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BBDC

Barings BDCNYSE:BBDC Stock Report

Last Price

US$10.78

Market Cap

US$704.1m

7D

-3.0%

1Y

19.1%

Updated

19 Jan, 2022

Data

Company Financials +
BBDC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance2/6
Financial Health1/6
Dividends3/6

BBDC Stock Overview

Barings BDC, Inc. (NYSE: BBDC) is a publicly traded, externally managed investment company that has elected to be treated as a business development company under the Investment Company Act of 1940.

Barings BDC Competitors

Ares Capital

NasdaqGS:ARCC

US$9.9b

FS KKR Capital

NYSE:FSK

US$6.3b

Prospect Capital

NasdaqGS:PSEC

US$3.5b

Golub Capital BDC

NasdaqGS:GBDC

US$2.7b

Price History & Performance

Summary of all time highs, changes and price drops for Barings BDC
Historical stock prices
Current Share PriceUS$10.78
52 Week HighUS$11.55
52 Week LowUS$8.82
Beta0.66
1 Month Change1.22%
3 Month Change-1.64%
1 Year Change19.12%
3 Year Change12.29%
5 Year Change-44.29%
Change since IPO-32.63%

Recent News & Updates

Aug 30

Barings BDC: Continues To Earn A+ Rating For Investors Seeking Growth From Dividend Income

I will recap my initial SA article related to Barings BDC. Readers will be shown how Barings BDC has performed with their business model for growth and shareholders' benefit. I will offer caveats and opinion for the future.

Shareholder Returns

BBDCUS Capital MarketsUS Market
7D-3.0%-5.5%-4.6%
1Y19.1%24.6%7.7%

Return vs Industry: BBDC underperformed the US Capital Markets industry which returned 25.7% over the past year.

Return vs Market: BBDC exceeded the US Market which returned 10.2% over the past year.

Price Volatility

Is BBDC's price volatile compared to industry and market?
BBDC volatility
BBDC Average Weekly Movement1.8%
Capital Markets Industry Average Movement0.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: BBDC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: BBDC's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2006n/aEric Lloydhttps://www.barings.com/us/guest/barings-bdc

Barings BDC, Inc. (NYSE: BBDC) is a publicly traded, externally managed investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. It seeks to invest primarily in senior secured loans, first lien debt, unitranche, second lien debt, subordinated debt, equity co-investments and senior secured private debt investments in private middle-market companies that operate across a wide range of industries. It specializes in mezzanine, leveraged buyouts, management buyouts, ESOPs, change of control transactions, acquisition financings, growth financing, and recapitalizations in lower middle market, mature, and later stage companies.

Barings BDC Fundamentals Summary

How do Barings BDC's earnings and revenue compare to its market cap?
BBDC fundamental statistics
Market CapUS$704.11m
Earnings (TTM)US$88.98m
Revenue (TTM)US$118.61m

7.9x

P/E Ratio

5.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BBDC income statement (TTM)
RevenueUS$118.61m
Cost of RevenueUS$0
Gross ProfitUS$118.61m
ExpensesUS$29.63m
EarningsUS$88.98m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.36
Gross Margin100.00%
Net Profit Margin75.02%
Debt/Equity Ratio139.2%

How did BBDC perform over the long term?

See historical performance and comparison

Dividends

8.2%

Current Dividend Yield

53%

Payout Ratio

Valuation

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

7.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate BBDC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate BBDC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: BBDC is good value based on its PE Ratio (7.9x) compared to the US Capital Markets industry average (15.5x).

PE vs Market: BBDC is good value based on its PE Ratio (7.9x) compared to the US market (17x).


Price to Earnings Growth Ratio

PEG Ratio: BBDC is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: BBDC is good value based on its PB Ratio (0.9x) compared to the US Capital Markets industry average (42.2x).


Future Growth

How is Barings BDC forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BBDC's forecast earnings growth (3.2% per year) is above the savings rate (2%).

Earnings vs Market: BBDC's earnings (3.2% per year) are forecast to grow slower than the US market (13% per year).

High Growth Earnings: BBDC's earnings are forecast to grow, but not significantly.

Revenue vs Market: BBDC's revenue (19.6% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: BBDC's revenue (19.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BBDC's Return on Equity is forecast to be low in 3 years time (8.3%).


Past Performance

How has Barings BDC performed over the past 5 years?

22.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BBDC has a high level of non-cash earnings.

Growing Profit Margin: BBDC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BBDC's earnings have grown significantly by 22.4% per year over the past 5 years.

Accelerating Growth: BBDC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BBDC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (86.4%).


Return on Equity

High ROE: BBDC's Return on Equity (11.9%) is considered low.


Financial Health

How is Barings BDC's financial position?


Financial Position Analysis

Short Term Liabilities: BBDC's short term assets ($143.9M) exceed its short term liabilities ($17.7M).

Long Term Liabilities: BBDC's short term assets ($143.9M) do not cover its long term liabilities ($1.0B).


Debt to Equity History and Analysis

Debt Level: BBDC's net debt to equity ratio (133.7%) is considered high.

Reducing Debt: BBDC's debt to equity ratio has increased from 80.7% to 139.2% over the past 5 years.

Debt Coverage: BBDC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: BBDC's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Dividend

What is Barings BDC current dividend yield, its reliability and sustainability?

8.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BBDC's dividend (8.16%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: BBDC's dividend (8.16%) is in the top 25% of dividend payers in the US market (3.48%)


Stability and Growth of Payments

Stable Dividend: BBDC's dividend payments have been volatile in the past 10 years.

Growing Dividend: BBDC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.1%), BBDC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BBDC's dividends in 3 years are not forecast to be well covered by earnings (97% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Eric Lloyd (52 yo)

3.42yrs

Tenure

Mr. Eric J. Lloyd is Chairman of the Board at Barings Private Credit Corporation since 2021. He serves as Chairman of the Board at Barings BDC, Inc. since August 06, 2021. He serves as Head of Global Priva...


Leadership Team

Experienced Management: BBDC's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: BBDC's board of directors are considered experienced (3.4 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Barings BDC, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Barings BDC, Inc.
  • Ticker: BBDC
  • Exchange: NYSE
  • Founded: 2006
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Implied Market Cap: US$704.107m
  • Shares outstanding: 65.32m
  • Website: https://www.barings.com/us/guest/barings-bdc

Number of Employees


Location

  • Barings BDC, Inc.
  • 300 South Tryon Street
  • Suite 2500
  • Charlotte
  • North Carolina
  • 28202
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:41
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.