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

• Market Cap: N/A
• Dividend Yield: 30.59%
• Average Volume (3M): 125.25K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.31
• Revenue Growth: 42.15%
• EPS Growth: 5.37%
• Country: US
• Employees: N/A
• Sector: General
• Sector Strength: N/A
• Industry: Asset Management
• EPS (TTM): 0.40
• Shares Outstanding: 70,883,330
• 10 Day Avg. Volume: 146,388
• 30 Day Avg. Volume: 125,246
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: 1.57
• Enterprise Value/Gross Profit: 7.41
• Enterprise Value/Ebitda: 1.99
• 1Y Price Target: $16.40
• Price Target Upside: 4.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 66 Neutral
• Price Target: ―

Kayne Anderson BDC, Inc. demonstrates solid valuation with an attractive P/E ratio and high dividend yield, making it appealing for value and income investors. While financial performance shows strong equity and low leverage, liquidity risks from negative cash flow need attention. The technical indicators suggest a balanced market position. The earnings call offers an optimistic outlook, contributing positively to the stock's prospects.

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. (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 Money

Kayne 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. 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.

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	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

• Technical Analysis Sentiment: Positive
• Last Price: 15.69
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 15.69 is above the 20-day moving average (MA) of 15.32, above the 50-day MA of 15.40, and above the 200-day MA of 15.34, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 53.55 is Neutral, neither overbought nor oversold. The STOCH value of -1.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	74 Outperform	$15.24B	10.73	10.29%	8.74%	14.14%	-31.30%
GBDC	71 Outperform	$3.85B	12.85	8.88%	11.60%	16.10%	-24.30%
GSBD	71 Outperform	$1.32B	26.10	3.27%	17.07%	-28.04%	-69.52%
KBDC	66 Neutral		8.83	12.72%	30.59%	42.15%	5.37%
NMFC	65 Neutral	$1.14B	10.69	8.11%	12.13%	-3.55%	-20.43%
TCPC	58 Neutral	$649.69M	―	-5.45%	15.06%	8.24%	-207.60%
Sector *	56 Neutral	$5.67B	25.49	-31.28%	5.61%	10.88%	-29.73%

Kayne Anderson BDC, Inc. Corporate Events

Kayne Anderson BDC Announces Q4 2024 Results and Dividend

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.