(BTZ) BlackRock Credit Allocation - Overview
Sector: Financial Services | Industry: Asset Management | Exchange: NYSE (USA) | Market Cap: 931m USD | Total Return: 5.3% in 12m
Avg Turnover: 2.18M
Qual. Beats: 0
Rev. Trend: 69.1%
Warnings
No concerns identified
Tailwinds
No distinct edge detected
BlackRock Credit Allocation Income Trust (BTZ) is a closed-end balanced mutual fund managed by BlackRock Advisors, LLC and BlackRock (Singapore) Limited. The fund maintains a global fixed-income portfolio primarily focused on securities with an average credit quality of BBB, representing the lower tier of investment-grade ratings. Its investment mandate includes corporate bonds, high-yield debt, bank loans, preferred securities, and derivatives.
As a closed-end fund, BTZ issues a fixed number of shares that trade on the New York Stock Exchange, often at a premium or discount to the underlying net asset value (NAV). This structure allows managers to maintain a stable capital base without the need to liquidate assets to meet daily investor redemptions, a common feature in the asset management and custody bank sector. The fund targets income generation by balancing higher-yielding credit instruments with investment-grade stability.
Investors can further evaluate these credit quality metrics and historical performance trends by reviewing the data on ValueRay. BlackRock Credit Allocation Income Trust was established in 2006 and operates out of the United States.
- Interest rate volatility impacts net asset value and cost of leverage
- Credit spread compression affects yields on investment grade and high yield bonds
- Corporate default rates influence valuations of BBB and non-investment grade holdings
- Leverage costs directly impact the funds monthly distribution coverage and yield
- Global macroeconomic stability dictates demand for diversified fixed income credit portfolios
| Net Income: 149.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA -4.40 > 1.0 |
| NWC/Revenue: -312.4% < 20% (prev -399.4%; Δ 87.00% < -1%) |
| CFO/TA 0.06 > 3% & CFO 108.4m > Net Income 149.4m |
| Net Debt (534.3m) to EBITDA (166.1m): 3.22 < 3 |
| Current Ratio: 0.06 > 1.5 & < 3 |
| Outstanding Shares: last quarter (93.3m) vs 12m ago 0.0% < -2% |
| Gross Margin: 93.56% > 18% (prev 0.92%; Δ 9.26k% > 0.5%) |
| Asset Turnover: 9.71% > 50% (prev 8.01%; Δ 1.71% > 0%) |
| Interest Coverage Ratio: 6.69 > 6 (EBITDA TTM 166.1m / Interest Expense TTM 24.8m) |
| A: -0.29 (Total Current Assets 34.5m - Total Current Liabilities 544.9m) / Total Assets 1.77b |
| B: -0.04 (Retained Earnings -78.1m / Total Assets 1.77b) |
| C: 0.10 (EBIT TTM 166.1m / Avg Total Assets 1.68b) |
| D: 1.49 (Book Value of Equity 1.06b / Total Liabilities 711.4m) |
| Altman-Z'' = 0.19 = B |
As of May 24, 2026, the stock is trading at USD 10.02 with a total of 355,049 shares traded.
Over the past week, the price has changed by +0.60%,
over one month by -1.71%,
over three months by -3.18% and
over the past year by +5.27%.
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/S = 16.7505
P/B = 0.9105
Revenue TTM = 163.4m USD
EBIT TTM = 166.1m USD
EBITDA TTM = 166.1m USD
Long Term Debt = unknown (0.0)
Short Term Debt = 544.9m USD (from shortTermDebt, last quarter)
Debt = 544.9m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 534.3m USD (calculated: Debt 544.9m - CCE 10.6m)
Enterprise Value = 1.47b USD (930.9m + Debt 544.9m - CCE 10.6m)
Interest Coverage Ratio = 6.69 (Ebit TTM 166.1m / Interest Expense TTM 24.8m)
EV/FCF = 21.66x (Enterprise Value 1.47b / FCF TTM 67.6m)
FCF Yield = 4.62% (FCF TTM 67.6m / Enterprise Value 1.47b)
FCF Margin = 41.39% (FCF TTM 67.6m / Revenue TTM 163.4m)
Net Margin = 91.45% (Net Income TTM 149.4m / Revenue TTM 163.4m)
Gross Margin = 93.56% ((Revenue TTM 163.4m - Cost of Revenue TTM 10.5m) / Revenue TTM)
Gross Margin QoQ = 90.66% (prev none%)
Tobins Q-Ratio = 0.83 (Enterprise Value 1.47b / Total Assets 1.77b)
Interest Expense / Debt = 4.55% (Interest Expense 24.8m / Debt 544.9m)
Taxrate = 21.0% (US default 21%)
NOPAT = 131.2m (EBIT 166.1m * (1 - 21.00%))
Current Ratio = 0.06 (Total Current Assets 34.5m / Total Current Liabilities 544.9m)
Debt / Equity = 0.51 (Debt 544.9m / totalStockholderEquity, last quarter 1.06b)
Debt / EBITDA = 3.22 (Net Debt 534.3m / EBITDA 166.1m)
Debt / FCF = 7.90 (Net Debt 534.3m / FCF TTM 67.6m)
Total Stockholder Equity = 1.06b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.88% (Net Income 149.4m / Total Assets 1.77b)
RoE = 13.15% (Net Income TTM 149.4m / Total Stockholder Equity 1.14b)
RoCE = 14.62% (EBIT 166.1m / Capital Employed (Equity 1.14b + L.T.Debt 0.0))
RoIC = 7.41% (NOPAT 131.2m / Invested Capital 1.77b)
WACC = 5.87% (E(930.9m)/V(1.48b) * Re(7.20%) + D(544.9m)/V(1.48b) * Rd(4.55%) * (1-Tc(0.21)))
Discount Rate = 7.20% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -44.72 | Cagr: -0.09%
[DCF] Terminal Value 73.10% ; FCFF base≈93.0m ; Y1≈81.5m ; Y5≈65.9m
[DCF] Fair Price = 5.60 (EV 1.06b - Net Debt 534.3m = Equity 522.9m / Shares 93.3m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.44 | # QB: 0
Revenue Correlation: 69.11 | Revenue CAGR: 21.64% | SUE: N/A | # QB: 0