BTZ Stock Analysis: BlackRock Credit Allocation | NYSE
Asset Management | NYSE, USA | Market Cap: 905m USD | 12M Return: -5% | US0925081004 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 3.46M
Qual. Beats: 0
Rev. Trend: 78.5%
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
BlackRock Credit Allocation Income Trust (NYSE: BTZ) is a closed-end balanced mutual fund launched by BlackRock, Inc. and co-managed by BlackRock Advisors, LLC and BlackRock (Singapore) Limited. The fund invests in fixed income markets globally, targeting securities with an average credit quality of BBB by Standard & Poors Corporation.
Its portfolio typically includes investment grade corporate bonds, high yield bonds, bank loans, preferred securities, convertible bonds, and derivatives. The fund was formerly known as BlackRock Preferred & Equity Advantage Trust and was formed on December 27, 2006, domiciled in the United States.
BTZ is classified within the Financials sector under the Asset Management & Custody Banks sub-industry. As a closed-end fund, it raises a fixed amount of capital through an IPO and trades on an exchange like a stock, with shares that can trade at a premium or discount to the funds underlying net asset value (NAV).
- Credit spreads widen pressuring NAV and income
- Rising rates boost leverage costs eroding distribution coverage
- High yield default rates climb weighing on portfolio valuations
| Net Income: 86.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA 5.40 > 1.0 |
| NWC/Revenue: -277.0% < 20% (prev -108.6%; Δ -168.5% < -1%) |
| CFO/TA 0.10 > 3% & CFO 170.1m > Net Income 86.1m |
| Net Debt (462.5m) to EBITDA (122.0m): 3.79 < 3 |
| Current Ratio: 0.08 > 1.5 & < 3 |
| Outstanding Shares: last quarter (93.3m) vs 12m ago 0.0% < -2% |
| Gross Margin: 93.24% > 18% (prev 91.85%; Δ 1.39% > 0.5%) |
| Asset Turnover: 8.94% > 50% (prev 7.24%; Δ 1.70% > 0%) |
| Interest Coverage Ratio: 4.91 > 6 (EBIT TTM 122.0m / Interest Expense TTM 24.8m) |
| A: -0.26 (Total Current Assets 37.7m - Total Current Liabilities 469.1m) / Total Assets 1.65b |
| B: -0.07 (Retained Earnings -114.0m / Total Assets 1.65b) |
| C: 0.07 (EBIT TTM 122.0m / Avg Total Assets 1.74b) |
| D: 1.62 (Book Value of Equity 1.02b / Total Liabilities 630.9m) |
| Altman-Z'' = 0.24 = B |
As of September 27, 2026, the stock is trading at USD 9.48 with a total of 308,760 shares traded. Over the past week, the price has changed by -1.76%, over one month by -5.32%, over three months by -4.22% and over the past year by -4.96%.
Current recommended Stop Loss: 9.30 (which is 1.9% or 1.8 ATR below the current price).
BlackRock Credit Allocation has received a consensus analysts rating of 5.00. Therefore, it is recommended to buy BTZ.
- StrongBuy: 1
- Buy: 0
- Hold: 0
- Sell: 0
- StrongSell: 0
P/E Trailing = 15.5323
P/S = 9.2619
P/B = 0.8768
Revenue TTM = 155.7m USD
EBIT TTM = 122.0m USD
EBITDA TTM = 122.0m USD
Long Term Debt = unknown (0.0)
Short Term Debt = 469.1m USD (from shortTermDebt, last quarter)
Debt = 469.1m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 462.5m USD (calculated: Debt 469.1m - CCE 6.52m)
Enterprise Value = 1.37b USD (905.2m + Debt 469.1m - CCE 6.52m)
Interest Coverage Ratio = 4.91 (Ebit TTM 122.0m / Interest Expense TTM 24.8m)
EV/FCF = 8.04x (Enterprise Value 1.37b / FCF TTM 170.1m)
FCF Yield = 12.44% (FCF TTM 170.1m / Enterprise Value 1.37b)
FCF Margin = 109.3% (FCF TTM 170.1m / Revenue TTM 155.7m)
Net Margin = 55.30% (Net Income TTM 86.1m / Revenue TTM 155.7m)
Gross Margin = 93.24% ((Revenue TTM 155.7m - Cost of Revenue TTM 10.5m) / Revenue TTM)
Gross Margin QoQ = 89.92% (prev none%)
Tobins Q-Ratio = 0.83 (Enterprise Value 1.37b / Total Assets 1.65b)
Interest Expense / Debt = 5.29% (Interest Expense 24.8m / Debt 469.1m)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 96.4m (EBIT 122.0m * (1 - 21.00%))
Current Ratio = 0.08 (Total Current Assets 37.7m / Total Current Liabilities 469.1m)
Debt / Equity = 0.46 (Debt 469.1m / totalStockholderEquity, last quarter 1.02b)
Debt / EBITDA = 3.79 (Net Debt 462.5m / EBITDA 122.0m)
Debt / FCF = 2.72 (Net Debt 462.5m / FCF TTM 170.1m)
Total Stockholder Equity = 1.04b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.94% (Net Income 86.1m / Total Assets 1.65b)
RoE = 8.26% (Net Income TTM 86.1m / Total Stockholder Equity 1.04b)
RoCE = 11.71% (EBIT 122.0m / Capital Employed (Equity 1.04b + L.T.Debt 0.0))
RoIC = 5.85% (NOPAT 96.4m / Invested Capital 1.65b)
WACC = 6.10% (E(905.2m)/V(1.37b) * Re(7.09%) + D(469.1m)/V(1.37b) * Rd(5.29%) * (1-Tc(0.21)))
Discount Rate = 7.09% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 0.0 | Cagr: 0.0%
[DCF] Terminal Value 77.97% ; FCFF base≈137.8m ; Y1≈158.0m ; Y5≈232.5m
[DCF] Fair Price = 32.53 (EV 3.50b - Net Debt 462.5m = Equity 3.04b / Shares 93.3m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.37 | # QB: 0
Revenue Correlation: 78.50 | Revenue CAGR: 18.89% | SUE: N/A | # QB: 0