For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Bain Capital Specialty (BCSF) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Finance peers, we might be able to answer that question.Bain Capital Specialty is a member of our Finance group, which includes 85 ...

PixelimageBain Capital Specialty Finance Inc. (NYSE:BCSF) is a well-managed BDC with substantial excess dividend coverage that could translate into a significant excess cash return potential in 2024. The BDC raised its dividend twice last year and though the investment portfolio is shrinking, due to higher repayments and headwinds to originations in a high-rate environment, Bain Capital Specialty Finance’s net investment income is more than sufficient to allow for a drastic dividend raise this year. Wit ...

Value investing can be partitioned into various categories, one of which is high-yield dividend investing. High-yield value investing allows investors to experience the best of both worlds by receiving optimal utility for money via income and value appreciation.However, despite the allure of high-yield value investing, caution is necessary because value traps are common. To sidestep value traps, one must differentiate between accretive value and busted growth. Doing so requires diligence in the investment r ...

Bain Capital Specialty (BCSF) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the syste ...

Bain Capital Specialty Finance, Inc. (NYSE:BCSF) Q4 2023 Earnings Conference Call February 28, 2024 8:30 AM ET Company Participants Katherine Schneider - Director, Investor Relations Michael Ewald - Chief Executive Officer Mike Boyle - President Amit Joshi - Chief Financial Officer Conference Call Participants Paul Johnson - KBW Operator Good morning, ladies and gentlemen, and welcome to the Bain Capital, sorry, Bain Capital Specialty Finance Fourth Quarter and Fiscal Year Ended December 31, 2023 Earnings C ...

Bain Capital Specialty Finance, Inc. Fourth Quarter Ended December 31, 2023 Earnings Presentation BAIN CAPITAL SPECIALTY FINANCE, INC. Disclaimer InthismaterialBainCapitalCredit,LP,BainCapitalCredit(Asia),Limited,BainCapitalCredit(Australia),Pty.Ltd.,BainCapitalCredit,Ltd.,BainCapital(Ireland)Limited,BainCapitalInvestments(Europe)Limited,BainCapitalCreditCLOAdvisors,LP,BainCapital CreditU.S.CLOManager,LLC,andBCSFAdvisors,LParecollectivelyreferredtoas“BainCapitalCredit”,whicharecreditaffiliatesofBainCapital, ...

BOSTON--(BUSINESS WIRE)--Bain Capital Specialty Finance, Inc. (NYSE: BCSF, the “Company”, “our” or “we”) today announced financial results for the fourth quarter and fiscal year ended December 31, 2023, and that its Board of Directors (the “Board”) has declared a dividend of $0.42 per share for the first quarter of 2024 and has also declared additional dividends totaling $0.12 per share for 2024. “ BCSF reported strong quarterly and full year 2023 results as we benefited from attractive levels of interest ...

| --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------| | BAIN CAPITAL SPECIALTY FINANCE, (Exact Name of Registrant as Specified in its Charter) \nDelaware \n(State or Other Jurisdiction of Incorporation or Organization) | INC. \n81-2878769 \n(I.R.S. Employer Identification No.) | | 20 ...

pixelfit/E+ via Getty Images Bain Capital Specialty Finance (NYSE:BCSF) started as a curiosity for me. I recognized the Bain name, infamous from the days of the 2012 Presidential Election and the negative impact it had to Romney campaign. I naturally found it tempting to look at this company and see what's there. Overall, I found this to be a decent business with a secure risk profile and attractive yield just over 11%. It may not the best bargain ever found, but at the current price it's a BUY. Relationshi ...

Financial Data and Key Metrics Changes - Q3 net investment income per share was $0.55, representing an annualized yield of 12.6% on book value, covering the dividend by 131% [5][6] - Q3 earnings per share were $0.52, with net income producing an annualized return on book value of 12.0% [6][19] - Net asset value (NAV) increased to $17.54, reflecting a 60 basis point increase from $17.44 as of June 30 [6][19] - Total investment income for Q3 was $72.4 million, down from $75.7 million in Q2 [18][19] - Total expenses for Q3 were $36.1 million, compared to $35.7 million in the previous quarter [19] Business Line Data and Key Metrics Changes - New investment fundings during Q3 were approximately $110 million across 40 portfolio companies, with a net-funded portfolio growth of $7 million quarter-over-quarter [11][12] - 93% of new investment fundings were in first lien senior secured loans, with 7% in equity investments [12] - The weighted average yield on the investment portfolio at amortized costs and fair value was 12.9% and 13.1%, respectively, compared to 12.8% and 13% as of June 30 [15] Market Data and Key Metrics Changes - New loan volumes in the private credit market saw a modest increase during Q3, driven by a return of large unitranche loans [7] - The weighted average spread on new portfolio company first lien debt investments was approximately 650 basis points, producing a weighted average yield of 12% [9] Company Strategy and Development Direction - The company continues to favor middle market-sized companies over large corporate borrowers, focusing on debt structures with strong lender controls [8] - The investment strategy emphasizes first lien senior secured loans, with a focus on downside management [15] Management's Comments on Operating Environment and Future Outlook - Management noted stable credit quality across the portfolio, with low nonaccrual rates at 1% of the portfolio at fair value [10] - The company remains vigilant in monitoring portfolio companies due to expectations of a sustained higher interest rate environment and potential economic slowdown [10] Other Important Information - The board declared a fourth quarter dividend of $0.42 per share, representing a 9.6% annualized yield on ending book value as of September 30 [6] - Spillover income per share is approximately $0.79, or 1.9 times the quarterly regular dividend, providing for increased dividend and NAV stability [7] Q&A Session Summary Question: Can you discuss the investing environment and pipeline for new investments? - Management indicated that while there are busy and slow months, the deal flow remains stable but somewhat depressed compared to pre-COVID levels [25] Question: How does the EBITDA growth trend look in the portfolio? - Performance has been strong across both U.S. and European markets, with 95% of the portfolio performing in line with original underwrites, indicating 15% to 20% year-over-year EBITDA growth [30] Question: What are the thoughts on leverage in the current market environment? - The company is operating at the lower end of its leverage range to maintain dry powder for future market opportunities, with a net leverage ratio of 1.12 times [32] Question: What drove the increase in internal credit ratings during the quarter? - The increase was primarily due to two companies recovering from COVID impacts and being removed from the watchlist, leading to improved ratings [34] Question: Can you explain the mechanics of the incentive fee and its future normalization? - The incentive fee has declined due to lower levels compared to prior quarters but is expected to normalize in the next one to two quarters [37] Question: What are the thoughts on increasing the core dividend or implementing a special dividend? - Management is considering both options, with spillover income providing good NAV stability [39]