Goldman Sachs BDC (GSBD) AI Stock Analysis

• Market Cap: $1.38B
• Dividend Yield: 16.27%
• Average Volume (3M): 631.37K
• Price to Earnings (P/E): 27.3
• Beta (1Y): 0.61
• Revenue Growth: -28.04%
• EPS Growth: -69.52%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 79
• Industry: Asset Management
• EPS (TTM): 0.42
• Shares Outstanding: 117,297,220
• 10 Day Avg. Volume: 718,452
• 30 Day Avg. Volume: 631,368
• PEG Ratio: -0.72
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -24.32
• Enterprise Value/Market Cap: 2.44
• Enterprise Value/Revenue: 3.84
• Enterprise Value/Gross Profit: 33.29
• Enterprise Value/Ebitda: 72.28
• 1Y Price Target: $11.08
• Price Target Upside: -6.10% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• 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

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 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	215.82M	192.43M	454.91M	56.64M	170.09M	146.59M
Gross Profit	101.41M	78.71M	454.91M	20.34M	128.36M	130.88M
EBITDA	98.47M	68.35M	0.00	0.00	0.00	0.00
Net Income	51.97M	62.87M	195.87M	55.00M	192.43M	176.11M
Balance Sheet
Total Assets	3.50B	3.60B	3.52B	3.59B	3.55B	3.31B
Cash, Cash Equivalents and Short-Term Investments	82.76M	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	1.96B	2.03B	1.92B	2.09B	1.94B	1.70B
Stockholders Equity	1.55B	1.57B	1.60B	1.50B	1.61B	1.62B
Cash Flow
Free Cash Flow	310.12M	2.46M	300.69M	27.44M	-29.86M	165.78M
Operating Cash Flow	310.12M	2.46M	300.69M	27.44M	-29.86M	165.78M
Investing Cash Flow	-91.31M	0.00	0.00	-179.42M	-179.42M	-1.69B
Financing Cash Flow	-98.89M	7.15M	-287.99M	-21.75M	31.69M	-143.11M

Goldman Sachs BDC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GSBD, the sentiment is Positive. The current price of 11.8 is above the 20-day moving average (MA) of 11.27, above the 50-day MA of 10.87, and above the 200-day MA of 11.26, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 77.40 is Negative, neither overbought nor oversold. The STOCH value of 81.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GSBD.

Goldman Sachs BDC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSWC	81 Outperform	$1.27B	15.83	8.52%	11.02%	13.86%	-29.53%
TRIN	75 Outperform	$931.62M	6.58	17.56%	14.16%	46.14%	34.91%
GSBD	71 Outperform	$1.38B	27.30	3.27%	16.27%	-28.04%	-69.52%
SLRC	71 Outperform	$895.79M	10.20	8.86%	9.99%	14.33%	25.35%
Sector *	67 Neutral	$16.77B	11.73	9.77%	3.75%	12.07%	-8.28%
BCSF	66 Neutral	$1.00B	8.86	9.87%	11.62%	12.24%	-3.21%
NMFC	65 Neutral	$1.16B	10.89	8.11%	11.87%	-3.55%	-20.43%

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.