Barings BDC (BBDC) AI Stock Analysis

• Market Cap: $918.04M
• Dividend Yield: 13.62%
• Average Volume (3M): 517.77K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.54
• Revenue Growth: -10.40%
• EPS Growth: -11.42%
• Country: US
• Employees: 2
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.32
• Shares Outstanding: 105,158,936
• 10 Day Avg. Volume: 566,444
• 30 Day Avg. Volume: 517,770
• PEG Ratio: -0.69
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 4.84
• P/FCF Ratio: 8.28
• Enterprise Value/Market Cap: 2.68
• Enterprise Value/Revenue: 16.29
• Enterprise Value/Gross Profit: 28.11
• Enterprise Value/Ebitda: 25.34
• 1Y Price Target: $9.94
• Price Target Upside: 13.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.09
• Revenue Forecast (FY): $278.45M

• Rating: 72 Outperform
• Price Target: $10.00 ▲(14.42% Upside)

Barings BDC's overall stock score is driven by solid financial performance and attractive valuation metrics. The company's strong revenue growth, profitability, and high dividend yield are significant strengths. However, technical indicators suggest a neutral trend, and some caution is warranted due to historical financial volatility and challenges highlighted in the earnings call.

Barings BDC Business Overview & Revenue Model

Company Description

Barings 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 Money

Barings BDC generates revenue primarily through interest income from its debt investments and dividends from its equity investments. The company typically earns a spread between the interest it charges on its loans and the cost of its borrowing, which contributes significantly to its net investment income. Additionally, BBDC may receive fees for arranging and structuring investments, including upfront fees, commitment fees, and exit fees when investments are repaid. The company's revenue model is supported by its ability to identify and invest in promising middle-market companies, which can lead to capital appreciation and income generation. Strategic partnerships with financial institutions and investment firms also enhance its ability to source deals and diversify its investment portfolio, further contributing to its earnings.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	150.88M	209.10M	289.20M	219.13M	119.80M	36.97M
Gross Profit	87.41M	123.59M	289.20M	219.13M	86.79M	17.16M
EBITDA	96.99M	113.75M	214.52M	173.13M	77.69M	8.23M
Net Income	77.96M	110.29M	128.00M	4.68M	77.69M	8.18M
Balance Sheet
Total Assets	2.82B	2.70B	2.68B	2.71B	2.16B	1.68B
Cash, Cash Equivalents and Short-Term Investments	0.00	77.85M	70.53M	139.41M	84.25M	89.00M
Total Debt	0.00	1.45B	1.44B	1.45B	1.37B	944.00M
Total Liabilities	1.66B	1.51B	1.48B	1.52B	1.42B	959.23M
Stockholders Equity	1.17B	1.19B	1.20B	1.19B	741.93M	717.80M
Cash Flow
Free Cash Flow	534.00K	117.85M	98.09M	86.27M	-396.55M	-218.13M
Operating Cash Flow	534.00K	117.85M	98.09M	86.27M	-396.55M	-218.13M
Investing Cash Flow	-89.68M	4.31M	-21.14M	-120.88M	-451.63B	-262.35B
Financing Cash Flow	106.35M	-101.35M	-145.83M	-31.11M	388.32M	288.63M

Barings BDC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 8.74 is below the 20-day moving average (MA) of 8.94, below the 50-day MA of 8.88, and below the 200-day MA of 8.87, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.72 is Neutral, neither overbought nor oversold. The STOCH value of 14.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BBDC.

Barings BDC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EZPW	75 Outperform	$1.09B	13.10	11.98%	―	9.70%	26.63%
BBDC	72 Outperform	$918.04M	9.06	8.60%	13.62%	-10.40%	-11.42%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WRLD	63 Neutral	$664.22M	12.64	14.57%	―	2.31%	-27.81%
ATLC	60 Neutral	$775.40M	9.34	21.01%	―	25.29%	26.70%
OCSL	59 Neutral	$1.17B	24.22	2.30%	13.80%	-11.28%	-36.15%
GDOT	52 Neutral	$595.24M	―	-5.09%	―	23.12%	19.37%

Barings BDC Corporate Events

Barings BDC Reports Strong Q3 2025 Performance

Barings BDC, Inc. is a publicly traded investment company specializing in senior secured loans for middle-market companies across various industries, managed by Barings LLC, a global asset manager. In the third quarter of 2025, Barings BDC reported a net investment income of $33.6 million, or $0.32 per share, reflecting an increase from the previous quarter. The company also declared regular and special dividends, maintaining a focus on delivering attractive risk-adjusted returns through disciplined investment strategies. Key financial metrics included a net increase in net assets resulting from operations of $23.6 million and a slight decrease in net asset value per share to $11.10, primarily due to net unrealized depreciation. The company made significant investments and maintained a strong portfolio, deploying nearly $150 million across new and existing portfolio companies. Looking ahead, Barings BDC remains confident in its ability to deliver long-term value for shareholders, supported by its robust investment platform and strategic focus.

