Palmer Square Capital BDC Inc. (PSBD) stock analysis

In our weekly check, Palmer Square Capital BDC Inc. is graded D (A to F). Of 22 checks on debt, profit, cash flow and trend: 9 pass, warnings: 4, red flags: 9.

About Palmer Square Capital BDC Inc.

Palmer Square Capital BDC Inc. is a Financial Services company (Asset Management) based in the United States, listed on NYSE as PSBD.

What our checks show for PSBD

Red flags

• Net debt is 1597x a year of EBITDA (debt/equity 1.71). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (-0.2x): interest is paid from cash or new debt.
• The net margin fell by 112 points over 5 years, to -47.9%: the company keeps less of each sale as profit.
• The gross margin fell by 20 points, to 50.8%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 1.3% a year.
• Earnings per share fell 24.7% a year over the last 3 years.
• The company is losing money: the net margin is -47.9%.
• Palmer Square Capital BDC Inc. pays a dividend while losing money: it is funded from reserves or debt.
• Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.

Warning signs

• A small company (market value $304 million): usually riskier and followed by fewer analysts.
• The stock has fallen as much as 44% from a peak. Would you have held through that?
• The stock is still below its previous peak.
• Thinly traded (about 110 thousand shares a day): buying and selling can move the price.

Strengths

• Operating cash flow is 1638x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 19.9% a year over the next years.
• Analysts expect the net margin to improve by 128 points from today's -47.9%.
• Free cash flow is 78468% of revenue: cash for dividends, buybacks or growth.
• Pay in shares is only 0% of free cash flow.

Next earnings report: 2026-11-04

Similar companies

CCAP · TPVG · MSIF · NCDL · SLRC

Questions

What grade does Palmer Square Capital BDC Inc. (PSBD) have?

In our weekly check, Palmer Square Capital BDC Inc. is graded D (A to F). Of 22 checks on debt, profit, cash flow and trend: 9 pass, warnings: 4, red flags: 9. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of PSBD stock?

This week's biggest flags for Palmer Square Capital BDC Inc.: High debt, Weak interest cover, Margins falling. In total 13 of 22 checks show a warning or a red flag.

What does Palmer Square Capital BDC Inc. do?

Palmer Square Capital BDC Inc. is a Financial Services company (Asset Management) based in the United States, listed on NYSE as PSBD.

When does Palmer Square Capital BDC Inc. report earnings next?

The next earnings report is expected on 2026-11-04. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

Open the full analysis