BARINGS BDC INC (BBDC) Stock Fundamental Analysis
NYSE:BBDC - New York Stock Exchange, Inc. - US06759L1035 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to BBDC. BBDC was compared to 225 industry peers in the Capital Markets industry. BBDC has an average financial health and profitability rating. BBDC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BBDC had positive earnings in the past year.
In the past year BBDC had a positive cash flow from operations.
BBDC had positive earnings in 4 of the past 5 years.
In multiple years BBDC reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.43%, BBDC is in the better half of the industry, outperforming 62.56% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.66%, BBDC is in line with its industry, outperforming 52.97% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.71%, BBDC is doing good in the industry, outperforming 61.64% of the companies in the same industry.
BBDC had an Average Return On Invested Capital over the past 3 years of 3.53%. This is below the industry average of 6.82%.
The 3 year average ROIC (3.53%) for BBDC is below the current ROIC(4.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.43% | ||
| ROE | 9.66% | ||
| ROIC | 4.71% |
ROA(3y)2.85%
ROA(5y)2.74%
ROE(3y)7.19%
ROE(5y)6.58%
ROIC(3y)3.53%
ROIC(5y)2.88%
1.3 Margins
BBDC has a Profit Margin of 39.59%. This is amongst the best in the industry. BBDC outperforms 81.28% of its industry peers.
BBDC's Profit Margin has improved in the last couple of years.
BBDC has a Operating Margin of 47.31%. This is amongst the best in the industry. BBDC outperforms 83.56% of its industry peers.
In the last couple of years the Operating Margin of BBDC has remained more or less at the same level.
With a Gross Margin value of 50.70%, BBDC perfoms like the industry average, outperforming 52.51% of the companies in the same industry.
BBDC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 47.31% | ||
| PM (TTM) | 39.59% | ||
| GM | 50.7% |
OM growth 3Y0.82%
OM growth 5YN/A
PM growth 3Y56.49%
PM growth 5YN/A
GM growth 3Y-2.39%
GM growth 5Y-6.27%
2. Health
2.1 Basic Checks
There is no outstanding debt for BBDC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
BBDC has an Altman-Z score of 0.46. This is a bad value and indicates that BBDC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.46, BBDC is doing worse than 70.32% of the companies in the same industry.
The Debt to FCF ratio of BBDC is 4.47, which is a neutral value as it means it would take BBDC, 4.47 years of fcf income to pay off all of its debts.
BBDC has a Debt to FCF ratio of 4.47. This is in the better half of the industry: BBDC outperforms 65.30% of its industry peers.
A Debt/Equity ratio of 1.15 is on the high side and indicates that BBDC has dependencies on debt financing.
The Debt to Equity ratio of BBDC (1.15) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 4.47 | ||
| Altman-Z | 0.46 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 4.00 indicates that BBDC has no problem at all paying its short term obligations.
BBDC has a better Current ratio (4.00) than 82.65% of its industry peers.
BBDC has a Quick Ratio of 4.00. This indicates that BBDC is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 4.00, BBDC belongs to the top of the industry, outperforming 82.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4 | ||
| Quick Ratio | 4 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.08% over the past year.
BBDC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.87% yearly.
EPS 1Y (TTM)5.08%
EPS 3Y11.27%
EPS 5Y14.87%
EPS Q2Q%-9.68%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-2.21%
3.2 Future
BBDC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.66% yearly.
The Revenue is expected to decrease by -5.27% on average over the next years.
EPS Next Y-10.5%
EPS Next 2Y-7.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-7.26%
Revenue Next 2Y-5.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.69 indicates a reasonable valuation of BBDC.
Compared to the rest of the industry, the Price/Earnings ratio of BBDC indicates a somewhat cheap valuation: BBDC is cheaper than 79.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.62. BBDC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.71, the valuation of BBDC can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BBDC indicates a somewhat cheap valuation: BBDC is cheaper than 71.69% of the companies listed in the same industry.
BBDC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 9.71 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, BBDC is valued cheaper than 86.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.71 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
BBDC has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as BBDC's earnings are expected to decrease with -7.66% in the coming years.
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y-7.66%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.65%, BBDC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 10.21, BBDC pays a bit more dividend than its industry peers.
