MeritValue

Franklin BSP Capital Corp

FRBPdata completeness 75%6 fiscal years on file

Data notes: no data for concept 'revenue'; no data for concept 'capex'; no data for concept 'incomeTaxExpense'; no data for concept 'pretaxIncome'

The thesis, from the filings

Franklin BSP Capital Corp earns about 6% on equity, but has diluted owners by 2447% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $3.44 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue—————
Net income$6.87M1$23.2M2$44.8M3$89.3M3$104.3M3
Operating cash flow−$491.4M4−$259.5M5$66.1M6−$210.3M6$6.08M6
Capital expenditure—————
Free cash flow (derived)—————
Total debt$278.8M7$400.4M8$319.9M9$2.05B10$2.25B10
Cash & equivalents$12.9M11$26.2M12$48.5M13$119.1M13$100.6M13
Diluted shares5.3M18.7M25.5M128.1M135.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$136.26
your share of equity
Profit it earned you last year
$7.72
Free cash flow it threw off
—
Debt you’d be carrying
$166.25

10 shares is a claim on $136.26 of net worth that earned you $7.72 last year, against $166.25 of debt.

iii. Is this a good business?
Moat signal · return on equity
6% avg · 5y
FY21 3%FY22 6%FY23 12%FY24 5%FY25 6%

It earned an average 6% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+2447% shares · 5y

Share count is up 2447% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 705% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$3.44
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$44.8M
  • growthAssumed0.0%
Graham Number
$14.96
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001825248-24-000007 (NetIncomeLoss)
  2. 10-K · period ending 2022-12-31 · accession 0001825248-25-000004 (NetIncomeLoss)
  3. 10-K · period ending 2023-12-31 · accession 0001825248-26-000007 (NetIncomeLoss)
  4. 10-K · period ending 2021-12-31 · accession 0001825248-24-000007 (NetCashProvidedByUsedInOperatingActivities)
  5. 10-K · period ending 2022-12-31 · accession 0001825248-25-000004 (NetCashProvidedByUsedInOperatingActivities)
  6. 10-K · period ending 2023-12-31 · accession 0001825248-26-000007 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2021-12-31 · accession 0001825248-23-000004 (LongTermDebt)
  8. 10-K · period ending 2022-12-31 · accession 0001825248-24-000007 (LongTermDebt)
  9. 10-K · period ending 2023-12-31 · accession 0001825248-25-000004 (LongTermDebt)
  10. 10-K · period ending 2024-12-31 · accession 0001825248-26-000007 (LongTermDebt)
  11. 10-K · period ending 2021-12-31 · accession 0001825248-24-000007 (CashAndCashEquivalentsAtCarryingValue)
  12. 10-K · period ending 2022-12-31 · accession 0001825248-25-000004 (CashAndCashEquivalentsAtCarryingValue)
  13. 10-K · period ending 2023-12-31 · accession 0001825248-26-000007 (CashAndCashEquivalentsAtCarryingValue)