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CION Investment Corp (CION)
NYSE:CION
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CION Investment Corp
(NYSE:CION)
59Neutral
Positive Factors
Income Generation
The weighted average annualized yield on CION's debt investments was 12.9%, indicating strong income generation from its portfolio.
Liquidity
CION has an estimated $483M in available liquidity, providing a strong buffer for financial commitments and future investments.
Negative Factors
Credit Risk
CION's credit risk is above average, with second lien, subordinated debt, CLOs, equity, and non-accruals totaling 16.8% of the portfolio.
Downgrade Risk
Six loans were downgraded and three were upgraded, with significant downgrades to TMK Hawk and STATinMed due to refinancing risks and negative cash flow.
Net Credit Losses
CION's trailing five-year and four-year net credit losses averaging 147 bps and 137 bps, respectively, are above the group average.
CION Investment Corp (CION) vs. S&P 500 (SPY)
Market Cap
$574.81M
Dividend Yield12.98%
Average Volume (3M)335.01K
Price to Earnings (P/E)17.1
Beta (1Y)0.67
Revenue Growth2.30%
EPS Growth-63.97%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength85
IndustryAsset Management Services
Share Statistics
EPS (TTM)0.63
Shares Outstanding53,026,695
10 Day Avg. Volume479,903
30 Day Avg. Volume335,010
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)N/A
Price to Sales (P/S)2.27
Price to Cash Flow (P/CF)2.80
P/FCF Ratio2.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.50Price Target Upside5.12% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering2
CION Investment Corp Business Overview & Revenue Model
Company DescriptionCION Invt Corp is a non-traded business development company. It focuses on United States middle market lending. The fund's investment objective is to generate current income and, to a lesser extent, capital appreciation. The company seeks to accomplish its investment objective by managing the portfolio with the intent to reduce portfolio volatility, mitigate downside risk, and reduce portfolio correlation to traded markets.
How the Company Makes MoneyCION Investment Corp generates revenue primarily through the interest income and fees earned on the loans it provides to middle-market companies. As a business development company, CION is required to distribute at least 90% of its taxable income to shareholders in the form of dividends, which means it focuses on generating consistent and high-interest income from its loan portfolio. The company may also earn money through capital gains on the sale of investments, though this is a secondary objective. CION's earnings are influenced by factors such as the credit quality of its borrowers, interest rate fluctuations, and overall economic conditions. The company may also engage in strategic partnerships or co-investments to enhance its investment opportunities and returns.
CION Investment Corp Financial Statement Overview
Summary
CION Investment Corp demonstrates strong revenue growth and efficient cost management, but faces challenges with high leverage and inconsistent cash flows. While profitability metrics show potential, the reliance on debt financing and cash flow volatility may pose risks to long-term stability.Income Statement
CION Investment Corp has shown strong revenue growth with a significant increase from 2022 to 2023. The gross profit margin remains high at 100%, demonstrating efficient cost management. However, the net profit margin has shown inconsistency over the years, indicating volatility in net income relative to revenue. Despite this, EBIT margins are solid, pointing to effective operational management.67
Positive
Balance Sheet
The company shows a relatively high debt-to-equity ratio in recent years, indicating a higher reliance on debt financing, which could pose a financial risk. The equity ratio has decreased, reflecting a lower proportion of assets financed by equity. ROE has been positive, suggesting profitability from equity, but the high liabilities could be a concern for financial stability.45
Neutral
Cash Flow
Operating cash flow has seen fluctuations, with significant negative cash flow in 2023, which may indicate operational challenges. Free cash flow has improved in the latest year, but historical volatility presents concerns. The operating cash flow to net income ratio suggests that cash flow generation is inconsistent compared to reported earnings.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 252.43M | 251.01M | 61.14M | 131.98M | -2.20M |
| Gross Profit | ||||
| 252.43M | 251.01M | 11.72M | 90.89M | -44.13M |
| EBIT | ||||
| 95.97M | 180.82M | 100.14M | 119.11M | -11.02M |
| EBITDA | ||||
| 0.00 | -9.71M | 0.00 | 0.00 | 0.00 |
| Net Income Common Stockholders | ||||
| 95.86M | 95.31M | 50.14M | 118.76M | -11.02M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 0.00 | 121.86M | 82.74M | 3.77M | 19.91M |
| Total Assets | ||||
| 60.40M | 2.00B | 1.87B | 1.78B | 1.61B |
| Total Debt | ||||
| 0.00 | 1.08B | 951.32M | 822.37M | 719.96M |
| Net Debt | ||||
| 0.00 | 1.07B | 868.58M | 818.60M | 700.04M |
| Total Liabilities | ||||
| 39.11M | 1.12B | 988.78M | 852.17M | 736.54M |
| Stockholders Equity | ||||
| 21.29M | 879.56M | 883.63M | 930.51M | 878.26M |
| Cash Flow | Free Cash Flow | |||
| 88.19M | -97.15M | 35.28M | -49.25M | 198.73M |
| Operating Cash Flow | ||||
| 88.19M | -97.15M | 35.28M | -49.25M | 198.73M |
| Investing Cash Flow | ||||
| -421.19M | 0.00 | -487.95M | -660.99M | -282.00M |
| Financing Cash Flow | ||||
| -88.94M | 22.83M | 43.69M | 33.11M | -184.95M |
CION Investment Corp Technical Analysis
Negative
10.94
Price Trends
11.73
Negative
11.54
Negative
11.47
Negative
Market Momentum
-0.25
Positive
30.64
Neutral
11.61
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CION, the sentiment is Negative. The current price of 10.94 is below the 20-day moving average (MA) of 11.94, below the 50-day MA of 11.73, and below the 200-day MA of 11.47, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 30.64 is Neutral, neither overbought nor oversold. The STOCH value of 11.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CION.
