BARINGS BDC INC (BBDC) Stock Fundamental Analysis
NYSE:BBDC - New York Stock Exchange, Inc. - US06759L1035 - Common Stock - Currency: USD
Taking everything into account, BBDC scores 4 out of 10 in our fundamental rating. BBDC was compared to 233 industry peers in the Capital Markets industry. BBDC has a medium profitability rating, but doesn't score so well on its financial health evaluation. BBDC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BBDC had positive earnings in the past year.
BBDC had a positive operating cash flow in the past year.
In the past 5 years BBDC has always been profitable.
In multiple years BBDC reported negative operating cash flow during the last 5 years.
1.2 Ratios
BBDC has a Return On Assets of 3.54%. This is comparable to the rest of the industry: BBDC outperforms 59.66% of its industry peers.
BBDC's Return On Equity of 8.32% is in line compared to the rest of the industry. BBDC outperforms 52.79% of its industry peers.
BBDC has a Return On Invested Capital (3.84%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for BBDC is below the industry average of 7.84%.
The last Return On Invested Capital (3.84%) for BBDC is above the 3 year average (3.78%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.54% | ||
| ROE | 8.32% | ||
| ROIC | 3.84% |
ROA(3y)3.02%
ROA(5y)2.63%
ROE(3y)6.79%
ROE(5y)6.39%
ROIC(3y)3.78%
ROIC(5y)3%
1.3 Margins
The Profit Margin of BBDC (35.21%) is better than 79.83% of its industry peers.
BBDC's Profit Margin has declined in the last couple of years.
BBDC's Operating Margin of 46.95% is fine compared to the rest of the industry. BBDC outperforms 79.83% of its industry peers.
BBDC's Operating Margin has improved in the last couple of years.
The Gross Margin of BBDC (50.11%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of BBDC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.95% | ||
| PM (TTM) | 35.21% | ||
| GM | 50.11% |
OM growth 3Y2.57%
OM growth 5Y3.06%
PM growth 3Y-12.45%
PM growth 5Y-12.92%
GM growth 3Y0.11%
GM growth 5Y0.41%
2. Health
2.1 Basic Checks
BBDC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BBDC has more shares outstanding
BBDC has about the same debt/assets ratio as last year.
2.2 Solvency
Based on the Altman-Z score of 0.32, we must say that BBDC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.32, BBDC is not doing good in the industry: 71.24% of the companies in the same industry are doing better.
BBDC has a debt to FCF ratio of 13.84. This is a negative value and a sign of low solvency as BBDC would need 13.84 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.84, BBDC is in line with its industry, outperforming 50.64% of the companies in the same industry.
BBDC has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BBDC (1.27) is worse than 63.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 13.84 | ||
| Altman-Z | 0.32 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BBDC has a Current Ratio of 1.71. This is a normal value and indicates that BBDC is financially healthy and should not expect problems in meeting its short term obligations.
BBDC has a Current ratio of 1.71. This is in the better half of the industry: BBDC outperforms 66.09% of its industry peers.
A Quick Ratio of 1.71 indicates that BBDC should not have too much problems paying its short term obligations.
BBDC has a Quick ratio of 1.71. This is in the better half of the industry: BBDC outperforms 66.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The earnings per share for BBDC have decreased by 0.00% in the last year.
Measured over the past years, BBDC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.87% on average per year.
Looking at the last year, BBDC shows a decrease in Revenue. The Revenue has decreased by -3.77% in the last year.
Measured over the past years, BBDC shows a very strong growth in Revenue. The Revenue has been growing by 30.50% on average per year.
EPS 1Y (TTM)0%
EPS 3Y11.27%
EPS 5Y14.87%
EPS Q2Q%-10.71%
Revenue 1Y (TTM)-3.77%
Revenue growth 3Y28.36%
Revenue growth 5Y30.5%
Sales Q2Q%-7.69%
3.2 Future
BBDC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.87% yearly.
BBDC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.36% yearly.
EPS Next Y-15.44%
EPS Next 2Y-9.03%
EPS Next 3Y-8.87%
EPS Next 5YN/A
Revenue Next Year-7.43%
Revenue Next 2Y-5.28%
Revenue Next 3Y-5.36%
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.
The Revenue 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 7.87 indicates a rather cheap valuation of BBDC.
85.84% of the companies in the same industry are more expensive than BBDC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. BBDC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.28, the valuation of BBDC can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BBDC indicates a rather cheap valuation: BBDC is cheaper than 81.97% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. BBDC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.87 | ||
| Fwd PE | 9.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BBDC indicates a somewhat cheap valuation: BBDC is cheaper than 77.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.15 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as BBDC's earnings are expected to decrease with -8.87% in the coming years.
