Fidus Investment Corporation
- Open
- 19.70
- Day high
- 19.91
- Day low
- 19.64
- Prev close
- 19.70
- Volume
- 359K
- Mkt cap
- $751M
- P/E (TTM)
- 9.5
- EPS (TTM)
- $2.09
- P/B
- 1.0
- P/S
- 5.1
- Yield
- 11.16%
- Per share
- $2.21
Fidus Investment Corporation (FDUS) is a Financial Services company listed on NASDAQ. The stock is down 7% over the past year. Drillr has 1 published research article covering FDUS.
Fidus Investment Corporation (FDUS) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
FDUS earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 7, 2026 | $0.50 | $0.50 | -0.8% | $44M | +2.7% |
| May 8, 2026 | $0.50 | $0.62 | +24.0% | $48M | +12.4% |
| Nov 6, 2025 | $0.50 | $0.50 | -0.2% | $30M | -24.5% |
| Aug 7, 2025 | $0.53 | $0.57 | +7.5% | $32M | -13.6% |
| May 8, 2025 | $0.53 | $0.54 | +1.9% | $36M | +1.8% |
| Mar 6, 2025 | $0.51 | $0.54 | +5.3% | $37M | +1.2% |
| Oct 31, 2024 | $0.57 | $0.61 | +6.3% | $38M | +3.8% |
| Aug 1, 2024 | $0.57 | $0.57 | -0.7% | $36M | +1.4% |
| May 2, 2024 | $0.60 | $0.59 | -2.3% | $35M | -4.0% |
| Feb 29, 2024 | $0.57 | $0.65 | +13.6% | $36M | +10.6% |
| Nov 2, 2023 | $0.62 | $0.68 | +9.5% | $34M | +4.0% |
| Aug 3, 2023 | $0.58 | $0.62 | +7.1% | $31M | +4.8% |
FDUS insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Mar 16, 2020 | Tune Edward X.director | Buy | 3,000 | $9.43 |
| Mar 16, 2020 | HYMAN CHARLES Ddirector | Buy | 2,000 | $9.84 |
| Mar 12, 2020 | Lauer Thomas Charlesdirector, officer: President | Buy | 2,000 | $11.45 |
| Mar 12, 2020 | Anstiss Raymond L. Jr.director | Buy | 6,150 | $11.66 |
| Mar 12, 2020 | Anstiss Raymond L. Jr.director | Buy | 1,500 | $9.00 |
| Mar 12, 2020 | ROSS EDWARD Hdirector, officer: See Remarks | Buy | 4,000 | $9.31 |
| Mar 12, 2020 | Sherard Shelby Eofficer: See Remarks | Buy | 5,000 | $9.36 |
| Mar 10, 2020 | ROSS EDWARD Hdirector, officer: See Remarks | Buy | 2,000 | $11.81 |
| Mar 10, 2020 | Sherard Shelby Eofficer: See Remarks | Buy | 2,100 | $11.99 |
| Mar 10, 2020 | Sherard Shelby Eofficer: See Remarks | Buy | 3,850 | $12.99 |
| Mar 10, 2020 | Lauer Thomas Charlesdirector, officer: President | Buy | 5,000 | $12.40 |
| Aug 9, 2019 | Sherard Shelby Eofficer: See Remarks | Buy | 1,750 | $14.25 |
| Aug 9, 2019 | Sherard Shelby Eofficer: See Remarks | Buy | 1,350 | $14.40 |
| Aug 7, 2019 | Anstiss Raymond L. Jr.director | Buy | 1,000 | $14.65 |
| Jun 4, 2019 | Anstiss Raymond L. Jr.director | Buy | 1,740 | $15.93 |
Source: FDUS SEC Form 4 filings, latest Mar 16, 2020. For informational purposes only — not investment advice.
See the full FDUS insider & 13F page →Fidus Investment Corporation company profile
Overview
Fidus Investment Corporation (NASDAQ:FDUS) is a publicly traded business development company founded in 2007 and went public in 2011. The company specializes in providing debt and equity financing to lower middle market companies across the United States. As a business development company (BDC), Fidus operates under the Investment Company Act of 1940 and is required to distribute at least 90% of its taxable income to shareholders as dividends. The company has built a diversified portfolio of approximately 87 active investments with a total fair value of $1.2 billion as of March 2025.
Business
Fidus Investment Corporation operates as a business development company in the private credit and alternative lending industry. A business development company is a specialized investment vehicle that provides capital to small and medium-sized businesses that may have difficulty accessing traditional bank financing or public capital markets. The company's core business involves making investments in lower middle market companies, which are typically businesses with annual revenues between $10 million and $150 million and EBITDA (earnings before interest, taxes, depreciation, and amortization) between $3 million and $20 million. These companies are generally too small for large institutional investors but too large or complex for traditional small business lending. Fidus operates through two primary investment segments. The debt portfolio represents approximately 79% of total investments and consists primarily of secured loans including first lien debt (76% of debt investments), second lien loans, unitranche facilities, and mezzanine financing. These debt instruments typically carry floating interest rates and provide regular income through interest payments. The equity portfolio comprises about 11.9% of total investments and includes minority equity stakes, preferred equity, and warrants that offer potential for capital appreciation when portfolio companies grow or are sold. The company focuses on specific industry sectors including aerospace and defense, business services, consumer products and services, healthcare products and services, industrial products and services, information technology services, niche manufacturing, transportation and logistics, and value-added distribution. This diversification helps mitigate concentration risk while leveraging the management team's industry expertise.
