Kayne Anderson BDC Inc. Common Stock (KBDC)

FairStock Score: 35/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that can compound intrinsic value without needing constant outside capital, and a BDC like Kayne Anderson deserves caution. It lends to middle-market companies, primarily first-lien senior secured, unitranche and split-lien loans, so credit selection is the whole game. The externally managed, closed-end structure means fees can be a headwind, and I cannot identify a durable moat beyond underwriting skill and deal flow. The filed numbers show pressure. In fiscal Q2 2026, the quarter ended 2026-06-30, net income was $10.7M and diluted EPS $0.42, versus net income of $24.9M and EPS $0.40 in fiscal Q2 2025; profit fell sharply even though per-share EPS was roughly flat. Fiscal Q1 2026 net income was $17.2M and EPS $0.43. For FY2025, net income was $93.7M and diluted EPS $1.67, down from $131.9M and $2.03 in FY2024. The FairStock data show a P/E of 11.42 at the 2026-10-13 close and a 12.85% dividend yield, but free cash flow yield is -0.4%, the Piotroski F-Score is 2/9, and the Altman Z-Score is 0.38. The Graham Number is $19.81, implying a margin of safety of 37.15%, but that is a rough asset-based check, not a guarantee. The FairStock Score is 35/100, and the Lynch category is STALWART based on 43.2% annual profit growth over four years; recent filings contradict that momentum. At $12.45, the market is pricing doubt. A value investor must ask whether the dividend is covered by sustainable earnings and whether credit losses will erode net asset value. I see an inexpensive but fragile financial company, not a safe bargain.

In plain English: Kayne Anderson BDC lends money to middle-sized companies, mostly through secured loans. Its latest filed results show net income fell from a year earlier, and the financial strength signals look weak. The stock price looks inexpensive on some measures, but the high dividend may be the main support while results are under pressure.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer