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Goldman Sachs BDC Inc. (GSBD)
:GSBD
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Goldman Sachs BDC
(NYSE:GSBD)72Outperform
Positive Factors
Investment Activity
New investments were very strong, totaling $440 million and offering lower yields of 11.0%.
Negative Factors
Earnings Impact
The top-line was impacted by two major non-accruals in Pluralsight and Lithium.
Financial Performance
GSBD has posted net losses in 11 of the past 12 quarters, and 30 of the 38 since its IPO.
Goldman Sachs BDC (GSBD) vs. S&P 500 (SPY)
Market Cap
$1.44B
Dividend Yield14.52%
Average Volume (3M)841.38K
Price to Earnings (P/E)22.6
Beta (1Y)0.73
Revenue Growth-28.04%
EPS Growth-69.52%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength93
IndustryAsset Management Services
Share Statistics
EPS (TTM)0.55
Shares Outstanding117,297,220
10 Day Avg. Volume969,624
30 Day Avg. Volume841,381
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.49
Price to Cash Flow (P/CF)27.70
P/FCF Ratio26.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.00Price Target Upside6.21% Upside
Rating ConsensusHold
Number of Analyst Covering1
Goldman Sachs BDC Business Overview & Revenue Model
Company DescriptionGoldman Sachs BDC, Inc. (GSBD) is a business development company that primarily focuses on lending to middle-market companies. As a part of the Goldman Sachs Group, it provides flexible financing solutions tailored to meet the needs of its portfolio companies. GSBD operates within the financial services sector, offering a range of investment and lending services designed to support the growth and development of small to mid-sized businesses across various industries.
How the Company Makes MoneyGoldman Sachs BDC generates revenue primarily through interest income from its portfolio of debt investments. The company invests in both secured and unsecured loans, as well as equity investments in middle-market companies. These investments typically carry higher interest rates than traditional bank loans, enabling GSBD to earn substantial interest income. Additionally, GSBD may earn fees related to the structuring, origination, and management of its investment portfolio. The company also benefits from capital gains realized through the sale of equity investments. Partnerships with Goldman Sachs Group provide strategic advantages, including access to a broad range of investment opportunities and a robust risk management framework, which contribute to GSBD's earnings.
Goldman Sachs BDC Financial Statement Overview
Summary
Goldman Sachs BDC demonstrates strong profitability and a solid balance sheet with no recent debt, highlighting financial stability. However, inconsistent revenue growth and reduced operating cash flow present challenges that need addressing.Income Statement
Goldman Sachs BDC shows strong profitability with a high Gross Profit Margin and Net Profit Margin, indicating efficient cost management and solid earnings. However, the Revenue Growth Rate has been volatile, with a decline in the most recent year, which is a concern.80
Positive
Balance Sheet
The balance sheet is robust, with no debt reported in the latest year, leading to a favorable Debt-to-Equity Ratio. The company's equity position is strong, and the Return on Equity is impressive, reflecting efficient use of shareholder funds.85
Very Positive
Cash Flow
Operating Cash Flow is positive but significantly reduced from previous years, which raises concerns about cash generation. The Free Cash Flow Growth Rate is negative, indicating challenges in sustaining cash flow levels, although the Free Cash Flow to Net Income Ratio remains reasonable.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 434.37M | 454.91M | 56.64M | 170.09M | 146.59M | Gross Profit |
| 434.37M | 454.91M | 20.34M | 128.36M | 130.88M | EBIT |
| 424.84M | 363.38M | 139.16M | 194.07M | 177.55M | EBITDA |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 62.87M | 195.87M | 55.00M | 192.43M | 176.11M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 61.80M | 52.36M | 39.60M | 33.76M | 32.14M | Total Assets |
| 3.60B | 3.52B | 3.59B | 3.55B | 3.31B | Total Debt |
| 0.00 | 1.83B | 2.01B | 1.86B | 1.63B | Net Debt |
| -61.80M | 1.77B | 1.97B | 1.83B | 1.59B | Total Liabilities |
| 2.03B | 1.92B | 2.09B | 1.94B | 1.70B | Stockholders Equity |
| 1.57B | 1.60B | 1.50B | 1.61B | 1.62B |
| Cash Flow | Free Cash Flow | |||
| 2.46M | 300.69M | 27.44M | -29.86M | 165.78M | Operating Cash Flow |
| 2.46M | 300.69M | 27.44M | -29.86M | 165.78M | Investing Cash Flow |
| 0.00 | 0.00 | -179.42M | -179.42M | -1.69B | Financing Cash Flow |
| 7.15M | -287.99M | -21.75M | 31.69M | -143.11M |
Goldman Sachs BDC Technical Analysis
Negative
12.24
Price Trends
12.59
Negative
12.61
Negative
13.13
Negative
Market Momentum
-0.08
Positive
35.92
Neutral
8.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GSBD, the sentiment is Negative. The current price of 12.24 is below the 20-day moving average (MA) of 12.84, below the 50-day MA of 12.59, and below the 200-day MA of 13.13, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 35.92 is Neutral, neither overbought nor oversold. The STOCH value of 8.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GSBD.
