Triangle Capital Corporation
) recently posted impressive second quarter results, including an
earnings surprise of 8.3%. Since then, shares and earnings momentum
for this non-diversified management investment company have been on
the rise. In addition, this Zacks #2 Rank (Buy) pays a regular
quarterly dividend that yields a stupendous 8.14%.
Impressive Second Quarter Results
On August 1, Triangle Capital reported second quarter 2012 net
investment income of 52 cents per share, outpacing the Zacks
Consensus Estimate of 48 cents. However, this was lower than the
year-ago earnings of 64 cents.
Total investment income of $16.4 million surged 33.8% from the
year-ago quarter. Meanwhile, total expenses jumped 27.8% year over
year to $7.9 million, reflecting higher interest and other
Upward Earnings Estimate Revisions
The past 30 days have seen four of eight estimates move higher for
2012, pushing the Zacks Consensus Estimate up by a couple of cents
or 1.0% to $2.06 per share. For 2013, three of eight estimates
moved north over the same time frame, helping the Zacks Consensus
Estimate advance two cents or 0.9% to $2.20.
The Zacks Consensus Estimate for 2012 is almost flat compared with
the prior-year earnings, while the expected growth rate for 2013 is
Since its IPO in 2007, Triangle Capital has been consistently
paying dividends. The company announced a dividend hike of 6.4% in
May 2012, marking the 12th dividend increase. Currently the company
pays a quarterly dividend of 50 cents per share, affirming a yield
Valuation Not So Cheap
Shares of Triangle Capital currently trade at 11.9x 12-month
forward earnings, a 6% discount to the peer group average of 12.7x.
Its price to book ratio of 1.6 is at a 43% premium to the industry
median of 1.1. The company has a trailing 12-month ROE of 13.0%,
compared with the peer group average of 9.3%.
Chart Shows Strength
The stock has been trading above its 200 and 50 days moving average
since June 2012. Furthermore, since April 2012, the stock has also
outpaced the S&P 500.
Triangle Capital is one of the strongest investment companies with
rising estimates, a solid dividend yield and reasonable valuation.
Moreover, with consecutive dividend increases, it offers attractive
Headquartered in Raleigh, North Carolina, Triangle Capital is
primarily engaged in providing mezzanine financing with equity
components to the firms located throughout the United States. The
company primarily focuses on investments in companies having annual
revenues of $10-$200 million and EBITDA of $3 million or more. As
of June 30, 2012, Triangle Capital had investments in 69 portfolio
companies with a total cost of $590.9 million. Incorporated in
October 2006, the company started trading on NYSE from February
2007. With a market capitalization of $671.5 million, Triangle
Capital competes with American Capital Ltd. (
) among others.
TRIANGLE CAP CP (TCAP): Free Stock Analysis
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