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Investcorp Credit Management BDC, Inc. Registered (ICMB)
NASDAQ:ICMB
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Investcorp Credit Management BDC
(NASDAQ:ICMB)
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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.
Positive Factors
Strong Financial Recovery
The transition from a net loss to profitability and strong margins indicate a solid financial recovery, enhancing long-term business stability.
Zero Debt Balance Sheet
A zero debt balance sheet provides financial flexibility and reduces risk, supporting sustainable growth and resilience against economic downturns.
Improvement in Credit Quality
Improved credit quality reduces the risk of defaults, enhancing the reliability of income streams and supporting long-term financial health.
Negative Factors
Volatility in Revenues
Revenue volatility and inconsistent EBITDA can lead to unpredictable cash flows, challenging long-term planning and investment strategies.
Decreased Net Investment Income
A decrease in net investment income suggests reduced profitability from core operations, potentially impacting future earnings and dividend sustainability.
Increased Leverage
Increased leverage can heighten financial risk, limiting flexibility and increasing vulnerability to interest rate changes or economic downturns.
Investcorp Credit Management BDC (ICMB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
N/A
Dividend Yield18.31%
Average Volume (3M)43.78K
Price to Earnings (P/E)17.8
Beta (1Y)0.22
Revenue Growth29.71%
EPS Growth-1786.79%
CountryUS
Employees2
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.03
Shares Outstanding14,431,202
10 Day Avg. Volume28,162
30 Day Avg. Volume43,783
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap10.00T>
Enterprise Value/Revenue8.88
Enterprise Value/Gross Profit11.44
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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:Feb 16, 2026
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
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.65
Positive
Balance Sheet
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.75
Positive
Cash Flow
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.70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.35M | ― | 23.25M | 23.25M | 26.68M | 24.43M |
| Gross Profit | 13.46M | ― | 23.25M | 23.25M | 26.68M | 24.43M |
| EBITDA | 0.00 | ― | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 1.85M | ― | 12.08M | 12.08M | 3.23M | 2.59M |
Balance Sheet | ||||||
| Total Assets | 210.64M | ― | 206.85M | 206.85M | 231.81M | 246.39M |
| Cash, Cash Equivalents and Short-Term Investments | 11.63M | ― | 771.48K | 771.48K | 1.09M | 2.55M |
| Total Debt | 127.56M | ― | 122.04M | 122.04M | 135.48M | 146.82M |
| Total Liabilities | 137.93M | ― | 129.25M | 129.25M | 144.11M | 152.88M |
| Stockholders Equity | 72.70M | ― | 77.60M | 77.60M | 87.70M | 93.51M |
Cash Flow | ||||||
| Free Cash Flow | -6.63M | ― | -13.52M | 7.28M | 20.71M | 21.21M |
| Operating Cash Flow | -6.63M | ― | -13.52M | 7.28M | 20.71M | 21.21M |
| Investing Cash Flow | -5.58M | ― | 0.00 | 29.78M | 10.66M | 9.13M |
| Financing Cash Flow | 17.85M | ― | 27.52M | -41.10M | -20.71M | -24.66M |
Investcorp Credit Management BDC Technical Analysis
Positive
2.84
Price Trends
2.72
Positive
2.66
Positive
2.61
Positive
Market Momentum
0.05
Negative
57.91
Neutral
26.83
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 2.84 is above the 20-day moving average (MA) of 2.73, above the 50-day MA of 2.72, and above the 200-day MA of 2.61, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 57.91 is Neutral, neither overbought nor oversold. The STOCH value of 26.83 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $67.66M | 20.86 | 2.25% | 26.93% | -14.76% | ― | |
69 Neutral | ― | 17.82 | 2.88% | 18.31% | 29.71% | -1786.79% | |
68 Neutral | $324.40M | 5.09 | 17.74% | 6.77% | 6.38% | 25.69% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
54 Neutral | $376.76M | 11.51 | 6.83% | 16.64% | -3.09% | 200.66% | |
54 Neutral | $140.83M | ― | -2.25% | 15.15% | -34.92% | -132.22% | |
51 Neutral | $386.56M | 28.27 | 2.72% | 13.93% | -2.38% | -75.49% |
* Financial Sector Average
ICMB
Investcorp Credit Management BDC
2.84
0.30
11.81%
NEWT
Newtek Business
11.23
-1.91
-14.54%
PNNT
Pennantpark Investment
5.77
-0.27
-4.47%
OFS
OFS Capital
5.05
-2.32
-31.48%
MRCC
Monroe Capital
6.60
-0.80
-10.81%
PSBD
Palmer Square Capital BDC Inc.
12.28
-1.83
-12.97%
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.