BAIN CAPITAL SPECIALTY FINAN (BCSF) Stock Fundamental Analysis
NYSE:BCSF - New York Stock Exchange, Inc. - US05684B1070 - Common Stock - Currency: USD
Taking everything into account, BCSF scores 4 out of 10 in our fundamental rating. BCSF was compared to 235 industry peers in the Capital Markets industry. BCSF has a medium profitability rating, but doesn't score so well on its financial health evaluation. BCSF has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BCSF was profitable.
In the past year BCSF had a positive cash flow from operations.
BCSF had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: BCSF reported negative operating cash flow in multiple years.
1.2 Ratios
BCSF's Return On Assets of 4.27% is fine compared to the rest of the industry. BCSF outperforms 64.68% of its industry peers.
BCSF has a Return On Equity of 9.86%. This is comparable to the rest of the industry: BCSF outperforms 59.15% of its industry peers.
BCSF has a Return On Invested Capital (4.17%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for BCSF is below the industry average of 7.84%.
The 3 year average ROIC (4.13%) for BCSF is below the current ROIC(4.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 9.86% | ||
| ROIC | 4.17% |
ROA(3y)4.53%
ROA(5y)3.71%
ROE(3y)10.26%
ROE(5y)8.49%
ROIC(3y)4.13%
ROIC(5y)3.56%
1.3 Margins
Looking at the Profit Margin, with a value of 39.60%, BCSF belongs to the top of the industry, outperforming 83.83% of the companies in the same industry.
In the last couple of years the Profit Margin of BCSF has declined.
BCSF has a Operating Margin of 48.20%. This is amongst the best in the industry. BCSF outperforms 81.28% of its industry peers.
In the last couple of years the Operating Margin of BCSF has grown nicely.
BCSF has a Gross Margin (52.03%) which is in line with its industry peers.
In the last couple of years the Gross Margin of BCSF has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.2% | ||
| PM (TTM) | 39.6% | ||
| GM | 52.03% |
OM growth 3Y2.21%
OM growth 5Y2.08%
PM growth 3Y-12.39%
PM growth 5Y-3.82%
GM growth 3Y2.62%
GM growth 5Y2.37%
2. Health
2.1 Basic Checks
BCSF has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for BCSF has been increased compared to 5 years ago.
Compared to 1 year ago, BCSF has a worse debt to assets ratio.
2.2 Solvency
BCSF has an Altman-Z score of 0.68. This is a bad value and indicates that BCSF is not financially healthy and even has some risk of bankruptcy.
BCSF has a Altman-Z score (0.68) which is in line with its industry peers.
The Debt to FCF ratio of BCSF is 49.49, which is on the high side as it means it would take BCSF, 49.49 years of fcf income to pay off all of its debts.
BCSF has a Debt to FCF ratio (49.49) which is comparable to the rest of the industry.
BCSF has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.27, BCSF is not doing good in the industry: 62.55% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 49.49 | ||
| Altman-Z | 0.68 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BCSF has a Current Ratio of 1.89. This is a normal value and indicates that BCSF is financially healthy and should not expect problems in meeting its short term obligations.
BCSF's Current ratio of 1.89 is fine compared to the rest of the industry. BCSF outperforms 67.23% of its industry peers.
BCSF has a Quick Ratio of 1.89. This is a normal value and indicates that BCSF is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.89, BCSF is in the better half of the industry, outperforming 67.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.89 |
3. Growth
3.1 Past
BCSF shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.21%.
BCSF shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.38% yearly.
Looking at the last year, BCSF shows a decrease in Revenue. The Revenue has decreased by -4.22% in the last year.
Measured over the past years, BCSF shows a quite strong growth in Revenue. The Revenue has been growing by 8.14% on average per year.
EPS 1Y (TTM)-7.21%
EPS 3Y15.4%
EPS 5Y5.38%
EPS Q2Q%-5.66%
Revenue 1Y (TTM)-4.22%
Revenue growth 3Y14.03%
Revenue growth 5Y8.14%
Sales Q2Q%-11.64%
3.2 Future
BCSF is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.49% yearly.
The Revenue is expected to decrease by -4.42% on average over the next years.
EPS Next Y-12.15%
EPS Next 2Y-10.17%
EPS Next 3Y-8.49%
EPS Next 5YN/A
Revenue Next Year-6.53%
Revenue Next 2Y-4.66%
Revenue Next 3Y-4.42%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.42, which indicates a rather cheap valuation of BCSF.
Based on the Price/Earnings ratio, BCSF is valued cheaper than 87.66% of the companies in the same industry.
BCSF is valuated cheaply when we compare the Price/Earnings ratio to 28.04, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.06 indicates a reasonable valuation of BCSF.
