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 Yield17.45%

Average Volume (3M)39.29K

Price to Earnings (P/E)20.9

Beta (1Y)0.35

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees2

SectorFinancial

Sector Strength82

IndustryAsset Management

Share Statistics

EPS (TTM)0.04

Shares Outstanding14,414,033

10 Day Avg. Volume32,995

30 Day Avg. Volume39,292

Financial Highlights & Ratios

PEG Ratio0.72

Price to Book (P/B)0.59

Price to Sales (P/S)0.00

P/FCF Ratio2.52

Enterprise Value/Market CapN/A

Enterprise Value/Revenue5.43

Enterprise Value/Gross Profit20.88

Enterprise Value/Ebitda-16.62

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:May 13, 2025

(Q3-2025)

% Change Since: 2.61%|

Next Earnings Date:Sep 16, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a balanced view of positive aspects, such as increased NAV and reduced nonaccrual investments, against challenges like reduced net investment income per share and market uncertainties impacting investment activity. The proactive steps in managing portfolio risk and successful realizations were notable, though offset by some negative realizations and concerns over expense allocations.

Q3-2025 Updates

Positive Updates

Increase in Net Asset Value

Net asset value per share increased by $0.03 to $5.42 compared to $5.39 as of December 31, 2024.

Reduction in Nonaccrual Investments

The number of nonaccrual investments reduced from 5 to 2, representing 1.7% of the total portfolio at fair value, down from 3.6% in the previous quarter.

New Investments and Realizations

Invested in 1 new portfolio company and 2 existing ones with total fundings of $5.1 million at a weighted average yield of 10.2%. Realized 3 investments with proceeds of $7.3 million and IRR of 9.6%.

Increase in Portfolio Fair Value

The fair value of the portfolio increased to $192.4 million from $191.6 million in the previous quarter.

Dividend Distribution

A distribution of $0.12 per share was declared for the quarter ended June 30, 2025, payable on June 14, 2025.

Negative Updates

Decline in Net Investment Income per Share

Net investment income before taxes was $0.7 million or $0.05 per share, down from $0.06 per share in the prior quarter.

Impact of Market Uncertainty on Investment Activity

Reduced investment activity due to heightened uncertainty, reduced M&A, and financing activity.

Negative Realized IRR on American Teleconferencing

The realized IRR on the revolver position in American Teleconferencing (PGi) was negative 36.2%.

High Expense Allocation from Adviser

Shareholders bear about $0.10 a year due to adviser expenses, impacting cash flow positivity.

Company Guidance

During the earnings call for the quarter ended March 31, 2025, Investcorp Credit Management BDC provided guidance on various financial metrics and strategic initiatives. The company reported a net investment income before taxes of $0.7 million or $0.05 per share, a slight decrease from the previous quarter's $0.06 per share. The net asset value (NAV) per share increased by $0.03 to $5.42, primarily due to unrealized gains, despite a decline in net investment income due to reduced investment activity and ongoing repayments. The company significantly reduced its nonaccrual investments to 1.7% of the total portfolio's fair value, down from 3.6% in the previous quarter. The weighted average yield on new debt investments was approximately 10.2%, and the overall portfolio yield increased to 10.8% from 10.4% in the prior quarter. As of March 31, 2025, the fair value of the portfolio stood at $192.4 million, with net assets increasing to $78.1 million. The company also announced a quarterly distribution of $0.12 per share, maintaining a focus on NAV stability and selective capital deployment amid broader market uncertainties.

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.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
17.48M	860.68K	7.47M	71.11K	3.18M	34.46M
	Gross Profit
11.95M	860.68K	2.00M	-5.28M	-2.90M	-40.23M
	EBIT
4.02M	16.11M	3.53M	-4.29M	-2.04M	-24.51M
	EBITDA
-190.66K	0.00	-205.94K	-6.85M	11.32M	26.83M
	Net Income Common Stockholders
6.30M	-4.09M	3.23M	2.59M	-2.31M	-24.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.76M	158.77K	1.09M	2.55M	5.85M	14.88M
	Total Assets
319.58M	192.24M	231.81M	246.39M	267.68M	296.79M
	Total Debt
138.25M	106.22M	135.48M	146.82M	165.43M	182.33M
	Net Debt
131.50M	106.06M	134.39M	144.27M	159.58M	167.46M
	Total Liabilities
167.90M	117.23M	144.11M	152.88M	171.33M	188.67M
	Stockholders Equity
151.69M	75.01M	87.70M	93.51M	96.36M	108.12M
Cash Flow		Free Cash Flow
9.35M	37.06M	20.71M	21.21M	20.21M	-10.55M
	Operating Cash Flow
9.35M	37.06M	20.71M	21.21M	20.21M	-10.55M
	Investing Cash Flow
-395.00	29.78M	10.66M	9.13M	19.09M	3.79M
	Financing Cash Flow
-9.25M	-41.10M	-20.71M	-24.66M	-27.90M	4.55M

Investcorp Credit Management BDC Technical Analysis

Technical Analysis Sentiment

Negative

Last Price2.75

Price Trends

50DMA

2.74

Positive

100DMA

2.83

Negative

200DMA

2.79

Negative

Market Momentum

MACD

>-0.01

Positive

RSI

48.80

Neutral

STOCH

22.13

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICMB, the sentiment is Negative. The current price of 2.75 is below the 20-day moving average (MA) of 2.78, above the 50-day MA of 2.74, and below the 200-day MA of 2.79, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.80 is Neutral, neither overbought nor oversold. The STOCH value of 22.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LIEN	75 Outperform	$235.96M	11.96	8.67%	11.41%	―	―
ICMB	69 Neutral		20.93	-0.25%	17.45%	―	―
Sector *	64 Neutral	$12.87B	9.81	7.76%	16985.65%	12.28%	-7.83%
SCM	64 Neutral	$380.49M	9.36	10.83%	11.95%	17.67%	128.48%
TPVG	59 Neutral	$289.27M	7.77	10.68%	18.08%	22.53%	―
BCG	46 Neutral	$35.20M	―	-11.19%	―	-13.79%	62.04%
SSSS	45 Neutral	$174.05M	―	-9.96%	―	90.08%	-893.47%

* Financial Sector Average

Performance Comparison

ICMB

Investcorp Credit Management BDC

2.83

0.09

3.28%

SSSS

SuRo Capital

7.51

3.43

84.07%

SCM

Stellus Capital

13.55

1.23

9.98%

TPVG

TriplePoint Venture Growth

7.29

-0.76

-9.44%

BCG

Binah Capital Group

2.12

-6.61

-75.72%

LIEN

Chicago Atlantic BDC

9.75

-0.96

-8.96%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.