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 4 out of 10 to BBDC. BBDC was compared to 232 industry peers in the Capital Markets industry. There are concerns on the financial health of BBDC while its profitability can be described as average. 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.
Each year in the past 5 years BBDC has 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 (3.54%) which is comparable to the rest of the industry.
BBDC has a Return On Equity (8.32%) which is in line with its industry peers.
The Return On Invested Capital of BBDC (3.84%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for BBDC is below the industry average of 7.85%.
The 3 year average ROIC (3.78%) for BBDC is below the current ROIC(3.84%), indicating increased profibility in the last year.
| 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
BBDC's Profit Margin of 35.21% is fine compared to the rest of the industry. BBDC outperforms 79.74% of its industry peers.
BBDC's Profit Margin has declined in the last couple of years.
BBDC has a better Operating Margin (46.95%) than 79.74% of its industry peers.
In the last couple of years the Operating Margin of BBDC has grown nicely.
The Gross Margin of BBDC (50.11%) is comparable to the rest of the industry.
BBDC's Gross Margin has been stable in the last couple of years.
| 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
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
Based on the Altman-Z score of 0.31, we must say that BBDC is in the distress zone and has some risk of bankruptcy.
BBDC's Altman-Z score of 0.31 is on the low side compared to the rest of the industry. BBDC is outperformed by 71.55% of its industry peers.
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.
BBDC has a Debt to FCF ratio of 13.84. This is comparable to the rest of the industry: BBDC outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 1.27 is on the high side and indicates that BBDC has dependencies on debt financing.
BBDC has a Debt to Equity ratio of 1.27. This is in the lower half of the industry: BBDC underperforms 63.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 13.84 | ||
| Altman-Z | 0.31 |
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.
With a decent Current ratio value of 1.71, BBDC is doing good in the industry, outperforming 65.95% of the companies in the same industry.
BBDC has a Quick 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's Quick ratio of 1.71 is fine compared to the rest of the industry. BBDC outperforms 66.38% 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.
The Earnings Per Share has been growing by 14.87% on average over the past years. This is quite good.
BBDC shows a decrease in Revenue. In the last year, the revenue decreased by -3.77%.
BBDC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.50% yearly.
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.
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
Based on the Price/Earnings ratio of 7.49, the valuation of BBDC can be described as very cheap.
85.34% of the companies in the same industry are more expensive than BBDC, based on the Price/Earnings ratio.
BBDC is valuated cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.83, 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 77.59% of the companies listed in the same industry.
BBDC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.49 | ||
| Fwd PE | 8.83 |
4.2 Price Multiples
76.72% 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 | 8.71 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
BBDC's earnings are expected to decrease with -8.87% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y-9.03%
EPS Next 3Y-8.87%
5. Dividend
5.1 Amount
BBDC has a Yearly Dividend Yield of 11.47%, which is a nice return.
BBDC's Dividend Yield is a higher than the industry average which is at 7.87.
Compared to an average S&P500 Dividend Yield of 2.42, BBDC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.47% |
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.
The Dividend Rate of BBDC has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP116.47%
EPS Next 2Y-9.03%
EPS Next 3Y-8.87%
9.06
-0.01 (-0.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners40.97%
Inst Owner Change-0.37%
Ins Owners0.63%
Ins Owner Change0.37%
Market Cap953.66M
Analysts81.82
Price Target10.25 (13.13%)
Short Float %0.62%
Short Ratio1.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.47% |
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)-6.51%
EPS NQ rev (1m)-3.73%
EPS NQ rev (3m)-5.84%
EPS NY rev (1m)-5.86%
EPS NY rev (3m)-5.51%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.49 | ||
| Fwd PE | 8.83 | ||
| P/S | 3.4 | ||
| P/FCF | 8.71 | ||
| P/OCF | 8.71 | ||
| P/B | 0.8 | ||
| P/tB | 0.8 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.21
EY13.36%
EPS(NY)1.03
Fwd EY11.33%
FCF(TTM)1.04
FCFY11.48%
OCF(TTM)1.04
OCFY11.48%
SpS2.67
BVpS11.29
TBVpS11.29
PEG (NY)N/A
PEG (5Y)0.5
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 | 0.31 |
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