Investcorp Credit Management BDC, based in New York City, is a non-diversified investment company focused on maximizing returns through debt and equity investments in middle-market companies. Founded in 2014, it targets sectors like chemicals and software, emphasizing floating rate debt.
Based on our analysis, Investcorp Credit Management BDC has received an undervalued rating of 4 out of 5 stars from Cashu due to its strong financial performance relative to industry benchmarks.
The company's Price-to-Earnings (PE) ratio stands at 6.49, significantly lower than the sector average of 13.05. A lower PE ratio may indicate that the stock is undervalued compared to its earnings, suggesting potential for price appreciation. Furthermore, Investcorp’s Price-to-Book (PB) ratio of 0.56 compared to the sector's 1.13 highlights that the stock is trading at a discount to its book value, further supporting the undervaluation thesis.
Investcorp also boasts an impressive net profit margin of 51.98, well above the sector average of 18.29. This indicates that the company is highly efficient at converting revenue into actual profit, which is a positive sign for investors. The Return on Equity (ROE) ratio of 7.79 is slightly below the sector average of 8.12, yet it still demonstrates a reasonable level of profitability for shareholders.
Additionally, the company offers a remarkable dividend yield of 18.91, far exceeding the sector average of 3.05. This high yield may attract income-focused investors and signals strong cash flow generation. Lastly, Investcorp’s Return on Assets (ROA) ratio of 2.92, in comparison to the sector's 0.90, indicates effective management of assets to generate earnings.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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