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TriplePoint Venture Growth (TPVG)
NYSE:TPVG
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TriplePoint Venture Growth
(NYSE:TPVG)
60Neutral
Positive Factors
Credit Quality Improvement
Management was upbeat on credit with an improved macro environment, highlighted by 2024 tracking much better in portfolio company financings (up 285% this year).
Non-Accrual Reduction
Non-accruals ended the period significantly lower at $29M compared to $68M at 2Q24-end.
Negative Factors
Decline in Investment Portfolio
The investment portfolio declined 6% sequentially to ~$675M, as $50M of new fundings were more than offset by elevated prepayments along with losses across the portfolio.
TriplePoint Venture Growth (TPVG) vs. S&P 500 (SPY)
Market Cap
$297.02M
Dividend Yield18.92%
Average Volume (3M)262.05K
Price to Earnings (P/E)9.0
Beta (1Y)1.09
Revenue Growth22.53%
EPS GrowthN/A
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength81
IndustryAsset Management Services
Share Statistics
EPS (TTM)0.82
Shares Outstanding40,137,370
10 Day Avg. Volume411,509
30 Day Avg. Volume262,045
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.34
Price to Cash Flow (P/CF)1.60
P/FCF Ratio1.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.75Price Target Upside5.01% Upside
Rating ConsensusHold
Number of Analyst Covering4
TriplePoint Venture Growth Business Overview & Revenue Model
Company DescriptionTriplePoint Venture Growth (TPVG) is a business development company that offers financing solutions to venture growth stage companies in various sectors, including technology, life sciences, and other high-growth industries. TPVG specializes in providing debt financing options such as loans and credit facilities tailored to meet the unique needs of companies that are backed by venture capital firms.
How the Company Makes MoneyTPVG generates revenue primarily through interest income from its debt investments and financing solutions provided to venture growth stage companies. The company earns money by charging interest on the loans and credit facilities it provides, as well as through origination and other fees associated with its financing activities. TPVG's earnings are also influenced by its ability to maintain strong relationships with venture capital firms, which often refer high-quality investment opportunities, and by managing the credit risk of its portfolio effectively.
TriplePoint Venture Growth Financial Statement Overview
Summary
TriplePoint Venture Growth shows mixed financial health. Recent improvements in operating cash flow and debt management are positive signs. However, persistent net losses and fluctuating revenue growth highlight challenges in profitability. Continued focus on stabilizing revenue and managing costs will be essential for future growth.Income Statement
The revenue growth fluctuated significantly, with a sharp decline in 2024 after a spike in 2023. EBIT margin shows moderate profitability but net income has been negative for recent years, indicating potential challenges in managing operating costs.45
Neutral
Balance Sheet
The company shows a strong equity position with a low debt-to-equity ratio in 2024, indicating reduced leverage. However, the equity ratio is declining, suggesting increased liabilities relative to assets, which could be a potential risk if not managed.60
Neutral
Cash Flow
The operating cash flow has improved significantly, turning positive in 2024, which is a strong indicator of improved operational efficiency. Free cash flow is also positive, indicating good cash generation, although past fluctuations indicate a need for consistent cash management.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 108.65M | 61.73M | 119.42M | 83.36M | 42.00M | Gross Profit |
| 108.65M | 137.49M | 94.76M | 58.58M | 18.74M | EBIT |
| 54.55M | 73.81M | 90.32M | 76.56M | 35.31M | EBITDA |
| 0.00 | 0.00 | 0.00 | 0.00 | -12.55M | Net Income Common Stockholders |
| 32.05M | -39.82M | -46.83M | 76.56M | 35.31M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 45.90M | 153.33M | 1.00B | 51.27M | 38.22M | Total Assets |
| 763.04M | 978.83M | 1.01B | 927.67M | 683.51M | Total Debt |
| 0.00 | 607.90M | 566.98M | 467.50M | 261.11M | Net Debt |
| -45.90M | -153.33M | 515.49M | 416.23M | 222.89M | Total Liabilities |
| 417.35M | 632.52M | 594.59M | 467.50M | 283.07M | Stockholders Equity |
| 345.69M | 346.31M | 419.94M | 434.49M | 400.44M |
| Cash Flow | Free Cash Flow | |||
| 152.92M | 106.15M | -100.89M | -144.68M | 60.58M | Operating Cash Flow |
| 152.92M | 106.15M | -100.89M | -144.68M | 60.58M | Investing Cash Flow |
| 0.00 | 0.00 | -421.00M | -417.37M | -206.14M | Financing Cash Flow |
| -245.78M | 6.17M | 101.00M | 159.15M | -42.35M |
TriplePoint Venture Growth Technical Analysis
Negative
7.38
Price Trends
7.75
Negative
7.51
Negative
7.44
Negative
Market Momentum
-0.12
Positive
39.85
Neutral
19.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TPVG, the sentiment is Negative. The current price of 7.38 is below the 20-day moving average (MA) of 7.80, below the 50-day MA of 7.75, and below the 200-day MA of 7.44, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 39.85 is Neutral, neither overbought nor oversold. The STOCH value of 19.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TPVG.
