Trinity Capital Deserves To Be A BDC Favorite (Archive)

TRIN pairs strong funding momentum with rate upside and accretive NAV growth.

Trinity Capital Deserves To Be A BDC Favorite (Archive)
Photo by Giorgio Trovato / Unsplash

This 5-Minute Pitch was originally published on Seeking Alpha. It is shared here to showcase my work and track record. I also publish full 5-Minute Pitches on this site. This will be behind a paywall, accessible to Hunter Tier members.

Elevator Pitch

  • TRIN’s expanding debt and equity commitments support portfolio growth, although 91% of unfunded commitments remain subject to due diligence and investment-committee approval.
  • Record Q2 fundings were back-end weighted, positioning Trinity Capital for a fuller contribution to net investment income in the upcoming Q3 quarter.
  • TRIN has favorable interest-rate sensitivity, with materially greater earnings upside from higher rates than downside from moderate rate cuts.
  • TRIN trades near a multi-year peak P/B valuation, but its 8.54x 1-yr fwd P/E remains modestly below the broader BDC peer median.
  • Equity issuance above NAV has been accretive to per-share NAV, while the $17.70 area represents an important weekly-chart support level.

Read the full article here.

Spreadsheet Model