BARINGS BDC INC (BBDC) Stock Fundamental Analysis
NYSE:BBDC - US06759L1035 - Common Stock
9.9 USD
+0.05 (+0.51%)
9.91 USD
+0.01 (+0.1%)
We assign a fundamental rating of 4 out of 10 to BBDC. BBDC was compared to 239 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 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.
BBDC had a negative 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
The Return On Assets of BBDC (3.58%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 8.50%, BBDC is in line with its industry, outperforming 49.16% of the companies in the same industry.
BBDC has a Return On Invested Capital of 3.45%. This is comparable to the rest of the industry: BBDC outperforms 44.96% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BBDC is below the industry average of 7.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 8.5% | ||
| ROIC | 3.45% |
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
Looking at the Profit Margin, with a value of 35.67%, BBDC is in the better half of the industry, outperforming 78.15% of the companies in the same industry.
BBDC's Profit Margin has declined in the last couple of years.
BBDC has a Operating Margin of 42.81%. This is in the better half of the industry: BBDC outperforms 76.05% of its industry peers.
BBDC's Operating Margin has improved in the last couple of years.
The Gross Margin of BBDC (45.95%) 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 | 42.81% | ||
| PM (TTM) | 35.67% | ||
| GM | 45.95% |
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
The number of shares outstanding for BBDC has been reduced compared to 1 year ago.
The number of shares outstanding for BBDC has been increased compared to 5 years ago.
The debt/assets ratio for BBDC has remained at the same level compared to a year ago.
2.2 Solvency
BBDC has an Altman-Z score of 0.32. This is a bad value and indicates that BBDC is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.32, BBDC is not doing good in the industry: 69.33% of the companies in the same industry are doing better.
BBDC has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
BBDC has a worse Debt to Equity ratio (1.33) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.32 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BBDC has a Current Ratio of 2.48. This indicates that BBDC is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of BBDC (2.48) is better than 75.63% of its industry peers.
BBDC has a Quick Ratio of 2.48. This indicates that BBDC is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of BBDC (2.48) is better than 76.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.48 | ||
| Quick Ratio | 2.48 |
3. Growth
3.1 Past
BBDC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.73%.
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 -3.80% 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)-14.73%
EPS 3Y11.27%
EPS 5Y14.87%
EPS Q2Q%-28.21%
Revenue 1Y (TTM)-3.8%
Revenue growth 3Y28.36%
Revenue growth 5Y30.5%
Sales Q2Q%-0.65%
3.2 Future
Based on estimates for the next years, BBDC will show a decrease in Earnings Per Share. The EPS will decrease by -8.87% on average per year.
BBDC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.98% yearly.
EPS Next Y-12.19%
EPS Next 2Y-10.33%
EPS Next 3Y-8.87%
EPS Next 5YN/A
Revenue Next Year-3.9%
Revenue Next 2Y-5.98%
Revenue Next 3Y-4.98%
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
Based on the Price/Earnings ratio of 9.00, the valuation of BBDC can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of BBDC indicates a somewhat cheap valuation: BBDC is cheaper than 79.83% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BBDC to the average of the S&P500 Index (27.08), we can say BBDC is valued rather cheaply.
The Price/Forward Earnings ratio is 9.93, which indicates a very decent valuation of BBDC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BBDC indicates a somewhat cheap valuation: BBDC is cheaper than 73.95% of the companies listed in the same industry.
BBDC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9 | ||
| Fwd PE | 9.93 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| 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)0.61
EPS Next 2Y-10.33%
EPS Next 3Y-8.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.56%, BBDC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.96, BBDC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, BBDC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.56% |
5.2 History
On average, the dividend of BBDC grows each year by 14.18%, which is quite nice.
BBDC has been paying a dividend for at least 10 years, so it has 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
120.27% 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.
DP120.27%
EPS Next 2Y-10.33%
EPS Next 3Y-8.87%
9.9
+0.05 (+0.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners41.06%
Inst Owner Change95.23%
Ins Owners0.63%
Ins Owner Change0.37%
Market Cap1.04B
Analysts83.64
Price Target10.46 (5.66%)
Short Float %0.36%
Short Ratio0.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.56% |
Yearly Dividend1.04
Dividend Growth(5Y)14.18%
DP120.27%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.4%
Min EPS beat(2)-11.2%
Max EPS beat(2)6.4%
EPS beat(4)1
Avg EPS beat(4)-3.27%
Min EPS beat(4)-11.2%
Max EPS beat(4)6.4%
EPS beat(8)3
Avg EPS beat(8)0.36%
EPS beat(12)6
Avg EPS beat(12)1.32%
EPS beat(16)7
Avg EPS beat(16)1.75%
Revenue beat(2)1
Avg Revenue beat(2)1.7%
Min Revenue beat(2)-6.79%
Max Revenue beat(2)10.2%
Revenue beat(4)1
Avg Revenue beat(4)0.5%
Min Revenue beat(4)-6.79%
Max Revenue beat(4)10.2%
Revenue beat(8)2
Avg Revenue beat(8)-1.32%
Revenue beat(12)3
Avg Revenue beat(12)-1.3%
Revenue beat(16)7
Avg Revenue beat(16)0.4%
PT rev (1m)1.99%
PT rev (3m)-1.91%
EPS NQ rev (1m)5.62%
EPS NQ rev (3m)-0.55%
EPS NY rev (1m)3.84%
EPS NY rev (3m)-2.24%
Revenue NQ rev (1m)4.47%
Revenue NQ rev (3m)3.02%
Revenue NY rev (1m)4.92%
Revenue NY rev (3m)3.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9 | ||
| Fwd PE | 9.93 | ||
| P/S | 3.71 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.89 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.1
EY11.11%
EPS(NY)1
Fwd EY10.07%
FCF(TTM)-0.78
FCFYN/A
OCF(TTM)-0.78
OCFYN/A
SpS2.67
BVpS11.18
TBVpS11.18
PEG (NY)N/A
PEG (5Y)0.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 8.5% | ||
| ROCE | 4.36% | ||
| ROIC | 3.45% | ||
| ROICexc | 3.51% | ||
| ROICexgc | 3.58% | ||
| OM | 42.81% | ||
| PM (TTM) | 35.67% | ||
| GM | 45.95% | ||
| FCFM | N/A |
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-Score2
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.63 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.48 | ||
| Quick Ratio | 2.48 | ||
| Altman-Z | 0.32 |
F-Score2
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)-14.73%
EPS 3Y11.27%
EPS 5Y14.87%
EPS Q2Q%-28.21%
EPS Next Y-12.19%
EPS Next 2Y-10.33%
EPS Next 3Y-8.87%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.8%
Revenue growth 3Y28.36%
Revenue growth 5Y30.5%
Sales Q2Q%-0.65%
Revenue Next Year-3.9%
Revenue Next 2Y-5.98%
Revenue Next 3Y-4.98%
Revenue Next 5YN/A
EBIT growth 1Y-14.49%
EBIT growth 3Y31.66%
EBIT growth 5Y34.49%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-213.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-213.51%
OCF growth 3YN/A
OCF growth 5YN/A