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Goldman Sachs BDC (GSBD)
NYSE:GSBD
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Goldman Sachs BDC
(NYSE:GSBD)
Rating:71Outperform
Price Target:―
Positive Factors
Investment Activity
New investments were very strong, totaling $440 million and offering lower yields of 11.0%.
Negative Factors
Earnings Impact
The top-line was impacted by two major non-accruals in Pluralsight and Lithium.
Financial Performance
GSBD has posted net losses in 11 of the past 12 quarters, and 30 of the 38 since its IPO.
Goldman Sachs BDC (GSBD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.33B
Dividend Yield14.75%
Average Volume (3M)601.64K
Price to Earnings (P/E)26.3
Beta (1Y)0.63
Revenue Growth-28.04%
EPS Growth-69.52%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength81
IndustryAsset Management
Share Statistics
EPS (TTM)0.42
Shares Outstanding117,297,220
10 Day Avg. Volume464,991
30 Day Avg. Volume601,642
Financial Highlights & Ratios
PEG Ratio-0.97
Price to Book (P/B)<0.01
Price to Sales (P/S)0.00
P/FCF Ratio5.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.08Price Target Upside-2.29% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
Goldman Sachs BDC Business Overview & Revenue Model
Company DescriptionGoldman Sachs BDC, Inc. (GSBD) is a business development company that primarily focuses on lending to middle-market companies. As a part of the Goldman Sachs Group, it provides flexible financing solutions tailored to meet the needs of its portfolio companies. GSBD operates within the financial services sector, offering a range of investment and lending services designed to support the growth and development of small to mid-sized businesses across various industries.
How the Company Makes MoneyGoldman Sachs BDC generates revenue primarily through interest income from its portfolio of debt investments. The company invests in both secured and unsecured loans, as well as equity investments in middle-market companies. These investments typically carry higher interest rates than traditional bank loans, enabling GSBD to earn substantial interest income. Additionally, GSBD may earn fees related to the structuring, origination, and management of its investment portfolio. The company also benefits from capital gains realized through the sale of equity investments. Partnerships with Goldman Sachs Group provide strategic advantages, including access to a broad range of investment opportunities and a robust risk management framework, which contribute to GSBD's earnings.
Goldman Sachs BDC Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 7.18%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call revealed a portfolio that remains resilient despite a challenging macroeconomic environment, with a significant focus on maintaining strong credit quality and delivering shareholder returns through a revised dividend structure. However, the decrease in net asset value and portfolio yield, along with challenges in new M&A activity and some non-accrual issues, present notable concerns.Q1-2025 Updates
Positive Updates
Resilient Portfolio Composition
96% of investments are in first lien risk with minimal exposure to international supply chains, indicating strong positioning in the capital stack and asset-light portfolio companies.
Dividend Structure and Shareholder Returns
The Board enacted a revised dividend structure with a base dividend of $0.32 per share and supplemental variable distributions, showing a commitment to shareholder returns.
Successful New Investment Activities
New investment commitments of approximately $87.8 million across 14 portfolio companies, with 100% in first lien loans, reflecting strong origination capabilities.
Decrease in Non-Accrual Investments
Investments on non-accrual status decreased to 1.9% of the total investment portfolio at fair value from 2% as of December 31, 2024, indicating improved asset quality.
Improved Credit Metrics
The weighted average net debt to EBITDA of portfolio companies decreased from 6.2 times to 5.8 times, and interest coverage improved from 1.8 times to 1.9 times, demonstrating financial health.
Negative Updates
Decline in Net Asset Value
Net asset value per share decreased by 1.6% relative to the fourth quarter, largely due to special dividends and net realized and unrealized losses.
Reduced Portfolio Yield
The weighted average yield of debt and income-producing investments decreased from 11.2% to 10.8% at amortized cost, reflecting a modest tightening in portfolio yield.
Challenges in New M&A Activity
The anticipated resurgence of new M&A activity has been further delayed due to tariff-induced market volatility.
Non-Accrual Investment Challenges
NPI Engineered Technologies and ATX Network's debt positions were placed on non-accrual, indicating some ongoing asset quality challenges.
