Investment Thesis
Fidus Investment Corp exhibits poor fundamental deterioration despite modest net income growth. Negative operating cash flow of -$32.6M signals portfolio stress or capital constraints, while ROE of 2.7% and ROA of 1.4% indicate severely suboptimal capital deployment. EPS dilution (-9.2% YoY) despite net income growth reveals eroding shareholder value.
Strengths
- Net income growing 5.2% year-over-year despite market headwinds
- Moderate leverage at 0.92x debt-to-equity ratio, within acceptable BDC parameters
- Substantial $1.4B asset base provides portfolio diversification
Risks
- Negative operating cash flow of -$32.6M indicates portfolio performance deterioration or forced capital deployment
- Critically low ROE (2.7%) and ROA (1.4%) suggest ineffective investment capital allocation
- EPS declining 9.2% while net income rises indicates significant shareholder dilution and deteriorating per-share economics
- Cash position of $49.7M is dangerously thin relative to $682.2M debt obligations
Key Metrics to Watch
- Operating cash flow return to positive territory (critical threshold)
- ROE and ROA trajectory for capital efficiency improvement
- EPS per share stabilization to confirm dilution control
- Debt covenant compliance given cash flow stress
Financial Metrics
Revenue
N/A
Net Income
19.9M
EPS (Diluted)
$0.65
Free Cash Flow
-32.6M
Total Assets
1.4B
Cash
49.7M
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
N/A
ROE
2.7%
ROA
1.4%
FCF Margin
N/A
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.92x
Debt/Assets
48.6%
Interest Coverage
N/A
Long-term Debt
682.2M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-09T10:35:28.630306 |
Data as of: 2026-03-31 |
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