Golub Capital BDC GBDC
Golub Capital BDC is an investment company that provides debt and equity financing to middle-market companies in the United States, generating income primarily from interest and fees. Golub Capital BDC shows weak financial health (score 3.8) with an ROE of 4.46% and negative earnings growth of -35.1%, while its dividend, with a payout of 218%, is unsustainable. The quality of its operating margin (77.88%) does not offset the credit deterioration highlighted in its latest earnings call.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Golub Capital BDC is an investment company that provides debt and equity financing to middle-market companies in the United States, generating income primarily from interest and fees. Golub Capital BDC shows weak financial health (score 3.8) with an ROE of 4.46% and negative earnings growth of -35.1%, while its dividend, with a payout of 218%, is unsustainable. The quality of its operating margin (77.88%) does not offset the credit deterioration highlighted in its latest earnings call.
Score by category
| Category | Score |
|---|---|
| Financial health | 3.5 |
| Quality / Moat | 8.9 |
| Valuation | 2.6 |
| Growth | 0.3 |
| Dividend | 5.1 |
| Momentum | 5.1 |
| Risk & Context | 8.2 |
OVERALL SCORE: 5.2/10
Context and risks
The high interest rate environment (10-year Treasury at 5.17%) increases GBDC's funding costs, which relies on credit lines to leverage its portfolio. However, as a BDC, its intermediation margin benefits from high rates, partially offsetting the risk.
News considered in the analysis
- Golub Capital BDC Inc (GBDC) (Q3 2026) Earnings Call Highlights: Navigating Credit Stress with ... — La llamada de resultados del Q3 2026 destaca la gestión de estrés crediticio, lo que sugiere deterioro en la calidad de la cartera de préstamos, un factor material para un BDC.
- Golub Capital BDC Q3 Earnings Call Highlights — Confirma el enfoque en el estrés crediticio, lo que puede implicar mayores provisiones para pérdidas y un impacto negativo en los beneficios futuros.
- Golub Capital BDC Inc's Dividend Analysis — Análisis de dividendo sin información nueva; el payout ya es insostenible (218%) y el mercado lo conoce.
- How Large Does Your Portfolio Need to Be to Generate $9,300 a Month From Three Income Buckets? — Listículo genérico sobre ingresos pasivos, sin información específica sobre GBDC.
- How Large Does Your Portfolio Need to Be to Generate $8,800 a Month? — Listículo genérico, irrelevante para el análisis.
Verdict: Hold or reduce position; the high dividend does not compensate for the risk of a cut and business deterioration.
Main risk: The main risk is the credit quality of its loan portfolio to middle-market companies, which is already showing signs of stress and could lead to losses and a dividend cut.
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