Value
7.2/10data confidence 67%| Component | Sub-score |
|---|---|
| P/E | 9.2 |
| P/S | 7.1 |
| Fwd P/E | 9.2 |
| Analyst target | 4.0 |
- ▸Forward P/E: 10.5x
- ▸Attractively valued
FDUS · Why this verdict
Why Fidus Investment (FDUS) is rated HOLD
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
VerdictHOLD
Overall score6.0/10
ConfidenceMEDIUM
MacroNEUTRAL
Thesis pillars
| Pillar | Expectation | Trend |
|---|---|---|
Despite reaching its target, the stock still screens attractively valued with a 9.9x forward P/E. Valuation breakdown | Forward P/E should remain below 12x and the 'attractively valued' flag should persist over the next 12 months. | →Stable |
| CounterBDC valuations can compress quickly if credit quality in the underlying loan portfolio deteriorates, independent of the current P/E multiple. | ||
FDUS has beaten or met earnings in all of the last 4 quarters (3 beats, 1 inline) with an elite Rule of 40 score of 62 and 30% YoY growth. Quality breakdown | The Rule of 40 score should stay above 40 and the beat/inline streak should continue at the August 6, 2026 report. | →Stable |
| CounterAn earnings quality warning of 65% FCF/NI suggests reported earnings strength may not be fully backed by cash generation. | ||
The stock has reached its target with -3.2% remaining upside, triggering a V9 asymmetry gate failure at -0.37. Engine gate (failed) | The asymmetry ratio should turn positive, above 0, over the next 12 months as either price consolidates or the target is raised. | →Stable |
| CounterContinued earnings strength and elite Rule of 40 performance could support analysts raising price targets without requiring a price pullback. | ||
The setup is classified as a BREAKOUT with a golden cross and price above all moving averages, at RSI 68 with bullish MACD. Momentum breakdown | Price should hold above all key moving averages over the next 12 months, sustaining the breakout structure. | →Stable |
| CounterThe 200-day MA slope is flagged as flat, meaning the underlying trend strength backing this breakout is weaker than the golden cross alone suggests. | ||
Options markets show an elevated put/call ratio of 4.00 and high implied volatility (94%), with price trading above the $2 max-pain level. Risk breakdown | The put/call ratio should compress below 2.0 over the next 12 months as options-market risk pricing normalizes. | →Stable |
| CounterA small-cap BDC with thin options volume can show a distorted put/call ratio driven by one or two large trades rather than a genuine bearish signal. | ||
Despite reaching its target, the stock still screens attractively valued with a 9.9x forward P/E.
→StableValuation breakdown
- Expectation
- Forward P/E should remain below 12x and the 'attractively valued' flag should persist over the next 12 months.
CounterBDC valuations can compress quickly if credit quality in the underlying loan portfolio deteriorates, independent of the current P/E multiple.
FDUS has beaten or met earnings in all of the last 4 quarters (3 beats, 1 inline) with an elite Rule of 40 score of 62 and 30% YoY growth.
→StableQuality breakdown
- Expectation
- The Rule of 40 score should stay above 40 and the beat/inline streak should continue at the August 6, 2026 report.
CounterAn earnings quality warning of 65% FCF/NI suggests reported earnings strength may not be fully backed by cash generation.
The stock has reached its target with -3.2% remaining upside, triggering a V9 asymmetry gate failure at -0.37.
→StableEngine gate (failed)
- Expectation
- The asymmetry ratio should turn positive, above 0, over the next 12 months as either price consolidates or the target is raised.
CounterContinued earnings strength and elite Rule of 40 performance could support analysts raising price targets without requiring a price pullback.
The setup is classified as a BREAKOUT with a golden cross and price above all moving averages, at RSI 68 with bullish MACD.
→StableMomentum breakdown
- Expectation
- Price should hold above all key moving averages over the next 12 months, sustaining the breakout structure.
CounterThe 200-day MA slope is flagged as flat, meaning the underlying trend strength backing this breakout is weaker than the golden cross alone suggests.
Options markets show an elevated put/call ratio of 4.00 and high implied volatility (94%), with price trading above the $2 max-pain level.
→StableRisk breakdown
- Expectation
- The put/call ratio should compress below 2.0 over the next 12 months as options-market risk pricing normalizes.
CounterA small-cap BDC with thin options volume can show a distorted put/call ratio driven by one or two large trades rather than a genuine bearish signal.
