Investcorp Credit Management BDC (ICMB) AI Stock Analysis

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Investcorp Credit Management BDC

(NASDAQ:ICMB)

Rating:69Neutral

Price Target:―

Investcorp Credit Management BDC demonstrates a mix of strong financial management and attractive valuation metrics, supported by a high dividend yield and low P/E ratio. While technical indicators are neutral and earnings call sentiments are mixed, the company's strategic focus on credit quality and successful investments provides a degree of optimism. However, challenges like income volatility and increased leverage need to be monitored.

Investcorp Credit Management BDC (ICMB) vs. SPDR S&P 500 ETF (SPY)

Market Cap

N/A

Dividend Yield16.64%

Average Volume (3M)27.25K

Price to Earnings (P/E)19.0

Beta (1Y)0.28

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees2

SectorFinancial

Sector Strength70

IndustryAsset Management

Share Statistics

EPS (TTM)-0.03

Shares Outstanding14,431,202

10 Day Avg. Volume27,523

30 Day Avg. Volume27,250

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/Revenue8.92

Enterprise Value/Gross Profit9.87

Enterprise Value/Ebitda10.57

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Investcorp Credit Management BDC Business Overview & Revenue Model

Company DescriptionInvestcorp Credit Management BDC, Inc. is a business development company specializing in loan, mezzanine, middle market, growth capital, acquisitions, market/product expansion, organic growth, refinancings and recapitalization investments. It also selectively invests in mezzanine loans/structured equity and in the equity of portfolio companies through warrants and other instruments, in most cases taking such upside participation interests as part of a broader investment relationship. The fund typically invests in United States and Europe. Within United States, the fund seeks to invest in Midatlantic, Midwest, Northeast, Southeast, and West Coast regions. The fund primarily invests in cable and satellites; consumer services; healthcare equipment and services; industrials; information technology; telecommunication services; and utilities sectors. The fund seeks to invest between $5 million to $25 million in companies that have annual revenues of at least $50 million with EBITDA at least $15 million.

How the Company Makes MoneyInvestcorp Credit Management BDC makes money primarily through interest income and capital gains. The company extends loans to middle-market businesses, earning interest on these financial products. Additionally, ICMB may invest in equity, which can lead to capital gains if the value of these investments appreciates. The company also benefits from management fees associated with overseeing and managing its investment portfolio. Partnerships with other financial institutions and strategic investors can further enhance its revenue-generating capabilities.

Investcorp Credit Management BDC Earnings Call Summary

Earnings Call Date:Aug 12, 2025

(Q4-2025)

% Change Since: |

Next Earnings Date:Nov 17, 2025

Earnings Call Sentiment Neutral

The earnings call reflected a balance of positive developments and challenges. While there was notable progress in origination activity, credit resolution, and the introduction of a stock repurchase program, the company faced issues with decreasing net asset value, high leverage, and reduced profitability.

Q4-2025 Updates

Positive Updates

Increased Origination Activity

Origination activity increased significantly this quarter to $19 million from $5.1 million last quarter, demonstrating conviction in sponsor relationships and selectivity in the market.

Decrease in Nonaccrual Positions

Nonaccruals as a percentage of the total portfolio at fair value remained stable at 1.6%, down from 5% in the same period last year, highlighting progress in credit resolution.

High Realized IRR on Investments

The company realized a 64.1% IRR on their equity position in RESA Power and had significant realized IRRs of 20.4% and 19.9% on XLerate and 4L Technologies, respectively.

New Stock Repurchase Program

The Board authorized a $5 million stock repurchase program, reflecting management's confidence in the company's valuation and commitment to enhancing shareholder value.

Negative Updates

Decrease in Net Asset Value

Net assets declined by $2.1 million, and net asset value per share decreased to $5.27 from $5.42, largely driven by fair value adjustments and nonaccrual positions.

High Leverage Ratio

Gross leverage increased to 1.77x from 1.53x, and net leverage increased to 1.54x from 1.37x, raising concerns about the financial stability and risk profile.

Decreased Weighted Average Yield

The weighted average yield of the portfolio decreased to 10.6% from 11% in the previous quarter, indicating pressure on income generation.

Low Profitability

The net decrease in net assets from operations was approximately $434,000, highlighting challenges in achieving higher profitability.

Company Guidance

During Investcorp Credit Management BDC's earnings call for the quarter ended June 30, 2025, the company reported net investment income before taxes of $0.8 million or $0.06 per share, marking a 1% increase from the previous quarter. This resulted in an annualized return on equity of 4.3%, up approximately 80 basis points sequentially. Despite a decrease in net asset value per share to $5.27 from $5.42, driven by fair value adjustments, nonaccruals as a percentage of the total portfolio remained stable at 1.6%. The quarter saw a significant rise in origination activity, with $19 million in new investments, up from $5.1 million in the prior quarter, while the weighted average yield of debt investments was approximately 9%. The company also fully realized investments in three portfolio companies, producing an internal rate of return of approximately 32.8%. As of June 30, the portfolio's fair value was $204.1 million, with a weighted average yield of 10.6%. The call also highlighted a new $5 million stock repurchase program and declared a quarterly distribution of $0.12 per share, with a supplemental distribution of $0.02 per share.

