Golub Capital BDC Receives ‘Moderate Buy’ Recommendation from Brokerages

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Golub ($NASDAQ:GBDC) Capital BDC, Inc. (NASDAQ: GBDC) recently received an average recommendation of “Moderate Buy” from brokerages, according to an analysis by Zacks Investment Research. Golub Capital BDC is a business development company that provides financing solutions to middle-market companies throughout the United States. The company provides one-stop financing solutions that include senior secured debt, mezzanine debt, and equity co-investments. It also invests in securities of public companies, such as first and second lien loans, subordinated and mezzanine debt securities, and other equity investments. In addition, Golub Capital BDC offers asset-based loans, floating rate private investment notes, and other credit investments.

Share Price

GOLUB CAPITAL BDC, a business development company (BDC), recently received a ‘Moderate Buy’ recommendation from brokerages. On Wednesday, its stock opened at $15.1 and closed the day at $15.0, representing a 0.9% decrease from its last closing price of 15.1. The stock’s performance was in line with the broader market, which declined slightly on the day. Despite this, the Moderate Buy rating from brokerages indicates that they believe GOLUB CAPITAL BDC is still a good investment.

Analysts have pointed to the company’s strong financial performance, portfolio of investments, and attractive dividend yield as contributing factors to their recommendation. Investors may want to consider GOLUB CAPITAL BDC for their portfolio in light of the Moderate Buy rating from brokerages. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for GBDC. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for GBDC. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for GBDC. More…

Key Ratios Snapshot

Some of the financial key ratios for GBDC are shown below. More…

Analysis

GoodWhale recently conducted an analysis of GOLUB CAPITAL BDC’s financials. Based on our Star Chart, GOLUB CAPITAL BDC has a low health score of 2/10 with regard to its cashflows and debt, suggesting it is less likely to pay off debt and fund future operations. Whilst GOLUB CAPITAL BDC is strong in growth, medium in dividend and weak in asset and profitability, it is classified as a ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. The type of investor that may be interested in such a company would likely be those that are comfortable with taking on greater risk for the potential of higher returns. Such investors may include large institutional investors as well as more speculative traders. The company’s potential for rapid growth in earnings and revenue may provide considerable upside for the right investor in the long run. 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) has been receiving a “Moderate Buy” recommendation from brokerages, suggesting that it is a good investment option. The company provides financing solutions to middle-market companies in the United States through senior secured loans, unitranche and mezzanine debt, and equity investments. It offers one-stop financing solutions to its clients, which can include senior secured loans, second lien or unitranche debt, preferred equity, and common equity. Financial analysis of Golub Capital BDC, Inc. shows that it has a good balance sheet with ample liquidity that can be used for loan origination, dividend payments, and acquisitions. The company maintains a robust financial position with well-maintained cash reserves, low debt levels, and strong revenue streams.

In addition, Golub Capital BDC, Inc.’s long-term growth potential is supported by its focus on direct lending and diversified portfolio of middle-market companies. Its experienced team of professionals is able to identify and select the highest quality investments for its portfolio. Overall, Golub Capital BDC, Inc. appears to be a sound investment option at this time for long-term investors.