high side as it means it would take BCSF, 49.49 years of fcf income to pay off all of its debts.
BCSF has a Debt to FCF ratio (49.49) which is comparable to the rest of the industry.
BCSF has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.27, BCSF is doing worse than 63.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 49.49 | ||
| Altman-Z | 0.67 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BCSF has a Current Ratio of 1.89. This is a normal value and indicates that BCSF is financially healthy and should not expect problems in meeting its short term obligations.
BCSF's Current ratio of 1.89 is fine compared to the rest of the industry. BCSF outperforms 66.95% of its industry peers.
A Quick Ratio of 1.89 indicates that BCSF should not have too much problems paying its short term obligations.
BCSF's Quick ratio of 1.89 is fine compared to the rest of the industry. BCSF outperforms 67.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.89 |
3. Growth
3.1 Past
The earnings per share for BCSF have decreased by -7.21% in the last year.
BCSF shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.38% yearly.
The Revenue has decreased by -4.22% in the past year.
BCSF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.14% yearly.
EPS 1Y (TTM)-7.21%
EPS 3Y15.4%
EPS 5Y5.38%
EPS Q2Q%-5.66%
Revenue 1Y (TTM)-4.22%
Revenue growth 3Y14.03%
Revenue growth 5Y8.14%
Sales Q2Q%-11.64%
3.2 Future
The Earnings Per Share is expected to decrease by -8.49% on average over the next years.
Based on estimates for the next years, BCSF will show a decrease in Revenue. The Revenue will decrease by -4.42% on average per year.
EPS Next Y-12.15%
EPS Next 2Y-10.17%
EPS Next 3Y-8.49%
EPS Next 5YN/A
Revenue Next Year-6.53%
Revenue Next 2Y-4.66%
Revenue Next 3Y-4.42%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.35, the valuation of BCSF can be described as very cheap.
87.55% of the companies in the same industry are more expensive than BCSF, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.28. BCSF is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.98 indicates a reasonable valuation of BCSF.
BCSF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BCSF is cheaper than 79.83% of the companies in the same industry.
BCSF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.35 | ||
| Fwd PE | 8.98 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as BCSF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.52 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
BCSF has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as BCSF's earnings are expected to decrease with -8.49% in the coming years.
PEG (NY)N/A
PEG (5Y)1.37
EPS Next 2Y-10.17%
EPS Next 3Y-8.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.22%, BCSF is a good candidate for dividend investing.
BCSF's Dividend Yield is a higher than the industry average which is at 8.00.
BCSF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.22% |
5.2 History
The dividend of BCSF has a limited annual growth rate of 2.77%.
BCSF has been paying a dividend for over 5 years, so it has already some track record.
BCSF has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.77%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
BCSF pays out 128.82% of its income as dividend. This is not a sustainable payout ratio.
BCSF's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP128.82%
EPS Next 2Y-10.17%
EPS Next 3Y-8.49%
15.15
+0.2 (+1.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners36.89%
Inst Owner Change-0.5%
Ins Owners0.63%
Ins Owner Change0.55%
Market Cap982.78M
Analysts77.78
Price Target16.49 (8.84%)
Short Float %0.51%
Short Ratio1.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.22% |
Yearly Dividend1.77
Dividend Growth(5Y)2.77%
DP128.82%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.63%
Min EPS beat(2)3.56%
Max EPS beat(2)7.71%
EPS beat(4)3
Avg EPS beat(4)2.82%
Min EPS beat(4)-3.23%
Max EPS beat(4)7.71%
EPS beat(8)4
Avg EPS beat(8)2.98%
EPS beat(12)7
Avg EPS beat(12)8.04%
EPS beat(16)7
Avg EPS beat(16)5.59%
Revenue beat(2)0
Avg Revenue beat(2)-10.06%
Min Revenue beat(2)-12.42%
Max Revenue beat(2)-7.71%
Revenue beat(4)1
Avg Revenue beat(4)-6.23%
Min Revenue beat(4)-12.42%
Max Revenue beat(4)0.72%
Revenue beat(8)4
Avg Revenue beat(8)-0.13%
Revenue beat(12)7
Avg Revenue beat(12)3.18%
Revenue beat(16)9
Avg Revenue beat(16)2.37%
PT rev (1m)-3%
PT rev (3m)-9.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.35 | ||
| Fwd PE | 8.98 | ||
| P/S | 3.45 | ||
| P/FCF | 33.52 | ||
| P/OCF | 33.52 | ||
| P/B | 0.86 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.06
EY13.6%
EPS(NY)1.69
Fwd EY11.13%
FCF(TTM)0.45
FCFY2.98%
OCF(TTM)0.45
OCFY2.98%
SpS4.39
BVpS17.64
TBVpS17.64
PEG (NY)N/A
PEG (5Y)1.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 9.86% | ||
| ROCE | 5.28% | ||
| ROIC | 4.17% | ||
| ROICexc | 4.23% | ||
| ROICexgc | 4.25% | ||
| OM | 48.2% | ||
| PM (TTM) | 39.6% | ||
| GM | 52.03% | ||
| FCFM | 10.29% |
ROA(3y)4.53%
ROA(5y)3.71%
ROE(3y)10.26%
ROE(5y)8.49%
ROIC(3y)4.13%
ROIC(5y)3.56%
ROICexc(3y)4.22%
ROICexc(5y)3.66%
ROICexgc(3y)4.24%
ROICexgc(5y)3.67%
ROCE(3y)5.23%
ROCE(5y)4.51%
ROICexcg growth 3Y15.38%
ROICexcg growth 5Y11.17%
ROICexc growth 3Y15.28%
ROICexc growth 5Y11.09%
OM growth 3Y2.21%
OM growth 5Y2.08%
PM growth 3Y-12.39%
PM growth 5Y-3.82%
GM growth 3Y2.62%
GM growth 5Y2.37%
F-Score3
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 49.49 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.89 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 25.98% | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.89 | ||
| Altman-Z | 0.67 |
F-Score3
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.21%
EPS 3Y15.4%
EPS 5Y5.38%
EPS Q2Q%-5.66%
EPS Next Y-12.15%
EPS Next 2Y-10.17%
EPS Next 3Y-8.49%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.22%
Revenue growth 3Y14.03%
Revenue growth 5Y8.14%
Sales Q2Q%-11.64%
Revenue Next Year-6.53%
Revenue Next 2Y-4.66%
Revenue Next 3Y-4.42%
Revenue Next 5YN/A
EBIT growth 1Y-6.68%
EBIT growth 3Y16.55%
EBIT growth 5Y10.39%
EBIT Next Year688.74%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y111.37%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y111.37%
OCF growth 3YN/A
OCF growth 5YN/A