Goldman Sachs BDC Risk Analysis
Goldman Sachs BDC disclosed 78 risk factors in its most recent earnings report. Goldman Sachs BDC reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Goldman Sachs BDC Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.11B | 10.02 | 19.26% | 5.06% | 51.80% | 12.05% | |
76 Outperform | $15.07B | 9.43 | 12.40% | 8.34% | 19.95% | -10.57% | |
72 Outperform | $1.44B | 22.62 | 3.96% | 14.52% | -28.04% | -69.52% | |
66 Neutral | $6.35B | 10.95 | 8.69% | 12.24% | -16.13% | -15.88% | |
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% | |
58 Neutral | $702.74M | ― | -8.57% | 16.35% | 8.24% | -207.60% | |
53 Neutral | $468.17M | 28.87 | 3.28% | 12.62% | ― | -66.59% |
* Financial Sector Average
Performance Comparison
GSBD
Goldman Sachs BDC
12.24
-1.43
-10.46%
MAIN
Main Street Capital
57.65
15.06
35.36%
PNNT
Pennantpark Investment
7.17
1.19
19.90%
ARCC
Ares Capital
22.45
3.54
18.72%
TCPC
BlackRock TCP Capital
8.26
-1.00
-10.80%
FSK
FS KKR Capital
22.67
6.01
36.07%
Goldman Sachs BDC Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -4.67% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in the direct lending platform and a strategic shift towards first-lien investments. The company showed resilience with adjustments in dividend policies while maintaining a shareholder-friendly approach. However, challenges such as a decrease in NAV, a reduction in yield, and an increase in PIK income indicate some underlying issues. Overall, the positives slightly outweigh the negatives, indicating a cautiously optimistic outlook.Highlights
Strong Direct Lending Platform Performance
The Direct Lending Americas platform committed approximately $13 billion and deployed $10.8 billion in 2024, more than double the activity in 2023.
Increase in First-Lien Positions
The percentage of first-lien positions in the portfolio increased from 89.4% in December 2021 to 96.3% at year-end 2024.
High New Investment Commitments
GSBD committed $1.3 billion in new investments in 2024, three times more than the $423 million in 2023.
Dividend Adjustments and Special Dividends
Introduction of a base quarterly dividend of $0.32 per share and supplemental variable distributions. Special dividends of $0.16 per share for the next three quarters.
Improvement in Non-Accrual Investments
Investments on non-accrual status decreased to 2% of the total investment portfolio at fair value from 2.2%.
Lowlights
Decrease in Net Asset Value (NAV)
Net asset value per share decreased by approximately 1% relative to the third quarter.
Decrease in Weighted Average Yield
The weighted average yield of the investment portfolio at amortized cost decreased to 10.1% from 10.9% in the prior quarter.
Increase in PIK Income
PIK income as a percent of total investment income increased to 15% in Q4 2024 from 9% in Q3 2024, indicating potential liquidity issues in some portfolio companies.
Company Guidance
During the Goldman Sachs BDC, Inc. fourth quarter and fiscal year-end 2024 earnings call, the company provided several key metrics and strategic updates. The Direct Lending Americas platform committed approximately $13 billion and deployed $10.8 billion in 2024, more than doubling the activity from 2023. The portfolio saw a shift towards first-lien positions, increasing from 89.4% in December 2021 to 96.3% by year-end 2024. The net investment income per share for the fourth quarter was $0.48, with a net asset value of $13.41 per share, reflecting a 1% decrease from the previous quarter. The board approved a new dividend structure, resetting the quarterly dividend to $0.32 per share with supplemental variable distributions and special dividends planned. The portfolio's total investments at fair value reached $3.48 billion, with a weighted average yield of 10.1% at amortized cost. The company ended the quarter with a net debt to equity ratio of 1.17 times, below the target leverage of 1.25 times. The portfolio's weighted average net debt to EBITDA decreased slightly to 6.2 times, and non-accrual status investments decreased to 2% of the total portfolio at fair value.Goldman Sachs BDC Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Goldman Sachs BDC Announces Q4 2024 Financial Results
Neutral
Feb 27, 2025
On February 27, 2025, Goldman Sachs BDC announced its financial results for the fourth quarter and year ended December 31, 2024, reporting a net investment income per share of $0.48 and a net asset value per share decrease to $13.41. The company declared a first quarter 2025 base dividend of $0.32 per share and a special dividend of $0.16 per share, both payable in April 2025. Additionally, the board authorized future special dividends and supplemental distributions based on net investment income. Structural changes were approved, including a reduction in the base quarterly dividend and incentive fees, indicating a strategic shift to enhance shareholder returns.
Business Operations and StrategyFinancial Disclosures
Goldman Sachs BDC to Announce Q4 2024 Results
Neutral
Jan 15, 2025
On January 15, 2025, Goldman Sachs BDC, Inc. announced it will release its financial results for the fourth quarter and fiscal year ended December 31, 2024, on February 27, 2025. An earnings conference call is scheduled for February 28, 2025, inviting stakeholders to discuss the results. This announcement is part of the company’s routine financial communications, providing insights into its performance and strategy for stakeholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.