Bain Capital Specialty Finance Inc. Common Stock (BCSF)

FairStock Score: 84/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses selling below what a conservative owner would pay. BCSF is a business development company lending mainly to middle-market firms through senior secured loans. It has no wide moat; lending is competitive, and results depend on credit selection, loan marks, and leverage. At the 2026-10-13 close of $10.62, FairStock calculations put it at 0.64 times book, a P/E of 10.73, and a dividend yield of 15.15%. The Graham Number is $19.26, implying a 44.86% margin of safety, and the FCF yield is 19.4%. Those are asset-play numbers, not growth-stock numbers. Financial health is mixed. The Piotroski F-Score is 6/9, but Altman Z-Score is 0.23, debt-to-equity is 1.39, ROE is 5.76%, and ROCE is 4.61%. Filed results show net income of $123.4M in FY2023, $119.4M in FY2024, and $98.8M in FY2025, with diluted EPS falling from $1.91 to $1.85 to $1.53. In fiscal Q1 2026, ended 2026-03-31, net income was $3.4M and diluted EPS $0.05. In fiscal Q2 2026, ended 2026-06-30, net income rebounded to $14.1M and diluted EPS was $0.22. The discount to book is attractive only if the loan portfolio is sound. With the stock near the low end of its 52-week range of $10.53-$14.70, Mr. Market is skeptical. I would require a durable margin of safety in the assets and evidence that credit costs are not quietly eroding book value.

In plain English: Bain Capital Specialty Finance is a lender to middle-sized companies, mostly through secured loans. The business is profitable, but its yearly profit has been falling, and the stock trades below the value of its assets. The price looks cheap on asset value and dividend, but there are real risks around loans and debt.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-K (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer