Goldman Sachs BDC (GSBD) AI Stock Analysis

• Market Cap: $1.11B
• Dividend Yield: 16.85%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.62
• Revenue Growth: -16.58%
• EPS Growth: 65.24%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.40
• Shares Outstanding: 114,113,100
• 10 Day Avg. Volume: 1,088,599
• 30 Day Avg. Volume: 1,109,184
• PEG Ratio: -0.32
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 7.21
• P/FCF Ratio: 564.73
• Enterprise Value/Market Cap: 2.62
• Enterprise Value/Revenue: 9.92
• Enterprise Value/Gross Profit: 15.98
• Enterprise Value/Ebitda: 16.68
• 1Y Price Target: $10.00
• Price Target Upside: 5.60% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.51
• Revenue Forecast (FY): $364.54M

• Rating: 71 Outperform
• Price Target: ―

Goldman Sachs BDC's strengths lie in its solid financial foundation and attractive dividend yield, appealing to long-term investors. The earnings call revealed strategic improvements but highlighted some underlying challenges. Technical indicators suggest current downward pressure, yet potential for recovery. The overall outlook is cautiously optimistic, focusing on addressing cash flow and revenue growth concerns.

Positive Factors

Strong Direct Lending Platform

The significant increase in lending activity indicates robust demand and effective execution, enhancing GSBD's market position and revenue potential.

Increase in First-Lien Positions

A higher proportion of first-lien positions strengthens GSBD's portfolio security, reducing risk and potentially improving credit quality.

Robust Balance Sheet

A strong balance sheet with no debt enhances financial stability, providing flexibility for future investments and growth opportunities.

Negative Factors

Inconsistent Revenue Growth

Volatile revenue growth can hinder long-term planning and investment, affecting GSBD's ability to consistently generate returns.

Decrease in Net Asset Value

A decrease in NAV suggests potential challenges in asset valuation and profitability, impacting investor confidence and future capital raising.

Reduced Operating Cash Flow

Reduced cash flow limits GSBD's ability to reinvest in growth opportunities and meet financial obligations, posing a risk to long-term sustainability.

Goldman Sachs BDC Business Overview & Revenue Model

Company Description

Goldman Sachs BDC, Inc. is a business development company specializing in middle market and mezzanine investment in private companies. It seeks to make capital appreciation through direct originations of secured debt, senior secured debt, junior secured debt, including first lien, first lien/last-out unitranche and second lien debt, unsecured debt, including mezzanine debt and, to a lesser extent, investments in equities. The fund primarily invests in United States. It seeks to invest between $10 million and $75 million in companies with EBITDA between $5 million and $75 million annually.

How the Company Makes Money

Goldman 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 Financial Statement Overview

Summary

Goldman Sachs BDC demonstrates strong profitability and a robust balance sheet, with notable strengths in equity and no recent debt. However, inconsistent revenue growth and reduced operating cash flow highlight potential challenges.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	291.45M	192.43M	454.91M	136.10M	229.08M	186.49M
Gross Profit	180.94M	78.71M	454.91M	56.64M	170.09M	146.59M
EBITDA	173.41M	68.35M	0.00	59.70M	194.07M	177.55M
Net Income	133.09M	62.87M	195.87M	55.00M	192.43M	176.11M
Balance Sheet
Total Assets	3.39B	3.60B	3.52B	3.59B	3.55B	3.31B
Cash, Cash Equivalents and Short-Term Investments	115.18M	61.80M	52.36M	39.60M	33.76M	32.14M
Total Debt	0.00	1.93B	1.83B	2.01B	1.86B	1.63B
Total Liabilities	1.93B	2.03B	1.92B	2.09B	1.94B	1.70B
Stockholders Equity	1.45B	1.57B	1.60B	1.50B	1.61B	1.62B
Cash Flow
Free Cash Flow	158.46M	201.06M	186.98M	169.20M	149.56M	246.21M
Operating Cash Flow	158.46M	201.06M	186.98M	169.20M	149.56M	246.21M
Investing Cash Flow	210.22M	-198.60M	113.71M	-141.76M	-179.42M	-80.42M
Financing Cash Flow	-306.46M	7.15M	-287.99M	-21.75M	31.69M	-143.11M

Goldman Sachs BDC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.47
• 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 GSBD, the sentiment is Negative. The current price of 9.47 is below the 20-day moving average (MA) of 9.81, below the 50-day MA of 10.06, and below the 200-day MA of 10.45, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 35.27 is Neutral, neither overbought nor oversold. The STOCH value of 13.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GSBD.

Goldman Sachs BDC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRIN	74 Outperform	$1.10B	6.64	16.18%	13.96%	33.44%	25.22%
GSBD	71 Outperform	$1.11B	8.50	8.75%	16.85%	-16.58%	65.24%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CGBD	67 Neutral	$866.09M	10.32	7.03%	14.19%	-8.23%	-35.72%
NMFC	66 Neutral	$972.76M	14.45	5.43%	13.40%	36.15%	-38.59%
CSWC	65 Neutral	$1.20B	13.39	9.80%	11.24%	25.28%	-1.69%
BCSF	63 Neutral	$901.02M	9.66	8.18%	13.10%	-26.08%	-27.65%

Goldman Sachs BDC Corporate Events

Goldman Sachs BDC to Announce Q1 2025 Results

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.

Goldman Sachs BDC Announces Q4 2024 Financial Results

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.