Barings BDC, Inc. (BBDC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Victory Capital Holdings, Inc.

TPG, Inc.

Oaktree Specialty Lending Corp.

StepStone Group, Inc.

Barings BDC, Inc.

Virtus Investment Partners, Inc.

Prospect Capital Corp.

Compass Diversified Holdings

Goldman Sachs BDC, Inc.

Sixth Street Specialty Lending, Inc.

New Mountain Finance Corp.

Why is Barings BDC, Inc. ?

Strong Long Term Fundamental Strength with a 67.20% CAGR growth in Operating Profits

Healthy long term growth as Net Sales has grown by an annual rate of 35.53% and Operating profit at 67.20%

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 121.18 MM
RAW MATERIAL COST(Y) Grown by 24.82% (YoY)
DEBT-EQUITY RATIO (HY) Highest at 129.19 %

With ROE of 8.32%, it has a very attractive valuation with a 0.79 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -7.60%, its profits have fallen by -25.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.60% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Barings BDC, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Barings BDC, Inc.

-8.6%

-0.40

22.24%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

50.04%

EBIT Growth (5y)

43.70%

EBIT to Interest (avg)

1.61

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

3.53%

Dividend Payout Ratio

107.35%

Pledged Shares

Institutional Holding

56.81%

ROCE (avg)

10.79%

ROE (avg)

5.39%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.72

EV to EBIT

3.63

EV to EBITDA

3.63

EV to Capital Employed

0.70

EV to Sales

3.09

PEG Ratio

Dividend Yield

14.36%

ROCE (Latest)

19.38%

ROE (Latest)

8.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 136.2%

RAW MATERIAL COST(Y)

Fallen by -0.71% (YoY

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 198.94

OPERATING CASH FLOW(Y)

Lowest at USD 82.11 MM

ROCE(HY)

Lowest at 7.63%

NET SALES(Q)

Lowest at USD 52.22 MM

PRE-TAX PROFIT(Q)

Lowest at USD 20.39 MM

NET PROFIT(Q)

Lowest at USD 19.99 MM

EPS(Q)

Lowest at USD 0.19

Here's what is working for Barings BDC, Inc.

Dividend Payout Ratio

Highest at 136.2%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -0.71% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Barings BDC, Inc.

Interest Coverage Ratio

Lowest at 198.94 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At USD 52.22 MM has Fallen at -16.06%

over average net sales of the previous four periods of USD 62.21 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Operating Cash Flow

Lowest at USD 82.11 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Sales

Lowest at USD 52.22 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Pre-Tax Profit

Lowest at USD 20.39 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 20.39 MM has Fallen at -22.91%

over average net sales of the previous four periods of USD 26.45 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 19.99 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Net Profit

At USD 19.99 MM has Fallen at -21.54%

over average net sales of the previous four periods of USD 25.48 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.19

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)