Barings BDC (BBDC) AI Stock Analysis

• Market Cap: $938.02M
• Dividend Yield: 13.24%
• Average Volume (3M): 594.67K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.55
• 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: 686,395
• 30 Day Avg. Volume: 594,672
• 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: 2.62
• Enterprise Value/Revenue: 16.29
• Enterprise Value/Gross Profit: 28.11
• Enterprise Value/Ebitda: 25.34
• 1Y Price Target: $9.85
• Price Target Upside: 9.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.11
• Revenue Forecast (FY): $278.10M

• Rating: 76 Outperform
• Price Target: $10.00 ▲(11.36% Upside)

Barings BDC's overall stock score is driven by strong financial performance and attractive valuation, supported by positive technical indicators. Recent corporate events further bolster its financial flexibility. However, historical volatility in cash flows and a slight decrease in net asset value present areas for caution.

Positive Factors

Financial Flexibility

The amendment of the credit agreement enhances Barings BDC's financial flexibility, allowing for greater capacity to support growth and strategic initiatives.

Leadership Transition

The leadership transition, with an experienced successor, ensures continuity and could drive strategic growth, maintaining strong performance and shareholder value.

Portfolio Origination

High portfolio origination indicates effective investment strategy and control over asset quality, supporting long-term risk-adjusted returns.

Negative Factors

Net Asset Value Decline

The decline in net asset value reflects potential challenges in asset management and could impact investor confidence if not addressed.

Market Volatility Exposure

Exposure to market volatility, affecting interest income, could pressure revenue stability and profitability in fluctuating rate environments.

Limited Share Buybacks

Limited share buybacks may signal constraints in capital allocation strategy, potentially affecting shareholder returns and market perception.

Barings BDC Business Overview & Revenue Model

Company Description

Barings BDC, Inc. (BBDC) is a business development company that focuses on providing customized debt and equity financing solutions to middle-market companies in the United States and abroad. The firm primarily invests in a diverse range of sectors, including healthcare, technology, and consumer products, offering services such as senior secured loans, mezzanine debt, and equity investments. BBDC aims to deliver attractive risk-adjusted returns to its shareholders through its strategic investment approach and extensive industry expertise.

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	70.31M	77.85M	70.53M	139.41M	84.25M	89.00M
Total Debt	1.62B	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: Positive
• Last Price: 8.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 8.98 is above the 20-day moving average (MA) of 8.70, above the 50-day MA of 8.60, and above the 200-day MA of 8.59, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 65.61 is Neutral, neither overbought nor oversold. The STOCH value of 56.27 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
BBDC	76 Outperform	$938.02M	9.26	8.60%	13.24%	-10.40%	-11.42%
EZPW	75 Outperform	$1.24B	14.98	11.98%	―	9.70%	26.63%
ATLC	73 Outperform	$885.17M	10.91	21.01%	―	25.29%	26.70%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WRLD	64 Neutral	$784.03M	14.89	14.57%	―	2.31%	-27.81%
GDOT	61 Neutral	$722.13M	―	-5.09%	―	23.12%	19.37%
OCSL	59 Neutral	$1.20B	34.64	2.30%	13.35%	22.17%	-46.78%

Barings BDC Corporate Events

Barings BDC Amends Credit Agreement with ING Capital

On November 13, 2025, Barings BDC, Inc. amended its Senior Secured Credit Agreement with ING Capital LLC, extending the revolving period and maturity date by one year each and introducing a new €85,000,000 term loan facility. This amendment potentially enhances BBDC’s financial flexibility and capacity for growth, impacting its operational strategy and stakeholder interests positively.

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.

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.

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.

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.

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.