Fidus Investment Corporation Common Stock (FDUS)

FairStock Score: 76/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Fidus as a specialty lender to smaller companies, not a wide-moat compounder. Its edge comes from credit selection and access to capital, but those can vanish when credit costs rise. The numbers are mixed. In fiscal Q2 2026, the quarter ended 2026-06-30, net income was $20.0 million and diluted EPS was $0.49. A year earlier, in fiscal Q2 2025, net income was $25.3 million and EPS was $0.53, so quarterly earnings fell. For the full fiscal year 2025, net income was $82.4 million, or $2.08 per diluted share, versus $78.3 million, or $2.29 per share, in fiscal 2024. So profits rose modestly but per-share earnings declined. The balance sheet gives some comfort: as of the 2026-10-13 close of $19.15, FairStock calculations show P/B of 0.98, P/E of 9.25, and a Graham Number of $30.11, implying a 36.40% margin of safety. The dividend yield is 11.05%. But financial quality is weak: D/E 0.98, Piotroski 2/9, Altman Z 0.68, and trailing free cash flow is -$211.3 million, a -29.1% FCF yield. That negative cash flow is a red flag for a lender paying a high distribution. The provided Lynch category is TURNAROUND, based on returning to profit after a loss within three years. I would want evidence that free cash flow turns positive, the 11.05% dividend is covered, and the discount to book does not widen. At 0.98 times book and 9.25 times earnings, the price is not demanding, but the weak scores and negative cash flow mean this is a speculative value case, not a safe bargain.

In plain English: Fidus is a specialty finance company that lends to and invests in smaller businesses. Its latest reported quarter showed a profit, but earnings were lower than a year earlier, and cash flow was negative. At $19.15, the stock looks roughly fair to somewhat cheap compared with the company's asset value and earnings, but the weak cash flow makes it risky.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer