In the first quarter, BlackRock TCP Capital (TCPC, Financial) Corp. reported a net asset value of $9.18 per share, maintaining stability compared to the previous period. The company highlighted significant advancements in enhancing its portfolio, which has shown encouraging signs of stabilization.
The proportion of investments in non-accrual loans decreased to 4.4%, down from 5.6% of the portfolio's fair value, as the company successfully exited four non-accrual positions. Furthermore, TCPC's adjusted net investment income remained consistent with the prior quarter, registering at $0.36 per share.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for BlackRock TCP Capital Corp (TCPC, Financial) is $7.33 with a high estimate of $8.00 and a low estimate of $6.50. The average target implies an upside of 10.94% from the current price of $6.61. More detailed estimate data can be found on the BlackRock TCP Capital Corp (TCPC) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, BlackRock TCP Capital Corp's (TCPC, Financial) average brokerage recommendation is currently 3.2, 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 BlackRock TCP Capital Corp (TCPC, Financial) in one year is $29.40, suggesting a upside of 344.78% from the current price of $6.61. 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 BlackRock TCP Capital Corp (TCPC) Summary page.
TCPC Key Business Developments
Release Date: February 27, 2025
- Full-Year 2024 Adjusted Net Investment Income: $1.52 per share, down from $1.84 per share in 2023.
- Annualized Net Investment Income ROE: 14.5% for the year.
- Fourth-Quarter Adjusted Net Investment Income Per Share: $0.36, flat compared to the previous quarter.
- Non-Accruals: 5.6% of the portfolio at fair market value, up from 3.8% in the previous quarter.
- NAV Per Share: $9.23, down from $10.11 per share.
- Portfolio Fair Market Value: Approximately $1.8 billion.
- Weighted Average Effective Yield of Portfolio: 12.4%, down from 13.4% last quarter.
- New Investments: $121 million deployed into nine new and nine existing portfolio companies.
- Operating Expenses for Fourth Quarter: $0.32 per share, including $0.21 per share of interest and other debt expenses.
- Net Unrealized Losses for Fourth Quarter: $72 million or $0.85 per share.
- Total Liquidity at Quarter End: $615 million, with $519 million of available leverage and $92 million in cash.
- Net Regulatory Leverage: 1.14 times, within the target range of 0.9 to 1.2 times.
- Weighted Average Interest Rate on Debt Outstanding: 5.2%, down from 5.4% in the prior quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BlackRock TCP Capital Corp (TCPC, Financial) reported a full-year 2024 adjusted net investment income of $1.52 per share, indicating a strong income generation despite challenges.
- The company maintained a highly diversified portfolio with investments across 154 companies in over 20 industry sectors, reducing risk exposure.
- 91.2% of the portfolio was invested in senior secured loans, with 94.5% being floating rate, which can benefit from rising interest rates.
- The company repurchased 510,687 shares at a weighted average price of $8.86, demonstrating a commitment to shareholder value.
- The Adviser voluntarily agreed to waive one-third of the base management fee for three quarters in 2025, aligning management interests with shareholders.
Negative Points
- Net asset value (NAV) per share decreased to $9.23 from $10.11, reflecting significant markdowns in the investment portfolio.
- Non-accruals increased to 5.6% of the portfolio at fair market value, up from 3.8% in the previous quarter, indicating rising credit issues.
- The company reduced its regular dividend to $0.25 per share for the first quarter of 2025, reflecting a decline in earnings power.
- Significant markdowns were reported in investments such as Razor, Securus, and Astra, impacting overall financial performance.
- The weighted average effective yield of the portfolio decreased to 12.4% from 13.4% last quarter, indicating pressure on income generation.
