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Barings Bdc (BBDC)
:BBDC
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Barings BDC
(NYSE:BBDC)
Rating:70Outperform
Price Target:―
Barings BDC (BBDC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$957.86M
Dividend Yield13.63%
Average Volume (3M)451.53K
Price to Earnings (P/E)9.7
Beta (1Y)0.54
Revenue Growth3.82%
EPS Growth-12.74%
CountryUS
Employees2
SectorFinancial
Sector Strength78
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.25
Shares Outstanding105,258,940
10 Day Avg. Volume383,363
30 Day Avg. Volume451,533
Financial Highlights & Ratios
PEG Ratio-1.86
Price to Book (P/B)0.70
Price to Sales (P/S)0.00
P/FCF Ratio9.72
Enterprise Value/Market Cap2.24
Enterprise Value/Revenue1.95
Enterprise Value/Gross Profit9.64
Enterprise Value/Ebitda2.61
Forecast
1Y Price Target
$9.67Price Target Upside6.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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 Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 8.20%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with strong financial and portfolio performance, including significant origination activity and a strategic move to terminate the Credit Support Agreement. However, challenges such as a slight decline in yield, macroeconomic uncertainties affecting decision-making, and expected reduction in transaction activity were also highlighted.Q1-2025 Updates
Positive Updates
Strong Origination Activity
Net originations of more than $100 million during the first quarter, supported by a benign credit environment and a focus on top of the capital structure investments.
Termination of Credit Support Agreement
Board accepted a proposal to terminate the Credit Support Agreement related to the MVC capital transaction for $23 million, allowing capital to be rotated into income-producing investments.
Solid Financial Performance
Net asset value per share was $11.29, unchanged from the prior quarter, and net investment income per share was $0.25.
Strong Portfolio Performance
Non-accrual rate of 60 basis points at fair value, well below industry averages, indicating strong credit performance.
Dividend Consistency
Second quarter dividend of $0.26 per share declared, along with a $0.15 supplemental dividend, equating to an 11% yield based on March's net asset value.
Negative Updates
Yield Decline
Weighted average yield at fair value declined to 10.1% from 10.4% due to reductions in reference rates and re-pricing activities.
Macroeconomic Uncertainty
Management teams are experiencing a freeze on decision-making due to tariffs and trade uncertainties, affecting hiring and capital investments.
Reduction in Transaction Activity
Anticipated reduction in transaction activity during the second quarter compared to strong deployment experience in early 2025.
Company Guidance
During the call, Barings BDC Inc. provided detailed guidance on its financial performance and strategic initiatives for the first quarter of fiscal year 2025. The company reported net originations exceeding $100 million and a net asset value per share of $11.29, consistent with the previous quarter. Net investment income was $0.25 per share, and the board declared a second quarter dividend of $0.26 per share, along with a special dividend of $0.05, resulting in an 11% distribution yield based on March's net asset value. The portfolio's weighted average yield at fair value was 10.1%, down slightly from the previous quarter, while non-accruals stood at 0.6% at fair value. The company also highlighted the termination of the Credit Support Agreement related to the MVC Capital transaction, with a $23 million payment to be used for income-producing investments, enhancing core earnings power. The company emphasized its focus on middle market credit and defensive sectors, with 74% of its portfolio in secured investments, 71% of which are first lien securities, and maintaining a strong interest coverage ratio of 2.4 times. Additionally, Barings BDC Inc. discussed its strategic investments, including Eclipse Business Capital and Recade Holdings, and its commitment to optimizing the portfolio by rotating assets into Barings-originated investments.Barings BDC Financial Statement Overview
Summary
Barings BDC shows strong revenue growth and profitability. The balance sheet reflects stability with a solid equity base, though historical leverage raises caution. Improved cash flow metrics highlight better management, but past volatility needs 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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 250.78M | 123.59M | 289.20M | 219.13M | 135.34M | 71.03M |
| Gross Profit | 222.87M | 123.59M | 289.20M | 219.13M | 135.34M | 71.03M |
| EBITDA | 176.68M | 113.75M | 214.52M | 173.13M | 91.98M | 50.87M |
| Net Income | 98.86M | 110.29M | 128.00M | 4.68M | 77.69M | 8.18M |
Balance Sheet | ||||||
| Total Assets | 2.79B | 2.70B | 2.68B | 2.71B | 2.16B | 1.68B |
| Cash, Cash Equivalents and Short-Term Investments | 93.36M | 77.85M | 57.19M | 139.41M | 84.25M | 89.00M |
| Total Debt | 1.52B | 1.45B | 1.44B | 1.45B | 1.37B | 944.00M |
| Total Liabilities | 1.60B | 1.51B | 1.48B | 1.52B | 1.42B | 959.23M |
| Stockholders Equity | 1.19B | 1.19B | 1.20B | 1.19B | 741.93M | 717.80M |
Cash Flow | ||||||
| Free Cash Flow | 11.97M | 122.16M | 76.94M | 86.27M | -396.55M | -218.13M |
| Operating Cash Flow | 11.97M | 122.16M | 76.94M | 86.27M | -396.55M | -218.13M |
| Investing Cash Flow | 97.55M | 0.00 | 0.00 | -120.88M | -451.63B | -262.35B |
| Financing Cash Flow | -73.02M | -101.35M | -145.83M | -31.11M | 388.32M | 288.63M |
Barings BDC Technical Analysis
Positive
9.10
Price Trends
8.74
Positive
8.97
Positive
9.00
Positive
Market Momentum
0.08
Positive
57.24
Neutral
71.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBDC, the sentiment is Positive. The current price of 9.1 is above the 20-day moving average (MA) of 9.02, above the 50-day MA of 8.74, and above the 200-day MA of 9.00, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 57.24 is Neutral, neither overbought nor oversold. The STOCH value of 71.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $810.16M | 10.37 | 22.68% | ― | 15.21% | 20.25% | |
70 Outperform | $957.86M | 9.72 | 8.24% | 13.63% | 3.82% | -12.74% | |
63 Neutral | $395.51M | 6.35 | 12.28% | 14.97% | -2.83% | 75.00% | |
60 Neutral | C$14.55B | 5.45 | 20.17% | 6.14% | 26.88% | -38.18% | |
59 Neutral | $1.19B | 105.44 | 0.60% | 12.39% | -37.81% | -90.29% | |
58 Neutral | $598.45M | 8.43 | 6.03% | ― | 23.90% | ― | |
57 Neutral | $1.37B | 26.92 | 3.86% | ― | 5.72% | 31.82% |
* Financial Sector Average
Performance Comparison
BBDC
Barings BDC
9.10
0.44
5.08%
OCSL
Oaktree Specialty Lending
13.56
-2.86
-17.42%
PRAA
Pra Group
15.09
-4.33
-22.30%
LC
LendingClub
11.97
3.63
43.53%
ATLC
Atlanticus Holdings
53.56
25.04
87.80%
RWAY
Runway Growth Finance Corp
10.59
0.53
5.27%
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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.