CION Investment Corp (CION) AI Stock Analysis

• Market Cap: $527.09M
• Dividend Yield: 14.49%
• Average Volume (3M): 446.12K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.60
• Revenue Growth: 2.30%
• EPS Growth: -63.97%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 88
• Industry: Asset Management
• EPS (TTM): 0.63
• Shares Outstanding: 53,026,695
• 10 Day Avg. Volume: 274,963
• 30 Day Avg. Volume: 446,122
• PEG Ratio: 0.15
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.09
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.46
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $11.50
• Price Target Upside: 15.69% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

CION Investment Corp's overall stock score reflects strong revenue growth and efficient cost management, though tempered by high leverage and cash flow inconsistencies. The technical analysis shows bearish trends, suggesting caution. However, the attractive valuation with high dividend yield and positive earnings call sentiment provide a balanced outlook.

Positive Factors

Financing Costs

More bonds were refinanced, pushing the maturity wall out to 2027, indicating a potential for long-term improvement in financing costs.

Income Generation

Transaction fees boosted top-line income, with up-front fees likely booked from significant acquisitions and follow-ons to affiliate and control positions.

Liquidity

CION has an estimated $483M in available liquidity consisting of $93M in cash/cash equivalents and $390M of funds available to be drawn under its existing credit facilities.

Negative Factors

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 of 90 bps and 77 bps.

Credit Risk

Relative to its peers, credit risk is above average with second lien, subordinated debt, CLOs, equity, and non-accruals totaling 16.8% of CION’s portfolio.

Revenue Composition

Payment-in-Kind (PIK) was 16.6% of revenues, well above the group average of 7.5%, and highest of all BDCs under coverage.

CION Investment Corp Business Overview & Revenue Model

Company Description

CION Investment Corporation is a business development company. It specializes in investments in senior secured loans, including unitranche loans, First Lien, second lien loans, long-term subordinated loans, and mezzanine loans; equity interests such as warrants or options; and corporate bonds; and other debt securities in middle-market companies. The firm invests in growth capital, acquisitions, leveraged buyouts, market/product expansion, refinancing and recapitalization. The fund also invests up to 30 percent of their assets opportunistically in other types of investments, including the securities of larger public companies and foreign securities. It also makes investments in the secondary loan market. The fund does not invest in start-up companies, turnaround situations, or companies with speculative business plans. The fund prefers to invest in high tech industries, healthcare, pharmaceuticals, business services, media, chemicals, plastic, rubber, telecommunication, consumer services, advertising, printing and publishing, consumer goods, durables, diversified financials, and other industries. It also invests in homebuilding, restaurants, beverage and tobacco bars, broadcasting, distributors, Non-durable good distribution, food beverage and tobacco, energy, oil gas and consumables fuels, insurance, aerospace and defense, industrial machinery, paper and forest product machinery, information technology, metals and mining, and real estate. It primarily seeks to invest in the United States. The fund seeks to invest between $5 million and $50 million in companies with an EBITDA between $25 million and $75 million with average targeted hold of $25 million. It also purchases minority interests in the form of common or preferred equity in the target companies, typically in conjunction with its debt investments or through a co-investment with a financial sponsor. The fund seeks to exit its investments through an initial public offering of common stock, a merger, a sale, or other recapitalization.

How the Company Makes Money

CION 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.

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.

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.

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
33.90M	95.31M	50.14M	118.76M	-11.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.67M	121.86M	82.74M	3.77M	19.91M
	Total Assets
1.95B	2.00B	1.87B	1.78B	1.61B
	Total Debt
0.00	1.08B	951.32M	822.37M	719.96M
	Net Debt
-7.67M	1.07B	868.58M	818.60M	700.04M
	Total Liabilities
1.12B	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
0.00	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

• Technical Analysis Sentiment: Negative
• Last Price: 9.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 9.94 is above the 20-day moving average (MA) of 9.49, below the 50-day MA of 10.51, and below the 200-day MA of 10.91, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 50.28 is Neutral, neither overbought nor oversold. The STOCH value of 69.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CION.

CION Investment Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GAIN	71 Outperform	$515.35M	7.30	14.74%	6.86%	-8.68%	-3.76%
GLAD	70 Neutral	$567.18M	5.52	22.43%	7.80%	69.53%	60.29%
Sector *	64 Neutral	$12.64B	9.74	8.05%	17044.60%	12.66%	-4.62%
CCAP	61 Neutral	$593.36M	8.06	9.93%	10.49%	12.83%	-13.29%
CION	58 Neutral	$527.09M	15.71	3.99%	14.49%	2.30%	-63.97%
TCPC	58 Neutral	$574.27M	―	-8.57%	18.81%	8.24%	-207.60%
PNNT	48 Neutral	$426.38M	26.15	3.28%	14.39%	―	-66.59%

CION Investment Corp Corporate Events

CION Investment Corp to Announce Q1 2025 Results

CION Investment Corporation announced that it will release its financial results for the first quarter ended March 31, 2025, on May 8, 2025, before the markets open. The company will also hold an earnings conference call at 11:00 a.m. ET on the same day to discuss these results, with a webcast and recording available for those unable to attend the live call.

CION Investment Corp Reports Strong Q4 2024 Results

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.

CION Investment Corp to Announce 2024 Financial Results

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.