Investcorp Credit Management BDC Financial Statement Overview

Summary

Investcorp Credit Management BDC exhibits a promising financial recovery, particularly in the recent TTM period. Key strengths include a shift from a net loss to a profit, robust gross profit and EBIT margins, and a zero debt balance sheet, which indicates financial stability. However, volatility in revenues and cash flow activities presents potential risks.

Income Statement

Positive

The company has shown a significant improvement in net income from a loss to a profit in the TTM, indicating strong recovery. The gross profit margin and EBIT margins are robust, with a noticeable increase in revenue from the previous year. However, the volatility in annual revenues and inconsistent EBITDA results over the years indicate potential instability in income generation.

Balance Sheet

Positive

The company's balance sheet is strong, with zero total debt in the TTM, leading to a healthy debt-to-equity ratio. The equity ratio is moderate, indicating a balanced approach to leveraging assets. Despite fluctuations in stockholders' equity over the years, the overall financial stability is maintained.

Cash Flow

Positive

Operating cash flow has been positive, with a substantial free cash flow in the TTM. The free cash flow to net income ratio is strong, indicating efficient cash flow management. However, variations in investing and financing cash flows suggest potential volatility in financing strategies and investment activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.27M	9.91M	-205.94K	10.04M	20.91M	34.46M
Gross Profit	15.61M	23.88M	-5.68M	4.69M	14.83M	-40.23M
EBITDA	14.56M	0.00	-205.94K	-6.85M	11.32M	26.83M
Net Income	8.85M	-4.09M	3.23M	2.59M	-2.31M	-24.66M
Balance Sheet
Total Assets	224.06M	192.24M	231.81M	246.39M	267.68M	296.79M
Cash, Cash Equivalents and Short-Term Investments	2.95M	158.77K	1.09M	2.55M	5.85M	14.88M
Total Debt	65.00M	106.22M	135.48M	146.82M	165.43M	182.33M
Total Liabilities	148.08M	117.23M	144.11M	152.88M	171.33M	188.67M
Stockholders Equity	75.98M	75.01M	87.70M	93.51M	96.36M	108.12M
Cash Flow
Free Cash Flow	-8.40M	37.06M	20.71M	21.21M	20.21M	-10.55M
Operating Cash Flow	-8.40M	37.06M	20.71M	21.21M	20.21M	-10.55M
Investing Cash Flow	-14.14M	29.78M	10.66M	9.13M	19.09M	3.79M
Financing Cash Flow	29.35M	-41.10M	-20.71M	-24.66M	-27.90M	4.55M

Investcorp Credit Management BDC Technical Analysis

Technical Analysis Sentiment

Positive

Last Price2.94

Price Trends

50DMA

2.81

Positive

100DMA

2.79

Positive

200DMA

2.82

Positive

Market Momentum

MACD

0.04

Negative

RSI

64.02

Neutral

STOCH

57.03

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICMB, the sentiment is Positive. The current price of 2.94 is above the 20-day moving average (MA) of 2.81, above the 50-day MA of 2.81, and above the 200-day MA of 2.82, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 64.02 is Neutral, neither overbought nor oversold. The STOCH value of 57.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ICMB.

Investcorp Credit Management BDC Risk Analysis

Investcorp Credit Management BDC disclosed 80 risk factors in its most recent earnings report. Investcorp Credit Management BDC 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

Investcorp Credit Management BDC Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LIEN	75 Outperform	$245.78M	10.43	12.44%	11.79%	―	―
ICMB	69 Neutral		19.01	2.88%	16.64%	―	―
Sector *	68 Neutral	$17.81B	11.87	10.24%	3.74%	9.75%	1.30%
SCM	64 Neutral	$420.56M	10.27	10.88%	10.81%	65.75%	14.28%
TPVG	59 Neutral	$275.41M	6.63	11.78%	17.57%	377.90%	―
BCG	48 Neutral	$29.88M	―	-11.08%	―	-27.89%	51.00%
SSSS	45 Neutral	$206.63M	4.46	29.40%	2.89%	168.31%	―

* Financial Sector Average

Performance Comparison

ICMB

Investcorp Credit Management BDC

2.94

0.30

11.36%

SSSS

SuRo Capital

8.65

4.90

130.67%

SCM

Stellus Capital

14.80

2.66

21.91%

TPVG

TriplePoint Venture Growth

6.83

0.40

6.22%

BCG

Binah Capital Group

1.80

-0.82

-31.30%

LIEN

Chicago Atlantic BDC

10.77

0.50

4.87%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Apr 26, 2025