TriplePoint Venture Growth Risk Analysis
TriplePoint Venture Growth disclosed 87 risk factors in its most recent earnings report. TriplePoint Venture Growth reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TriplePoint Venture Growth Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $4.94B | 9.53 | 19.26% | 5.33% | 51.80% | 12.05% | |
76 Outperform | $14.82B | 8.92 | 12.40% | 8.83% | 19.95% | -10.57% | |
73 Outperform | $3.87B | 10.60 | 9.40% | 11.38% | 16.10% | -24.30% | |
72 Outperform | $1.41B | 21.91 | 3.96% | 14.99% | -28.04% | -69.52% | |
67 Neutral | $3.15B | 11.29 | 13.71% | 8.80% | -1.49% | -29.48% | |
63 Neutral | $13.85B | 10.47 | 9.22% | 4.23% | 17.31% | -7.79% | |
60 Neutral | $297.02M | 9.03 | 9.26% | 18.92% | 22.53% | ― |
* Financial Sector Average
Performance Comparison
TPVG
TriplePoint Venture Growth
7.38
-0.67
-8.32%
GBDC
Golub Capital Bdc
14.46
0.28
1.97%
HTGC
Hercules Capital
18.01
1.62
9.88%
MAIN
Main Street Capital
54.71
12.07
28.31%
ARCC
Ares Capital
21.44
2.58
13.68%
GSBD
Goldman Sachs BDC
11.80
-1.55
-11.61%
TriplePoint Venture Growth Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -4.77% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant growth in investment activity and strong portfolio company fundraising, signaling a potential recovery in the venture capital market. However, challenges remain with unrealized losses and ongoing credit issues with some portfolio companies. Overall, the sentiment is positive due to the strong growth outlook and improving market conditions.Highlights
Increased Investment Activity
TPVG's signed term sheets increased 246% to $323 million in Q4, marking the highest level in 2.5 years. New debt commitments reached $72 million, a 75% increase compared to the prior quarter.
Strong Portfolio Company Fundraising
26 active debt portfolio companies raised $1.8 billion in 2024, a 200% increase over 2023, with notable raises over $100 million from companies like Flow Health, Cresta, and Corelight.
Portfolio Diversification and Sector Rotation
TPVG made significant strides in diversifying its portfolio, focusing on emerging sectors such as AI, aerospace and defense, health tech, and verticalized software.
Improved Market Conditions
Venture capital investment market showed signs of recovery with deal value increasing to $209 billion across more than 15,000 deals last quarter, surpassing pre-pandemic levels.
Strong Liquidity and Reduced Leverage
TPVG ended 2024 with $374 million in liquidity and reduced leverage to 1.16x from 1.76x in 2023.
Lowlights
Unrealized Losses and NAV Pressure
TPVG experienced approximately $20 million of unrealized losses in Q4, including $5 million due to foreign currency adjustments and $15 million from fair value adjustments on debt investments.
Non-Accrual and Watch List Companies
A women's fashion e-commerce company, NA-KD, was placed on non-accrual status, and a few companies remained on the watch list due to ongoing credit challenges.
Decrease in Total Investment Income
Total investment income for Q4 was $26 million, down from $33 million in the prior year period, primarily due to a lower weighted average principal amount outstanding.
Company Guidance
During the fourth quarter of 2024, TriplePoint Venture Growth BDC Corp. (TPVG) experienced a notable increase in venture growth stage investment activity, particularly in the AI sector, leading to a significant rise in their investment pipeline, which surged by 246% to $323 million, marking the highest level in 2.5 years. The company reported a net investment income of $12.6 million, or $0.32 per share, surpassing their regular quarterly dividend. New debt commitments reached a two-year high of $72 million, a 75% increase from the previous quarter, and $50 million was funded during the quarter. The company also saw improvement in its portfolio diversification and sector rotation, focusing on high-potential industries like AI, health tech, and aerospace. Despite challenges in the venture markets, TPVG maintained strong liquidity with $374 million available at year-end, positioning itself for potential portfolio growth in 2025 as market conditions improve and demand for venture debt strengthens.TriplePoint Venture Growth Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
TriplePoint Venture Growth Reports Strong Q4 2024 Results
Positive
Mar 5, 2025
TriplePoint Venture Growth BDC Corp. announced its financial results for the fourth quarter and fiscal year 2024, highlighting a net investment income of $1.40 per share for the year and a 15.8% portfolio yield on debt investments for the fourth quarter. The company declared a first quarter 2025 distribution of $0.30 per share and reported significant activity in debt commitments and investments, indicating strong market conditions and a growing pipeline. The company’s strategic focus for 2025 includes leveraging the increasing demand for debt financing from well-positioned venture growth stage companies to enhance its scale, durability, portfolio diversification, and income-generating assets.
Private Placements and FinancingBusiness Operations and Strategy
TriplePoint Venture Growth Secures $50M Note Agreement
Positive
Jan 29, 2025
On January 23, 2025, TriplePoint Venture Growth BDC Corp. announced the signing of a Note Purchase Agreement for the issuance of $50 million in senior unsecured notes due February 2028, with an interest rate of 8.11% per year. These notes are intended to be used to repay outstanding debt and are part of the company’s strategy to maintain a robust capital structure, positioning it well to seize future lending opportunities.
Executive/Board ChangesBusiness Operations and Strategy
TriplePoint Venture Growth Appoints New CFO for 2025
Positive
Dec 18, 2024
TriplePoint Venture Growth BDC Corp. has appointed Mike L. Wilhelms as Chief Financial Officer, effective January 6, 2025, succeeding the interim CFO, Matthew A. Galiani. With over 30 years of experience in financial leadership and private credit, Mr. Wilhelms is expected to bolster TriplePoint’s platform and support its long-term growth plans, enhancing its position in the venture lending industry. His appointment reflects the company’s strategic focus on strengthening its senior leadership to drive future success.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.