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Kayne Anderson BDC, Inc. (KBDC)
NYSE:KBDC
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Kayne Anderson BDC, Inc.
(NYSE:KBDC)
Rating:66Neutral
Price Target:―
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. (KBDC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
N/A
Dividend Yield11.9%
Average Volume (3M)131.61K
Price to Earnings (P/E)9.0
Beta (1Y)0.30
Revenue Growth42.15%
EPS Growth5.37%
CountryUS
EmployeesN/A
SectorGeneral
Sector StrengthN/A
IndustryAsset Management
Share Statistics
EPS (TTM)0.40
Shares Outstanding70,883,330
10 Day Avg. Volume148,637
30 Day Avg. Volume131,612
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/Revenue1.57
Enterprise Value/Gross Profit7.41
Enterprise Value/Ebitda1.99
Forecast
1Y Price Target
$16.50Price Target Upside3.38% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Kayne Anderson BDC, Inc. Business Overview & Revenue Model
Company DescriptionKayne Anderson BDC, Inc. (KBDC) is a business development company that primarily focuses on providing customized debt and equity financing solutions to middle-market companies across various industries. The company aims to support businesses that require capital to grow, restructure, or acquire other companies. KBDC operates within the financial services sector and seeks to deliver attractive risk-adjusted returns to its shareholders through strategic investments.
How the Company Makes MoneyKayne Anderson BDC, Inc. generates its revenue primarily through the interest and fees earned on its debt investments. The company invests in senior secured loans, unsecured debt, and equity investments in middle-market companies. KBDC's income is largely derived from the interest payments on these loans, as well as origination and commitment fees. Additionally, the company may earn capital gains from the sale of equity investments. KBDC's earnings are influenced by factors such as interest rate fluctuations, credit risk management, and the overall performance of its investment portfolio. The company may also form strategic partnerships with financial institutions or other investment firms to enhance its investment opportunities and maximize returns.
Kayne Anderson BDC, Inc. Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 2.84%|
Next Earnings Date:Aug 11, 2025
Earnings Call Sentiment Positive
The call highlighted strong performance in the first quarter with record deployment and substantial dividends. The portfolio remains robust with minimal non-accrual issues and strong origination pipelines. However, challenges include the expiration of fee waivers impacting income and some unrealized losses. Despite these, the overall outlook remains positive with strategic plans to increase leverage and continue growth.Q1-2025 Updates
Positive Updates
Strong First Quarter Deployment
The first quarter of 2025 marked the strongest deployment since inception for KBDC, with $340 million in total commitments across 16 businesses, a 113% increase from the first quarter of 2024.
Record Dividends
Distributed a $0.40 per share regular dividend and a $0.10 per share special dividend, with an estimated spillover of net investment income of $0.22 per share.
High-Quality Portfolio Composition
KBDC's portfolio includes 116 portfolio companies with a fair market value of $2.2 billion and a weighted average yield of approximately 10.4%.
Low Non-Accrual Rate
Only 1.6% of total debt investments at fair value are non-accrual, represented by only four positions out of 116.
Strong Origination Pipeline
Closed or in the process of closing an additional $150 million in funding since March 31, 2025, indicating a strong start to the year.
Increased Debt Utilization
Increased credit facility borrowings and amended credit facilities to extend maturity dates, increase capacity, and decrease interest rates.
Negative Updates
Expiration of Fee Waivers
The net investment income decreased from the prior quarter due to the expiration of the incentive management fee waiver.
Unrealized Losses
Faced net unrealized losses of $6.5 million, primarily due to negative fair value changes in certain investments.
Decreased Investment Income
Total investment income decreased from the previous quarter, driven by a reduction in SOFR and placing Siegel Egg on non-accrual status.
