Bain Capital Specialty Finance, Inc.
Bain Capital Specialty Finance, Inc. Fundamental Analysis
Bain Capital Specialty Finance, Inc. (BCSF) shows strong financial fundamentals with a PE ratio of 8.26, profit margin of 41.29%, and ROE of 8.72%. The company generates $0.2B in annual revenue with strong year-over-year growth of 54.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BCSF's fundamental strength across five key dimensions:
Efficiency Score
WeakBCSF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBCSF trades at attractive valuation levels.
Growth Score
ModerateBCSF shows steady but slowing expansion.
Financial Health Score
WeakBCSF carries high financial risk with limited liquidity.
Profitability Score
ModerateBCSF maintains healthy but balanced margins.
Key Financial Metrics
Is BCSF Expensive or Cheap?
P/E Ratio
BCSF trades at 8.26 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BCSF's PEG of 1.38 indicates fair valuation.
Price to Book
The market values Bain Capital Specialty Finance, Inc. at 0.73 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.00 times EBITDA. This is generally considered low.
How Well Does BCSF Make Money?
Net Profit Margin
For every $100 in sales, Bain Capital Specialty Finance, Inc. keeps $41.29 as profit after all expenses.
Operating Margin
Core operations generate 51.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.72 in profit for every $100 of shareholder equity.
ROA
Bain Capital Specialty Finance, Inc. generates $3.71 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bain Capital Specialty Finance, Inc. generates strong operating cash flow of $85.86M, reflecting robust business health.
Free Cash Flow
Bain Capital Specialty Finance, Inc. generates strong free cash flow of $85.86M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.32 in free cash annually.
FCF Yield
BCSF converts 10.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.26
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.38
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.32
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How BCSF Stacks Against Its Sector Peers
| Metric | BCSF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.26 | 18.59 | Better (Cheaper) |
| ROE | 8.72% | 801.00% | Weak |
| Net Margin | 41.29% | -421.00% (disorted) | Strong |
| Debt/Equity | 1.32 | 0.98 | Weak (High Leverage) |
| Current Ratio | 0.35 | 661.40 | Weak Liquidity |
| ROA | 3.71% | -21302.00% (disorted) | Weak |
BCSF outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Bain Capital Specialty Finance, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
82.18%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-1.31%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
90.95%
Industry Style: Value, Dividend, Cyclical
High Growth