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Barings BDC (BBDC)
NYSE:BBDC
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Barings BDC
(NYSE:BBDC)
73Outperform
Barings BDC (BBDC) vs. S&P 500 (SPY)
Market Cap
$1.01B
Dividend Yield10.82%
Average Volume (3M)641.39K
Price to Earnings (P/E)9.2
Beta (1Y)0.57
Revenue Growth3.82%
EPS Growth-12.74%
CountryUS
Employees2
SectorFinancial
Sector Strength82
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.04
Shares Outstanding105,408,936
10 Day Avg. Volume411,600
30 Day Avg. Volume641,390
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)N/A
Price to Sales (P/S)3.58
Price to Cash Flow (P/CF)-5.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.25Price Target Upside7.44% Upside
Rating ConsensusHold
Number of Analyst Covering2
Barings BDC Business Overview & Revenue Model
Company DescriptionBarings BDC, Inc. (NYSE: BBDC) is a publicly traded, externally managed investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. It seeks to invest primarily in senior secured loans, first lien debt, unitranche, second lien debt, subordinated debt, equity co-investments and senior secured private debt investments in private middle-market companies that operate across a wide range of industries. It specializes in mezzanine, leveraged buyouts, management buyouts, ESOPs, change of control transactions, acquisition financings, growth financing, and recapitalizations in lower middle market, mature, and later stage companies. It invests in manufacturing and distribution; business services and technology; transportation and logistics; consumer product and services. It invests in United States. It invests in companies with EBITDA of $10 million to $75 million, typically in private equity sponsor backed. Barings BDC, Inc. Barings BDC, Inc. was incorporated on October 10, 2006 and is based in Charlotte, North Carolina with an additional office in Raleigh, North Carolina.
How the Company Makes MoneyBarings BDC generates revenue primarily through interest income from its portfolio of debt investments. The company invests in middle-market businesses, providing them with necessary capital while earning interest on the loans extended. Additionally, BBDC may earn income from equity investments through dividends or capital gains. The company's earnings are also influenced by its ability to efficiently manage its portfolio and potentially benefit from market conditions that affect loan demand and interest rates. Barings BDC relies on its external manager, Barings LLC, for investment advisory services, leveraging the manager's expertise and resources to make informed investment decisions.
Barings BDC Financial Statement Overview
Summary
Barings BDC demonstrates solid financial health with strong revenue growth and profitability. The balance sheet reflects stability, though past leverage levels warrant caution. Improved cash flow metrics highlight better cash management, but historical volatility requires ongoing attention.Income Statement
Barings BDC shows a strong revenue base with substantial growth in total revenue over the years. The net profit margin has improved significantly, indicating strong profitability. However, fluctuations in EBIT suggest some volatility in operational efficiency.75
Positive
Balance Sheet
The company maintains a solid equity base, with a favorable equity ratio suggesting stability. Despite a reduction in total debt, high leverage in previous years suggests potential risk. The return on equity remains healthy, supporting shareholder value creation.70
Positive
Cash Flow
The operating cash flow has improved over the years, but historical negative cash flows indicate past cash management challenges. The free cash flow to net income ratio is favorable, suggesting effective cash conversion, but historical volatility poses a concern.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 211.26M | 289.20M | 219.13M | 135.34M | 71.03M | Gross Profit |
| 211.26M | 289.20M | 219.13M | 135.34M | 71.03M | EBIT |
| 59.75M | 214.52M | 173.13M | 91.98M | 50.87M | EBITDA |
| 0.00 | 214.52M | 173.13M | 91.98M | 50.87M | Net Income Common Stockholders |
| 110.29M | 128.00M | 4.68M | 77.69M | 8.18M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| -10.42M | 57.19M | 139.41M | 84.25M | 89.00M | Total Assets |
| 2.70B | 2.68B | 2.71B | 2.16B | 1.68B | Total Debt |
| 0.00 | 1.44B | 1.45B | 1.37B | 944.00M | Net Debt |
| -77.85M | 1.37B | 1.31B | 1.29B | 855.00M | Total Liabilities |
| 1.51B | 1.48B | 1.52B | 1.42B | 959.23M | Stockholders Equity |
| 1.19B | 1.20B | 1.19B | 741.93M | 717.80M |
| Cash Flow | Free Cash Flow | |||
| 122.16M | 76.94M | 86.27M | -396.55M | -218.13M | Operating Cash Flow |
| 122.16M | 76.94M | 86.27M | -396.55M | -218.13M | Investing Cash Flow |
| 0.00 | 0.00 | -120.88M | -451.63B | -262.35B | Financing Cash Flow |
| -101.35M | -145.83M | -31.11M | 388.32M | 288.63M |
Barings BDC Technical Analysis
Negative
9.54
Price Trends
9.74
Negative
9.54
Positive
9.35
Positive
Market Momentum
-0.05
Negative
44.82
Neutral
76.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBDC, the sentiment is Negative. The current price of 9.54 is below the 20-day moving average (MA) of 9.57, below the 50-day MA of 9.74, and above the 200-day MA of 9.35, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 44.82 is Neutral, neither overbought nor oversold. The STOCH value of 76.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BBDC.
