GBDC Intrinsic Value – Golub Capital Exceeds Expectations with Record-Breaking $157.4M in Middle-Market Originations
April 11, 2023
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Golub Capital has had a record-breaking quarter, having reported $157.4M in middle-market originations. This achievement is made even more impressive with the challenging economic climate caused by the coronavirus pandemic. GOLUB CAPITAL BDC ($NASDAQ:GBDC) is a business development company specializing in providing flexible financing solutions to middle-market companies. It provides debt financing to both publicly traded and privately held businesses in the United States and Canada.
They offer both senior and junior debt capital through direct lending, as well as debt capital through securitization vehicles. GOLUB CAPITAL BDC also provides equity capital through subordinated debt, preferred stock, and common stock investments.
Market Price
On Monday, Golub Capital BDC stock opened at $13.3 and closed at $13.2, down by 1.0% from last closing price of 13.4. This is a significant achievement for the company and reflects the confidence investors have in their origination capabilities. Golub Capital continues to build strong relationships with its borrowers and remains committed to delivering attractive returns for its investors. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for GBDC. More…
| Total Revenues | Net Income | Net Margin |
| 137.3 | 115.94 | 84.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for GBDC. More…
| Operations | Investing | Financing |
| -181.81 | 13.42 | 46.74 |
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 | 3.15k | 14.71 |
Key Ratios Snapshot
Some of the financial key ratios for GBDC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 100.4% | – | – |
| FCF Margin | ROE | ROA |
| -132.4% | 2.9% | 1.3% |
Analysis – GBDC Intrinsic Value
At GoodWhale, we analyzed GOLUB CAPITAL BDC’s financials to determine its intrinsic value. We found that the intrinsic value of GOLUB CAPITAL BDC stock is around $10.7, calculated using our proprietary Valuation Line. Currently, GOLUB CAPITAL BDC stock is traded at $13.2, which means that it is overvalued by 23.8%. This provides a great opportunity for those looking to buy into GOLUB CAPITAL BDC stock, as they can do so at a discounted rate. More…
Peers
The Company’s investment activities are focused on leveraged buyouts, middle market lending, and mezzanine investments. Golub Capital BDC Inc is managed by Golub Capital LLC, an affiliate of Golub Capital Partners, LLC. OFS Capital Corp is a US-based closed-end investment company. The Company’s investment objective is to provide current income and capital gains. OFS Capital Corp invests primarily in middle-market companies in the form of mezzanine loans, first-lien, and second-lien loans, and equity securities. PhenixFIN Corp is a private equity firm specializing in growth capital, middle market, and mezzanine investments. PhenixFIN Corp was founded in 2006 and is based in Boston, Massachusetts. Princeton Capital Corp is a US-based investment company. The Company’s investment objective is to provide current income and capital gains. Princeton Capital Corp invests primarily in middle-market companies in the form of mezzanine loans, first-lien, and second-lien loans, and equity securities.
– OFS Capital Corp ($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
The transactions included debt financings for companies in various sectors, including healthcare, industrial, consumer and commercial services. The company’s portfolio is well diversified, with a wide variety of loan types and maturities, providing investors with multiple opportunities for potential returns. Golub Capital BDC also received awards for its fair and transparent origination process and its strong client servicing practices. Overall, the company’s performance in the second quarter shows that it is well positioned to meet the needs of its investors in the current environment.
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