BlackRock Capital Investment Corporation (BKCC), despite its weak fundamentals, does not appear to be poised for recovery after experiencing a slow momentum in the last few months. It might be a good idea to avoid this stock. Continue reading.
BlackRock Capital Investment Corporation (BKCC), shares of which have fallen 15.2% in the past year, reached their 52-week low at $3.03 during the last trading session. We'll look at BKCC metrics to see why it might continue to be under pressure.
BlackRock Capital Investment Corporation Trends in Net Profit, Revenue, ROA and DPS over the Last Two Years
BKCC's net income fluctuated over the last two years. It dropped from -10.09 million dollars to -10.39 million dollars between June 30, 2020 and December 31, 2020. Then, from March 31, to June 30, it fell from -2.85 million to $3.1million. The trend changed, however, as the net income steadily increased, reaching $6.97m on September 30th 2021 and ending at $3.49m on December 31st 2022. This was a growth rate of 149.56% since June 30,2020.
The data series for BKCC revenue between June 2020 and December 2022 show a downward trend, from $75.35 millions in June 2020 down to $5.79million in December 2022. In the last two years, the revenue has dropped by 24 % from the initial reported value. Between the two values, there were some fluctuations. Revenue increased for three consecutive values followed by a decrease for six consecutive values.
The Return on Assets of BKCC has been fluctuating since June 2020. The ROA decreased by 54.5% from 0.14 in July 2020 to 0.06 at December 2022. The lowest point in September 2020 was -0.168. In September 2021 the ROA reached its highest level of 0.13. In December 2022 the ROA had decreased to 0.006 from the value of 0.006 at the beginning of June 2020.
BKCC’s DPS decreased from $0.52 at the end June 30 2020 to $0.40 by December 2022. This represents a 23% decrease. The trend is largely stable, with few significant fluctuations.
BKCC share price fluctuations: A look
BKCC's share price fluctuated from $3.652 in November 2022 to $3.275 in April 2023. As the share price declined, the growth rate also decreased. However, there were a few spikes in either direction. This is a chart showing BKCC's share price over the last 180 days.
POWR ratings that are not favorable
BKCC's overall rating is D, which translates to Sell in our system of POWR Ratings. Its ranking within the Private Equity stock category varies from 16 to 27, reflecting an average status compared to the 35 stocks in that category.
The Sentiment and the Quality grades are also D.
IRSA Inversiones Y Representaciones S.A., WhiteHorse Finance Inc., and Hercules Capital Inc. have higher POWR ratings.
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BKCC shares traded at $3.25 on Friday afternoon. This was up $0.18 (+5.86%). BKCC shares have declined by -7.60% year-to-date compared to the benchmark S&P 500's 8.99% increase during the same time period.
Subhasree K. Kar
Subhasree pursued a career in investment analysis because of her keen interest in financial products. She gained experience in equity research and portfolio administration at Finlatics after earning a Master’s degree in Economics.