Fidus Investment Corporation Common Stock (FDUS)

FairStock Score: 76/100 — HIGH CONVICTION

Key Financials

Strengths

• Generates $42 million in annual free cash flow (6.0% yield on market cap)
• Solid return on equity of 11.8% above cost of capital
• Healthy net profit margin of 11.8% showing consistent profitability
• Attractive 11.3% dividend yield providing steady income returns
• FairStock composite score of 76/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Weak Piotroski F-Score of 1/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 0.7 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Fidus Investment Corporation Common Stock is a micro-cap financial services company valued at $701 million. The business generates $156 million in annual revenue with a 11.8% net margin and $42 million in free cash flow. From a quality standpoint, Fidus shows weak Piotroski F-Score of 1/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 0.7 warrants caution. On valuation, the stock is deeply undervalued on a P/E basis at 7.9x, with offers a 42% margin of safety vs Graham Number of $32. Growth dynamics show revenue growing at 11.7% and profit growth of 4.1%. The 11.3% dividend yield adds an income component for patient holders. Our composite FairStock Score of 76/100 reflects strong fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $42 million in annual free cash flow (6.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer