The ratio of debt to operating expenses for Capitala Finance Corp is higher than it is for about 98.34% of US stocks.
Over the past twelve months, CPTA has reported earnings growth of 5,077.6%, putting it ahead of 99.75% of US stocks in our set.
Capitala Finance Corp's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is 108.38%, greater than the shareholder yield of 96.84% of stocks in our set.
Stocks that are quantitatively similar to CPTA, based on their financial statements, market capitalization, and price volatility, are 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:
Below please find a table outlining a discounted cash flow forecast for CPTA, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Capitala Finance Corp ranked in the 72th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Capitala Finance Corp, consider:
Interest coverage, a measure of earnings relative to 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 only 22.07% of US stocks we're applying DCF forecasting to.
Capitala Finance Corp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DGICA, SWKH, ATCO, PGR, and HCI can be thought of as valuation peers to CPTA, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
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 […]