Kayne Anderson BDC, Inc. (KBDC) AI Stock Analysis

• Market Cap: $0.00
• Dividend Yield: 12.52%
• Average Volume (3M): 139.71K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.32
• Revenue Growth: 32.53%
• EPS Growth: -12.78%
• Country: US
• Employees: N/A
• Sector: General
• Sector Strength: N/A
• Industry: Asset Management
• EPS (TTM): 0.40
• Shares Outstanding: 70,576,970
• 10 Day Avg. Volume: 148,876
• 30 Day Avg. Volume: 139,705
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: 9.15
• Enterprise Value/Gross Profit: 11.29
• Enterprise Value/Ebitda: 15.49
• 1Y Price Target: $16.38
• Price Target Upside: 7.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 63 Neutral
• Price Target: $16.00 ▲(5.47% Upside)

Kayne Anderson BDC, Inc. receives a moderate score due to strong valuation metrics and strategic investments highlighted in the earnings call. However, financial performance concerns, particularly negative cash flows and bearish technical indicators, weigh down the overall score.

Positive Factors

Dividend Coverage

KBDC offers better dividend coverage than most through leverage and portfolio rotation.

Earnings

Kayne Anderson (KBDC) reported Q3 core EPS of $0.52, above consensus forecast of $0.51.

Portfolio Performance

KBDC’s value-oriented portfolio should outperform given lower levels of PIK income, lower borrower leverage, and higher interest coverage relative to peers.

Negative Factors

Financial Estimates

NOI estimates were adjusted downwards primarily on changes to the forward curve.

Market Conditions

KBDC's low leverage position and liquid, low-spread BSL portfolio is a differentiating factor given volatile market conditions.

Net Operating Income

KBDC reported NOI of $0.40, below the $0.43 estimate, primarily on slower than anticipated net deployments.

Kayne Anderson BDC, Inc. Business Overview & Revenue Model

Company Description

Kayne Anderson BDC, Inc invests in middle market companies located in the United States with an EBITDA of USD 10 - 150 million. The fund focuses on a broad range of sectors and industries. It provides financing in the form of senior secured loans and split-lien loans to buyout transactions.

How the Company Makes Money

KBDC generates revenue primarily through interest income from its debt investments, which includes both senior secured loans and subordinated debt. The company earns interest payments on the loans it originates, which contribute significantly to its overall revenue. Additionally, KBDC may receive fees related to the origination of loans, management fees from its investment activities, and performance-based fees when its investments exceed certain return thresholds. The company may also realize gains from equity co-investments when the underlying businesses perform well and are sold or go public. Partnerships with private equity firms and other financial institutions can enhance KBDC's deal flow, providing access to a wider range of investment opportunities, which further supports its revenue generation.

Kayne Anderson BDC, Inc. Financial Statement Overview

Summary

Kayne Anderson BDC, Inc. shows strong equity and low leverage with improving net margins. However, the volatility in revenue and negative cash flows, particularly the negative free cash flow in 2024, pose liquidity risks. The company needs to address operational cash flow challenges to sustain its financial health.

Income Statement

Kayne Anderson BDC, Inc. has shown volatile revenue trends over the years, with a decline from 2023 to 2024. The gross profit margin remains high as total revenue equals gross profit, signifying efficient cost management. However, the net profit margin improved significantly in 2024, indicating better profitability despite negative EBIT, highlighting potential restructuring or non-operational income impacts.

Balance Sheet

The company maintains a strong equity position with zero debt in 2024, resulting in a healthy debt-to-equity ratio. The return on equity is positive, showcasing effective equity utilization, although it decreased compared to the previous year. The equity ratio remains strong, indicating financial stability and low leverage risk.

