Fidus Investment (FDUS) AI Stock Analysis

• Market Cap: $704.79M
• Dividend Yield: 8.54%
• Average Volume (3M): 160.49K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.52
• Revenue Growth: 2.31%
• EPS Growth: -15.06%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 81
• Industry: Asset Management
• EPS (TTM): 0.54
• Shares Outstanding: 35,011,880
• 10 Day Avg. Volume: 166,499
• 30 Day Avg. Volume: 160,487
• PEG Ratio: -0.61
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -18.99
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 5.44
• Enterprise Value/Ebitda: -183.46
• 1Y Price Target: $21.25
• Price Target Upside: 5.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 61 Neutral
• Price Target: ―

Fidus Investment shows strengths in income growth and profitability, supported by a strong equity position and attractive valuation. However, weaknesses in cash flow management, technical indicators, and mixed earnings call results present challenges. The high dividend yield and strategic dividend announcements provide some positive sentiment.

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 Corporation makes money primarily through interest income, dividends, and capital gains. The company generates revenue by offering debt financing solutions such as senior secured loans, mezzanine debt, and unitranche loans to lower middle-market companies. These loans typically come with higher interest rates compared to traditional loans due to the increased risk associated with lending to smaller businesses. Additionally, Fidus invests in equity securities of its portfolio companies, which can lead to capital gains when these investments are sold at a profit. The company may also earn fee income from structuring and managing these investments. Fidus's earnings are influenced by factors such as interest rate fluctuations, the financial health of its portfolio companies, and overall economic conditions.

Fidus Investment Financial Statement Overview

Summary

Fidus Investment demonstrates strong revenue growth and profitability with a solid equity position. However, challenges in cash flow management and high debt levels warrant attention. Improvement in cash flow generation and managing leverage are crucial.

Income Statement

Fidus Investment has shown robust revenue growth, particularly from 2022 to 2023 with a significant jump in total revenue. The gross profit margin remains strong at 100% for the latest year, indicating effective cost management. However, there is a notable absence of EBITDA data for the latest period, which could be a potential area of concern for assessing operational efficiency. The net profit margin is high, reflecting strong profitability.

Balance Sheet

The company maintains a solid equity position with a high equity ratio, indicative of a strong balance sheet and lower financial risk. The debt-to-equity ratio is moderate, suggesting balanced leverage. However, there is a substantial amount of total debt that could pose risks if not managed carefully.

Cash Flow

Fidus Investment has experienced fluctuating cash flows with negative operating cash flow in the recent period. The free cash flow remains negative, which could impact the company's ability to fund operations and investments. The operating cash flow to net income ratio suggests inefficiencies in converting income into cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
146.15M	154.18M	52.95M	127.25M	39.97M
	Gross Profit
146.15M	116.89M	28.90M	84.37M	18.47M
	EBIT
101.47M	102.60M	66.31M	118.67M	32.66M
	EBITDA
0.00	13.71M	-2.67M	0.00	-7.12M
	Net Income Common Stockholders
78.29M	77.13M	35.82M	116.10M	31.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
57.16B	119.13M	62.35M	169.42M	124.31M
	Total Assets
1.16B	1.09B	935.96M	897.18M	875.74M
	Total Debt
168.90B	466.51M	410.10M	366.04M	443.25M
	Net Debt
-57.16M	347.38M	347.75M	196.62M	318.94M
	Total Liabilities
508.45M	501.42M	455.62M	409.42M	464.98M
	Stockholders Equity
655.67M	589.47M	480.34M	487.76M	410.76M
Cash Flow		Free Cash Flow
-55.31M	-29.46M	-105.54M	167.90M	55.96M
	Operating Cash Flow
-55.31M	-29.46M	-105.54M	167.90M	55.96M
	Investing Cash Flow
0.00	0.00	-139.87B	126.05B	20.78M
	Financing Cash Flow
-6.67M	86.24M	-1.53M	-122.79M	53.33M

Fidus Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.13
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FDUS, the sentiment is Positive. The current price of 20.13 is above the 20-day moving average (MA) of 19.61, above the 50-day MA of 19.50, and above the 200-day MA of 19.72, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 61.32 is Neutral, neither overbought nor oversold. The STOCH value of 62.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FDUS.

Fidus Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLRC	71 Outperform	$910.52M	10.37	8.86%	9.99%	14.33%	25.35%
GLAD	70 Neutral	$594.87M	6.81	18.92%	7.58%	69.53%	60.29%
CGBD	67 Neutral	$1.01B	10.60	6.92%	13.32%	-11.85%	-3.73%
Sector *	64 Neutral	$12.67B	9.74	7.58%	17015.08%	12.21%	-6.96%
FDUS	61 Neutral	$704.79M	8.62	12.10%	8.54%	2.31%	-15.06%
CCAP	61 Neutral	$570.38M	11.51	6.70%	10.92%	12.83%	-13.29%
TCPC	58 Neutral	$653.94M	―	-5.45%	16.51%	8.24%	-207.60%

Fidus Investment Corporate Events

Fidus Investment Announces Q1 2025 Dividends

On February 18, 2025, Fidus Investment Corporation announced a base dividend of $0.43 per share and a supplemental dividend of $0.11 per share for the first quarter of 2025, payable on March 27, 2025, to stockholders of record as of March 20, 2025. The dividends reflect Fidus’s ongoing strategy to distribute taxable income and enhance shareholder value, with the final tax attributes for 2025 dividends to be determined after the tax year. Fidus’s dividend reinvestment plan allows stockholders to reinvest dividends in additional shares unless they opt to receive cash, aligning with its focus on capital appreciation.