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 231 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year BBDC was profitable.
In the past year BBDC had a positive cash flow from operations.
BBDC had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: BBDC reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of BBDC (4.09%) is better than 60.61% of its industry peers.
BBDC has a Return On Equity (9.27%) which is in line with its industry peers.
BBDC has a Return On Invested Capital (4.01%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for BBDC is below the industry average of 7.24%.
The 3 year average ROIC (3.78%) for BBDC is below the current ROIC(4.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.09% | ||
| ROE | 9.27% | ||
| ROIC | 4.01% |
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 (38.54%) is better than 80.52% of its industry peers.
BBDC's Profit Margin has declined in the last couple of years.
The Operating Margin of BBDC (47.06%) is better than 83.55% of its industry peers.
In the last couple of years the Operating Margin of BBDC has grown nicely.
Looking at the Gross Margin, with a value of 50.49%, BBDC is in line with its industry, outperforming 57.14% of the companies in the same 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 | 47.06% | ||
| PM (TTM) | 38.54% | ||
| GM | 50.49% |
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
Compared to 1 year ago, BBDC has less shares outstanding
Compared to 5 years ago, BBDC has more shares outstanding
Compared to 1 year ago, BBDC has about the same debt to assets ratio.
2.2 Solvency
BBDC has an Altman-Z score of 0.37. 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 0.37, BBDC is doing worse than 67.97% of the companies in the same industry.
BBDC has a debt to FCF ratio of 11.87. This is a negative value and a sign of low solvency as BBDC would need 11.87 years to pay back of all of its debts.
BBDC's Debt to FCF ratio of 11.87 is in line compared to the rest of the industry. BBDC outperforms 49.35% of its industry peers.
BBDC has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
BBDC's Debt to Equity ratio of 1.22 is in line compared to the rest of the industry. BBDC outperforms 41.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 11.87 | ||
| Altman-Z | 0.37 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BBDC has a Current Ratio of 3.28. This indicates that BBDC is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.28, BBDC belongs to the top of the industry, outperforming 82.25% of the companies in the same industry.
BBDC has a Quick Ratio of 3.28. This indicates that BBDC is financially healthy and has no problem in meeting its short term obligations.
BBDC has a Quick ratio of 3.28. This is amongst the best in the industry. BBDC outperforms 82.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.28 | ||
| Quick Ratio | 3.28 |
3. Growth
3.1 Past
BBDC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
BBDC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.87% yearly.
Looking at the last year, BBDC shows a decrease in Revenue. The Revenue has decreased by -1.05% in the last year.
The Revenue has been growing by 30.50% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)0%
EPS 3Y11.27%
EPS 5Y14.87%
EPS Q2Q%-10.71%
Revenue 1Y (TTM)-1.05%
Revenue growth 3Y28.36%
Revenue growth 5Y30.5%
Sales Q2Q%-7.69%
3.2 Future
The Earnings Per Share is expected to decrease by -8.87% on average over the next years.
BBDC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.36% yearly.
EPS Next Y-10.17%
EPS Next 2Y-7.6%
EPS Next 3Y-8.87%
EPS Next 5YN/A
Revenue Next Year-6.99%
Revenue Next 2Y-4.56%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.69 indicates a rather cheap valuation of BBDC.
Based on the Price/Earnings ratio, BBDC is valued cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.25. BBDC is valued rather cheaply when compared to this.
BBDC is valuated reasonably with a Price/Forward Earnings ratio of 8.79.
Based on the Price/Forward Earnings ratio, BBDC is valued a bit cheaper than the industry average as 78.79% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.15. BBDC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.69 | ||
| Fwd PE | 8.79 |
4.2 Price Multiples
79.22% of the companies in the same industry are more expensive than BBDC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.02 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of BBDC may justify a higher PE ratio.
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)0.52
EPS Next 2Y-7.6%
EPS Next 3Y-8.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.18%, BBDC is a good candidate for dividend investing.
BBDC's Dividend Yield is a higher than the industry average which is at 8.17.
BBDC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.18% |
5.2 History
On average, the dividend of BBDC grows each year by 14.18%, 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)14.18%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
BBDC pays out 99.79% of its income as dividend. 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.
DP99.79%
EPS Next 2Y-7.6%
EPS Next 3Y-8.87%
9.31
+0.01 (+0.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners45.71%
Inst Owner Change-0.37%
Ins Owners0.17%
Ins Owner Change0.17%
Market Cap979.97M
Analysts81.82
Price Target10.66 (14.5%)
Short Float %0.58%
Short Ratio1.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.18% |
Yearly Dividend1.04
Dividend Growth(5Y)14.18%
DP99.79%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.14%
Min EPS beat(2)-4.27%
Max EPS beat(2)-4.02%
EPS beat(4)1
Avg EPS beat(4)2.41%
Min EPS beat(4)-9.53%
Max EPS beat(4)27.45%
EPS beat(8)3
Avg EPS beat(8)-0.27%
EPS beat(12)6
Avg EPS beat(12)3.12%
EPS beat(16)7
Avg EPS beat(16)2.25%
Revenue beat(2)0
Avg Revenue beat(2)-0.7%
Min Revenue beat(2)-1.25%
Max Revenue beat(2)-0.15%
Revenue beat(4)1
Avg Revenue beat(4)-1.67%
Min Revenue beat(4)-6.91%
Max Revenue beat(4)1.65%
Revenue beat(8)2
Avg Revenue beat(8)-1.47%
Revenue beat(12)4
Avg Revenue beat(12)-0.39%
Revenue beat(16)8
Avg Revenue beat(16)0.98%
PT rev (1m)-3.69%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)-1.21%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.69 | ||
| Fwd PE | 8.79 | ||
| P/S | 3.42 | ||
| P/FCF | 8.02 | ||
| P/OCF | 8.02 | ||
| P/B | 0.82 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.21
EY13%
EPS(NY)1.06
Fwd EY11.37%
FCF(TTM)1.16
FCFY12.47%
OCF(TTM)1.16
OCFY12.47%
SpS2.72
BVpS11.31
TBVpS11.31
PEG (NY)N/A
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.09% | ||
| ROE | 9.27% | ||
| ROCE | 5.08% | ||
| ROIC | 4.01% | ||
| ROICexc | 4.16% | ||
| ROICexgc | 4.31% | ||
| OM | 47.06% | ||
| PM (TTM) | 38.54% | ||
| GM | 50.49% | ||
| FCFM | 42.69% |
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 Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 11.87 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.97 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 110.76% | ||
| Current Ratio | 3.28 | ||
| Quick Ratio | 3.28 | ||
| Altman-Z | 0.37 |
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-10.17%
EPS Next 2Y-7.6%
EPS Next 3Y-8.87%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.05%
Revenue growth 3Y28.36%
Revenue growth 5Y30.5%
Sales Q2Q%-7.69%
Revenue Next Year-6.99%
Revenue Next 2Y-4.56%
Revenue Next 3Y-5.36%
Revenue Next 5YN/A
EBIT growth 1Y3.73%
EBIT growth 3Y31.66%
EBIT growth 5Y34.49%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y58.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y58.77%
OCF growth 3YN/A
OCF growth 5YN/A