BBDC

Barings BDC

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Financial Services

industry

Asset Management

Exchange

NYSE

County of HQ

United States

Next Earnings Date

05/07/26

Business Summary

Barings BDC operates as a business development company, channeling capital into middle-market investments and generating cash primarily through interest income and structured credit returns. Its moat is rooted in underwriting expertise, sponsor relationships, and disciplined capital allocation within private credit markets. By sourcing proprietary deals and managing risk across a diversified portfolio, it aims to convert borrowed and equity capital into spread income. The durability of its model depends on credit selection quality, funding discipline, and maintaining portfolio yields above its cost of capital to sustain distributions and book value stability.

VALUATION

P/E

8.6

Market Cap ($M USD)

$873

Forward P/E

9

PEG

-

PRICE TO SALES

7.7

PRICE TO BOOK

0.8

EV / EBITDA

-

5-Year Average P/E

DIVIDEND

Yield

12.50%

Annual Payout

$1.04

Payout Ratio

107.20%

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

6.50%

Financial Health & Profitability

Earnings Per Share

$0.97

Next Year EPS Growth Estimate

$0.93

Next Year Revenue Growth Estimate

-2.00%

Return on Equity (ROE)

8.80%

Operating Margin

-

Debt-to-Equity

1.2

Piotroski F-Score

7

Altman Z-Score

-

Return on Invested Capital (ROIC)

7.20%%

Current Ratio

-

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 8.6x earnings and 9x forward earnings, BBDC is priced like a no-growth, balance-sheet-risked lender despite generating a 7.20% ROIC and trading at just 0.8x book value. The market cap of $873M against a Price/Sales of 7.7 suggests investors are paying for asset productivity rather than revenue scale, which is typical in asset management, but the negative 2.00% ROE and 8.80% operating margin reveal mediocre profitability relative to capital employed. The absence of a reported Altman Z-Score and Debt/Equity ratio clouds balance sheet transparency, yet a Piotroski F-Score of 7 signals operational stability. Overall, this is a statistically cheap, balance-sheet-sensitive financial with moderate efficiency metrics and a valuation that implies skepticism rather than optimism.

AI Exposure / Tech Reliance

As an asset management platform within Financial Services, BBDC’s AI exposure is indirect, centered on underwriting analytics, portfolio risk modeling, and operational automation. Firms in this industry that integrate data-driven credit assessment and workflow automation can enhance margins beyond the current 8.80% operating level. However, AI is an efficiency lever here—not a revenue disruptor—so technological upside is incremental rather than transformative.

The Bull Case

A value-oriented investor sees immediate appeal in the 0.8 Price/Book ratio, implying assets are being acquired at a discount to stated equity. The 7 Piotroski F-Score reinforces that core financial conditions—profitability, leverage discipline, and operating trends—are relatively stable despite the -2.00% ROE headline. A 7.20% ROIC in asset management is respectable given capital constraints, and the 8.6 P/E with a 9 forward P/E suggests earnings stability rather than collapse. Add in a 12.50% Dividend Per Share USD figure and 1.2 TTM Yield, and you have a cash-return component that, if sustainable against a $1.04 Payout Ratio, strengthens the total return profile. For GARP investors, the modest multiple combined with EPS Next Year (Est.) of $0.97 indicates steady, bond-like equity exposure with asymmetric upside if ROE normalizes.

The Bear Case

The red flags are structural and cannot be ignored. ROE at -2.00% signals capital is currently being destroyed, not compounded, and the missing Debt/Equity and Altman Z-Score remove critical solvency context for a leveraged financial entity. The PEG Forward is not provided, leaving growth-adjusted valuation opaque, while a Short % of Float at 6.50% shows a measurable bearish contingent. The Payout Ratio of $1.04 raises sustainability questions relative to earnings power, and with Sales Growth Next Year listed at $0.93, revenue acceleration is hardly compelling. This is a low-multiple stock potentially cheap for a reason—muted profitability and uncertain balance-sheet visibility.

Market Sentiment & Smart Money

Short Interest %

2.10%

Analyst Consensus

1.83

Average Analyst Price Target

$9.95

Institutional Ownership %

47.90%

1-Year Beta

0.53

Insider Buying % (6 Mo)

0.60%%

Distance to 52-Week High

84.10%%

Distance to 52-Week Low

104.80%%