For CPTA, its debt to operating expenses ratio is greater than that reported by 98.36% of US equities we're observing.
In terms of twelve month growth in earnings before interest and taxes, Capitala Finance Corp is reporting a growth rate of 5,077.6%; that's higher than 99.73% of US stocks.
Capitala Finance Corp's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is 107.9%, greater than the shareholder yield of 96.9% of stocks in our set.
If you're looking for stocks that are quantitatively similar to Capitala Finance Corp, a group of peers worth examining would be SLRC, TCRD, OFS, GLAD, and MNR.
Capitala Finance Corp. is a Business Development Company specializing in investments in traditional mezzanine, senior subordinated and unitranche debt, second-lien loans, equity investments in sponsored and non-sponsored lower and traditional middle market companies. The fund targets companies in the business services, manufacturing, consumer and retail, energy, and health-care industries. It typically considers investments in the United States. The fund invests $5-$50 million per transaction in companies with greater than $4.5 million of TTM EBITDA. It may also invest in first-lien, senior secured positions in "stretch" senior secured loans. The company is based in Charlotte, North Carolina.
CPTA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Capitala Finance Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Capitala Finance Corp ranked in the 72th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 243.33% on a DCF basis. The most interesting components of our discounted cash flow analysis for Capitala Finance Corp ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is -3.19 -- which is good for besting merely 9.1% of its peer stocks (US stocks in the Financial Services sector with positive cash flow).
The company's compound free cash flow growth rate over the past 3.49 years comes in at -0.05%; that's greater than merely 22.12% of US stocks we're applying DCF forecasting to.
12% of the company's capital comes from equity, which is greater than merely 4.56% of stocks in our cash flow based forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Capitala Finance Corp? See DGICA, ATCO, HCI, SWKH, and PGR.
Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors' consensus returns have been exceptional. In the following paragraphs, we find out […]