Pearl Diver Credit Co., Inc. operates as an investment company. It focuses on the investing in collateralized loan obligations securities. The company was founded on April 12, 2023 and is headquartered in New York, NY.

Pearl Diver Credit Company Inc.

Financial Services

The company pays dividends on rare occasions. There have only been a few years with dividend payments in the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has been good and slightly above its peers. At the same time, the average five-year yield has been significantly lower, at almost zero. 

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 0ppts over six months and grown 1ppts faster in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 3.2 in the past several years. This ratio implies a excellent shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

No other major risks have been identified.

The risk of default is moderate. We note robust profitability, strong debt servicing capacity, adequate interest coverage, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to negligible return on capital, excessive margin volatility, poor working capital management, and poor cash flow generation.

Considering past and projected metrics, the stock is distinctly 'cheaper' than its peers. Specifically, the stock is undervalued on EV/EBITDA. 

Pearl Diver Credit Company Inc.

$ 25.07

Pearl Diver Credit Company Inc.

$ 25.07

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

$ 25.07

About

About

About

About