BlackRock Capital Allocation Trust (BCAT) AI Stock Analysis
BCAT AI stock analysis summary
AI ResearchBlackRock Capital Allocation Trust (BCAT) is a closed-end asset management fund with a market capitalization of $1.38B. In FY2025, the trust generated revenue of $225.0M and net income of $222.0M, supported by a 5-year revenue CAGR of 11.8%. It carries an annual forward dividend of $3.00, yielding 23.05% with a payout ratio of 132.1%.
- Market cap
- $1.38B
- Revenue (TTM)
- $0
- P/E
- 5.4x
- 1Y return
- 10.8% S&P 500 16.8%
- Avg. target
- —
Bull case
- BCAT delivers a high dividend yield of 23.05% supported by an annualized 5-year dividend growth rate of 99.9%.
- The stock trades at a trailing P/E of 5.4x, well below the 12.1x median of its US-listed Financial Services peers.
- Revenue expanded by 13.8% in FY2025 to reach $225.0M with a net margin of 98.7%.
Bear case
- BCAT has lagged the broader market over 5 years with a 41.9% return versus 83.0% for the S&P 500.
- The trust's dividend payout ratio of 132.1% exceeded net income in FY2025, with $344.7M paid in dividends against $329.5M in free cash flow.
- Liquidity is tight with cash and short-term investments of $7.8M and a current ratio of 0.04 as of June 30, 2026.
What BlackRock Capital Allocation does
BlackRock Capital Allocation Trust is an asset management entity in the Financial Services sector, trading on the NYSE under ticker BCAT following its 2020 IPO. The entity operates with a fiscal year ending in December. Its operations generated FY2025 revenue of $225.0M alongside net income of $222.0M. As of June 30, 2026, the trust oversees total assets of $1.83B and shareholders' equity of $1.58B. Institutional investors hold 18.4% of its shares, while insider ownership stands at 0.0%.
Growth and profitability
BCAT generated revenue of $124.0M in FY2021 before reporting -$320.4M in FY2022, representing a revenue decline of 358.4%. Performance rebounded in FY2023 with revenue of $206.9M and net income of $204.7M. Revenue reached $197.7M in FY2024, down 4.5%, before rising 13.8% to $225.0M in FY2025. Net income for FY2025 was $222.0M, reflecting an operating margin of 98.7% and a net margin of 98.7%. Over the 5-year period from FY2020 to FY2025, revenue achieved a CAGR of 11.8%. For the trailing twelve months ending December 31, 2025, revenue was $0 with an EPS of $2.40.
Balance sheet and cash flow
As of June 30, 2026, BCAT held cash and short-term investments of $7.8M against total assets of $1.83B and shareholders' equity of $1.58B. Its current ratio stood at 0.04. In FY2025, the trust generated operating cash flow and free cash flow of $329.5M, following $354.9M in FY2024. Capital returns in FY2025 included $344.7M in dividends paid, while the trust saw a 5-year share count change of -5.2%.
Valuation and performance
BCAT trades at a trailing P/E of 5.4x, below the 12.1x median of its US-listed Financial Services peers. Its price-to-sales multiple is 5.8x, compared to the peer median of 3.2x, while its price-to-book ratio is 0.9x. The trust has a market capitalization of $1.38B. At its closing price of $13.02 on October 16, 2026, the stock was 5.9% below its 200-day average. Over the past 1-year period, BCAT gained 10.8% compared to 16.8% for the S&P 500, and over 5 years returned 41.9% versus 83.0% for the S&P 500.
BCAT dividend
BCAT pays a monthly dividend with an annual forward dividend of $3.00, yielding 23.05%. The trust has paid dividends for 7 consecutive years, with an annualized 5-year dividend growth rate of 99.9%. Its payout ratio was 132.1% in FY2025, when it distributed $344.7M in dividends. The trust's last ex-dividend date was December 11, 2026.
What analysts expect
Wall Street analyst coverage on BCAT includes 1 Hold rating, with 0 Strong Buy, 0 Buy, 0 Sell, and 0 Strong Sell ratings. No mean price target or consensus earnings estimates are provided. Over the last 4 quarters, the trust recorded 2 EPS beats. Its closing price stood at $13.02 on October 16, 2026, within its 52-week trading range of $12.91 to $16.20.
Key risks and what to watch
- Revenue has exhibited high volatility, plunging to -$320.4M in FY2022 before recovering to $225.0M in FY2025.
- With a payout ratio of 132.1%, annual dividend distributions of $344.7M surpass FY2025 free cash flow of $329.5M.
- The trust's current ratio of 0.04 and cash balance of $7.8M indicate low liquid reserves relative to short-term liabilities.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this BCAT AI stock analysis
This page is an AI-written research summary of BlackRock Capital Allocation Trust (BCAT). 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.
Related: BCAT income statement, BCAT balance sheet, BCAT key metrics, BCAT analyst forecast, BCAT chart. See the BCAT stock overview for the latest quote and news.
BCAT AI stock analysis FAQ
What is BCAT's dividend yield and payment schedule?
BCAT pays a monthly dividend with an annual forward amount of $3.00, representing a yield of 23.05%. The trust has paid dividends for 7 consecutive years.
How has BCAT performed compared to the S&P 500?
Over the past year, BCAT delivered a return of 10.8% compared to 16.8% for the S&P 500. Over 5 years, BCAT gained 41.9% versus an 83.0% return for the benchmark index.
What are BCAT's primary valuation multiples?
BCAT trades at a trailing P/E of 5.4x, a price-to-book ratio of 0.9x, and a price-to-sales multiple of 5.8x. Its trailing P/E is lower than the US-listed Financial Services peer median of 12.1x.
What was BCAT's financial performance in FY2025?
In FY2025, BCAT generated revenue of $225.0M, an increase of 13.8% year-over-year, and net income of $222.0M. Free cash flow for the year was $329.5M.