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1. Company Snapshot

1.a. Company Description

Goldman Sachs BDC, Inc.is a business development company specializing in middle market and mezzanine investment in private companies.It seeks to make capital appreciation through direct originations of secured debt, senior secured debt, junior secured debt, including first lien, first lien/last-out unitranche and second lien debt, unsecured debt, including mezzanine debt and, to a lesser extent, investments in equities.


The fund primarily invests in United States.It seeks to invest between $10 million and $75 million in companies with EBITDA between $5 million and $75 million annually.

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1.b. Last Insights on GSBD

Here is a 90-word analysis of the positive drivers behind Goldman Sachs BDC's recent stock performance: Goldman Sachs BDC's recent performance is driven by its strong dividend yield of 14.7%, supported by earnings and a well-constructed portfolio focused on first lien senior secured debt. The company's diverse sector exposure, including software, healthcare, and professional services, adds to its attractiveness. Despite a recent earnings miss, the BDC's forward dividend yield and favorable asset-liability spread are expected to lead to a solid EPS figure in Q4. As noted by a recent article, this creates a lucrative opportunity for income investors.

1.c. Company Highlights

2. Goldman Sachs BDC's Q4 2025 Earnings: A Strong Year for Direct Lending

Goldman Sachs BDC, Inc. (GSBD) reported its fourth quarter and fiscal year-end 2025 earnings, with net investment income per share coming in at $0.37, beating estimates of $0.36. The company's net asset value per share was $12.64, a 1% decrease from the third quarter. The Board declared a fourth quarter 2025 supplemental dividend of $0.03 per share and a first quarter 2026 base dividend per share of $0.32. GAAP and adjusted after-tax net investment income for Q4 2025 was $42.2 million and $41.8 million, respectively, equating to an annualized yield on book value of 11.7%.

Publication Date: Mar -09

📋 Highlights
  • Net Investment Income (NII) per Share:: $0.37 for Q4 2025, translating to an annualized yield of 11.7% on book value.
  • Direct Lending Growth:: Americas commitments surged to $14.6 billion in 2025, up from $13 billion in 2024.
  • Portfolio EBITDA Strength:: Median EBITDA rose 84% to $71.8 million by 2025, with 97% first lien exposure.
  • De-risking Progress:: PIK income fell to 9% of total investment income (vs. 15.3% in Q4 2024), and ARR loans dropped to 11% of portfolio.
  • Share Repurchase Impact:: $15 million repurchase of 1.5 million shares accreted NAV by $0.04 per share, with $52.2 million repurchased since June 2025.

Direct Lending Platform Performance

GSBD's direct lending platform had a strong year in 2025, committing approximately $14.6 billion in the Americas, up from $13 billion in 2024. The company's median EBITDA of the portfolio increased 84% from year-end 2021 to $71.8 million at year-end 2025, and exposure to first lien investments increased to 97% of the portfolio. The weighted average yield of total debt and income-producing investments at amortized cost was 9.9% at the end of the fourth quarter.

Credit Quality and Portfolio Composition

The company has made progress in addressing credit quality concerns, with PIK as a percentage of total investment income decreasing to 9% in Q4 2025 from 15.3% in Q4 2024. Investments on nonaccrual status decreased slightly to 1.9% of fair value. GSBD has reduced its exposure to annualized recurring revenue (ARR) loans, which decreased from 39% of the portfolio to 11% during 2025.

Valuation and Return Metrics

With a P/E ratio of 9.06, GSBD's valuation appears reasonable. The company's Price-to-Book Ratio (P/B) stands at 0.76, indicating that its shares may be undervalued. The Dividend Yield is 20.11%, making it an attractive option for income-seeking investors. The ROE (%) is 8.03%, and ROIC (%) is not directly available but the Net Debt / EBITDA ratio is 7.89, which may indicate a relatively high level of debt.

Outlook and Share Repurchases

Analysts estimate next year's revenue growth at -3.5%. GSBD repurchased over 1.5 million shares for $15 million, which was accretive to NAV by $0.04 per share, and has repurchased $52.2 million or 4.7 million shares since implementing the 10b5-1 plan in June 2025. The company's goal is to generate risk-adjusted returns for clients while navigating market cycles.

