Barings BDC (BBDC) AI Stock Analysis

• Market Cap: $1.01B
• Dividend Yield: 11.86%
• Average Volume (3M): 325.90K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.56
• Revenue Growth: -12.90%
• EPS Growth: -9.85%
• Country: US
• Employees: 2
• Sector: Financial
• Sector Strength: 71
• Industry: Financial - Credit Services
• EPS (TTM): 0.28
• Shares Outstanding: 105,158,936
• 10 Day Avg. Volume: 371,685
• 30 Day Avg. Volume: 325,900
• PEG Ratio: -0.69
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 8.19
• P/FCF Ratio: 8.28
• Enterprise Value/Market Cap: 2.45
• Enterprise Value/Revenue: 9.89
• Enterprise Value/Gross Profit: 11.13
• Enterprise Value/Ebitda: 14.04
• 1Y Price Target: $10.00
• Price Target Upside: 4.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 70 Outperform
• Price Target: ―

Barings BDC's strong financial performance and attractive valuation are key strengths, supported by positive earnings call highlights. However, technical indicators suggest caution due to bearish trends. Nonetheless, the high dividend yield and robust earnings performance offer significant appeal to investors.

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 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 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.

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	250.78M	248.59M	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	-21.14M	-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

• Technical Analysis Sentiment: Positive
• Last Price: 9.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 9.61 is above the 20-day moving average (MA) of 9.44, above the 50-day MA of 9.25, and above the 200-day MA of 9.07, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 61.75 is Neutral, neither overbought nor oversold. The STOCH value of 65.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BBDC.

Barings BDC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATLC	74 Outperform	$900.27M	10.47	22.83%	―	19.27%	34.76%
BBDC	70 Outperform	$1.01B	10.14	8.41%	11.86%	-12.90%	-9.85%
LC	69 Neutral	$1.72B	23.39	5.50%	―	7.54%	70.26%
Sector *	67 Neutral	$17.22B	11.28	10.45%	3.94%	10.30%	1.07%
RWAY	63 Neutral	$397.66M	5.75	14.31%	15.24%	1.85%	151.90%
PRAA	62 Neutral	$596.66M	6.58	7.38%	―	18.67%	2254.86%
OCSL	59 Neutral	$1.18B	24.35	3.11%	14.78%	-11.28%	-36.15%

Barings BDC Corporate Events

Barings BDC Reports Record Income and Dividend Announcement

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.