Barings BDC (BBDC)
NYSE:BBDC
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Barings BDC
(NYSE:BBDC)
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Rating:64Neutral
Price Target:
$9.50
▲(6.26% Upside)
Action:Reiterated
Date:05/10/26
The score is driven primarily by solid underlying profitability and improved recent cash generation, tempered by leveraged balance sheet risk and historically choppy revenue/cash-flow consistency. The latest earnings call was broadly constructive with strong liquidity and low non-accruals, while technicals look neutral. Valuation support comes mainly from the very high dividend yield, though P/E is not usable as provided.
Positive Factors
High Portfolio Yield
A 10.1% portfolio yield provides a durable income cushion that supports net investment income and dividend coverage across several months. High underlying yields help preserve distributable cash even if deployment pauses, sustaining the BDC’s core earnings model and margin profile through cycles.
Negative Factors
Elevated Leverage
Consistently elevated leverage (~1.2x) narrows the margin for error if credit stress or funding costs rise. Higher debt amplifies downside to NAV and earnings during shocks, limits tactical flexibility like opportunistic buying, and increases sensitivity of NII to interest-rate and spread moves over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High Portfolio Yield
A 10.1% portfolio yield provides a durable income cushion that supports net investment income and dividend coverage across several months. High underlying yields help preserve distributable cash even if deployment pauses, sustaining the BDC’s core earnings model and margin profile through cycles.
Read all positive factors
Barings BDC (BBDC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$900.48M
Dividend Yield13.52%
Average Volume (3M)656.54K
Price to Earnings (P/E)10.8
Beta (1Y)0.61
Revenue Growth-8.87%
EPS Growth-9.16%
CountryUS
Employees2
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.85
Shares Outstanding104,706,890
10 Day Avg. Volume655,538
30 Day Avg. Volume656,541
Financial Highlights & Ratios
PEG Ratio-1.41
Price to Book (P/B)0.83
Price to Sales (P/S)3.88
P/FCF Ratio6.01
Enterprise Value/Market Cap2.46
Enterprise Value/Revenue10.14
Enterprise Value/Gross Profit14.96
Enterprise Value/Ebitda16.60
Forecast
1Y Price Target
$9.63Price Target Upside7.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1
Revenue Forecast (FY)$248.28M
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 lo...
How the Company Makes Money
Barings BDC makes money primarily from investment income generated by its portfolio of loans and other investments in middle-market companies. The core revenue stream is interest income earned on debt investments (commonly including floating-rate ...
Barings BDC Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call conveys a largely positive and constructive tone: the company demonstrated resilience with strong portfolio yields (10.1%), a stable dividend ($0.26), conservative leverage (1.17x), ample liquidity (> $600M), low non-accruals relative to peers, and progress on winding down legacy Sierra assets (CSA up ≈ $5.3M and $16.4M returned). Headline negatives were modest: a small NAV decline (-0.6%), NII decline (-7.4% QoQ), $10.8M of realized losses, and three smaller non-accruals. Management emphasized disciplined underwriting, portfolio rotation, and balance sheet strength to mitigate industry headwinds. Overall, highlights materially outweigh the lowlights and the company appears well positioned to manage near-term volatility.Positive Updates
Stable Quarterly Dividend and Attractive Yield
Board declared Q2 dividend of $0.26 per share, unchanged from prior quarter; annualized dividend equals a ~9.4% yield on NAV of $11.02.
Negative Updates
Modest Decline in Net Asset Value
NAV per share decreased to $11.02 from $11.09 at year-end 2025, a sequential decline of ~0.6%, primarily driven by a write-down in a legacy MVC asset and net realized losses.
Read all updates
Q1-2026 Updates
Positive
Negative
Stable Quarterly Dividend and Attractive Yield
Board declared Q2 dividend of $0.26 per share, unchanged from prior quarter; annualized dividend equals a ~9.4% yield on NAV of $11.02.
