(BBDC) Barings BDC - Overview
Sector: Financial Services | Industry: Asset Management | Exchange: NYSE (USA) | Market Cap: 902m USD | Total Return: 6.5% in 12m
Industry Rotation: +5.0
Avg Turnover: 5.38M
EPS Trend: -18.8%
Qual. Beats: 0
Rev. Trend: -39.7%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Barings BDC, Inc. (BBDC) is an externally managed business development company focused on providing financing solutions to private middle-market firms in the United States. Its portfolio primarily consists of senior secured loans, first lien debt, and unitranche structures, alongside selective equity co-investments. The firm targets companies backed by private equity sponsors with annual EBITDA between $10 million and $75 million, operating in sectors such as manufacturing, business services, and logistics.
As a Business Development Company (BDC), the firm is required by the Investment Company Act of 1940 to distribute at least 90% of its taxable income to shareholders annually. This structure allows middle-market companies to access capital markets while providing investors with exposure to private debt, a sector that often yields higher interest rates than traditional corporate bonds due to the illiquidity premium of private lending.
To better understand how these debt structures impact long-term returns, investors may find it useful to examine the detailed valuation metrics available on ValueRay.
- Net investment income sensitivity to fluctuating Federal Reserve benchmark interest rates
- Credit quality performance within middle-market private equity sponsor-backed loan portfolios
- Strategic deployment of capital into senior secured first lien debt instruments
- Fee structure adjustments and expense management by external advisor Barings LLC
- Asset valuation fluctuations driven by wider corporate credit market spread volatility
| Net Income: 89.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 2.54 > 1.0 |
| NWC/Revenue: 41.51% < 20% (prev 33.46%; Δ 8.05% < -1%) |
| CFO/TA 0.06 > 3% & CFO 163.8m > Net Income 89.3m |
| Net Debt (1.32b) to EBITDA (133.7m): 9.87 < 3 |
| Current Ratio: 3.16 > 1.5 & < 3 |
| Outstanding Shares: last quarter (104.7m) vs 12m ago -0.63% < -2% |
| Gross Margin: 67.80% > 18% (prev 0.57%; Δ 6.72k% > 0.5%) |
| Asset Turnover: 8.12% > 50% (prev 7.02%; Δ 1.10% > 0%) |
| Interest Coverage Ratio: 0.25 > 6 (EBITDA TTM 133.7m / Interest Expense TTM 83.8m) |
| A: 0.03 (Total Current Assets 132.8m - Total Current Liabilities 42.0m) / Total Assets 2.60b |
| B: -0.27 (Retained Earnings -709.5m / Total Assets 2.60b) |
| C: 0.01 (EBIT TTM 20.9m / Avg Total Assets 2.70b) |
| D: -0.49 (Book Value of Equity -709.4m / Total Liabilities 1.45b) |
| Altman-Z'' Score: -1.12 = CCC |
Over the past week, the price has changed by -3.04%, over one month by -2.49%, over three months by -2.64% and over the past year by +6.51%.
- StrongBuy: 3
- Buy: 1
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 9.6 | 12% |
P/E Forward = 8.6133
P/S = 3.2743
P/B = 0.8052
P/EG = 3.1449
Revenue TTM = 218.8m USD
EBIT TTM = 20.9m USD
EBITDA TTM = 133.7m USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 1.41b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.32b USD (from netDebt column, last quarter)
Enterprise Value = 2.22b USD (901.5m + Debt 1.41b - CCE 95.7m)
Interest Coverage Ratio = 0.25 (Ebit TTM 20.9m / Interest Expense TTM 83.8m)
EV/FCF = 13.55x (Enterprise Value 2.22b / FCF TTM 163.8m)
FCF Yield = 7.38% (FCF TTM 163.8m / Enterprise Value 2.22b)
FCF Margin = 74.88% (FCF TTM 163.8m / Revenue TTM 218.8m)
Net Margin = 40.84% (Net Income TTM 89.3m / Revenue TTM 218.8m)
Gross Margin = 67.80% ((Revenue TTM 218.8m - Cost of Revenue TTM 70.4m) / Revenue TTM)
Gross Margin QoQ = 75.07% (prev 57.35%)
Tobins Q-Ratio = 0.85 (Enterprise Value 2.22b / Total Assets 2.60b)
Interest Expense / Debt = 1.34% (Interest Expense 18.9m / Debt 1.41b)
Taxrate = 1.96% (400k / 20.4m)
NOPAT = 20.5m (EBIT 20.9m * (1 - 1.96%))
Current Ratio = 3.16 (Total Current Assets 132.8m / Total Current Liabilities 42.0m)
Debt / Equity = 1.23 (Debt 1.41b / totalStockholderEquity, last quarter 1.15b)
Debt / EBITDA = 9.87 (Net Debt 1.32b / EBITDA 133.7m)
Debt / FCF = 8.05 (Net Debt 1.32b / FCF TTM 163.8m)
Total Stockholder Equity = 1.16b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.31% (Net Income 89.3m / Total Assets 2.60b)
RoE = 7.67% (Net Income TTM 89.3m / Total Stockholder Equity 1.16b)
RoCE = 0.82% (EBIT 20.9m / Capital Employed (Total Assets 2.60b - Current Liab 42.0m))
RoIC = 0.76% (NOPAT 20.5m / Invested Capital 2.71b)
WACC = 3.97% (E(901.5m)/V(2.32b) * Re(8.15%) + D(1.41b)/V(2.32b) * Rd(1.34%) * (1-Tc(0.02)))
Discount Rate = 8.15% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.88 | Cagr: -0.70%
[DCF] Terminal Value 80.82% ; FCFF base≈140.3m ; Y1≈92.1m ; Y5≈42.1m
[DCF] Fair Price = 0.17 (EV 1.34b - Net Debt 1.32b = Equity 18.2m / Shares 104.7m; r=6.0% [WACC]; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: -18.76 | EPS CAGR: -3.88% | SUE: -0.03 | # QB: 0
Revenue Correlation: -39.67 | Revenue CAGR: -1.66% | SUE: -0.31 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.24 | Chg30d=-1.64% | Revisions=-14% | Analysts=5
EPS next Quarter (2026-09-30): EPS=0.24 | Chg30d=+0.00% | Revisions=+0% | Analysts=5
EPS current Year (2026-12-31): EPS=0.97 | Chg30d=+0.21% | Revisions=-14% | GrowthEPS=-13.0% | GrowthRev=-13.6%
EPS next Year (2027-12-31): EPS=0.97 | Chg30d=+4.43% | Revisions=+20% | GrowthEPS=-0.8% | GrowthRev=+1.1%
[Analyst] Revisions Ratio: +20%