CION Investment Corp Risk Analysis
CION Investment Corp disclosed 69 risk factors in its most recent earnings report. CION Investment Corp reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CION Investment Corp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.10B | 9.85 | 19.26% | 5.15% | 51.80% | 12.05% | |
76 Outperform | $14.87B | 8.95 | 12.40% | 8.80% | 19.95% | -10.57% | |
72 Outperform | $1.45B | 22.56 | 3.96% | 14.55% | -28.04% | -69.52% | |
64 Neutral | $14.30B | 10.42 | 8.63% | 4.25% | 17.30% | -10.84% | |
59 Neutral | $574.81M | 17.13 | 3.99% | 12.98% | 2.30% | -63.97% | |
58 Neutral | $664.45M | ― | -8.57% | 17.41% | 8.24% | -207.60% | |
53 Neutral | $462.95M | 28.39 | 3.28% | 12.83% | ― | -66.59% |
* Financial Sector Average
Performance Comparison
CION
CION Investment Corp
10.84
1.28
13.39%
MAIN
Main Street Capital
57.54
15.03
35.36%
PNNT
Pennantpark Investment
7.10
1.26
21.58%
ARCC
Ares Capital
21.73
3.48
19.07%
TCPC
BlackRock TCP Capital
7.73
-0.75
-8.84%
GSBD
Goldman Sachs BDC
12.27
-1.14
-8.50%
CION Investment Corp Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: -9.14% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced outlook with strong full-year performance and strategic portfolio management countered by challenges such as NAV decline and competitive market conditions. The company's proactive measures in share repurchases and maintaining a stable dividend distribution signal confidence, while the competitive and interest rate environment poses challenges.Highlights
Strong Full-Year Performance
CION reported $0.35 in quarterly net investment income per share for Q4 and $1.79 per share for the full year, exceeding total 2024 distributions of $1.52 per share.
Proactive Portfolio Management
Successfully upgraded 6 loans and moved one significant loan, Homer City, back onto accrual status, representing a material amount of the quarterly increase in PIK income.
Active Share Repurchase Program
CION repurchased approximately 171,000 shares at an average price of $11.74 per share, highlighting the management's belief that shares are undervalued.
Healthy Investment Pipeline
Despite a competitive market, CION remains selective, focusing heavily on first lien investments with structured yield enhancements. The weighted average yield for total funded first lien debt investments was the equivalent of SOFR plus 7%.
Stable Dividend Distribution
Declared a Q1 base distribution of $0.36 per share, consistent with the fourth quarter distribution.
Lowlights
Net Asset Value Decline
NAV declined quarter-over-quarter to $15.43 from $15.73, primarily due to fair value marks in the equity portfolio and the distribution of a year-end special dividend.
Competitive Market Conditions
Market conditions remained very competitive with historic capital inflows chasing transactions, resulting in lower coupon spreads and higher leverage attachment levels.
Nonaccruals and Credit Risk
Placed two new investments, Sequoia Healthcare and Securus Technologies, on nonaccrual and observed mark-to-market declines in several equity investments due to delayed revenue pipelines.
Interest Rate and Expense Impact
A decrease in quarterly net investment income was driven by lower SOFR rates and higher interest expenses incurred on borrowings.
Company Guidance
During the CION Investment Corporation Q4 and Year-End 2024 Earnings Call, several key metrics and financial performance indicators were highlighted. The company reported a quarterly net investment income of $0.35 per share and $1.79 per share for the full year, surpassing total 2024 distributions of $1.52 per share. CION's net asset value (NAV) decreased from $15.73 in Q3 to $15.43 in Q4, driven by fair value marks in the equity portfolio and the year-end special dividend distribution. The weighted average yield on debt and other income-producing investments stood at 12.3%. Portfolio risk remained well-managed, with nonaccruals representing only 1.41% of the portfolio at fair value. The company continued its share repurchase program, buying back approximately 171,000 shares at an average price of $11.74. CION's leverage ratio increased slightly to 1.27x, with total assets reaching $1.9 billion. The first quarter 2025 base distribution was set at $0.36 per share. The company maintained a strong balance sheet, with over $1 billion in unencumbered assets and ample liquidity to support its investment pipeline.CION Investment Corp Corporate Events
Private Placements and FinancingDividendsFinancial Disclosures
CION Investment Corp Reports Strong Q4 2024 Results
Positive
Mar 13, 2025
CION Investment Corporation reported strong financial results for the fourth quarter and year ending December 31, 2024, with net investment income of $1.79 and total shareholder distributions of $1.52. The company declared a first quarter 2025 base distribution of $0.36 per share. Despite a slight decrease in net asset value per share due to mark-to-market adjustments, CION maintained a robust investment portfolio and completed significant investment activities, including a public bond offering and a new credit facility agreement, enhancing its financial flexibility and shareholder returns.
Financial Disclosures
CION Investment Corp to Announce 2024 Financial Results
Neutral
Feb 3, 2025
CION Investment Corporation announced that it will release its financial results for the fourth quarter and full year ending December 31, 2024, on March 13, 2025. The company will host an earnings conference call on the same day to discuss these results. This announcement is significant for stakeholders as it provides an opportunity to analyze the company’s financial performance and strategic positioning in the market.
DividendsBusiness Operations and Strategy
CION Investment Corp Declares Year-End Special Distribution
Positive
Dec 23, 2024
CION Investment Corporation announced a special year-end distribution of $0.05 per share, contributing to a total distribution of $1.52 per share for 2024. The special distribution reflects the company’s successful income generation from its portfolio, and CION’s management believes their strategic focus on first-lien investments and disciplined capital deployment will continue to offer attractive returns for shareholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.