3. NewsRoom

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Goldman Sachs BDC, Inc. Schedules Earnings Release and Conference Call to Announce First Quarter 2026 Results

Apr -14

Source: businesswire.com

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Goldman Sachs BDC: Downside Risks Remain If NAV Growth Doesn't Improve

Apr -06

Source: seekingalpha.com

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Financial Contrast: Goldman Sachs BDC (NYSE:GSBD) and Runway Growth Finance (NASDAQ:RWAY)

Apr -06

Source: defenseworld.net

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Goldman Sachs BDC (NYSE:GSBD) Sets New 52-Week Low – Here’s What Happened

Apr -02

Source: defenseworld.net

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Goldman Sachs BDC's Risky Math: Buying The Discount, Ignoring The Drift

Mar -30

Source: seekingalpha.com

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Big BDC Dividend Yields: 1 Golden Opportunity And 1 Value Trap

Mar -28

Source: seekingalpha.com

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Private Credit Chaos Has Made These 11%+ BDCs Even Cheaper

Mar -15

Source: forbes.com

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Goldman Sachs BDC: Speculative Buy On Exaggerated SaaS Fears

Mar -04

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.27%)

6. Segments

Lending Services

Expected Growth: 9.27%

Goldman Sachs BDC's 9.27% growth in Lending Services is driven by increasing demand for middle-market loans, expansion into new industries, and a strong origination pipeline. Additionally, the company's diversified portfolio, disciplined underwriting, and active portfolio management contribute to its growth. Furthermore, the company's ability to leverage Goldman Sachs' vast resources and expertise also supports its growth momentum.

7. Detailed Products

Senior Secured Loans

Goldman Sachs BDC provides senior secured loans to middle-market companies, offering a flexible and customized financing solution to meet their capital needs.

Unitranche Loans

Goldman Sachs BDC offers unitranche loans, which combine the benefits of senior and subordinated debt into a single loan facility, providing a simplified and efficient financing solution.

Second Lien Loans

Goldman Sachs BDC provides second lien loans, which offer a flexible and patient source of capital to support companies' growth and expansion plans.

Equity Co-Investments

Goldman Sachs BDC makes equity co-investments alongside its debt investments, providing companies with a comprehensive financing solution and aligning its interests with those of its portfolio companies.

Structured Equity

Goldman Sachs BDC offers structured equity solutions, which provide companies with a flexible and customized financing solution that combines debt and equity features.

8. Goldman Sachs BDC, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Goldman Sachs BDC, Inc. operates in a niche market, providing financing solutions to middle-market companies. The threat of substitutes is low due to the specialized nature of its services.

Bargaining Power Of Customers

While Goldman Sachs BDC, Inc. has a diversified portfolio of customers, some of its borrowers may have significant bargaining power due to their size and financial stability.

Bargaining Power Of Suppliers

Goldman Sachs BDC, Inc. has a strong brand and financial position, which reduces its dependence on suppliers. The company's suppliers have limited bargaining power.

Threat Of New Entrants

While there are barriers to entry in the business development company (BDC) industry, new entrants may still pose a threat to Goldman Sachs BDC, Inc. due to the relatively low capital requirements.

Intensity Of Rivalry

The BDC industry is highly competitive, with many established players competing for a limited number of investment opportunities. Goldman Sachs BDC, Inc. faces intense rivalry from other BDCs and alternative lenders.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.28%
Debt Cost 6.26%
Equity Weight 46.72%
Equity Cost 9.80%
WACC 7.92%
Leverage 114.04%

11. Quality Control: Goldman Sachs BDC, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Trinity Capital

A-Score: 7.8/10

Value: 7.4

Growth: 5.4

Quality: 8.4

Yield: 10.0

Momentum: 6.0

Volatility: 9.7

1-Year Total Return ->

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Fidus

A-Score: 7.5/10

Value: 7.7

Growth: 3.9

Quality: 8.3

Yield: 10.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Central Securities

A-Score: 7.3/10

Value: 5.0

Growth: 4.6

Quality: 8.5

Yield: 9.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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PennantPark

A-Score: 7.2/10

Value: 6.6

Growth: 6.7

Quality: 5.7

Yield: 10.0

Momentum: 5.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Goldman Sachs BDC

A-Score: 6.9/10

Value: 7.6

Growth: 4.3

Quality: 7.2

Yield: 10.0

Momentum: 2.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Rand Capital

A-Score: 5.5/10

Value: 8.0

Growth: 5.6

Quality: 3.5

Yield: 10.0

Momentum: 2.5

Volatility: 3.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.55$

Current Price

9.55$

Potential

-0.00%

Expected Cash-Flows