CGBD announced a first-quarter net asset value (NAV) per share of $16.63. The company's Chief Executive Officer, Justin Plouffe, emphasized the importance of maintaining a stable income and consistent credit performance. He also highlighted the successful merger with CSL III, completed at the end of March, as a strategic move that supports the company's disciplined execution of its growth strategy.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Carlyle Secured Lending Inc (CGBD, Financial) is $16.00 with a high estimate of $17.00 and a low estimate of $14.00. The average target implies an upside of 12.36% from the current price of $14.24. More detailed estimate data can be found on the Carlyle Secured Lending Inc (CGBD) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Carlyle Secured Lending Inc's (CGBD, Financial) average brokerage recommendation is currently 3.4, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Carlyle Secured Lending Inc (CGBD, Financial) in one year is $11.99, suggesting a downside of 15.8% from the current price of $14.24. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Carlyle Secured Lending Inc (CGBD) Summary page.
CGBD Key Business Developments
Release Date: February 26, 2025
- Net Investment Income: $0.47 per share, annualized yield over 11% based on 12/31 NAV.
- Dividend: Total fourth quarter dividend of $0.45 per share, including a $0.40 base dividend and a $0.05 supplemental dividend.
- Net Asset Value (NAV): $16.80 per share as of December 31, compared to $16.85 per share as of September 30.
- Total Investment Income: $56 million for the fourth quarter.
- Total Expenses: $31 million, flat versus prior quarter.
- Portfolio Growth: Increased by about $100 million in the fourth quarter.
- Credit Quality: Nonaccruals at 0.6% of total investments at fair value.
- Leverage: Statutory average leverage about 1.2 times, within target range of 0.9 to 1.25 times.
- Investment Portfolio: 189 investments in 135 companies across more than 25 industries.
- Median Portfolio EBITDA: $88 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Carlyle Secured Lending Inc (CGBD, Financial) generated a net investment income of $0.47 per share, representing an annualized yield of over 11%.
- The company declared a total fourth quarter dividend of $0.45 per share, which includes a supplemental dividend, reflecting a strong dividend policy.
- CGBD achieved record highs for deployment in both the fourth quarter and the full year of 2024, growing its portfolio by about $100 million.
- The company maintained a high-quality portfolio with 94% of 2024 originations in first lien investments and an average loan-to-value under 40%.
- CGBD obtained investment-grade ratings from both Fitch and Moody's, allowing it to issue its first-ever institutional bond deal, enhancing financial flexibility.
Negative Points
- The net asset value (NAV) per share slightly decreased from $16.85 as of September 30 to $16.80 as of December 31.
- Total aggregate realized and unrealized net loss was about $4 million for the quarter, with markdowns on certain investments.
- Nonaccruals remained flat at 0.6% of total investments at fair value, indicating some ongoing credit challenges.
- The restructuring of Jeg's Automotive remained on nonaccrual status, highlighting ongoing issues with specific investments.
- The weighted average yield on debt investments showed a wider gap compared to income-producing investments, indicating potential yield compression.
