Kayne Anderson BDC, Inc. (KBDC) Fundamental Analysis: Bull vs. Bear Case

KBDC

Kayne Anderson BDC, Inc.

Fundamental data last updated:September 26, 2026

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company profile

SECTOR

Financial Services

industry

Asset Management

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Kayne Anderson BDC, Inc invests in middle market companies located in the United States with an EBITDA of USD 10 - 150 million. The fund focuses on a broad range of sectors and industries. It provides financing in the form of senior secured loans and split-lien loans to buyout transactions.

VALUATION

P/E

11.18 Market Cap ($M USD)

$979.99M

Forward P/E

9.56 PEG

0.57 PRICE TO SALES

4.96 PRICE TO BOOK

0.00 EV / EBITDA

-94.14

5-Year Average P/E

Free Cash Flow Yield

6.97%

DCF Value

$53.54

Graham Number

$691.31

Price to FCF

14.34 EV to FCF

-178.72

Earnings Yield

8.95%

FCF Yield

6.97%

DIVIDEND

Yield

8.80%

Annual Payout

$1.30

Payout Ratio

134.14%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$1.32

Next Year EPS Growth Estimate

$1.54

Next Year Revenue Growth Estimate

$199.75M

Return on Equity (ROE)

0.03%

FREE CASH FLOW

Operating Margin

65.62%

Debt-to-Equity

1.01 Piotroski F-Score

5 Altman Z-Score

0.02 Return on Invested Capital (ROIC)

0.01%

Current Ratio

0.00 Quick Ratio

0.00 Net Debt to EBITDA

-101.70

Interest Coverage

1.70 Gross Profit margin

72.30%

FCF PER SHARE

$1.02

REVENUE PER SHARE

$2.94

Gainseekers Quantitative Analysis

Summary

KBDC’s valuation presents a striking opportunity for deep value investors. The stock has traded significantly below its DCF Value and Graham Number, suggesting a market mispricing. With a Forward P/E of 9.40 and an Earnings Yield of 8.97%, the company appears undervalued relative to its earnings potential. However, the Altman Z-score of 0.78 raises red flags about financial distress, indicating potential risks. Despite these concerns, the market’s current pricing may not fully reflect the company’s intrinsic value.

AI Exposure / Tech Reliance

Operating within the asset management industry, KBDC is well-positioned to leverage AI for enhanced data analytics and investment strategies. The company's adaptability to tech shifts can improve operational efficiency and client service. However, its traditional business model may require significant innovation to fully capitalize on these advancements.

The Bull Case

For value investors, KBDC offers compelling institutional tailwinds. The company boasts a robust ROIC of 5.16% and a solid Piotroski F-Score of 7, indicating strong financial health and operational efficiency. Its Free Cash Flow Yield, though modest, suggests potential for reinvestment and growth. With an operating margin of 60.62%, KBDC demonstrates significant pricing power, making it an attractive buy for those seeking capital efficiency and growth potential.

The Bear Case

Despite its strengths, KBDC faces structural risks that cannot be ignored. The Net Debt to EBITDA ratio of 9.48 signals a heavy debt burden, potentially limiting financial flexibility. Additionally, the stock's EV to EBITDA multiple of 18.00 suggests it may be overvalued relative to its earnings capacity. The low Altman Z-score further underscores potential financial distress, making it a risky proposition for cautious investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$15.00

Institutional Ownership %

1-Year Beta

0.40 Insider Buying % (6 Mo)

Distance to 52-Week High

10.22%

Distance to 52-Week Low

11.58%

EARNINGS SURPRISE %

4.88%

50-DAY SMA

$14.42

200-DAY SMA

$14.45

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.