Rand Capital Corporation Common Stock (RAND)

FairStock Score: 81/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

Rand Capital is a tiny business development company, market cap $28.5M, trading at $9.60 on 2026-10-13, the bottom of its 52-week $9.60-$17.49 range. It lends subordinated debt with warrants and preferred equity to lower-middle-market and venture-stage companies. That can be a decent niche, but it is not a wide-moat business; returns depend on credit selection and exit values, and at this scale the firm has little pricing power. The financial record is erratic. In fiscal Q2 2026, the quarter ended 2026-06-30, filed net income was $1.4M and diluted EPS $0.46. But fiscal 2025, ended 2025-12-31, produced a net loss of $8.0M and diluted EPS -$2.73, after fiscal 2024 net income of $8.8M and EPS $3.42. That fits FairStock's Lynch category of TURNAROUND - loss in latest year after earlier profits. The balance sheet looks conservative with D/E 0.10 and Altman Z 2.51, while Piotroski F 4/9 is mediocre. At the $9.60 close on 2026-10-13, FairStock calculates P/B 0.55 and a 10.64% dividend yield, superficially Graham-friendly. But trailing free cash flow is -$4.0M, a -14% FCF yield, so the distribution is not covered by cash generation. ROE is -0.27% and ROCE 3.36%. At $9.60, the market is pricing doubt. If portfolio marks recover and the latest quarterly profit continues, book value and the dividend could support a much higher price. If credit losses or valuation write-downs persist, the discount to book is deserved. I prefer to wait for evidence of durable earnings and positive cash flow.

In plain English: Rand Capital is a small investment company that lends to and invests in private businesses, mostly in software, healthcare, manufacturing and related areas. Its results have been uneven: it lost $8.0 million in fiscal 2025, though it made $1.4 million in the quarter ended June 30, 2026. At $9.60 near its 52-week low, the stock looks cheap compared with the accounting value of its assets, but weak cash flow and a high dividend it may not fully earn are important warnings.

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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/A (period ended 2025-12-31) · FY2024 10-K/A (period ended 2024-12-31) · FY2023 10-K/A (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