Crescent Capital BDC Inc. 5.00% Notes due 2026 (FCRX)

FairStock Score: 31/100 — RISKY

Key Financials

Concerns

• Trades significantly above Graham Number ($8) with negative 223% margin of safety—limited downside protection
• Weak Piotroski F-Score of 0/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

Crescent Capital BDC Inc. 5.00% Notes due 2026 is a micro-cap financial services company. The business generates $167 million in annual revenue with a 5.1% net margin and $48 million in free cash flow. From a quality standpoint, Crescent shows weak Piotroski F-Score of 0/9 signaling deteriorating fundamentals and modest 5% ROE. On valuation, the stock is commanding a steep 176.3x multiple, with trades far above its Graham Number ($8) with no margin of safety. Our composite FairStock Score of 31/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 176x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer