NasdaqGS:GBDC

Stock Analysis Report

Executive Summary

Golub Capital BDC, Inc. is a business development company and operates as an externally managed closed-end non-diversified management investment company.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

How has Golub Capital BDC's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GBDC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

14.2%

GBDC

12.8%

US Capital Markets

10.5%

US Market


1 Year Return

-28.7%

GBDC

-11.4%

US Capital Markets

-11.5%

US Market

Return vs Industry: GBDC underperformed the US Capital Markets industry which returned -11.4% over the past year.

Return vs Market: GBDC underperformed the US Market which returned -11.5% over the past year.


Shareholder returns

GBDCIndustryMarket
7 Day14.2%12.8%10.5%
30 Day-25.3%-19.0%-15.4%
90 Day-31.0%-23.9%-21.4%
1 Year-22.8%-28.7%-9.6%-11.4%-9.6%-11.5%
3 Year-19.4%-35.9%6.1%-0.1%12.6%5.4%
5 Year6.3%-27.8%32.4%19.9%32.8%18.1%

Price Volatility Vs. Market

How volatile is Golub Capital BDC's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Golub Capital BDC undervalued compared to its fair value and its price relative to the market?

20.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GBDC ($12.74) is trading below our estimate of fair value ($15.93)

Significantly Below Fair Value: GBDC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GBDC is poor value based on its PE Ratio (103.6x) compared to the Capital Markets industry average (29.1x).

PE vs Market: GBDC is poor value based on its PE Ratio (103.6x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: GBDC is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: GBDC is good value based on its PB Ratio (0.8x) compared to the US Capital Markets industry average (6.7x).

Future Growth

How is Golub Capital BDC forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

56.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GBDC's forecast earnings growth (56.5% per year) is above the savings rate (1.7%).

Earnings vs Market: GBDC's earnings (56.5% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GBDC's revenue (14.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: GBDC's revenue (14.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GBDC's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Golub Capital BDC performed over the past 5 years?

-8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GBDC has a large one-off loss of $85.3M impacting its December 31 2019 financial results.

Growing Profit Margin: GBDC's current net profit margins (4.7%) are lower than last year (51%).


Past Earnings Growth Analysis

Earnings Trend: GBDC's earnings have declined by -8.3% per year over the past 5 years.

Accelerating Growth: GBDC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GBDC had negative earnings growth (-87.3%) over the past year, making it difficult to compare to the Capital Markets industry average (10.6%).


Return on Equity

High ROE: GBDC's Return on Equity (0.4%) is considered low.

Financial Health

How is Golub Capital BDC's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: GBDC has a low level of unsold assets or inventory.

Debt Coverage by Assets: GBDC's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: GBDC's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if GBDC has a sufficient allowance for bad loans.

Low Risk Liabilities: GBDC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if GBDC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: GBDC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if GBDC has an appropriate level of bad loans.

Dividend

What is Golub Capital BDC's current dividend yield, its reliability and sustainability?

11.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GBDC's dividend (11.38%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: GBDC's dividend (11.38%) is in the top 25% of dividend payers in the US market (5.45%)


Stability and Growth of Payments

Stable Dividend: GBDC's dividends per share have been stable in the past 10 years.

Growing Dividend: GBDC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (1048.9%), GBDC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Management

How experienced are the management team and are they aligned to shareholders interests?

9.3yrs

Average management tenure


CEO

David Golub (57yo)

10.33s

Tenure

Mr. David B Golub serves as President in GC OPAL Advisors LLC. He also serves as the President and Member of Board of Directors at Golub Capital LLC and has been the Vice Chairman from January 2004. Mr. Go ...


Leadership Team

NamePositionTenureCompensationOwnership
David Golub
CEO & Director10.33yrsno data0.075% $1.3m
Ross Teune
CFO & Treasurer9.25yrsno data0.011% $192.5k
Joshua Levinson
Co-General Counsel8.58yrsno data0.016% $274.1k
Andrew Steuerman
Senior Managing Director of Golub Capitalno datano datano data
Gregory Cashman
Senior Managing Director of Golub Capitalno datano datano data
Christina Jamieson
Head of Broadly Syndicated Loansno datano datano data
Brian Carroll
Senior Vice Presidentno datano datano data
Stefano Robertson
Managing Directorno datano datano data
Craig Petrusha
Principalno datano datano data
Matthew Fulk
Principalno datano datano data

9.3yrs

Average Tenure

51yo

Average Age

Experienced Management: GBDC's management team is seasoned and experienced (9.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Golub
CEO & Director10.33yrsno data0.075% $1.3m
Lawrence Golub
Chairman of the Board10.33yrsno datano data
Kenneth Bernstein
Director10.17yrsUS$72.20k0.040% $686.6k
John Baily
Director9.92yrsUS$73.40k0.027% $451.9k
William Webster
Director10.17yrsUS$80.90k0.15% $2.6m
Anita Rosenberg
Director8.83yrsUS$73.40k0.035% $602.1k

10.2yrs

Average Tenure

59yo

Average Age

Experienced Board: GBDC's board of directors are seasoned and experienced ( 10.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GBDC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 36%.


Top Shareholders

Company Information

Golub Capital BDC, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Golub Capital BDC, Inc.
  • Ticker: GBDC
  • Exchange: NasdaqGS
  • Founded: 2009
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$1.705b
  • Shares outstanding: 133.81m
  • Website: https://www.golubcapitalbdc.com

Location

  • Golub Capital BDC, Inc.
  • Chicago
  • Illinois
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GBDCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 2010
OGLDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2010
0IZ6LSE (London Stock Exchange)YesCommon StockGBUSDApr 2010

Biography

Golub Capital BDC, Inc. is a business development company and operates as an externally managed closed-end non-diversified management investment company. It invests in debt and minority equity investments in middle-market companies that are, in most cases, sponsored by private equity investors. The company seeks to invest in the United States. It primarily invests in senior secured, one stop, unitranche, second lien, subordinated and mezzanine loans of middle-market companies, and warrants. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 04:21
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.