Fidus Investment (FDUS) AI Stock Analysis

• Market Cap: $683.74M
• Dividend Yield: 11.47%
• Average Volume (3M): 330.71K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.46
• Revenue Growth: -12.17%
• EPS Growth: -14.93%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.50
• Shares Outstanding: 36,427,490
• 10 Day Avg. Volume: 440,637
• 30 Day Avg. Volume: 330,706
• PEG Ratio: -0.48
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 4.34
• P/FCF Ratio: -12.38
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: 8.60
• Enterprise Value/Gross Profit: 10.90
• Enterprise Value/Ebitda: 12.24
• 1Y Price Target: $21.50
• Price Target Upside: 14.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.08
• Revenue Forecast (FY): $152.39M

• Rating: 68 Neutral
• Price Target: $21.50 ▲(14.67% Upside)

Fidus Investment's overall stock score is driven by its strong valuation and positive corporate events, which are offset by mixed financial performance and technical indicators. The earnings call provided a positive outlook, but challenges in revenue growth and cash flow generation remain areas of concern.

Positive Factors

Strong Portfolio Performance

The strong performance of Fidus' debt portfolio indicates robust credit quality and effective investment strategies, supporting long-term income stability.

New SPV Credit Facility

The new SPV credit facility enhances Fidus's financing capabilities, supporting strategic growth and providing financial flexibility for future investments.

Net Asset Value Growth

Growth in net asset value reflects successful portfolio management and accretive investments, strengthening Fidus's financial position.

Negative Factors

Challenges in Revenue Growth

Negative revenue growth indicates potential difficulties in expanding business operations and capturing market opportunities, impacting long-term growth prospects.

Cash Flow Generation Issues

Significant negative cash flow growth suggests challenges in maintaining liquidity, which could constrain investment and operational flexibility.

Decrease in Total Investment Income

The decrease in investment income may reflect challenges in generating returns from current investments, potentially affecting future profitability.

Fidus Investment Business Overview & Revenue Model

Company Description

Fidus Investment Corporation is a business development company. It specializing in leveraged buyouts, refinancings, change of ownership transactions, recapitalizations, strategic acquisitions, mezzanine, growth capital, business expansion, lower middle market investments, debt investments, subordinated and second lien loans, senior secured and unitranche debt, preferred equity, warrants, subordinated debt, senior subordinated notes, junior secured loans, and unitranche loans. It does not invest in turnarounds or distressed situations. The fund prefers to invest in aerospace and defense, business services, consumer products and services including retail, food, and beverage, healthcare products and services, industrial products and services, information technology services, niche manufacturing, transportation and logistics, and value-added distribution sectors. It seeks to invest in companies based in United States. The fund typically invests between $5 million and $15 million per transaction in companies with annual revenues between $10 million and $150 million and an annual EBITDA between $3 million and $20 million, but it can occasionally invest in larger or smaller companies. It seeks to acquire minority equity stakes and board observation rights in conjunction with its investments.

How the Company Makes Money

Fidus Investment generates revenue primarily through interest income from its debt investments and dividends from equity investments in portfolio companies. The company typically invests in senior secured loans, subordinated debt, and equity securities, which allows it to earn interest and capital appreciation. Additionally, FDUS earns management fees and incentive fees from its investment portfolio, which are based on the performance of its investments. The company's ability to identify and invest in promising middle-market companies, combined with its strategic partnerships and relationships within various industries, contributes to its revenue generation and overall financial performance.

Fidus Investment Financial Statement Overview

Summary

Fidus Investment presents a mixed financial picture. The company maintains strong profitability margins and a solid balance sheet with low leverage, indicating financial stability. However, challenges in revenue growth and cash flow generation pose potential risks. The overall financial health is stable, but improvements in revenue generation and cash flow management are necessary to enhance financial performance.

Income Statement

Fidus Investment shows a mixed performance in its income statement. The company has a strong gross profit margin of 76.4% TTM, indicating efficient cost management. However, the net profit margin has slightly decreased to 50.1% TTM, and revenue growth is negative at -2.0% TTM, suggesting challenges in revenue generation. The EBIT margin is low at 4.2% TTM, indicating potential inefficiencies in operations. Overall, the income statement reflects stability in profitability but highlights concerns in revenue growth and operational efficiency.

Balance Sheet

The balance sheet of Fidus Investment reveals a solid equity position with a debt-to-equity ratio of 0.28 TTM, indicating low leverage and financial stability. The return on equity is moderate at 11.8% TTM, reflecting decent profitability relative to shareholder equity. The equity ratio stands at 55.0% TTM, showcasing a strong capital structure. Overall, the balance sheet demonstrates financial stability with low leverage, although the return on equity suggests room for improvement in generating returns for shareholders.

