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Fidus Investment (FDUS)
:FDUS
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Fidus Investment
(NASDAQ:FDUS)
64Neutral
Fidus Investment (FDUS) vs. S&P 500 (SPY)
Market Cap
$730.18M
Dividend Yield7.88%
Average Volume (3M)183.26K
Price to Earnings (P/E)9.1
Beta (1Y)0.65
Revenue Growth2.31%
EPS Growth-15.06%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength77
IndustryAsset Management Services
Share Statistics
EPS (TTM)2.41
Shares Outstanding33,914,654
10 Day Avg. Volume254,402
30 Day Avg. Volume183,261
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)N/A
Price to Sales (P/S)5.11
Price to Cash Flow (P/CF)39.50
P/FCF Ratio19.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.00Price Target Upside-2.46% Downside
Rating ConsensusHold
Number of Analyst Covering2
Fidus Investment Business Overview & Revenue Model
Company DescriptionFidus Investment Corporation (FDUS) is a business development company that specializes in providing customized financing solutions to lower middle-market companies. Operating primarily in the United States, Fidus focuses on sectors such as manufacturing, business services, technology, healthcare, and more. The company's core services include debt and equity financing, which support the growth and development of its portfolio companies, thereby fostering a mutually beneficial partnership.
How the Company Makes MoneyFidus 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 require attention.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.71
Positive
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.65
Positive
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.58
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 157.16M | 123.15B | 154.18M | 52.95M | 127.25M | 39.97M | Gross Profit |
| 136.94M | 123.15B | 116.89M | 28.90M | 84.37M | 18.47M | EBIT |
| 112.04M | 118.94B | 102.60M | 66.31M | 118.67M | 32.66M | EBITDA |
| 23.07M | 0.00 | 13.71M | -2.67M | 0.00 | -7.12M | Net Income Common Stockholders |
| 87.13M | 74.64B | 77.13M | 35.82M | 116.10M | 31.23M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 42.02M | 57.16B | 119.13M | 62.35M | 169.42M | 124.31M | Total Assets |
| 693.88M | 1.16T | 1.09B | 935.96M | 897.18M | 875.74M | Total Debt |
| 271.50M | 168.90B | 466.51M | 410.10M | 366.04M | 443.25M | Net Debt |
| 229.49M | 111.74B | 347.38M | 347.75M | 196.62M | 318.94M | Total Liabilities |
| 290.89M | 508.45B | 501.42M | 455.62M | 409.42M | 464.98M | Stockholders Equity |
| 402.99M | 655.67B | 589.47M | 480.34M | 487.76M | 410.76M |
| Cash Flow | Free Cash Flow | ||||
| -32.93M | -55.31B | -29.46M | -105.54M | 167.90M | 55.96M | Operating Cash Flow |
| -32.93M | -55.31B | -29.46M | -105.54M | 167.90M | 55.96M | Investing Cash Flow |
| -140.26M | -117.67B | 0.00 | -139.87B | 126.05B | 20.78M | Financing Cash Flow |
| 46.57M | -6.67B | 86.24M | -1.53M | -122.79M | 53.33M |
Fidus Investment Technical Analysis
Neutral
21.53
Price Trends
22.15
Negative
21.00
Positive
19.79
Positive
Market Momentum
-0.11
Positive
34.56
Neutral
13.03
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FDUS, the sentiment is Neutral. The current price of 21.53 is below the 20-day moving average (MA) of 22.74, below the 50-day MA of 22.15, and above the 200-day MA of 19.79, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 34.56 is Neutral, neither overbought nor oversold. The STOCH value of 13.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FDUS.
Fidus Investment Risk Analysis
Fidus Investment disclosed 80 risk factors in its most recent earnings report. Fidus Investment 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
Fidus Investment Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.11B | 10.02 | 19.26% | 5.15% | 51.80% | 12.05% | |
76 Outperform | $15.07B | 9.43 | 12.40% | 8.34% | 19.95% | -10.57% | |
72 Outperform | $1.44B | 22.62 | 3.96% | 14.71% | -28.04% | -69.52% | |
67 Neutral | $3.22B | 11.74 | 13.71% | 8.60% | -1.49% | -29.48% | |
64 Neutral | $730.18M | 9.09 | 12.58% | 7.88% | 2.31% | -15.06% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
53 Neutral | $468.17M | 28.87 | 3.28% | 12.69% | ― | -66.59% |
* Financial Sector Average
Performance Comparison
FDUS
Fidus Investment
21.53
4.14
23.81%
HTGC
Hercules Capital
18.04
1.50
9.07%
MAIN
Main Street Capital
55.76
13.17
30.92%
PNNT
Pennantpark Investment
6.99
1.01
16.89%
ARCC
Ares Capital
21.86
2.95
15.60%
GSBD
Goldman Sachs BDC
11.98
-1.69
-12.36%
Fidus Investment Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -1.28% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed performance with strong portfolio growth and equity realized gains but faced challenges such as declines in adjusted net investment income and significant write-downs for Quantum IR Technologies. The strategic management of the portfolio and maintaining a low level of non-accruals were positives, but higher expenses and reduced dividend income posed concerns.Highlights
Portfolio Growth
The portfolio grew by 14% to $1.1 billion on a fair value basis as of December 31, 2024, compared to year-end 2023.
Equity Realized Gains
Fidus generated $208 million in net realized capital gains from equity investments over the past five years, with $155 million in net realized gains across the total portfolio.
Low Non-Accruals
Non-accruals on a fair value basis for the fourth quarter stayed under 1% of the portfolio.
Strong Debt Portfolio
76% of the debt portfolio consisted of first lien investments, reflecting a strong credit quality.
Strategic Portfolio Management
Successful co-investment strategy with equity in 85.7% of portfolio companies and a 3.5% average fully diluted equity ownership.
Lowlights
Decline in Adjusted Net Investment Income
Adjusted net investment income for the quarter was $18.4 million compared to $18.8 million last year. Adjusted NII on a per-share basis was $0.54 compared to $0.65 per share for the same period last year.
Quantum IR Technologies Write-down
Quantum IR Technologies was added to non-accruals and its fair value was written down to zero due to a series of negative events.
Decrease in Dividend Income
A $1.3 million decrease in dividend income from equity investments compared to the prior quarter.
Higher Expenses
Total expenses, including income tax provision, were $18.8 million for the fourth quarter, $1.8 million higher than Q3.
Company Guidance
During the Fidus Fourth Quarter 2024 Earnings Conference Call, the company provided detailed guidance on its financial performance and strategic outlook. Fidus Investment Corporation reported a 14% growth in its portfolio to $1.1 billion on a fair value basis as of December 31, 2024. The adjusted net investment income was $18.4 million, with a per-share basis of $0.54, down from $0.65 in the previous year. The company's net asset value was $655.7 million or $19.33 per share at the quarter's end. For the first quarter of 2025, a total dividend of $0.54 per share was declared, comprising a base dividend of $0.43 and a supplemental dividend of $0.11. The fourth quarter saw originations totaling $120.3 million, while proceeds from repayments and realizations amounted to $122.8 million. The debt portfolio's weighted average effective yield was 13.3%, and the net debt to equity ratio stood at 0.7 times. The company also maintained liquidity with $175.7 million available, including cash and credit lines. Looking ahead, Fidus aims to continue its disciplined investment strategy, targeting a balance of debt and equity to enhance returns and sustain portfolio health.Fidus Investment Corporate Events
DividendsBusiness Operations and Strategy
Fidus Investment Announces Q1 2025 Dividends
Positive
Feb 18, 2025
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.
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.