Company Guidance
During Kayne Anderson BDC Inc.'s first quarter 2025 earnings call, the company reported strong financial and investment activity metrics. They achieved a net investment income of $0.40 and a net income of $0.31 per share, while distributing a regular dividend of $0.40 per share and a special dividend of $0.10 per share. The company reported total commitments of $340 million, with $264 million funded, marking a 113% increase in commitments compared to the first quarter of 2024. Their net funded deployment stood at $181 million, boosting their debt-to-equity ratio to 0.86 times. The diverse portfolio consists of 116 companies valued at $2.2 billion in fair market funded investments, with a weighted average yield of approximately 10.4%. KBDC plans to reach a target debt-to-equity ratio of 1 to 1.25 times within the next two quarters and continues to focus on high-quality middle market loans with a spread of approximately 550 basis points over SOFR.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 cash flows, particularly the negative free cash flow in 2024, poses 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.65
Positive
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.75
Positive
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.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 172.47M | 122.29M | 150.32M | 74.91M | 19.09M |
| Gross Profit | 141.94M | 122.29M | 129.45M | 74.91M | 16.93M |
| EBITDA | 126.45M | 132.66M | 129.39M | 93.49M | 0.00 |
| Net Income | 132.34M | 131.94M | 77.08M | 45.77M | 22.29M |
Balance Sheet | |||||
| Total Assets | 2.23B | 2.08B | 1.42B | 107.94M | 586.46M |
| Cash, Cash Equivalents and Short-Term Investments | 17.36M | 22.38M | 46.87M | 18.37M | 5.71M |
| Total Debt | 0.00 | 848.13M | 319.00K | 347.00K | 148.00K |
| Total Liabilities | 1.05B | 896.32M | 740.61M | 36.00K | 19.00K |
| Stockholders Equity | 1.18B | 1.19B | 683.06M | 1.19B | 586.46M |
Cash Flow | |||||
| Free Cash Flow | -127.62B | -544.50M | 79.85M | 46.11M | 9.47M |
| Operating Cash Flow | -127.62B | -544.50M | 79.85M | 46.11M | 9.47M |
| Investing Cash Flow | -153.75B | 0.00 | -189.91M | -587.88M | -568.61M |
| Financing Cash Flow | 122.67B | 532.81M | 135.60M | 548.26M | 561.16M |
Kayne Anderson BDC, Inc. Technical Analysis
Positive
15.96
Price Trends
15.52
Positive
15.50
Positive
15.44
Positive
Market Momentum
0.18
Negative
55.84
Neutral
62.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KBDC, the sentiment is Positive. The current price of 15.96 is above the 20-day moving average (MA) of 15.70, above the 50-day MA of 15.52, and above the 200-day MA of 15.44, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 55.84 is Neutral, neither overbought nor oversold. The STOCH value of 62.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KBDC.
Kayne Anderson BDC, Inc. Risk Analysis
Kayne Anderson BDC, Inc. disclosed 3 risk factors in its most recent earnings report. Kayne Anderson BDC, Inc. reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kayne Anderson BDC, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $16.11B | 11.35 | 10.29% | 8.36% | 14.14% | -31.30% | |
71 Outperform | $4.11B | 13.74 | 8.88% | 10.81% | 16.10% | -24.30% | |
71 Outperform | $1.39B | 27.46 | 3.27% | 14.84% | -28.04% | -69.52% | |
66 Neutral | 8.98 | 12.72% | 11.90% | 42.15% | 5.37% | ||
65 Neutral | $1.15B | 10.81 | 8.11% | 12.38% | -3.55% | -20.43% | |
58 Neutral | $653.94M | ― | -5.45% | 17.82% | 8.24% | -207.60% | |
56 Neutral | $5.80B | 21.14 | -28.61% | 4.89% | 10.78% | -34.04% |
* General Sector Average
Performance Comparison
KBDC
Kayne Anderson BDC, Inc.
15.96
1.57
10.91%
GBDC
Golub Capital Bdc
15.35
1.51
10.91%
NMFC
New Mountain Finance
10.62
-0.41
-3.72%
ARCC
Ares Capital
22.96
3.88
20.34%
TCPC
BlackRock TCP Capital
7.63
-1.51
-16.52%
GSBD
Goldman Sachs BDC
11.77
-1.22
-9.39%
Kayne Anderson BDC, Inc. Corporate Events
DividendsFinancial Disclosures
Kayne Anderson BDC Announces Q4 2024 Results and Dividend
Positive
Mar 3, 2025
On March 3, 2025, Kayne Anderson BDC, Inc. announced its financial results for the fourth quarter ending December 31, 2024, and declared a first quarter 2025 dividend of $0.40 per share. The company reported net investment income of $34.0 million and maintained a net asset value of $16.70 per share. The company made significant progress towards its leverage target and continued to secure middle market loans with compelling risk-adjusted returns. The dividend is set to be paid on April 15, 2025, to stockholders of record as of March 31, 2025.
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.