Education
About Us
Working with TipRanks
Follow Us
Barings Bdc (BBDC)
:BBDC
Top Page
Barings BDC
(NYSE:BBDC)
Rating:70Outperform
Price Target:―
Barings BDC (BBDC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.04B
Dividend Yield11.52%
Average Volume (3M)371.00K
Price to Earnings (P/E)10.4
Beta (1Y)0.58
Revenue Growth-12.90%
EPS Growth-9.85%
CountryUS
Employees2
SectorFinancial
Sector Strength78
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.28
Shares Outstanding105,158,936
10 Day Avg. Volume413,849
30 Day Avg. Volume370,998
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.38
Enterprise Value/Revenue10.24
Enterprise Value/Gross Profit13.26
Enterprise Value/Ebitda14.47
Forecast
1Y Price Target
$10.25Price Target Upside3.54% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Barings BDC Business Overview & Revenue Model
Company DescriptionBarings BDC, Inc. (BBDC) is a specialty finance company that primarily invests in senior secured loans, first lien debt, and, to a lesser extent, second lien debt, and equity investments in middle-market companies. It operates as a business development company (BDC) and is externally managed by Barings LLC, a global financial services firm with capabilities in asset management and investment. BBDC aims to generate current income and, to a lesser extent, capital appreciation for its investors.
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:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The call highlighted strong net investment income, improved credit performance, and robust origination activity, indicating positive operational trends. However, challenges such as a modest decline in NAV, elevated leverage, and market uncertainty were also noted. The overall sentiment is balanced, acknowledging both positive achievements and existing challenges.Q2-2025 Updates
Positive Updates
Strong Net Investment Income
Net investment income for the quarter increased to $0.28 per share from $0.25 per share in the first quarter, driven by higher interest income, a one-time dividend, and elevated one-time fee income.
Improved Credit Performance
The nonaccrual rate improved to 0.5% at fair value, well below industry averages, indicating strong credit quality and effective portfolio management.
High Origination Activity
Gross originations were nearly $200 million with net originations of $32 million, reflecting robust deployment and consistent origination activity.
Diversified and Defensive Portfolio
74% of the portfolio consists of secured investments, with 71% in first lien securities. The focus on defensive, noncyclical sectors provides stability.
Supplemental Dividends Declared
The board declared $0.15 of supplemental dividends to be paid in three quarterly installments during 2025, alongside the regular dividend.
Negative Updates
Decline in Net Asset Value
Net asset value per share declined to $11.18, a modest decrease from the prior quarter, due to net realized losses and FX impacts.
Elevated Leverage
Net leverage ratio increased to 1.29x at quarter end, slightly above the long-term target range, driven by elevated origination activity.
Market Uncertainty
The economic outlook remains uncertain with delayed hiring and capital investment, impacting the overall market sentiment.
Company Guidance
During the Barings BDC, Inc. conference call for the quarter ended June 30, 2025, the company provided detailed guidance on their financial performance and strategic outlook. The call highlighted strong net investment income of $0.28 per share, an increase from $0.25 in the previous quarter, supported by robust origination activity with gross originations of nearly $200 million and net originations of $32 million. The net asset value per share was reported at $11.18, reflecting a modest decline from the prior quarter. The portfolio's weighted average yield at fair value remained at 10.1%, and the Board declared a third-quarter dividend of $0.26 per share, consistent with the previous quarter. The company emphasized its focus on senior secured financing solutions and the core middle market, with 74% of the portfolio consisting of secured investments. The nonaccrual rate improved to 50 basis points at fair value, indicating strong credit quality. Looking forward, Barings BDC expressed cautious optimism about the broader economy and anticipates increased M&A activity in the latter half of 2025, although they remain vigilant about potential false positives in activity levels.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 | 242.40M | 248.59M | 289.20M | 219.13M | 135.34M | 71.03M |
| Gross Profit | 187.13M | 123.59M | 289.20M | 219.13M | 135.34M | 71.03M |
| EBITDA | 171.41M | 113.75M | 214.52M | 173.13M | 91.98M | 50.87M |
| Net Income | 79.42M | 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 | 49.26M | 77.85M | 57.19M | 139.41M | 84.25M | 89.00M |
| Total Debt | 1.57B | 1.45B | 1.44B | 1.45B | 1.37B | 944.00M |
| Total Liabilities | 1.62B | 1.51B | 1.48B | 1.52B | 1.42B | 959.23M |
| Stockholders Equity | 1.18B | 1.19B | 1.20B | 1.19B | 741.93M | 717.80M |
Cash Flow | ||||||
| Free Cash Flow | -81.50M | 122.16M | 76.94M | 86.27M | -396.55M | -218.13M |
| Operating Cash Flow | -81.50M | 122.16M | 76.94M | 86.27M | -396.55M | -218.13M |
| Investing Cash Flow | -130.02M | 0.00 | -21.14M | -120.88M | -451.63B | -262.35B |
| Financing Cash Flow | 46.40M | -101.35M | -145.83M | -31.11M | 388.32M | 288.63M |
Barings BDC Technical Analysis
Positive
9.90
Price Trends
9.44
Positive
9.03
Positive
9.12
Positive
Market Momentum
0.12
Negative
68.98
Neutral
88.66
Negative
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 9.9 is above the 20-day moving average (MA) of 9.61, above the 50-day MA of 9.44, and above the 200-day MA of 9.12, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 68.98 is Neutral, neither overbought nor oversold. The STOCH value of 88.66 is Negative, 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 (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.01B | 11.73 | 22.83% | ― | 19.27% | 34.76% | |
70 Outperform | $1.04B | 10.44 | 8.41% | 11.52% | -12.90% | -9.85% | |
68 Neutral | $17.93B | 11.86 | 10.28% | 3.71% | 9.75% | 1.60% | |
67 Neutral | $1.97B | 26.81 | 5.50% | ― | 7.54% | 70.26% | |
65 Neutral | $667.77M | 7.36 | 7.38% | ― | 18.67% | 2254.86% | |
63 Neutral | $394.40M | 5.71 | 14.31% | 10.19% | 1.85% | 151.90% | |
59 Neutral | $1.23B | 25.44 | 3.11% | 14.21% | -11.28% | -36.15% |
* Financial Sector Average
Performance Comparison
BBDC
Barings BDC
9.90
0.93
10.37%
OCSL
Oaktree Specialty Lending
14.00
-0.98
-6.54%
PRAA
Pra Group
17.09
-4.97
-22.53%
LC
LendingClub
17.18
5.43
46.21%
ATLC
Atlanticus Holdings
66.70
33.83
102.92%
RWAY
Runway Growth Finance Corp
10.89
1.75
19.15%
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.