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Goldman Sachs BDC (GSBD)
NYSE:GSBD
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Goldman Sachs BDC (GSBD) AI Stock Analysis

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GSBD

Goldman Sachs BDC

(NYSE:GSBD)

Rating:71Outperform
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 (GSBD) vs. SPDR S&P 500 ETF (SPY)

Goldman Sachs BDC Business Overview & Revenue Model

Company DescriptionGoldman 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 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:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong M&A market performance and record new investment commitments, alongside a reduction in nonaccrual investments. However, challenges included a decrease in net asset value and total investment income, as well as ongoing market volatility. Despite these challenges, the strong investment activity and strategic positioning indicate a positive outlook.
Q2-2025 Updates
Positive Updates
Strong M&A Market Performance
Total M&A dollar volumes in the first half of the year were up 29% year-over-year, indicating resilience and adaptability in the market despite policy volatility.
Record New Investment Commitments
New investment commitments totaled approximately $247.9 million across 15 portfolio companies, marking the highest level since Q3 2024.
Reduction in Nonaccrual Status Investments
Investments on nonaccrual status decreased to 1.6% at fair value from 1.9% as of the previous quarter.
Successful Stock Repurchase
Repurchased over 1 million shares for $12.1 million, which was NAV accretive.
Negative Updates
Decrease in Net Asset Value
Net asset value per share decreased by 1.4% relative to the first quarter, largely due to a $0.16 per share special dividend.
Decline in Total Investment Income
Total investment income for Q2 2025 was $91 million, down from $96.9 million in the previous quarter.
Continued Market Volatility
Uncertainty in tariff-sensitive industries and policy volatility impacted the market environment, although the M&A market remained resilient.
Addition of New Nonaccrual Investment
Streamland Media was placed on nonaccrual status due to financial underperformance.
Company Guidance
During the Goldman Sachs BDC, Inc. second-quarter 2025 earnings call, several key metrics were discussed. The company's total portfolio investments at fair value and commitments reached $3.8 billion, with outstanding debt of $1.8 billion and net assets totaling $1.5 billion, resulting in a net debt-to-equity ratio of 1.12x. Net investment income per share was reported at $0.38, while the net asset value per share stood at $13.02, reflecting a 1.4% decrease from the previous quarter, primarily due to a $0.16 per share special dividend. The weighted average yield of debt and income-producing investments was 10.7%, with net debt to EBITDA remaining stable at 5.8x. The company declared a second-quarter supplemental dividend of $0.03 per share, and the Board approved a third-quarter base dividend of $0.32 per share alongside a special dividend of $0.16 per share. Notably, 100% of originations during the quarter were in first lien senior secured loans, with the weighted average spread of new portfolio companies at approximately 500 basis points over SOFR.

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
80
Positive
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
85
Very Positive
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue247.21M192.43M454.91M56.64M386.53M146.59M
Gross Profit144.97M78.71M454.91M20.34M344.80M130.88M
EBITDA216.16M68.35M0.00137.75M194.07M222.95M
Net Income150.63M62.87M195.87M55.00M192.43M176.11M
Balance Sheet
Total Assets3.41B3.60B3.52B3.59B3.55B3.31B
Cash, Cash Equivalents and Short-Term Investments108.04M61.80M52.36M39.60M33.76M32.14M
Total Debt1.80B1.93B1.83B2.01B1.86B1.63B
Total Liabilities1.90B2.03B1.92B2.09B1.94B1.70B
Stockholders Equity1.51B1.57B1.60B1.50B1.61B1.62B
Cash Flow
Free Cash Flow335.99M2.46M300.69M27.44M-29.86M165.78M
Operating Cash Flow335.99M2.46M300.69M27.44M-29.86M165.78M
Investing Cash Flow291.05M0.00113.71M-179.42M-179.42M-1.69B
Financing Cash Flow-379.15M7.15M-287.99M-21.75M31.69M-143.11M

Goldman Sachs BDC Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.39
Price Trends
50DMA
11.41
Negative
100DMA
10.91
Positive
200DMA
11.17
Positive
Market Momentum
MACD
-0.02
Negative
RSI
52.16
Neutral
STOCH
65.41
Neutral
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 11.39 is above the 20-day moving average (MA) of 11.24, below the 50-day MA of 11.41, and above the 200-day MA of 11.17, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 52.16 is Neutral, neither overbought nor oversold. The STOCH value of 65.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$1.26B14.079.74%10.14%12.82%-5.37%
74
Outperform
$1.12B7.0717.31%12.73%31.43%30.85%
71
Outperform
$1.30B9.119.36%15.34%-55.16%47.09%
71
Outperform
$894.70M9.968.95%9.98%5.87%-12.64%
68
Neutral
$17.84B12.0310.32%3.73%9.70%0.76%
66
Neutral
$1.01B9.269.42%11.56%-3.29%-16.86%
65
Neutral
$1.11B13.776.18%12.52%39.05%-32.62%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GSBD
Goldman Sachs BDC
11.39
-0.66
-5.48%
CSWC
Capital Southwest
22.65
0.81
3.71%
NMFC
New Mountain Finance
10.46
-0.44
-4.04%
SLRC
SLR Investment Corp.
16.44
2.21
15.53%
BCSF
Bain Capital Specialty Finance
15.57
0.36
2.37%
TRIN
Trinity Capital
16.03
3.85
31.61%

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
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.Date of analysis: Apr 22, 2025