GBDC Intrinsic Value Calculation – Golub Capital BDC Announces FY 2023 Third Quarter Earnings Conference Call and Release of Results
August 9, 2023
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The call will provide an update on the company’s financial performance and outlook. Golub ($NASDAQ:GBDC) Capital BDC is a publicly traded Business Development Company (BDC) that provides middle-market companies with flexible financing solutions. GBDC is managed by Golub Capital, a leading provider of financing solutions to middle-market companies nationwide.
GBDC supports the growth of its borrowers with a wide range of debt capital solutions, including senior secured loans, subordinated debt, mezzanine debt and equity co-investments. GBDC has demonstrated consistent results through both market cycles, generating attractive risk-adjusted returns for its own shareholders and those of its portfolio companies.
Earnings
The report showed that GOLUB CAPITAL BDC earned 94.99 million in total revenue and 91.32 million in net income for the quarter ending March 31 2021. This marks a 40.0% increase in total revenue and a 36.6% increase in net income compared to the same quarter of the previous year. The total revenue of GOLUB CAPITAL BDC has grown from 62.28 million USD in the last 3 years to 94.99 million USD this year.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for GBDC. More…
| Total Revenues | Net Income | Net Margin |
| 131.67 | 107.57 | 81.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for GBDC. More…
| Operations | Investing | Financing |
| 55.26 | 13.42 | -91.51 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for GBDC. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.67k | 3.17k | 14.73 |
Key Ratios Snapshot
Some of the financial key ratios for GBDC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 58.6% | – | – |
| FCF Margin | ROE | ROA |
| 42.0% | 2.7% | 1.2% |
Share Price
The company also announced that they will hold a conference call to discuss the results of the earnings report. At the start of trading on Monday, GOLUB CAPITAL BDC’s stock opened at $14.0 and closed at $14.1; this was a 0.4% increase from the previous day’s closing price of $14.0. Investors are looking forward to the conference call to gain more insight into GOLUB CAPITAL BDC’s financial performance and upcoming plans. Live Quote…
Analysis – GBDC Intrinsic Value Calculation
At GoodWhale, we conducted an analysis of GOLUB CAPITAL BDC’s fundamentals to provide a comprehensive assessment of the stock. Through our proprietary Valuation Line, we calculate the intrinsic value of GOLUB CAPITAL BDC’s stock to be around $15.6. Currently, GOLUB CAPITAL BDC is trading at $14.1, which is a fair price that is undervalued by 9.6%. This represents an attractive opportunity for investors looking to add this stock to their portfolio. More…
Peers
The Company’s investment activities are focused on leveraged buyouts, middle market lending, and mezzanine investments. Golub Capital BDC Inc is managed by Golub Capital LLC, an affiliate of Golub Capital Partners, LLC. OFS Capital Corp is a US-based closed-end investment company. The Company’s investment objective is to provide current income and capital gains. OFS Capital Corp invests primarily in middle-market companies in the form of mezzanine loans, first-lien, and second-lien loans, and equity securities. PhenixFIN Corp is a private equity firm specializing in growth capital, middle market, and mezzanine investments. PhenixFIN Corp was founded in 2006 and is based in Boston, Massachusetts. Princeton Capital Corp is a US-based investment company. The Company’s investment objective is to provide current income and capital gains. Princeton Capital Corp invests primarily in middle-market companies in the form of mezzanine loans, first-lien, and second-lien loans, and equity securities.
– OFS Capital Corp ($NASDAQ:OFS)
OFS Capital Corp is a publicly traded business development company that provides financing solutions to middle market companies. The company has a market cap of 114.02M as of 2022. OFS Capital Corp’s investment objective is to generate both current income and capital appreciation through debt and equity investments. The company invests primarily in senior secured and mezzanine loans of middle market companies.
– PhenixFIN Corp ($NASDAQ:PFX)
PhenixFIN Corp is a publicly traded company with a market capitalization of $79.3 million as of 2022. The company is engaged in the business of providing financial services and products to consumers and businesses. The company offers a wide range of services, including credit cards, loans, and investment products. PhenixFIN Corp is headquartered in San Francisco, California.
– Princeton Capital Corp ($OTCPK:PIAC)
Princeton Capital Corporation is a publicly traded company with a market capitalization of $33.13 million as of 2022. The company is engaged in the business of lending and investing in real estate and other businesses. Princeton Capital Corporation is headquartered in New York, New York.
Summary
Golub Capital BDC, Inc. (NASDAQ: GBDC) will be releasing its Fiscal Year 2023 Third Quarter financial results. Investors should focus on the company’s performance in terms of profitability, asset quality, and liquidity. Analysts will be looking at net investment income, cash flows from operations, and the net change in unrealized appreciation/depreciation to assess profitability. Asset quality will be examined by reviewing the quality of the loan portfolio and the related income recognition.
Lastly, liquidity will be monitored in terms of the availability of cash and liquid assets for unforeseen market events and other opportunities. Investors should also keep an eye on the company’s dividend payout policy and its stock price performance.
