Palmer Square Capital BDC Inc. Common Stock (PSBD)

FairStock Score: 24/100 — RISKY

Key Financials

AI Analysis

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

I approach Palmer Square Capital BDC as a lender of last resort would: I want to be paid for credit risk, not for hope. The business invests in corporate debt, collateralized loan obligations, and structured credit. At a $294.9M market cap and a $9.62 close on 2026-10-13, it is small and price-sensitive. Its record is not reassuring: net income was $107.8M in FY2023, $47.7M in FY2024, then a $3.2M loss in FY2025. In fiscal Q1 2026, the quarter ended 2026-03-31, it lost $37.2M; in fiscal Q2 2026, the quarter ended 2026-06-30, it earned $8.5M. That is a turnaround candidate, and FairStock labels it TURNAROUND for a loss in the latest year after earlier profits. FairStock’s P/E is -9.62, and its FairStock Score is 24/100, so there is no earnings multiple to anchor value. The 14.97% dividend yield and 41.9% FCF yield look alluring, but for a BDC free cash flow can be distorted, and a high payout is only safe if credit marks hold. The Altman Z-Score of 0.03 signals distress, while the Piotroski F-Score of 6/9 is middling. The 52-week range of $9.34-$12.90 shows the price is near the low. I see no durable moat in this commoditized credit business. The latest quarter is a hopeful sign, but one quarter does not make a sound loan book. I would demand a longer record of stable net income, clear dividend coverage, and a stronger balance sheet before calling this cheap.

In plain English: The company invests in business loans, collateralized loan obligations and structured credit. Its profits have been uneven: it lost money in the latest full year after stronger earlier years, and the stock trades near the low end of its 52-week range. The very high dividend yield may look attractive, but the weak profit record and warning signs on financial health suggest the price is not obviously cheap.

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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