First Eagle Alternative Capital BDC, Inc. (FCRD): Price and Financial Metrics

FCRD Stock Price Chart Interactive Chart >

FCRD Price/Volume Stats

First Eagle Alternative Capital BDC, Inc. (FCRD) Company Bio

THL Credit, Inc. is a business development company specializing in direct and fund of fund investments. The fund seeks to invest in debt and equity securities of middle market companies. It seeks to invest in PIPES, growth, acquisition, market or product expansion, recapitalization, mature, and change of control transactions in both sponsored and unsponsored issuers. The fund does not intend to invest in start-up companies, operationally distressed situations, or companies with speculative business plans. The fund invests primarily in debt securities, including unsecured subordinated or mezzanine debt and second lien secured debt, which may include an associated equity component such as warrants, preferred stock, options to buy minority interest, and other similar securities. Its investments may also include high-yield bonds, private equity investments, securities of public companies that are broadly traded, and securities of non-United States companies. It seeks to invest in outsourced business services, healthcare, financials, retailing, media, and consumer discretionary. The fund may make direct equity investments, including equity investments into or through funds, and also selectively invest in syndicated first lien secured loans, including unitranche investments. It seeks to invest between $10 million and $25 million of capital per transaction in companies with annual revenues ranging from $25 million to $500 million and annual EBITDA between $5 million and $25 million. The fund prefers to be a lead or sole investor in a transaction.

FCRD Price Forecast Based on DCF Valuation

The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for First Eagle Alternative Capital BDC Inc. To summarize, we found that First Eagle Alternative Capital BDC Inc ranked in the 18th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of First Eagle Alternative Capital BDC Inc, consider:

• The stock's equity weight, or the proportion of capital from equity relative to debt, is 42. Notably, its equity weight is greater than merely 19.04% of US equities in the Financial Services sector yielding a positive free cash flow.
• First Eagle Alternative Capital BDC Inc'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.

For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as FCRD, try ARGO, V, PROS, AXS, and TRUP.