Golub Capital BDC, Inc. Fundamental Analysis (NASDAQ: GBDC)
Golub Capital BDC, Inc. Fundamental Analysis (NASDAQ: GBDC)
Golub Capital BDC, Inc. (NASDAQ: GBDC) shows moderate financial fundamentals with a PE ratio of 24.06, profit margin of 20.51%, and ROE of 3.82%. The company generates $0.7B in annual revenue with strong year-over-year growth of 42.50%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GBDC's fundamental strength across five key dimensions:
Efficiency Score
WeakGBDC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGBDC trades at attractive valuation levels.
Growth Score
ModerateGBDC shows steady but slowing expansion.
Financial Health Score
ModerateGBDC shows balanced financial health with some risks.
Profitability Score
ModerateGBDC maintains healthy but balanced margins.
Key Financial Metrics
Is GBDC Expensive or Cheap?
P/E Ratio
GBDC trades at 24.06 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GBDC's PEG of -0.39 indicates potential undervaluation.
Price to Book
The market values Golub Capital BDC, Inc. at 0.93 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.74 times EBITDA. This is generally considered low.
How Well Does GBDC Make Money?
Net Profit Margin
For every $100 in sales, Golub Capital BDC, Inc. keeps $20.51 as profit after all expenses.
Operating Margin
Core operations generate 55.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.82 in profit for every $100 of shareholder equity.
ROA
Golub Capital BDC, Inc. generates $1.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Golub Capital BDC, Inc. generates strong operating cash flow of $706.64M, reflecting robust business health.
Free Cash Flow
Golub Capital BDC, Inc. generates strong free cash flow of $706.64M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.71 in free cash annually.
FCF Yield
GBDC converts 20.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.06
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.93
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.48
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How GBDC Stacks Against Its Sector Peers
| Metric | GBDC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.06 | 21.07 | Worse (Expensive) |
| ROE | 3.82% | 647.00% | Weak |
| Net Margin | 20.51% | -1594.00% (disorted) | Strong |
| Debt/Equity | 1.22 | 0.90 | Weak (High Leverage) |
| Current Ratio | 1.48 | 912.43 | Neutral |
| ROA | 1.76% | -579.00% (disorted) | Weak |
GBDC outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Golub Capital BDC, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
244.05%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
283.74%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-133.88%
Industry Style: Value, Dividend, Cyclical
Declining