Fidus Investment AI Stock Analysis
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Fidus Investment (FDUS) AI Stock Analysis
Fidus Investment
(NASDAQ:FDUS)
FDUS scores as moderately attractive: the biggest swing factor is weaker and recently negative cash generation despite strong reported profitability and an improving leverage profile. Valuation is compelling (low P/E and very high dividend yield), and the technical setup is supportive with price above major moving averages. Earnings call tone was positive on dividend coverage, liquidity, and credit quality, but uncertainty on deal activity, competitive pricing, and realized losses temper the outlook.
Fidus Investment (FDUS) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $745.80M
- Dividend Yield
- 13.79%
- Average Volume (3M)
- 299.15K
- Price to Earnings (P/E)
- 9.4
- Beta (1Y)
- 0.62
- Revenue Growth
- 3.56%
- EPS Growth
- -12.02%
- Country
- US
- Employees
- 0
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Asset Management
Fidus Investment Business Overview & Revenue Model
Company Description
Fidus Investment Corporation functions as a Business Development Company (BDC), offering capital solutions for diverse corporate endeavors. These encompass management buyouts, debt restructuring, ownership transitions, capital reorganizations, strate...
How the Company Makes Money
Fidus makes money primarily by investing capital into lower middle-market companies and earning returns from those investments. Its key revenue and earnings drivers typically include: (1) Interest income on debt investments: The largest recurring sou...
Fidus Investment Earnings Call Summary
The call was broadly positive. Fidus reported higher adjusted NII, a fully covered base dividend, substantial liquidity, a healthy portfolio with no debt investments on non-accrual, moderate leverage, and improving M&A activity. The main challenges were the $11 million of realized Virtex losses, limited third-quarter closed deal flow, uncertainty around the pace of the M&A recovery, competitive pricing, and limited near-term equity realizations.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For the remainder of 2026, management anticipates a higher level of investment activity from an origination and a repayment perspective due to a more active M&A market; repayments are expected to be relatively healthy in Q4, most likely less than originations, while equity realizations are expected to be very limited here in Q4, with some potential realizations in 2027 after 5 or 6 realizations this year. Assuming status quo, management expects a lift in M&A activity, but does not expect it to be overly robust, although there will be plenty of activity; pricing stability is the expectation, with a possible slight narrowing if rates do increase, leverage is expected to be stable or maybe a little bit lower, and loan-to-values on expected originations are expected to remain in the 30% to 50% range. Management intends to maintain leverage between 0.9:1 and 1.1:1, with a goal not to go too far over 1:1, and its general strategy remains up to 10% of capital deployed over time in equity investments; dividend income is episodic, so not expecting that every quarter probably makes sense.
Fidus Investment Financial Statement Overview
Summary
Profitability is strong (high margins and ~51% TTM net profitability) and the balance sheet has improved with lower debt-to-equity in TTM (~0.36). However, cash generation is a major concern: operating cash flow and free cash flow are negative in TTM and 2025, and cash flow has been highly volatile, reducing confidence in earnings quality and liquidity resilience.
Income Statement
78PositiveBalance Sheet
72PositiveCash Flow
28Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 157.03M | 159.25M | 113.68M | 108.60M | 71.62M | 146.41M |
| Gross Profit | 85.88M | 115.62M | 91.39M | 88.00M | 55.05M | 129.47M |
| EBITDA | 83.67M | 123.21M | 82.21M | 79.83M | 65.75B | 120.89M |
| Net Income | 79.31M | 82.40M | 78.29M | 77.13M | 35.82M | 116.10M |
Balance Sheet | ||||||
| Total Assets | 1.51B | 1.43B | 1.16B | 1.09B | 935.96M | 897.18M |
| Cash, Cash Equivalents and Short-Term Investments | 31.25M | 70.00M | 57.16M | 119.13M | 62.35M | 169.42M |
| Total Debt | 281.85M | 644.08M | 474.89M | 466.51M | 410.10M | 366.04M |
| Total Liabilities | 730.86M | 684.64M | 508.45M | 501.42M | 455.62M | 409.42M |
| Stockholders Equity | 774.41M | 741.90M | 655.67M | 589.47M | 480.34M | 487.76M |
Cash Flow | ||||||
| Free Cash Flow | -173.52M | -147.00M | 62.37M | 48.41M | -105.54M | 167.90M |
| Operating Cash Flow | -173.52M | -147.00M | 62.37M | 48.41M | -105.54M | 167.90M |
| Investing Cash Flow | -103.77M | 0 | -117.67M | -77.87M | -139.87B | 126.05B |
| Financing Cash Flow | 143.90M | 169.45M | -6.67M | 86.24M | -1.53M | -122.79M |
Fidus Investment Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FDUS, the sentiment is Positive. The current price of 19.65 is above the 20-day moving average (MA) of 19.08, above the 50-day MA of 19.13, and above the 200-day MA of 18.17, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 59.85 is Neutral, neither overbought nor oversold. The STOCH value of 76.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FDUS.
Fidus Investment Risk Analysis
Fidus Investment disclosed 2 risk factors in its most recent earnings report. Fidus Investment reported the most risks in the "Legal & Regulatory" category.
Latest Risks Added
1 New RiskFidus Investment Peers Comparison
Overall Rating
BCSF80Outperform- FDUS69Neutral
CGBD67Neutral
CSWC66Neutral
CION65Neutral
SAR47Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| BCSF | 80Outperform | $722.64M | 9.69 | 5.79% | 16.70% | -11.58% | -40.72% |
| FDUS | 69Neutral | $781.49M | 9.40 | 10.59% | 13.79% | 3.56% | -12.02% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| CGBD | 67Neutral | $759.68M | 62.83 | 1.18% | 13.43% | 13.98% | -55.76% |
| CSWC | 66Neutral | $1.55B | 13.20 | 10.22% | 11.01% | 25.12% | 7.88% |
| CION | 65Neutral | $309.48M | -12.86 | -3.95% | 21.62% | -13.70% | -238.64% |
| SAR | 47Neutral | $201.65M | -52.08 | -1.08% | 25.08% | -10.96% | -110.82% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| FDUS | Fidus Investment | 19.65 | 2.05 | 11.65% | |
| CSWC | Capital Southwest | 23.26 | 4.51 | 24.05% | |
| SAR | Saratoga Investment | 12.96 | -6.15 | -32.18% | |
| CGBD | Carlyle Secured Lending Inc | 11.17 | 0.54 | 5.09% | |
| BCSF | Bain Capital Specialty Finance | 11.14 | -0.94 | -7.81% | |
| CION | Cion Investment Corp. | 6.29 | -2.08 | -24.90% |
Fidus Investment Corporate Events
Fidus Investment Reports Third-Quarter Results, Declares Dividends
PositiveOn November 5, 2026, Fidus Investment Corporation reported third-quarter results for the period ended September 30, 2026, including $45.9 million of total investment income and $21.1 million of net investment income, or $0.54 per share. Adjusted net...
Fidus Investment Completes Exchange Offer for 2029 Notes
PositiveOn May 29, 2026, Fidus Investment Corporation privately issued $120.0 million of 6.625% Notes due 2029, then on October 20, 2026 closed an exchange offer to swap these restricted notes for an equivalent amount of SEC-registered notes. The move conver...
Fidus Investment Announces Strong Second Quarter 2026 Results
PositiveOn August 6, 2026, Fidus Investment Corporation reported its second quarter 2026 results, highlighting total investment income of $43.5 million and net investment income of $18.7 million, or $0.49 per share, with adjusted net investment income at $0....
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: Nov 06, 2026