| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 2/6 |
| Past Performance | 2/6 |
| Financial Health | 1/6 |
| Dividends | 3/6 |
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
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$10.78 |
| 52 Week High | US$11.55 |
| 52 Week Low | US$8.82 |
| Beta | 0.66 |
| 1 Month Change | 1.22% |
| 3 Month Change | -1.64% |
| 1 Year Change | 19.12% |
| 3 Year Change | 12.29% |
| 5 Year Change | -44.29% |
| Change since IPO | -32.63% |
Recent News & Updates
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
| BBDC | US Capital Markets | US Market | |
|---|---|---|---|
| 7D | -3.0% | -5.5% | -4.6% |
| 1Y | 19.1% | 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
| BBDC volatility | |
|---|---|
| BBDC Average Weekly Movement | 1.8% |
| Capital Markets Industry Average Movement | 0.7% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.7% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2006 | n/a | Eric Lloyd | https://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
| BBDC fundamental statistics | |
|---|---|
| Market Cap | US$704.11m |
| Earnings (TTM) | US$88.98m |
| Revenue (TTM) | US$118.61m |
7.9x
P/E Ratio5.9x
P/S RatioIs BBDC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| BBDC income statement (TTM) | |
|---|---|
| Revenue | US$118.61m |
| Cost of Revenue | US$0 |
| Gross Profit | US$118.61m |
| Expenses | US$29.63m |
| Earnings | US$88.98m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.36 |
| Gross Margin | 100.00% |
| Net Profit Margin | 75.02% |
| Debt/Equity Ratio | 139.2% |
How did BBDC perform over the long term?
See historical performance and comparisonDividends
8.2%
Current Dividend Yield53%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/19 23:41 |
| End of Day Share Price | 2022/01/19 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.