Barings BDC

BBDC

Asset Management · Financial Services

Price

$8.23

+0.04 (+0.49%)

Market Cap

$861.7M

Exchange

New York Stock Exchange

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Data as of Jul 27, 2026 · filings through Mar 31, 2026

Share count rising — dilution

+61.0% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 65.3M (2021) → 105.2M (2025)

Barings BDC is a business development company (BDC) that lends money to mid-sized private businesses that can't easily borrow from big banks or sell bonds on public markets. It focuses mainly on loans to companies in industries like software, healthcare, and business services. It is managed by Barings LLC, a large global investment firm with over $300 billion in assets under management.

The company makes money by collecting interest on the loans it makes, plus fees when deals are arranged. Most of its investments are in the United States, though it has some exposure to European markets. As a BDC, it is required by law to pay out at least 90% of its taxable income as dividends, which makes it popular with income-seeking investors. The main risk is credit risk — if the private companies it lends to struggle financially, loan defaults could hurt earnings and reduce the dividend.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-4.8% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-38.7% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

0.6%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$151M cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Barings BDC's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

75.1%

Premium pricing power — 75.1% gross margin

Operating Margin

72.1%

Excellent — 72.1% operating margin

ROCE

1.5%

Weak — 1.5% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+11.6%

Steady sales growth (11.6% YoY)

EPS YoY

-9.6%

Earnings shrinking (-9.6% YoY)

Slight earnings drop. Typical near a cyclical low.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

264%

Turns 264% of profit into real cash

FCF Margin

108.0%

Converts sales into free cash efficiently (108.0%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

1.23

Elevated debt (1.23)

Interest Cover

1.59x

Dangerous — barely covers interest (1.6x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

9.7x

Attractive valuation — P/E 9.7

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward

+1.3

GROWING

Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend Yield

13.85%

Healthy income — 13.85% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend Growth

-8.1%

Dividend cut (-8.1% YoY) — warning sign

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