BBDC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.65% |
5.2 History
On average, the dividend of BBDC grows each year by 19.04%, which is quite nice.
BBDC has paid a dividend for at least 10 years, which is a reliable track record.
BBDC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)19.04%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
95.61% of the earnings are spent on dividend by BBDC. This is not a sustainable payout ratio.
The Dividend Rate of BBDC has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP95.61%
EPS Next 2Y-7.66%
EPS Next 3YN/A
10.78
+0.28 (+2.67%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners45.71%
Inst Owner Change-91.61%
Ins Owners0.17%
Ins Owner Change-0.03%
Market Cap1.14B
Analysts81.82
Price Target10.66 (-1.11%)
Short Float %0.72%
Short Ratio1.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.65% |
Yearly Dividend1.02
Dividend Growth(5Y)19.04%
DP95.61%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)11.59%
Min EPS beat(2)-4.27%
Max EPS beat(2)27.45%
EPS beat(4)2
Avg EPS beat(4)3.86%
Min EPS beat(4)-9.53%
Max EPS beat(4)27.45%
EPS beat(8)4
Avg EPS beat(8)2.92%
EPS beat(12)6
Avg EPS beat(12)3.23%
EPS beat(16)8
Avg EPS beat(16)2.93%
Revenue beat(2)1
Avg Revenue beat(2)0.2%
Min Revenue beat(2)-1.25%
Max Revenue beat(2)1.65%
Revenue beat(4)1
Avg Revenue beat(4)-2.06%
Min Revenue beat(4)-6.91%
Max Revenue beat(4)1.65%
Revenue beat(8)2
Avg Revenue beat(8)-1.55%
Revenue beat(12)5
Avg Revenue beat(12)0.03%
Revenue beat(16)9
Avg Revenue beat(16)1.59%
PT rev (1m)0.72%
PT rev (3m)1.54%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)0.41%
EPS NY rev (1m)0.23%
EPS NY rev (3m)-1.1%
Revenue NQ rev (1m)0.95%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 9.71 | ||
| P/S | 3.91 | ||
| P/FCF | 3.71 | ||
| P/OCF | 3.71 | ||
| P/B | 0.95 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.24
EY11.5%
EPS(NY)1.11
Fwd EY10.29%
FCF(TTM)2.9
FCFY26.92%
OCF(TTM)2.9
OCFY26.92%
SpS2.76
BVpS11.32
TBVpS11.32
PEG (NY)N/A
PEG (5Y)0.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.43% | ||
| ROE | 9.66% | ||
| ROCE | 5.36% | ||
| ROIC | 4.71% | ||
| ROICexc | 4.83% | ||
| ROICexgc | 4.95% | ||
| OM | 47.31% | ||
| PM (TTM) | 39.59% | ||
| GM | 50.7% | ||
| FCFM | 105.14% |
ROA(3y)2.85%
ROA(5y)2.74%
ROE(3y)7.19%
ROE(5y)6.58%
ROIC(3y)3.53%
ROIC(5y)2.88%
ROICexc(3y)3.64%
ROICexc(5y)2.97%
ROICexgc(3y)3.75%
ROICexgc(5y)3.04%
ROCE(3y)4.02%
ROCE(5y)3.28%
ROICexcg growth 3Y37.24%
ROICexcg growth 5YN/A
ROICexc growth 3Y37.46%
ROICexc growth 5YN/A
OM growth 3Y0.82%
OM growth 5YN/A
PM growth 3Y56.49%
PM growth 5YN/A
GM growth 3Y-2.39%
GM growth 5Y-6.27%
F-Score7
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 4.47 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.78 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 265.55% | ||
| Current Ratio | 4 | ||
| Quick Ratio | 4 | ||
| Altman-Z | 0.46 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.08%
EPS 3Y11.27%
EPS 5Y14.87%
EPS Q2Q%-9.68%
EPS Next Y-10.5%
EPS Next 2Y-7.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-2.21%
Revenue Next Year-7.26%
Revenue Next 2Y-5.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y3.79%
EBIT growth 3Y61.01%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y279.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y279.16%
OCF growth 3YN/A
OCF growth 5YN/A