Goldman Sachs BDC Tops Estimates on Lower Effective Tax Rate

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GSBD Intrinsic Value – Goldman ($NYSE:GSBD) Sachs BDC reported better-than-expected earnings for the third quarter on Tuesday, as the company’s bottom line benefited from a lower effective tax rate. Goldman Sachs BDC reported earnings per share of 61 cents for the quarter, beating analysts’ expectations of 50 cents. The company’s revenue for the quarter came in at $105.70 million, also topping Street forecasts of $99.12 million. The company attributed the strong results to a lower effective tax rate, as well as growth in its loan portfolio.

“We are pleased to report another quarter of strong growth and profitability,” said CEO Brendan Moran in a statement. “Our loan portfolio continues to perform well, and we are seeing good demand from borrowers across a variety of industries.” Goldman Sachs BDC’s stock was up 1.8% during regular trading hours on Tuesday.

Earnings

Goldman Sachs BDC Tops Estimates on Lower Effective Tax Rate: Goldman Sachs BDC announced its earnings for the second quarter of fiscal year 2022, ended June 30. The company reported total revenue of $126.0 million and net income of $135.8 million. Compared to the same quarter last year, total revenue decreased by 25.9% and net income decreased by 29.4%. However, Goldman Sachs BDC’s total revenue has still increased from $146.6 million to $126.0 million over the last three years.

Share Price

So far, media exposure has been mostly positive for the company. On Friday, Goldman Sachs BDC stock opened at $15.80 and closed at $15.60, up by 1.6% from the previous closing price of $15.40.

VI Analysis – GSBD Intrinsic Value

Goldman Sachs BDC, Inc. operates as a specialty finance company that provides middle-market lending solutions in the United States. The company offers senior secured and mezzanine debt financing, as well as equity co-investments to support the growth and business transitions of middle-market companies. The company’s fundamentals reflect its long-term potential.

The fair value of Goldman Sachs BDC shares is around $16.2, calculated by VI Line. Now Goldman Sachs BDC stock is traded at $15.6, a fair price that is undervalued by 4%.

VI Peers

Portman Ridge Finance Corp, Great Elm Capital Corp, Crescent Capital BDC Inc are all competitors in the same industry.

– Portman Ridge Finance Corp ($NASDAQ:PTMN)

Portman Ridge Finance Corp is a publicly traded company with a market capitalization of 217.16 million as of 2022. The company has a negative return on equity of 1.97%. Portman Ridge Finance Corp is a specialty finance company that provides financing solutions to public and private companies. The company was founded in 2010 and is headquartered in Boston, Massachusetts.

– Great Elm Capital Corp ($NASDAQ:GECC)

Great Elm Capital Corp’s market cap is 77.16M as of 2022. The company’s ROE is -19.61%. Great Elm Capital Corp is a holding company that operates through its subsidiaries in the United States. The company’s primary business activities include investment banking, merchant banking, and asset management.

– Crescent Capital BDC Inc ($NASDAQ:CCAP)

Crescent Capital BDC Inc is a business development company specializing in leveraged and mezzanine debt financing, senior and subordinated debt financing, and equity financing. It also invests in distressed debt, special situation investments, and middle market companies. The company was founded in 1991 and is headquartered in Los Angeles, California.

Summary

Goldman Sachs BDC is a business development company that provides financing solutions to small and medium-sized businesses. Goldman Sachs BDC’s investment objective is to generate current income and capital appreciation through investments in debt and equity securities of smaller companies. Goldman Sachs BDC has a portfolio of investments in a variety of industries, including healthcare, technology, consumer, and industrial.

Goldman Sachs BDC’s investment activities are managed by a team of investment professionals led by Managing Director Richard Friedman. Goldman Sachs BDC is headquartered in New York, New York.