PEG (NY)N/A
PEG (5Y)0.53
EPS Next 2Y-9.03%
EPS Next 3Y-8.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.21%, BBDC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.10, BBDC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, BBDC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.21% |
5.2 History
The dividend of BBDC is nicely growing with an annual growth rate of 14.18%!
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)14.18%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
BBDC pays out 116.47% of its income as dividend. This is not a sustainable payout ratio.
BBDC's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP116.47%
EPS Next 2Y-9.03%
EPS Next 3Y-8.87%
9.52
+0.12 (+1.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners40.97%
Inst Owner Change0%
Ins Owners0.63%
Ins Owner Change0.37%
Market Cap1.00B
Analysts83.64
Price Target10.25 (7.67%)
Short Float %0.64%
Short Ratio1.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.21% |
Yearly Dividend1.04
Dividend Growth(5Y)14.18%
DP116.47%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.61%
Min EPS beat(2)-11.2%
Max EPS beat(2)-4.02%
EPS beat(4)1
Avg EPS beat(4)1.99%
Min EPS beat(4)-11.2%
Max EPS beat(4)27.45%
EPS beat(8)3
Avg EPS beat(8)0.16%
EPS beat(12)6
Avg EPS beat(12)2.45%
EPS beat(16)6
Avg EPS beat(16)1.23%
Revenue beat(2)0
Avg Revenue beat(2)-3.47%
Min Revenue beat(2)-6.79%
Max Revenue beat(2)-0.15%
Revenue beat(4)1
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-6.79%
Max Revenue beat(4)1.65%
Revenue beat(8)2
Avg Revenue beat(8)-2.03%
Revenue beat(12)3
Avg Revenue beat(12)-1.61%
Revenue beat(16)7
Avg Revenue beat(16)0.06%
PT rev (1m)-3.83%
PT rev (3m)-7.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.84%
EPS NY rev (1m)-5.86%
EPS NY rev (3m)-5.86%
Revenue NQ rev (1m)-0.79%
Revenue NQ rev (3m)-1.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.87 | ||
| Fwd PE | 9.28 | ||
| P/S | 3.57 | ||
| P/FCF | 9.15 | ||
| P/OCF | 9.15 | ||
| P/B | 0.84 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.21
EY12.71%
EPS(NY)1.03
Fwd EY10.78%
FCF(TTM)1.04
FCFY10.93%
OCF(TTM)1.04
OCFY10.93%
SpS2.67
BVpS11.29
TBVpS11.29
PEG (NY)N/A
PEG (5Y)0.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.54% | ||
| ROE | 8.32% | ||
| ROCE | 4.87% | ||
| ROIC | 3.84% | ||
| ROICexc | 3.99% | ||
| ROICexgc | 4.11% | ||
| OM | 46.95% | ||
| PM (TTM) | 35.21% | ||
| GM | 50.11% | ||
| FCFM | 39% |
ROA(3y)3.02%
ROA(5y)2.63%
ROE(3y)6.79%
ROE(5y)6.39%
ROIC(3y)3.78%
ROIC(5y)3%
ROICexc(3y)3.91%
ROICexc(5y)3.1%
ROICexgc(3y)4.04%
ROICexgc(5y)3.2%
ROCE(3y)4.79%
ROCE(5y)3.8%
ROICexcg growth 3Y23.04%
ROICexcg growth 5Y16.75%
ROICexc growth 3Y22.6%
ROICexc growth 5Y15.94%
OM growth 3Y2.57%
OM growth 5Y3.06%
PM growth 3Y-12.45%
PM growth 5Y-12.92%
GM growth 3Y0.11%
GM growth 5Y0.41%
F-Score5
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 13.84 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.88 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 110.78% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 0.32 |
F-Score5
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)669.02%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y11.27%
EPS 5Y14.87%
EPS Q2Q%-10.71%
EPS Next Y-15.44%
EPS Next 2Y-9.03%
EPS Next 3Y-8.87%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.77%
Revenue growth 3Y28.36%
Revenue growth 5Y30.5%
Sales Q2Q%-7.69%
Revenue Next Year-7.43%
Revenue Next 2Y-5.28%
Revenue Next 3Y-5.36%
Revenue Next 5YN/A
EBIT growth 1Y0.1%
EBIT growth 3Y31.66%
EBIT growth 5Y34.49%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y736.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y736.02%
OCF growth 3YN/A
OCF growth 5YN/A