Based on the Price/Forward Earnings ratio, BCSF is valued cheaply inside the industry as 81.70% of the companies are valued more expensively.
BCSF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.42 | ||
| Fwd PE | 9.06 |
4.2 Price Multiples
BCSF's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.81 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
BCSF has a very decent profitability rating, which may justify a higher PE ratio.
BCSF's earnings are expected to decrease with -8.49% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.38
EPS Next 2Y-10.17%
EPS Next 3Y-8.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.67%, BCSF is a good candidate for dividend investing.
BCSF's Dividend Yield is a higher than the industry average which is at 8.04.
BCSF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.67% |
5.2 History
The dividend of BCSF has a limited annual growth rate of 2.77%.
BCSF has been paying a dividend for over 5 years, so it has already some track record.
BCSF has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.77%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
BCSF pays out 128.82% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of BCSF has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP128.82%
EPS Next 2Y-10.17%
EPS Next 3Y-8.49%
15.28
-0.08 (-0.52%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners36.89%
Inst Owner Change0%
Ins Owners0.63%
Ins Owner Change0.55%
Market Cap991.21M
Analysts77.78
Price Target16.49 (7.92%)
Short Float %0.38%
Short Ratio0.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.67% |
Yearly Dividend1.77
Dividend Growth(5Y)2.77%
DP128.82%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.63%
Min EPS beat(2)3.56%
Max EPS beat(2)7.71%
EPS beat(4)3
Avg EPS beat(4)2.82%
Min EPS beat(4)-3.23%
Max EPS beat(4)7.71%
EPS beat(8)4
Avg EPS beat(8)2.98%
EPS beat(12)7
Avg EPS beat(12)8.04%
EPS beat(16)7
Avg EPS beat(16)5.59%
Revenue beat(2)0
Avg Revenue beat(2)-10.06%
Min Revenue beat(2)-12.42%
Max Revenue beat(2)-7.71%
Revenue beat(4)1
Avg Revenue beat(4)-6.23%
Min Revenue beat(4)-12.42%
Max Revenue beat(4)0.72%
Revenue beat(8)4
Avg Revenue beat(8)-0.13%
Revenue beat(12)7
Avg Revenue beat(12)3.18%
Revenue beat(16)9
Avg Revenue beat(16)2.37%
PT rev (1m)0%
PT rev (3m)-10.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.42 | ||
| Fwd PE | 9.06 | ||
| P/S | 3.48 | ||
| P/FCF | 33.81 | ||
| P/OCF | 33.81 | ||
| P/B | 0.87 | ||
| P/tB | 0.87 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.06
EY13.48%
EPS(NY)1.69
Fwd EY11.04%
FCF(TTM)0.45
FCFY2.96%
OCF(TTM)0.45
OCFY2.96%
SpS4.39
BVpS17.64
TBVpS17.64
PEG (NY)N/A
PEG (5Y)1.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 9.86% | ||
| ROCE | 5.28% | ||
| ROIC | 4.17% | ||
| ROICexc | 4.23% | ||
| ROICexgc | 4.25% | ||
| OM | 48.2% | ||
| PM (TTM) | 39.6% | ||
| GM | 52.03% | ||
| FCFM | 10.29% |
ROA(3y)4.53%
ROA(5y)3.71%
ROE(3y)10.26%
ROE(5y)8.49%
ROIC(3y)4.13%
ROIC(5y)3.56%
ROICexc(3y)4.22%
ROICexc(5y)3.66%
ROICexgc(3y)4.24%
ROICexgc(5y)3.67%
ROCE(3y)5.23%
ROCE(5y)4.51%
ROICexcg growth 3Y15.38%
ROICexcg growth 5Y11.17%
ROICexc growth 3Y15.28%
ROICexc growth 5Y11.09%
OM growth 3Y2.21%
OM growth 5Y2.08%
PM growth 3Y-12.39%
PM growth 5Y-3.82%
GM growth 3Y2.62%
GM growth 5Y2.37%
F-Score3
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 49.49 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.89 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 25.98% | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.89 | ||
| Altman-Z | 0.68 |
F-Score3
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.21%
EPS 3Y15.4%
EPS 5Y5.38%
EPS Q2Q%-5.66%
EPS Next Y-12.15%
EPS Next 2Y-10.17%
EPS Next 3Y-8.49%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.22%
Revenue growth 3Y14.03%
Revenue growth 5Y8.14%
Sales Q2Q%-11.64%
Revenue Next Year-6.53%
Revenue Next 2Y-4.66%
Revenue Next 3Y-4.42%
Revenue Next 5YN/A
EBIT growth 1Y-6.68%
EBIT growth 3Y16.55%
EBIT growth 5Y10.39%
EBIT Next Year688.74%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y111.37%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y111.37%
OCF growth 3YN/A
OCF growth 5YN/A