Fidus Investment Corp. (FDUS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

P10, Inc.

PennantPark Floating Rate Capital Ltd.

Diamond Hill Investment Group, Inc.

BrightSphere Investment Group, Inc.

Trinity Capital, Inc.

Fidus Investment Corp.

SLR Investment Corp.

Patria Investments Ltd.

Crescent Capital BDC, Inc.

Carlyle Secured Lending, Inc

Beneficient

Why is Fidus Investment Corp. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 12.28%

Flat results in Mar 26

INTEREST(HY) At USD 19.2 MM has Grown at 46.87%
ROCE(HY) Lowest at 11.64%
INTEREST COVERAGE RATIO(Q) Lowest at 305.85

With ROE of 11.22%, it has a very attractive valuation with a 0.87 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -7.02%, its profits have risen by 5.6%

High Institutional Holdings at 31.4%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.02% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Fidus Investment Corp. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Fidus Investment Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Fidus Investment Corp.

-7.02%

-0.40

22.97%

S&P 500

22.24%

1.67

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.60%

EBIT Growth (5y)

18.15%

EBIT to Interest (avg)

4.41

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

6.99%

Dividend Payout Ratio

74.08%

Pledged Shares

Institutional Holding

31.40%

ROCE (avg)

19.53%

ROE (avg)

12.28%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.87

EV to EBIT

3.61

EV to EBITDA

3.61

EV to Capital Employed

0.81

EV to Sales

2.75

PEG Ratio

Dividend Yield

8.40%

ROCE (Latest)

22.55%

ROE (Latest)

11.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 68.14 MM

CASH AND EQV(HY)

Highest at USD 365.9 MM

-12What is not working for the Company

INTEREST(HY)

At USD 19.2 MM has Grown at 46.87%

ROCE(HY)

Lowest at 11.64%

INTEREST COVERAGE RATIO(Q)

Lowest at 305.85

RAW MATERIAL COST(Y)

Grown by 15.13% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.81 times

NET SALES(Q)

At USD 35.32 MM has Fallen at -11.28%

PRE-TAX PROFIT(Q)

Lowest at USD 20.12 MM

Here's what is working for Fidus Investment Corp.

Operating Cash Flow

Highest at USD 68.14 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Cash and Eqv

Highest at USD 365.9 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Fidus Investment Corp.

Interest Coverage Ratio

Lowest at 305.85

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At USD 19.2 MM has Grown at 46.87%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Sales

At USD 35.32 MM has Fallen at -11.28%

over average net sales of the previous four periods of USD 39.81 MM

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Pre-Tax Profit

Lowest at USD 20.12 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Debtors Turnover Ratio

Lowest at 6.81 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 15.13% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales