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 225 industry peers in the Capital Markets industry. While BCSF is still in line with the averages on profitability rating, there are concerns on its financial health. BCSF has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year BCSF was profitable.
In the past year BCSF had a positive cash flow from operations.
Each year in the past 5 years BCSF has been profitable.
In multiple years BCSF reported negative operating cash flow during the last 5 years.
1.2 Ratios
BCSF has a better Return On Assets (5.05%) than 66.67% of its industry peers.
With a decent Return On Equity value of 11.19%, BCSF is doing good in the industry, outperforming 61.19% of the companies in the same industry.
With a Return On Invested Capital value of 4.51%, BCSF perfoms like the industry average, outperforming 57.99% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BCSF is below the industry average of 6.76%.
The 3 year average ROIC (3.60%) for BCSF is below the current ROIC(4.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 11.19% | ||
| ROIC | 4.51% |
ROA(3y)4.57%
ROA(5y)3.55%
ROE(3y)10.4%
ROE(5y)8.32%
ROIC(3y)3.6%
ROIC(5y)3.21%
1.3 Margins
Looking at the Profit Margin, with a value of 43.62%, BCSF belongs to the top of the industry, outperforming 84.93% of the companies in the same industry.
In the last couple of years the Profit Margin of BCSF has grown nicely.
BCSF has a better Operating Margin (47.64%) than 84.93% of its industry peers.
In the last couple of years the Operating Margin of BCSF has declined.
Looking at the Gross Margin, with a value of 51.26%, BCSF is in line with its industry, outperforming 53.88% of the companies in the same industry.
In the last couple of years the Gross Margin of BCSF has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 47.64% | ||
| PM (TTM) | 43.62% | ||
| GM | 51.26% |
OM growth 3Y3.22%
OM growth 5Y-2.86%
PM growth 3Y113.33%
PM growth 5Y9.11%
GM growth 3Y2.87%
GM growth 5Y-2.14%
2. Health
2.1 Basic Checks
Compared to 1 year ago, BCSF has about the same amount of shares outstanding.
BCSF has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BCSF has an improved debt to assets ratio.
2.2 Solvency
BCSF has an Altman-Z score of 0.79. This is a bad value and indicates that BCSF is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.79, BCSF is in line with its industry, outperforming 44.29% of the companies in the same industry.
The Debt to FCF ratio of BCSF is 9.19, which is on the high side as it means it would take BCSF, 9.19 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BCSF (9.19) is comparable to the rest of the industry.
BCSF has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BCSF (1.13) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 9.19 | ||
| Altman-Z | 0.79 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BCSF has a Current Ratio of 0.64. This is a bad value and indicates that BCSF is not financially healthy enough and could expect problems in meeting its short term obligations.
BCSF's Current ratio of 0.64 is on the low side compared to the rest of the industry. BCSF is outperformed by 68.95% of its industry peers.
A Quick Ratio of 0.64 indicates that BCSF may have some problems paying its short term obligations.
BCSF's Quick ratio of 0.64 is on the low side compared to the rest of the industry. BCSF is outperformed by 68.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
BCSF shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.98%.
Measured over the past years, BCSF shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.24% on average per year.
Looking at the last year, BCSF shows a small growth in Revenue. The Revenue has grown by 4.64% in the last year.
The Revenue has been growing by 24.56% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)4.98%
EPS 3Y14.26%
EPS 5Y30.24%
EPS Q2Q%-3.64%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y15.26%
Revenue growth 5Y24.56%
Sales Q2Q%-1.02%
3.2 Future
BCSF is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.65% yearly.
The Revenue is expected to decrease by -3.44% on average over the next years.
EPS Next Y-4.55%
EPS Next 2Y-6.96%
EPS Next 3Y-5.65%
EPS Next 5YN/A
Revenue Next Year-2.67%
Revenue Next 2Y-3.63%
Revenue Next 3Y-3.44%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.83, the valuation of BCSF can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of BCSF indicates a somewhat cheap valuation: BCSF is cheaper than 78.08% of the companies listed in the same industry.
BCSF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
A Price/Forward Earnings ratio of 9.87 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 70.78% 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 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.83 | ||
| Fwd PE | 9.87 |
4.2 Price Multiples
75.34% of the companies in the same industry are more expensive than BCSF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.5 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of BCSF may justify a higher PE ratio.
A cheap valuation may be justified as BCSF's earnings are expected to decrease with -5.65% in the coming years.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-6.96%
EPS Next 3Y-5.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.03%, BCSF is a good candidate for dividend investing.
BCSF's Dividend Yield is a higher than the industry average which is at 9.98.
BCSF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.03% |
5.2 History
The dividend of BCSF decreases each year by -4.98%.
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)-4.98%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
87.54% of the earnings are spent on dividend by BCSF. This is not a sustainable payout ratio.
The Dividend Rate of BCSF has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP87.54%
EPS Next 2Y-6.96%
EPS Next 3Y-5.65%
18.63
+0.02 (+0.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners36.06%
Inst Owner Change-95.86%
Ins Owners0.59%
Ins Owner Change0%
Market Cap1.20B
Analysts77.78
Price Target17.51 (-6.01%)
Short Float %0.62%
Short Ratio1.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.03% |
Yearly Dividend1.54
Dividend Growth(5Y)-4.98%
DP87.54%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0%
Min EPS beat(2)-3.23%
Max EPS beat(2)3.23%
EPS beat(4)1
Avg EPS beat(4)-1.49%
Min EPS beat(4)-5.53%
Max EPS beat(4)3.23%
EPS beat(8)3
Avg EPS beat(8)2.66%
EPS beat(12)5
Avg EPS beat(12)6.8%
EPS beat(16)5
Avg EPS beat(16)4.57%
Revenue beat(2)1
Avg Revenue beat(2)-2.41%
Min Revenue beat(2)-5.53%
Max Revenue beat(2)0.72%
Revenue beat(4)3
Avg Revenue beat(4)3.66%
Min Revenue beat(4)-5.53%
Max Revenue beat(4)13.06%
Revenue beat(8)5
Avg Revenue beat(8)3.99%
Revenue beat(12)8
Avg Revenue beat(12)4.63%
Revenue beat(16)11
Avg Revenue beat(16)3.7%
PT rev (1m)1.98%
PT rev (3m)1.98%
EPS NQ rev (1m)-1.39%
EPS NQ rev (3m)-1.39%
EPS NY rev (1m)0%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.83 | ||
| Fwd PE | 9.87 | ||
| P/S | 4.09 | ||
| P/FCF | 8.5 | ||
| P/OCF | 8.5 | ||
| P/B | 1.05 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.11
EY11.33%
EPS(NY)1.89
Fwd EY10.13%
FCF(TTM)2.19
FCFY11.77%
OCF(TTM)2.19
OCFY11.77%
SpS4.56
BVpS17.76
TBVpS17.76
PEG (NY)N/A
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 11.19% | ||
| ROCE | 5.71% | ||
| ROIC | 4.51% | ||
| ROICexc | 4.57% | ||
| ROICexgc | 4.59% | ||
| OM | 47.64% | ||
| PM (TTM) | 43.62% | ||
| GM | 51.26% | ||
| FCFM | 48.1% |
ROA(3y)4.57%
ROA(5y)3.55%
ROE(3y)10.4%
ROE(5y)8.32%
ROIC(3y)3.6%
ROIC(5y)3.21%
ROICexc(3y)3.71%
ROICexc(5y)3.3%
ROICexgc(3y)3.72%
ROICexgc(5y)3.3%
ROCE(3y)4.56%
ROCE(5y)4.07%
ROICexcg growth 3Y21.49%
ROICexcg growth 5Y12.46%
ROICexc growth 3Y21.44%
ROICexc growth 5Y12.39%
OM growth 3Y3.22%
OM growth 5Y-2.86%
PM growth 3Y113.33%
PM growth 5Y9.11%
GM growth 3Y2.87%
GM growth 5Y-2.14%
F-Score6
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 9.19 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.98 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 110.29% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 0.79 |
F-Score6
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)4.98%
EPS 3Y14.26%
EPS 5Y30.24%
EPS Q2Q%-3.64%
EPS Next Y-4.55%
EPS Next 2Y-6.96%
EPS Next 3Y-5.65%
EPS Next 5YN/A
Revenue 1Y (TTM)4.64%
Revenue growth 3Y15.26%
Revenue growth 5Y24.56%
Sales Q2Q%-1.02%
Revenue Next Year-2.67%
Revenue Next 2Y-3.63%
Revenue Next 3Y-3.44%
Revenue Next 5YN/A
EBIT growth 1Y7.77%
EBIT growth 3Y18.97%
EBIT growth 5Y21%
EBIT Next Year202.49%
EBIT Next 3Y164.65%
EBIT Next 5YN/A
FCF growth 1Y145.54%
FCF growth 3Y34.86%
FCF growth 5YN/A
OCF growth 1Y145.54%
OCF growth 3Y34.86%
OCF growth 5YN/A