Barings BDC Risk Analysis
Barings BDC disclosed 83 risk factors in its most recent earnings report. Barings BDC 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
Barings BDC Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $15.13B | 9.06 | 12.40% | 8.68% | 19.95% | -10.57% | |
74 Outperform | $5.02B | 9.68 | 19.26% | 5.24% | 51.80% | 12.05% | |
73 Outperform | $1.01B | 9.22 | 9.24% | 10.82% | 3.82% | -12.74% | |
72 Outperform | $1.42B | 22.09 | 3.96% | 14.86% | -28.04% | -69.52% | |
63 Neutral | $14.20B | 10.11 | 9.01% | 4.34% | 16.34% | -11.27% | |
58 Neutral | $679.77M | ― | -8.57% | 17.02% | 8.24% | -207.60% | |
58 Neutral | $5.88B | 10.05 | 8.69% | 13.34% | -16.13% | -15.88% |
* Financial Sector Average
Performance Comparison
BBDC
Barings BDC
9.54
1.26
15.22%
MAIN
Main Street Capital
56.56
13.11
30.17%
ARCC
Ares Capital
22.16
3.42
18.25%
TCPC
BlackRock TCP Capital
8.01
-0.64
-7.40%
FSK
FS KKR Capital
20.95
4.33
26.05%
GSBD
Goldman Sachs BDC
11.63
-1.43
-10.95%
Barings BDC Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -6.29% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with strong shareholder returns, portfolio stability, and high credit quality, despite regulatory uncertainties and a slight decrease in NAV. The positive aspects of the portfolio's performance and strategic dividend payouts outweigh the concerns about market uncertainty.Highlights
Strong Shareholder Returns
Total shareholder return during 2024 exceeded 24%, placing BBDC in the top quartile among publicly traded peers.
Stability and Growth in Portfolio
Net asset value per share remained stable at $11.29, with net investment income out-earning the dividend per share.
High Credit Quality
The portfolio's non-accrual rate decreased to 0.3% on a fair value basis, one of the lowest in the industry.
High Deployment Activity
BBDC deployed $298 million of capital during the quarter, reflecting one of the most active deployment quarters in recent history.
Special Dividend Declaration
The board declared a $0.15 supplemental dividend to be paid in three quarterly installments, equating to an 11% yield based on December's net asset value.
Lowlights
Regulatory and Trade Uncertainty
Uncertainty, particularly regulatory and trade uncertainties, have given private markets a pause, impacting new buyout opportunities.
Decrease in NAV
NAV per share decreased by 0.2% over the prior quarter, reflecting net realized losses on the portfolio and FX.
Uncertainty in M&A Activity
There is a cautious outlook for M&A activity in 2025, with a reduction in anticipated sales processes due to uncertainty.
Company Guidance
During the fourth quarter of 2024, Barings BDC, Inc. reported robust financial performance, highlighted by a net investment income of $0.28 per share, which outpaced the declared dividend of $0.26 per share. The net asset value per share remained stable at $11.29, showcasing the portfolio's resilience. The company achieved a total shareholder return exceeding 24% for the year, ranking in the top quartile among its peers. Barings BDC's portfolio demonstrated strong credit performance, with non-accruals at a low 0.3% on a fair value basis. The firm deployed $298 million in capital, leading to net sales and deployment of $76 million. The weighted average yield stood at 10.4%, and the leverage ratio was 1.16 times, within their target range. The board declared a supplemental dividend of $0.15 per share, to be paid in three installments in 2025, alongside the regular dividend, bringing the total yield to 11% based on December's NAV. Despite a positive economic outlook, Barings BDC remains cautious due to regulatory and trade uncertainties affecting private markets.Barings BDC Corporate Events
DividendsFinancial Disclosures
Barings BDC Reports Record Income and Dividend Announcement
Positive
Feb 20, 2025
On February 20, 2025, Barings BDC, Inc. released their financial results for the fourth quarter and full year of 2024, reporting a record net investment income and a decrease in net asset value per share from $11.32 to $11.29 due to realized losses. The company declared a quarterly cash dividend of $0.26 per share and special dividends totaling $0.15 per share, citing a strong performance in 2024 with reduced non-accrual rates and significant investments across various industries, highlighting their strategic focus and positive momentum heading into 2025.
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.