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Fidus Investment (FDUS) AI Stock Analysis
Fidus Investment
(NASDAQ:FDUS)
The score is primarily supported by attractive valuation (low P/E and very high dividend yield) and a generally constructive technical backdrop. Offsetting these positives, financial performance is constrained by recently negative/volatile cash flow despite strong reported profitability, and the latest earnings call flagged near-term NII pressure and higher funding costs even as credit quality and liquidity remained solid.
Fidus Investment (FDUS) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $740.11M
- Dividend Yield
- 13.90%
- Average Volume (3M)
- 317.98K
- Price to Earnings (P/E)
- 9.3
- Beta (1Y)
- 0.65
- Revenue Growth
- 3.27%
- EPS Growth
- -9.84%
- 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 conveyed a generally positive operational and portfolio story: the company maintained adjusted NII sufficient to cover the base dividend, realized equity gains, reported a portfolio valued above cost, held ample liquidity, and eliminated nonaccruals post-quarter. However, there are near-term headwinds including a meaningful quarter-over-quarter decline in NII and adjusted NII, reduced fee income, higher interest expense from recent refinancing (60 bps increase), and an $11 million realized loss on a post-quarter exit. Management emphasized conservative underwriting, a healthy portfolio yield (12.5%), and an improving deal pipeline, suggesting confidence in future results despite short-term earnings pressure.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management guided that they expect M&A-driven deal flow and investment activity to pick up in the second half of 2026—particularly Q4—as geopolitical uncertainties abate, while continuing to adhere to strict underwriting and target risk-adjusted returns; key metrics cited include Q2 adjusted NII of $0.50 per share (Q1 $0.62) and NII of $0.49 per share (Q1 $0.65), a Q3 dividend of $0.50 per share (base $0.43 + supplemental $0.07) payable 9/29/2026 (record 9/15/2026), Q2 originations of $98.0 million and $48.1 million invested in four new companies, $39.2 million of Q2 repayments/realizations, $6.4 million of net realized gains ($0.17 per share), a $1.4 billion fair-value portfolio ($1.3 billion debt / $147.2 million equity) with NAV $738.5 million or $19.46 per share, weighted-average debt yield 12.5%, weighted-average interest on outstanding debt 5.8% (vs 5.2% in Q1), net debt outstanding $739.8 million (SBA $296m, unsecured notes $320m, LOC $112.7m, secured $11.1m) with net debt-to-equity ~1.0x (statutory leverage excl. SBA 0.6x), liquidity of ≈$170.1 million (cash $39.3m, LOC availability $112.3m, SBA availability $18.5m), weighted average LTV 41% (target ≤50%), target leverage range 0.9–1.1x (midpoint 1.0x), and the potential to use the ATM to raise equity if pipeline growth warrants.
Fidus Investment Financial Statement Overview
Summary
Strong reported profitability (very high margins; TTM net profitability ~51%) and an improved leverage picture in TTM, but the overall quality is held back by volatile revenue and, most importantly, recently negative and highly volatile operating/free cash flow, which raises cash-conversion and liquidity risk.
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 19.50 is above the 20-day moving average (MA) of 19.05, above the 50-day MA of 19.12, and above the 200-day MA of 18.16, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 57.36 is Neutral, neither overbought nor oversold. The STOCH value of 80.56 is Negative, 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
CGBD69Neutral- FDUS69Neutral
CSWC66Neutral
CION65Neutral
BCSF53Neutral
SAR47Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| CGBD | 69Neutral | $759.60M | 60.60 | 3.25% | 13.77% | 11.89% | -58.67% |
| FDUS | 69Neutral | $783.48M | 9.33 | 10.54% | 13.90% | 3.27% | -9.84% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| CSWC | 66Neutral | $1.58B | 13.07 | 10.22% | 11.00% | 25.12% | 7.88% |
| CION | 65Neutral | $346.88M | -15.71 | -2.03% | 20.61% | 3.63% | ― |
| BCSF | 53Neutral | $729.12M | 11.26 | 5.79% | 16.65% | -11.58% | -40.72% |
| SAR | 47Neutral | $216.28M | -51.60 | -1.08% | 25.19% | -10.96% | -110.82% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| FDUS | Fidus Investment | 19.50 | 1.87 | 10.63% | |
| CSWC | Capital Southwest | 23.27 | 4.68 | 25.19% | |
| SAR | Saratoga Investment | 12.90 | -5.62 | -30.35% | |
| CGBD | Carlyle Secured Lending Inc | 10.89 | 0.40 | 3.82% | |
| BCSF | Bain Capital Specialty Finance | 11.17 | -0.81 | -6.76% | |
| CION | Cion Investment Corp. | 6.60 | -1.49 | -18.41% |
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