Revenue model
Fidus generates revenue through multiple streams tied to its investment activities. The primary revenue source is interest income from its debt investments, which currently yield a weighted average effective rate of 13.2%. This provides predictable recurring income as most loans carry floating rates that adjust with market conditions. The company also earns dividend income from its equity investments and fee income from various transaction-related services including origination fees, amendment fees, and prepayment penalties. The company's customers are primarily private equity sponsors and lower middle market companies seeking growth capital, acquisition financing, or refinancing solutions. Private equity firms often partner with Fidus to provide debt financing for their portfolio companies, while some companies approach Fidus directly for capital needs. Several factors influence Fidus's profitability margins. Interest rate environments significantly impact returns since most debt investments carry floating rates - rising rates generally increase income while falling rates reduce it. Credit quality and portfolio performance directly affect both current income and potential losses, with the company maintaining non-accruals under 1% of portfolio value. Market competition from other BDCs, banks, and direct lenders can compress spreads and reduce available deal flow. Economic conditions affect both the performance of existing portfolio companies and the availability of new investment opportunities. The company has noted that M&A activity in the lower middle market has been lackluster, which reduces both origination opportunities and exit possibilities for equity investments. Operational leverage also impacts margins, as the company's fixed costs are spread across a growing asset base. Access to low-cost funding through credit facilities and potential SBIC (Small Business Investment Company) licenses can enhance returns by reducing the cost of capital.
Competitive moat
Fidus Investment Corporation operates in a competitive but relationship-driven market where its moat is moderate and primarily relationship-based rather than structural. The company's competitive advantages stem from its specialized focus on the lower middle market segment, where it has developed deep relationships with private equity sponsors and intermediaries over more than a decade of operations. The company's industry expertise and underwriting capabilities provide some differentiation, as evidenced by its low non-accrual rate of under 1% and consistent portfolio performance. Management's selective approach and disciplined underwriting standards have helped maintain credit quality even during economic uncertainty. The SBIC licenses (Small Business Investment Company) provide access to government-backed leverage at attractive rates, offering a cost-of-capital advantage over competitors without such licenses. However, the moat faces significant challenges. The private credit market has become increasingly competitive with numerous BDCs, direct lenders, and even traditional banks competing for deals. This competition has led to spread compression of 50-150 basis points over the past 12-18 months and more aggressive lending terms. Capital is relatively commoditized in this space, and switching costs for borrowers are low, making relationships the primary differentiator. The company's scale disadvantage compared to larger BDCs and direct lending platforms limits its ability to compete for larger deals or offer more comprehensive financing solutions. Additionally, regulatory changes affecting BDCs or the broader credit markets could impact the company's operating model. The concentration in lower middle market deals also creates vulnerability to economic downturns that disproportionately affect smaller companies. While Fidus has demonstrated consistent performance and maintained relationships, the competitive landscape suggests the moat is narrow and constantly under pressure from new entrants and larger competitors seeking to move down-market.
Risks & safety
Fidus Investment Corporation presents a moderate margin of safety with strong liquidity but elevated leverage typical of BDCs. **Liquidity and Solvency:** - Strong cash position of $67.5 million plus $164 million in available credit facilities - Total liquidity of $231.5 million provides substantial flexibility - Current ratio of 264.3x indicates excellent short-term liquidity - Minimal immediate solvency risk given strong cash generation **Debt and Leverage:** - Debt-to-equity ratio of 0.26x (regulatory limit for BDCs is 2.0x) - Total liabilities of $564 million against $1.24 billion in assets - Upcoming debt maturities in 2025-2026 requiring refinancing attention - Recent $100 million debt offering improved near-term financing flexibility **Valuation Metrics:** - Price-to-book ratio of 1.02x suggests reasonable valuation relative to net asset value - Price-to-earnings ratio of 9.5x appears modest for a yield-focused investment - Trading near net asset value of $19.39 per share **Other Considerations:** - Portfolio concentration in lower middle market creates cyclical vulnerability - Interest rate sensitivity on floating-rate portfolio - Regulatory requirements as BDC limit financial flexibility but provide investor protections
Recent development
Over the past few years, Fidus has executed several strategic initiatives to strengthen its market position and expand its capabilities. The company has significantly enhanced its debt portfolio composition, increasing first lien investments from 16.8% to 76% of the debt portfolio over five years, which reduces credit risk and improves portfolio quality. A major development has been the expansion of SBIC licensing, with the company receiving a new SBIC license effective September 30, 2024, and having submitted applications for additional licenses. These licenses provide access to government-backed leverage at attractive rates, effectively reducing the cost of capital and enhancing returns. The company has also strengthened its capital structure and liquidity position through various financing initiatives. Recent activities include increasing its revolving credit facility, completing a $100 million debt offering, and implementing an at-the-market (ATM) equity program to provide additional financing flexibility. Portfolio monetization has been a significant value driver, with the company generating $208 million in net realized capital gains from equity investments over the past five years. This demonstrates the effectiveness of their co-investment strategy where they take equity stakes alongside debt investments to participate in portfolio company growth. Operationally, Fidus has maintained its disciplined investment approach while adapting to market conditions. Despite challenging M&A markets, the company has continued to grow its portfolio selectively, with total investment portfolio growing 14% year-over-year to $1.2 billion. The management team has emphasized maintaining strict underwriting standards even as competition has intensified and spreads have compressed.
FDUS company profile · for informational purposes only — not investment advice.
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