Company Guidance
During the Goldman Sachs BDC, Inc. first quarter 2025 earnings call, the company provided guidance on several key metrics. They reported a net investment income per share of $0.42 and a net asset value per share of $13.20, which marked a 1.6% decrease from the previous quarter, largely due to a $0.16 per share special dividend and net realized and unrealized losses. The Board declared a supplemental dividend of $0.05 per share and a base dividend of $0.32 per share, maintaining a special dividend of $0.16 per share. The GSBD portfolio, primarily composed of first lien loans (96.1%), demonstrated resilience with a weighted average yield of 10.8% and improved credit metrics, including a decrease in net debt to EBITDA to 5.8 times. The call also highlighted a strategic focus on service-based industries with minimal international supply chain exposure, and a continued emphasis on maintaining a competitive advantage through the Goldman Sachs investment banking franchise.Goldman Sachs BDC Financial Statement Overview
Summary
Goldman Sachs BDC demonstrates strong profitability and a solid balance sheet, notably with no debt reported. However, the company faces challenges with inconsistent revenue growth and reduced operating cash flow, impacting overall financial performance.Income Statement
Goldman Sachs BDC shows strong profitability with a high Gross Profit Margin and Net Profit Margin, indicating efficient cost management and solid earnings. However, the Revenue Growth Rate has been volatile, with a decline in the most recent year, which is a concern.80
Positive
Balance Sheet
The balance sheet is robust, with no debt reported in the latest year, leading to a favorable Debt-to-Equity Ratio. The company's equity position is strong, and the Return on Equity is impressive, reflecting efficient use of shareholder funds.85
Very Positive
Cash Flow
Operating Cash Flow is positive but significantly reduced from previous years, which raises concerns about cash generation. The Free Cash Flow Growth Rate is negative, indicating challenges in sustaining cash flow levels, although the Free Cash Flow to Net Income Ratio remains reasonable.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 78.71M | 454.91M | 56.64M | 170.09M | 146.59M | Gross Profit |
| 78.71M | 454.91M | 20.34M | 128.36M | 130.88M | EBIT |
| 68.35M | 363.38M | 139.16M | 194.07M | 177.55M | EBITDA |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 62.87M | 195.87M | 55.00M | 192.43M | 176.11M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 61.80M | 52.36M | 39.60M | 33.76M | 32.14M | Total Assets |
| 3.60B | 3.52B | 3.59B | 3.55B | 3.31B | Total Debt |
| 0.00 | 1.83B | 2.01B | 1.86B | 1.63B | Net Debt |
| -61.80M | 1.77B | 1.97B | 1.83B | 1.59B | Total Liabilities |
| 2.03B | 1.92B | 2.09B | 1.94B | 1.70B | Stockholders Equity |
| 1.57B | 1.60B | 1.50B | 1.61B | 1.62B |
| Cash Flow | Free Cash Flow | |||
| 2.46M | 300.69M | 27.44M | -29.86M | 165.78M | Operating Cash Flow |
| 2.46M | 300.69M | 27.44M | -29.86M | 165.78M | Investing Cash Flow |
| 0.00 | 0.00 | -179.42M | -179.42M | -1.69B | Financing Cash Flow |
| 7.15M | -287.99M | -21.75M | 31.69M | -143.11M |
Goldman Sachs BDC Technical Analysis
Neutral
11.34
Price Trends
10.88
Positive
11.46
Negative
11.85
Negative
Market Momentum
0.13
Negative
59.70
Neutral
81.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GSBD, the sentiment is Neutral. The current price of 11.34 is above the 20-day moving average (MA) of 11.14, above the 50-day MA of 10.88, and below the 200-day MA of 11.85, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 59.70 is Neutral, neither overbought nor oversold. The STOCH value of 81.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GSBD.
Goldman Sachs BDC Risk Analysis
Goldman Sachs BDC disclosed 78 risk factors in its most recent earnings report. Goldman Sachs 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
Goldman Sachs BDC Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.12B | 14.17 | 8.52% | 11.11% | 13.86% | -29.53% | |
73 Outperform | $941.96M | 6.65 | 17.56% | 14.07% | 46.14% | 34.91% | |
71 Outperform | $1.33B | 26.31 | 3.27% | 14.75% | -28.04% | -69.52% | |
71 Outperform | $912.15M | 10.41 | 8.86% | 9.81% | 14.33% | 25.35% | |
66 Neutral | $1.01B | 8.94 | 9.87% | 10.82% | 12.24% | -3.21% | |
65 Neutral | $1.16B | 10.86 | 8.11% | 11.98% | -3.55% | -20.43% | |
64 Neutral | $12.77B | 9.77 | 7.59% | 16985.66% | 12.31% | -7.69% |
* Financial Sector Average
Performance Comparison
GSBD
Goldman Sachs BDC
11.34
-1.91
-14.42%
CSWC
Capital Southwest
20.77
-2.49
-10.71%
NMFC
New Mountain Finance
10.68
-0.56
-4.98%
SLRC
SLR Investment Corp.
16.76
1.72
11.44%
BCSF
Bain Capital Specialty Finance
15.45
0.40
2.66%
TRIN
Trinity Capital
14.41
1.46
11.27%
Goldman Sachs BDC Corporate Events
Financial Disclosures
Goldman Sachs BDC to Announce Q1 2025 Results
Neutral
Apr 7, 2025
Goldman Sachs BDC, Inc. announced on April 7, 2025, that it will release its financial results for the first quarter ended March 31, 2025, after the market closes on May 8, 2025. The company will also host an earnings conference call on May 9, 2025, to discuss these results, providing stakeholders with insights into its financial performance.
Spark’s Take on GSBD Stock
According to Spark, TipRanks’ AI Analyst, GSBD is a Outperform.
Goldman Sachs BDC displays robust financial performance, supported by a strong balance sheet and high dividend yield. However, the stock is experiencing bearish technical momentum, and challenges in cash flow and yield reductions need addressing. The earnings call offers a cautiously optimistic outlook with strategic improvements in lending and dividend policies.
To see Spark’s full report on GSBD stock, click here.
DividendsBusiness Operations and StrategyFinancial Disclosures
Goldman Sachs BDC Announces Q4 2024 Financial Results
Neutral
Feb 27, 2025
On February 27, 2025, Goldman Sachs BDC announced its financial results for the fourth quarter and year ended December 31, 2024, reporting a net investment income per share of $0.48 and a net asset value per share decrease to $13.41. The company declared a first quarter 2025 base dividend of $0.32 per share and a special dividend of $0.16 per share, both payable in April 2025. Additionally, the board authorized future special dividends and supplemental distributions based on net investment income. Structural changes were approved, including a reduction in the base quarterly dividend and incentive fees, indicating a strategic shift to enhance shareholder returns.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.