TrendMatrix Research · core thesis
Engine thesis — one sentence
FDUS combines an elite Rule of 40 score, a 3-of-4 earnings beat streak, and continued attractive valuation with a breakout technical setup, though it has already reached its price target — causing a negative asymmetry gate failure — and options markets show elevated put/call skew.
Falsifiable statement — pillar-level invalidators below. Engine-derived; not personalized advice.
Per-dimension breakdown
Quality
7.0/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 3.9 |
| ROA | 3.6 |
| Gross margin | 10.0 |
| Op margin | 10.0 |
| Net margin | 10.0 |
| Current ratio | 7.6 |
| FCF quality | 5.0 |
| Moat | 6.4 |
| Rule of 40 | 9.5 |
| Piotroski F | 4.4 |
- ▸Strong margins: 50%
- ▸Earnings quality warning: 65% FCF/NI
- ▸Rule of 40: 62 (elite)
Growth
5.1/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 10.0 |
| EPS growth | 0.2 |
- ▸Strong growth: 30% YoY
Momentum
6.5/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 5.0 |
| MACD | 9.2 |
| OBV | 10.0 |
| MA position | 8.0 |
| Volume | 0.2 |
- ▸Volume accumulation (rising OBV)
- ▸Above 200-MA but MA slope flat
Sentiment
5.5/10data confidence 100%| Component | Sub-score |
|---|---|
| Analyst rating | 5.0 |
| Price target | 6.5 |
| erm sentiment | 5.0 |
Insider
5.0/10data confidence 50%Peer rank
6.1/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 6.7 |
| quality rank | 6.7 |
| growth rank | 9.1 |
- ▸Industry growth leader
Technical
4.8/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 1.7 |
| support resistance | 3.6 |
| 52w position | 9.1 |
Risk (lower is worse)
5.1/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 8.6 |
| days to cover | 6.3 |
| volatility | 6.6 |
| put call | 0.0 |
| implied vol | 0.0 |
| beta | 8.6 |
| debt equity | 5.6 |
- ▸Elevated put/call: 4.00
- ▸High IV: 97%
Catalyst
6.6/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 10.0 |
| earnings timing | 5.0 |
| surprise avg | 7.4 |
| dividend safety | 5.5 |
- ▸Strong earnings: 3B/0M
- ▸Dividend: 11.4%
How the verdict was assembled
Engine trigger
Maintain position. Not compelling to add more.
Engine technical detail
verdict_path:
L4:PATH_F_HOLDPassed (7)
- MOMENTUM:6.5>=5.5
- INSIDER:OK
- 8K:CLEAN
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:30d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (1)
- ASYMMETRY:-0.5=NEGATIVE
Warning (0)
none
Reward-to-Risk
-0.49
Upside
-4.2%
Downside
8.6%
Sizing output
AVOID
SetupBreakout — Golden cross, above all MAs, RSI 62, MACD bullish
EdgeInst Constrain — Small cap ($0.8B) below institutional reach
SuitabilityAggressive — MCap $0.8B<$5B
Investment implication
None of the engine's positive-conviction paths (C-quality, D-momentum) triggered — the F-path HOLD reflects balanced signals. Strongest-cleared gate: MOMENTUM:6.5>=5.5. Top dim: Value at 7.2; weakest: Technical at 4.8. No conviction either direction.
The strongest dimensions are Value at 7.2, Quality at 7.0, and Catalyst at 6.6; the weakest are Technical at 4.8, Insider at 5.0, and Risk (lower is worse) at 5.1. The V9 engine flagged 1 failed gate, producing an asymmetric reward-to-risk of -0.49 and an engine sizing output of AVOID.
What would invalidate the thesis
Falsifying conditions — when triggered, the corresponding pillar's thesis is invalidated.
- P1Earnings Beat Streak With Elite Rule Of 40
Trip ifRule of 40 score falls below 40, down from the current 62.
- P2Target Reached Negative Asymmetry
Trip ifAsymmetry ratio rises above 0, clearing the current -0.37 gate failure.
- P3Attractive Valuation Support
Trip ifForward P/E rises above 15x, up from the current 9.9x.
- P4Breakout Technical Setup
Trip ifPrice falls below the 50-day moving average, breaking the current golden-cross breakout structure.
- P5Elevated Options Risk Skew
Trip ifPut/call ratio falls below 2.00, half the current 4.00 reading.