It hasn't been a great morning session for TriplePoint Venture Growth BDC investors, who have watched their shares sink by -2.7% to a price of $11.79. Some of you might be wondering if it's time to buy the dip. If you are considering this, make sure to check the company's fundamentals first to determine if the shares are fairly valued at today's prices.
Trades Below Its Graham Number but Has an Elevated P/E Ratio:
TriplePoint Venture Growth BDC Corp. is a business development company specializing investments in venture capital-backed companies at the growth stage investments. The company belongs to the Consumer Discretionary sector, which has an average price to earnings (P/E) ratio of 22.33 and an average price to book (P/B) ratio of 3.12. In contrast, TriplePoint Venture Growth BDC has a trailing 12 month P/E ratio of -20.0 and a P/B ratio of 1.01.
TriplePoint Venture Growth BDC's PEG ratio is 1.52, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.
The Company's Revenues Are Declining:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (k) | $40,201 | $42,002 | $83,365 | -$13,366 |
| Net Margins | 79.0% | 84.06% | 91.83% | 150.16% |
| Net Income (k) | $31,758 | $35,307 | $76,558 | -$20,070 |
| Net Interest Expense (k) | $60,519 | $73,078 | $65,456 | $89,812 |
| Earnings Per Share | $1.28 | $1.16 | $2.47 | -$0.59 |
| EPS Growth | n/a | -9.38% | 112.93% | -123.89% |
| Diluted Shares (k) | 24,844 | 30,566 | 30,936 | 35,397 |
| Free Cash Flow (k) | -$187,540 | $60,582 | -$144,679 | -$100,889 |
TriplePoint Venture Growth BDC has declining revenues and no capital expenditures, declining EPS growth, and negative and highly variable cash flows. On the other hand, the company has decent net margins with a positive growth rate working in its favor.