Read all positive updates
Company Guidance
Management’s guidance emphasized steady, through‑the‑cycle positioning backed by concrete metrics: Q1 net deployment was slightly negative (originations $109M vs repayments $126M; net repayments ≈$17M), NAV $11.02 (down from $11.09, -0.6%), NII $0.25/sh (vs $0.27 prior year) which under‑earned the $0.26 quarterly dividend by $0.01 but with spillover income ≈$0.79/sh; portfolio yield at fair value 10.1%, weighted interest coverage 2.6x, 75% secured / ~70% first‑lien, software exposure ~13% (14% prior; industry ~20%), risk ratings 4–5 = 6% (vs 7% prior), non‑accruals ex‑Sierra 0.6% FMV (inclusive ~1% FMV, ~2% at cost) with three additions this quarter; balance sheet and liquidity metrics include net leverage 1.17x (target 0.9–1.25x), ~80% of debt unsecured, cash ≈$95M, >$530M available on an $825M facility (> $600M total dry powder), interest expense down ~10%; Sierra CSA value rose $60.5M→$65.8M (+$5.3M), Sierra JV returned $16.4M and remaining Sierra FV ~$18M (7 issuers) with ~ $65M potentially redeployable on CSA termination — the Board declared a $0.26 Q2 dividend (annualized ~9.4% on NAV) and approved a 30M share repurchase program as management stressed disciplined underwriting, optimizing asset‑level yields, opportunistic middle‑market deployment, and preparation for increased manager dispersion and cautious M&A activity.Barings BDC Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
58
Neutral
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 218.78M | 248.84M | 209.10M | 289.20M | 219.13M | 119.80M |
| Gross Profit | 148.34M | 184.14M | 123.59M | 289.20M | 219.13M | 86.79M |
| EBITDA | 133.66M | 190.88M | 113.75M | 214.52M | 173.13M | 77.69M |
| Net Income | 89.34M | 101.92M | 110.29M | 128.00M | 4.68M | 77.69M |
Balance Sheet | ||||||
| Total Assets | 2.60B | 2.64B | 2.70B | 2.68B | 2.71B | 2.16B |
| Cash, Cash Equivalents and Short-Term Investments | 95.68M | 66.78M | 77.85M | 70.53M | 139.41M | 84.25M |
| Total Debt | 1.41B | 1.43B | 1.45B | 1.44B | 1.45B | 1.37B |
| Total Liabilities | 1.45B | 1.48B | 1.51B | 1.48B | 1.52B | 1.42B |
| Stockholders Equity | 1.15B | 1.16B | 1.19B | 1.20B | 1.19B | 741.93M |
Cash Flow | ||||||
| Free Cash Flow | 163.82M | 160.54M | 117.85M | 76.94M | 86.27M | -396.55M |
| Operating Cash Flow | 163.82M | 160.54M | 117.85M | 76.94M | 86.27M | -396.55M |
| Investing Cash Flow | 72.44M | 0.00 | 4.31M | -21.14M | -120.88M | -451.63B |
| Financing Cash Flow | -241.19M | -185.10M | -101.35M | -145.83M | -31.11M | 388.32M |
Barings BDC Technical Analysis
Positive
8.94
Price Trends
8.44
Positive
8.58
Positive
8.55
Positive
Market Momentum
0.11
Negative
67.72
Neutral
90.02
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 8.94 is above the 20-day moving average (MA) of 8.37, above the 50-day MA of 8.44, and above the 200-day MA of 8.55, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 67.72 is Neutral, neither overbought nor oversold. The STOCH value of 90.02 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.03B | 7.97 | 13.94% | ― | 22.81% | 47.41% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $715.87M | 2.91 | -7.74% | ― | 18.96% | -1025.15% | |
66 Neutral | $1.17B | 4.49 | 21.30% | ― | 68.59% | 30.27% | |
64 Neutral | $900.48M | 10.78 | 5.96% | 13.52% | -8.87% | -9.16% | |
59 Neutral | $756.18M | 19.38 | 6.37% | ― | 3.70% | ― | |
58 Neutral | $1.07B | -13.17 | 3.45% | 13.37% | 25.84% | 338.26% |
* Financial Sector Average
BBDC
Barings BDC
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Barings BDC Corporate Events
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsFinancial DisclosuresShareholder Meetings
Barings BDC Stockholders Reelect Directors, Affirm Governance Stability
Positive
May 7, 2026
At its May 7, 2026 annual meeting, Barings BDC stockholders elected three Class II directors—Steve Byers, Valerie Lancaster-Beal, and John A. Switzer—to new three-year terms ending at the 2029 meeting, reinforcing continuity in the com...
Business Operations and StrategyDividendsFinancial Disclosures
Barings BDC Announces Strong Q4 and 2025 Results
Positive
Feb 19, 2026
On February 19, 2026, Barings BDC reported its fourth-quarter and full-year 2025 results, posting Q4 net investment income of $28.0 million, or $0.27 per share, and a full-year total of $117.8 million, or $1.12 per share, both exceeding regular di...
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.