Palmer Square Capital BDC Inc. (PSBD) AI Stock Analysis

Palmer Square Capital BDC, Inc., headquartered in Mission Woods, KS, operates as an investment firm specializing in the provision of capital through various investment funds. Established in 2019, the company focuses on lending and investing in corporate debt securities issued by a diverse array of companies across different sectors. Palmer Square Capital BDC, Inc. plays a pivotal role in the financial landscape by facilitating access to capital for businesses seeking growth and expansion opportunities. The firm's strategic approach includes evaluating credit risk and investment potential to optimize returns for its stakeholders while navigating financial markets through prudent investment strategies and risk management practices.

Revenue has experienced notable volatility, moving from $29.5M in FY2021 down to -$49.4M in FY2022, before rebounding to $153.7M in FY2023. Revenue subsequently dropped 28.2% to $110.3M in FY2024 and rose 0.8% to $111.2M in FY2025, contributing to a 5-year revenue CAGR of 35.4%. Profitability has also swung widely: after achieving net income of $107.8M in FY2023 and $47.7M in FY2024, PSBD recorded net income of -$3.2M and a net margin of -2.9% in FY2025. In the trailing twelve months ending June 30, 2026, revenue stood at $0 with an operating margin of 0.0% and an EPS of -$1.00.

As of June 30, 2026, the company held $2.45B in cash and short-term investments against total debt of $696.49B, resulting in net debt of $694.04B and a debt-to-equity ratio of 1.71. Shareholders' equity was $406.15B out of $1.13T in total assets, while the current ratio stood at 0.04. In FY2025, operating cash flow and free cash flow both reached $160.7M. Capital allocation in FY2025 included $5 in capital expenditures, $18.0M for share buybacks, and $55.3M paid out in dividends.

With a market cap of $294.3M, PSBD trades at a forward P/E of 7.1x, which sits below the 10.8x median of its US-listed Financial Services peers. Its price-to-book ratio is 0.8x, while its price-to-sales ratio stands at 307.4x compared to the peer median of 3.2x. Over the past year, the stock fell 9.4%, underperforming the S&P 500 (SPY) return of 16.8%, and it is down 12.1% year-to-date.

PSBD pays a quarterly dividend with an annual forward payout of $1.44 per share, translating to a dividend yield of 15.00%. The company has paid dividends for 3 consecutive years. Its payout ratio stands at 99.4%, and its last ex-dividend date was September 25, 2026.

Consensus coverage consists of 6 Hold ratings, with 0 Buy and 0 Sell recommendations. The mean price target is $10.79, representing a 12.4% upside to the last close of $9.60. For the current fiscal year ending December 31, 2026, analysts estimate EPS of $1.50 on revenue of $106.2M. Over the last 4 quarters, PSBD has beaten EPS estimates 2 times. The next earnings date is November 4, 2026.

This page is an AI-written research summary of Palmer Square Capital BDC Inc. (PSBD). 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: PSBD income statement, PSBD balance sheet, PSBD key metrics, PSBD analyst forecast, PSBD chart. See the PSBD stock overview for the latest quote and news.