Cash Flow

Fidus Investment's cash flow statement indicates challenges in cash generation. The free cash flow growth rate is significantly negative at -279.3% TTM, highlighting issues in maintaining cash flow levels. However, the operating cash flow to net income ratio is strong at 45.9 TTM, suggesting efficient cash conversion from earnings. The free cash flow to net income ratio is stable at 1.0, indicating consistent cash flow relative to net income. Overall, the cash flow statement reflects concerns in cash flow growth, despite efficient cash conversion from earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	122.71M	113.68M	108.60M	71.62M	146.41M	57.38M
Gross Profit	96.81M	91.39M	88.00M	55.05M	129.47M	39.97M
EBITDA	86.21M	82.21M	79.83M	47.64M	118.67M	32.66M
Net Income	81.67M	78.29M	77.13M	35.82M	116.10M	31.23M
Balance Sheet
Total Assets	1.28B	1.16B	1.09B	935.96M	897.18M	875.74M
Cash, Cash Equivalents and Short-Term Investments	62.32M	57.16M	119.13M	62.35M	169.42M	124.31M
Total Debt	184.97M	474.89M	466.51M	410.10M	366.04M	443.25M
Total Liabilities	566.71M	508.45M	501.42M	455.62M	409.42M	464.98M
Stockholders Equity	711.03M	655.67M	589.47M	480.34M	487.76M	410.76M
Cash Flow
Free Cash Flow	59.48M	62.37M	48.41M	-105.54M	167.90M	55.96M
Operating Cash Flow	59.48M	62.37M	48.41M	-105.54M	167.90M	55.96M
Investing Cash Flow	-81.16M	-117.67M	-77.87M	-139.87B	126.05B	20.78M
Financing Cash Flow	29.56M	-6.67M	86.24M	-1.53M	-122.79M	53.33M

Fidus Investment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FDUS, the sentiment is Negative. The current price of 18.75 is below the 20-day moving average (MA) of 19.23, below the 50-day MA of 19.45, and below the 200-day MA of 19.21, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 33.30 is Neutral, neither overbought nor oversold. The STOCH value of 7.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FDUS.

Fidus Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NCDL	75 Outperform	$683.52M	8.85	8.46%	14.71%	-8.32%	-33.94%
VINP	73 Outperform	$828.51M	27.25	10.40%	4.56%	81.45%	-26.75%
SLRC	72 Outperform	$833.05M	9.20	9.07%	10.80%	-6.30%	-6.92%
FDUS	68 Neutral	$683.74M	7.98	11.92%	11.47%	-12.17%	-14.93%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CCAP	66 Neutral	$538.61M	14.81	4.92%	13.20%	-20.18%	-61.90%
TCPC	58 Neutral	$458.14M	-49.67	-1.15%	21.13%	-91.81%	78.46%

Fidus Investment Corporate Events

Fidus Investment Announces Q3 2025 Financial Results

On November 6, 2025, Fidus Investment Corporation announced its third-quarter financial results for 2025, reporting a total investment income of $37.3 million and a net investment income of $17.4 million. The company declared a total dividend of $0.50 per share for the fourth quarter of 2025, consisting of a base dividend of $0.43 and a supplemental dividend of $0.07 per share, payable on December 29, 2025. The results highlighted a decrease in total investment income compared to the previous year, attributed to changes in interest, dividend, and fee income. Despite this, Fidus continued to build its portfolio with net originations of $37.8 million and invested in new portfolio companies, reflecting its strategy to generate attractive risk-adjusted returns and grow its net asset value over time.

Fidus Investment Launches New SPV Credit Facility

On October 16, 2025, Fidus Investment Corporation announced the establishment of a new special purpose vehicle credit facility with initial commitments of $175 million, which can be increased to $250 million. This facility, secured by the SPV’s assets, is expected to enhance Fidus’s financing capabilities and support its strategic growth objectives. Concurrently, the company terminated its previous revolving credit agreement and related security agreement, fulfilling all associated obligations, which marks a significant shift in its financial strategy.

Fidus Investment Closes $100 Million Notes Issuance

On October 1, 2025, Fidus Investment Corporation announced an underwriting agreement for the issuance and sale of an additional $100 million in 6.750% Notes due 2030. This move is part of their strategy to expand their financial instruments, with the new notes being treated as a single series with existing notes. The issuance closed on October 3, 2025, increasing the total outstanding principal to $200 million. Additionally, Fidus plans to redeem $100 million of its 4.75% Notes due 2026 on November 3, 2025, as part of its financial restructuring efforts.