Chicago Atlantic BDC Inc. Common Stock (LIEN)

FairStock Score: 80/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

At the close on 2026-10-13, the stock was $9.12, and FairStock's calculations show a P/E of 6.56, a P/B of 0.69, and a Graham Number of $20.36, leaving a 55.21% margin of safety. I see that as the classic asset-play setup. The company is a BDC lending to and investing in privately held cannabis companies. The filed numbers show why it is not a slam dunk. Net income was $33.3M in fiscal year 2025 (year ended 2025-12-31), $9.6M in fiscal year 2024 (year ended 2024-12-31), and $7.3M in fiscal year 2023 (year ended 2023-12-31). In fiscal Q2 2026 (quarter ended 2026-06-30), net income was $6.1M and diluted EPS was $0.27, down from $8.5M and $0.37 in fiscal Q1 2026 (quarter ended 2026-03-31) and $8.8M and $0.39 in fiscal Q3 2025 (quarter ended 2025-09-30). Financial health is not stretched: D/E is 0.09, Altman Z is 3.03, and FairStock reports ROE of 10.48%. But trailing free cash flow is -$3.0M, FCF yield is -1.5%, and the 13.40% dividend yield may not be fully covered. A Piotroski F-Score of 5/9 is middling. The niche may create underwriting relationships, but no wide moat is evident. At 0.69x book, the market is skeptical of the asset marks. If those marks hold and earnings stabilize, value could be realized; if credit sours, book value can fall. I would watch net income, dividend coverage, and book value.

In plain English: Chicago Atlantic BDC is a finance company that lends to and invests in privately held cannabis companies. It is profitable and pays a very high dividend, and it uses little debt, but recent quarterly earnings are lower than earlier quarters and cash flow is slightly negative. At $9.12, the shares trade below the value of the company's net assets on its books, so the price looks cheap compared with its numbers, though the niche carries risk.

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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 Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · 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