Investcorp Credit Management BDC, Inc. (ICMB) Bundle
Understanding Investcorp Credit Management BDC, Inc. (ICMB) Revenue Streams
Revenue Analysis
Investcorp Credit Management BDC, Inc. (ICMB) reported total investment income of $41.3 million for the fiscal year 2023.
| Revenue Source | Amount ($) | Percentage of Total Revenue |
|---|---|---|
| Interest Income | $37.5 million | 90.8% |
| Dividend Income | $3.2 million | 7.7% |
| Other Investment Income | $0.6 million | 1.5% |
Revenue growth trends for the past three years:
- 2021: $35.6 million
- 2022: $38.9 million
- 2023: $41.3 million
Year-over-year revenue growth rate:
- 2021 to 2022: 9.3% increase
- 2022 to 2023: 6.2% increase
| Business Segment | Revenue Contribution |
|---|---|
| Middle Market Lending | 68.5% |
| Corporate Debt Investments | 24.3% |
| Other Investments | 7.2% |
A Deep Dive into Investcorp Credit Management BDC, Inc. (ICMB) Profitability
Profitability Metrics Analysis
The financial performance reveals critical profitability insights based on the most recent available data:
| Profitability Metric | 2023 Value | Year-over-Year Change |
|---|---|---|
| Gross Profit Margin | 35.6% | -2.3% |
| Operating Profit Margin | 18.2% | -1.7% |
| Net Profit Margin | 12.4% | -0.9% |
Key profitability performance indicators include:
- Return on Equity (ROE): 9.7%
- Return on Assets (ROA): 5.3%
- Operating Income: $24.6 million
- Net Income: $16.8 million
Operational efficiency metrics demonstrate:
| Efficiency Metric | 2023 Performance |
|---|---|
| Operating Expense Ratio | 62.4% |
| Cost Management Ratio | 58.1% |
Comparative industry profitability ratios highlight:
- Median Industry Gross Margin: 33.9%
- Median Industry Net Margin: 11.6%
- Comparative Performance Advantage: 1.7%
Debt vs. Equity: How Investcorp Credit Management BDC, Inc. (ICMB) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, the company's debt structure reveals critical insights into its financial strategy and capital management.
| Debt Metric | Amount | Percentage |
|---|---|---|
| Total Long-Term Debt | $132.4 million | 68.3% |
| Total Short-Term Debt | $61.7 million | 31.7% |
| Total Debt | $194.1 million | 100% |
The company's debt-to-equity ratio stands at 1.45, which is slightly higher than the industry median of 1.32.
- Credit Rating: BB- (Standard & Poor's)
- Interest Coverage Ratio: 2.7x
- Average Debt Maturity: 5.3 years
| Funding Source | Amount | Percentage |
|---|---|---|
| Debt Financing | $194.1 million | 57% |
| Equity Financing | $146.3 million | 43% |
Recent refinancing activity included a $75 million senior secured credit facility with an average interest rate of 6.25%.
Assessing Investcorp Credit Management BDC, Inc. (ICMB) Liquidity
Liquidity and Solvency Analysis
As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.
| Liquidity Metric | Current Value | Previous Period |
|---|---|---|
| Current Ratio | 1.25 | 1.18 |
| Quick Ratio | 0.85 | 0.79 |
| Working Capital | $14.3 million | $12.6 million |
Cash flow statement analysis reveals the following key trends:
- Operating Cash Flow: $22.1 million
- Investing Cash Flow: -$8.7 million
- Financing Cash Flow: -$5.4 million
Liquidity strengths include:
- Positive operating cash flow generation
- Modest improvement in current and quick ratios
- Stable working capital position
| Solvency Indicator | Value |
|---|---|
| Debt-to-Equity Ratio | 1.45 |
| Interest Coverage Ratio | 2.3x |
The company maintains a balanced approach to liquidity management, with consistent cash flow generation and controlled debt levels.
Is Investcorp Credit Management BDC, Inc. (ICMB) Overvalued or Undervalued?
Valuation Analysis
As of 2024, the valuation metrics for the company reveal critical insights for potential investors.
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 8.45 |
| Price-to-Book (P/B) Ratio | 0.92 |
| Enterprise Value/EBITDA | 6.73 |
| Current Stock Price | $4.37 |
| 52-Week Low | $3.21 |
| 52-Week High | $5.64 |
Analyst recommendations provide additional perspective:
- Buy Recommendations: 3
- Hold Recommendations: 2
- Sell Recommendations: 0
Dividend-related metrics include:
- Current Dividend Yield: 10.84%
- Annual Dividend Per Share: $0.48
- Payout Ratio: 85.6%
| Stock Performance Metric | Percentage |
|---|---|
| Year-to-Date Return | 12.3% |
| 12-Month Total Return | 15.7% |
Key Risks Facing Investcorp Credit Management BDC, Inc. (ICMB)
Risk Factors
The investment landscape presents several critical risk dimensions for the business development company:
| Risk Category | Specific Risk | Potential Impact |
|---|---|---|
| Market Risk | Interest Rate Fluctuations | ±3.5% portfolio value variation |
| Credit Risk | Default Probability | 2.8% potential non-performing loans |
| Operational Risk | Regulatory Compliance | $450,000 potential compliance costs |
Key external risk factors include:
- Economic volatility impacting investment portfolios
- Potential regulatory changes in BDC sector
- Competitive pressures from alternative investment platforms
Financial risk exposure metrics:
- Credit portfolio concentration: 62% in middle-market segments
- Investment diversification: 7-10 different industry sectors
- Net asset value volatility: ±4.2% quarterly range
| Risk Mitigation Strategy | Implementation Level |
|---|---|
| Hedging Instruments | 45% portfolio coverage |
| Quarterly Risk Assessment | Comprehensive review process |
| Liquidity Management | $75 million cash reserves |
Future Growth Prospects for Investcorp Credit Management BDC, Inc. (ICMB)
Growth Opportunities
The company's growth strategy focuses on several key areas with specific financial and market metrics:
| Growth Metric | Current Value | Projected Growth |
|---|---|---|
| Investment Portfolio Size | $385.2 million | 7-9% annual expansion |
| Net Investment Income | $22.1 million | 5-6% year-over-year increase |
| Middle Market Lending | $276.5 million | 8-10% potential market penetration |
Strategic growth drivers include:
- Expanding middle market lending portfolio
- Targeting $50-75 million in new investment commitments
- Diversifying credit investment strategies
Key competitive advantages:
- Specialized credit management expertise
- Proven track record of 6.2% average annual returns
- Robust risk management framework
| Market Segment | Current Allocation | Growth Potential |
|---|---|---|
| Technology Sector | 22% of portfolio | 15-18% expansion potential |
| Healthcare Investments | 18% of portfolio | 12-15% growth projection |
| Industrial Services | 15% of portfolio | 10-12% market opportunity |
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