ArrowMark Financial Corp. (BANX) AI Stock Analysis

ArrowMark Financial Corp. operates as a closed-end balanced mutual fund managed by ArrowMark Asset Management, LLC. Domiciled in the United States and founded on February 7, 2013, the fund invests globally across public equity and fixed income markets. Its equity portfolio targets growth and value stocks within the financial and banking sectors to promote portfolio stability and long-term returns. Its fixed income segment allocates capital into debt and subordinated debt securities, structured notes, and regulatory capital securities, including below-investment-grade assets, aiming to generate higher yields through active management.

Between FY2020 and FY2025, revenue expanded at a 5-year CAGR of 12.0%. Annual performance has varied, with revenue reaching $29.5M in FY2024 before dropping 41.1% to $17.4M in FY2025. Despite this revenue decline, FY2025 net income reached $17.9M, representing a net margin of 103.0% and EPS of $1.99. Over the trailing twelve months, BANX generated $26.5M in revenue with a profit margin of 50.8% and operating margin of 75.1%. For the latest quarter ended June 30, 2026, quarterly revenue fell 0.2% year-over-year while quarterly earnings declined 58.1% year-over-year.

As of June 30, 2026, BANX held $2.3M in cash and short-term investments against total debt of $40.8M, resulting in net debt of $38.5M. Total assets were $248.8M compared to shareholders' equity of $203.5M, yielding a debt-to-equity ratio of 0.20. In FY2025, operating cash flow and free cash flow were both $10.9M, with capital expenditures at $5. Dividends paid in FY2025 totaled $17.6M. Over the past five years, the fund's share count grew by 39.2%.

At the last close of $19.90 on October 16, 2026, BANX had a market capitalization of $192.8M and an enterprise value of $231.8M. BANX trades at a trailing P/E of 18.6x and a forward P/E of 14.6x, higher than the median of its US-listed Financial Services peers of 12.1x and 10.8x, respectively. Its price-to-sales ratio is 7.3x versus the peer median of 3.2x, with a price-to-book ratio of 1.0x. Over the past year, BANX returned 4.0% versus 16.8% for the S&P 500, and over five years returned 48.1% compared to 83.0% for the S&P 500.

BANX pays an annual forward dividend of $1.80 per share, which corresponds to a dividend yield of 9.05%. The fund has paid dividends for 14 consecutive years, achieving a 5-year annualized dividend growth rate of 7.9%. Its payout ratio stands at 168.2%, and total dividends paid in FY2025 were $17.6M. The last ex-dividend date was December 24, 2026.

Analysts have established a mean price target of $22.00 for BANX, indicating an upside of 10.6% relative to its last close of $19.90. Over the last four quarters, the fund has exceeded EPS estimates in 1 quarter. Institutional investors own 18.8% of shares, insider ownership stands at 0.0%, and short interest is 0.3% of the float.

This page is an AI-written research summary of ArrowMark Financial Corp. (BANX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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