Barings BDC Reports Strong Q3 2025 Financial Results

On November 6, 2025, Barings BDC, Inc. reported its financial results for the third quarter of 2025, highlighting a net investment income of $33.6 million, or $0.32 per share, which covered both regular and special dividends. The company made significant investments and managed its portfolio with a disciplined approach, resulting in a net increase in net assets from operations of $23.6 million. Despite a decrease in net asset value per share from $11.18 to $11.10, the company maintained strong credit outcomes and demonstrated confidence in delivering long-term value for shareholders. During the quarter, Barings BDC deployed nearly $150 million across new and existing portfolio companies, while also managing repayments and sales, which included a notable restructuring that led to a net realized loss of $4.8 million.

The most recent analyst rating on (BBDC) stock is a Buy with a $10.75 price target. To see the full list of analyst forecasts on Barings BDC stock, see the BBDC Stock Forecast page.

Barings BDC Announces CEO Resignation and Successor

On November 6, 2025, Barings BDC announced the resignation of Eric Lloyd as CEO, effective December 31, 2025, with Thomas Q. McDonnell appointed as his successor starting January 1, 2026. McDonnell, who brings over 30 years of experience in global finance and investment management, previously held significant roles at Barings and other financial institutions. Lloyd will continue as Executive Chairman of the Board and President of Barings LLC, ensuring continuity in leadership and strategic initiatives. The transition is expected to maintain Barings BDC’s strong performance and shareholder value.

The most recent analyst rating on (BBDC) stock is a Buy with a $10.75 price target. To see the full list of analyst forecasts on Barings BDC stock, see the BBDC Stock Forecast page.

Barings BDC Announces Q4 2025 Dividend

On October 7, 2025, Barings BDC, Inc. announced a quarterly cash dividend of $0.26 per share for the fourth quarter of 2025, payable on December 10, 2025, to stockholders of record as of December 3, 2025. The company also scheduled a conference call for November 7, 2025, to discuss its third-quarter financial results, reflecting its ongoing commitment to transparency and shareholder engagement.

The most recent analyst rating on (BBDC) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Barings BDC stock, see the BBDC Stock Forecast page.

Barings BDC Issues $300 Million Notes for Flexibility

On September 15, 2025, Barings BDC, Inc. issued $300 million in 5.200% notes due 2028, as part of a Third Supplemental Indenture with U.S. Bank Trust Company. The proceeds, approximately $294.7 million after expenses, will be used to repay existing indebtedness under its senior secured credit facility, with the potential to reborrow for general corporate purposes. This strategic financial move is expected to enhance the company’s operational flexibility and investment capacity.

The most recent analyst rating on (BBDC) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Barings BDC stock, see the BBDC Stock Forecast page.

Barings BDC Announces $300M Senior Notes Issuance

On September 8, 2025, Barings BDC, Inc. announced an underwriting agreement for the issuance and sale of $300 million in senior unsecured notes due 2028, with an interest rate of 5.200%. This move is part of the company’s strategy to leverage its effective shelf registration statement, potentially enhancing its financial positioning and offering new opportunities for stakeholders.

The most recent analyst rating on (BBDC) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Barings BDC stock, see the BBDC Stock Forecast page.

Barings BDC Reports Strong Earnings Amid Market Challenges

Barings BDC’s recent earnings call painted a predominantly positive picture, with the company showcasing strong net investment income, robust portfolio performance, and successful originations. Despite some concerns about market uncertainty, high leverage levels, and a slight decline in net asset value, the overall sentiment was one of strength and strategic market positioning.

Barings BDC Reports Q2 2025 Earnings and Dividend

Barings BDC, Inc. is a publicly traded investment company that operates as a business development company, primarily investing in senior secured loans in middle-market companies across various industries. The company is managed by Barings, a global asset manager.