Cash Flow

There is a concerning decline in operating and free cash flows in 2024, turning negative despite positive financing activities. The operating cash flow to net income ratio is negative, suggesting challenges in converting income to cash. The free cash flow to net income ratio is also negative, indicating potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	227.40M	213.68M	150.32M	74.91M	19.09M
Gross Profit	184.29M	196.46M	129.45M	50.40M	16.93M
EBITDA	134.31M	132.66M	129.39M	66.06M	26.74M
Net Income	126.08M	131.94M	77.08M	45.77M	22.29M
Balance Sheet
Total Assets	2.26T	2.08B	1.42B	1.19B	586.46M
Cash, Cash Equivalents and Short-Term Investments	13.99B	22.38M	46.87M	18.37M	5.71M
Total Debt	0.00	848.13M	689.32M	571.59M	266.33M
Total Liabilities	1.10T	896.32M	740.61M	602.35M	274.50M
Stockholders Equity	1.16T	1.19B	683.06M	592.04M	311.97M
Cash Flow
Free Cash Flow	-124.97B	-544.50M	79.85M	46.11M	9.47M
Operating Cash Flow	-124.97B	-544.50M	79.85M	46.11M	9.47M
Investing Cash Flow	-22.76B	-649.53M	-189.91M	-587.88M	-568.61M
Financing Cash Flow	-5.52B	532.81M	135.60M	548.26M	561.16M

Kayne Anderson BDC, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KBDC, the sentiment is Negative. The current price of 15.17 is above the 20-day moving average (MA) of 15.13, below the 50-day MA of 15.48, and below the 200-day MA of 15.53, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 47.54 is Neutral, neither overbought nor oversold. The STOCH value of 65.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KBDC.

Kayne Anderson BDC, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARCC	73 Outperform	$15.78B	10.93	10.25%	8.58%	7.71%	-29.47%
GBDC	71 Outperform	$3.94B	10.36	9.33%	11.32%	32.19%	-13.72%
GSBD	71 Outperform	$1.31B	9.14	9.36%	15.16%	-55.16%	47.09%
NMFC	65 Neutral	$1.13B	13.93	6.18%	12.31%	39.05%	-32.62%
KBDC	63 Neutral	$0.00	8.93	10.29%	12.52%	32.53%	-12.78%
TCPC	58 Neutral	$610.56M	―	-1.48%	18.94%	-48.53%	73.29%
Sector *	55 Neutral	$6.29B	4.61	-20.95%	6.01%	10.84%	8.15%

Kayne Anderson BDC, Inc. Corporate Events

Kayne Anderson BDC Announces $200M Private Placement

On August 22, 2025, Kayne Anderson BDC, Inc. announced a conditional agreement with institutional investors for a private placement of $200 million in senior unsecured notes, expected to close around September 9, 2025. The proceeds will be used to refinance existing debt and for general corporate purposes. The company has entered into interest rate swaps to align the interest rates of its liabilities with its predominantly floating rate loan investment portfolio, designating each swap as a hedging instrument in a qualifying hedge accounting relationship.

Kayne Anderson BDC Announces Q2 2025 Financial Results

On August 11, 2025, Kayne Anderson BDC, Inc. announced its financial results for the second quarter ending June 30, 2025, and declared a third quarter dividend of $0.40 per share, payable on October 16, 2025. The company reported a net investment income of $28.7 million, or $0.40 per share, and a net asset value of $16.37 per share, reflecting a decrease from the previous quarter due to a special dividend and unrealized losses. Despite a decline in lending activity, the company expanded its private credit portfolio and maintained a strong focus on first lien loans, with non-accruals stable at 1.6% of fair value. The strategic investment into SG Credit is expected to enhance the company’s direct lending portfolio and benefit shareholders.

Kayne Anderson BDC Invests in SG Credit Partners

On July 15, 2025, Kayne Anderson BDC, Inc. announced an investment in SG Credit Partners, a national credit platform focused on the lower middle market. This strategic investment, structured as an $80 million term loan facility, a $34 million delayed draw term loan facility, and a $12 million common equity investment, aims to diversify KBDC’s investment channels and enhance its portfolio returns. The investment is expected to be immediately accretive to KBDC’s earnings in 2025, positioning the company as a significant minority shareholder in SG Credit. This move highlights KBDC’s commitment to expanding its portfolio with value-enhancing investments and aligns with the successful trend of BDCs investing in asset-based platforms.

Kayne Anderson BDC to Release Q2 2025 Results

Kayne Anderson BDC, Inc. announced that it will release its financial results for the second quarter of 2025 on August 11, 2025, after market close, with an earnings conference call scheduled for August 12, 2025. This announcement is significant for stakeholders as it provides an opportunity to review the company’s financial performance and assess its market positioning.