TICC  Ticc Capital Corp.

Vuru Grade

61.00/100

Current Price

$6.67
-0.02 (-0.30%)

Growth Price

$25.59
Undervalued by 283.69%

Company Metrics

  • P/E 3.76
  • P/S 4.89
  • P/B 0.89
  • EPS 1.77
  • Cash ROIC 10.74%
  • Cash Ratio -
  • Dividend 0.89 / 13.34%
  • Avg. Vol. 223,737.00
  • Shares 61.77M
  • Market Cap. 343.36M

Company Description

TICC Capital Corp., a business development company, operates as a closed-end, non-diversified management investment company. The firm invests in both public and private companies. It invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, and common stock. The firm primarily invests in debt and/or equity securities of technology-related companies... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

TICC Capital Corp. Schedules Third Quarter 2017 Earnings Release and ...
GlobeNewswire (press release) - 8 hours ago
GREENWICH, Conn., Oct. 23, 2017 (GLOBE NEWSWIRE) -- TICC Capital Corp. (Nasdaq:TICC) announced today that it will hold a conference call to discuss third quarter 2017 earnings on Thursday, November 2, 2017 at 10:00 AM.
Virtu KCG Holdings LLC Raises Position in TICC Capital Corp. (TICC) - StockNewsTimes
TICC Capital Corp. – Closed End (NASDAQ:TICC) Shorts Down -43.84% – Shares ... - Modern Readers
TICC Capital Corp. (TICC) Ex-Dividend Date Scheduled for June 14, 2017
Nasdaq - Jun 13, 2017
TICC Capital Corp. ( TICC ) will begin trading ex-dividend on June 14, 2017. A cash dividend payment of $0.2 per share is scheduled to be paid on June 30, 2017.
TICC Capital Corp. (TICC) Ex-Dividend Date Scheduled for September 14, 2017
Nasdaq - Sep 13, 2017
TICC Capital Corp. ( TICC ) will begin trading ex-dividend on September 14, 2017. A cash dividend payment of $0.2 per share is scheduled to be paid on September 29, 2017.
Identifying Risk In BDCs - TICC Capital
Seeking Alpha - Jun 19, 2017
The intro article in the series was "How To Identify Risk In BDCs." This article is on TICC Capital (NASDAQ:TICC). This BDC sells at a 152 bps higher than average yield. TICC lacks 2017 dividend coverage based on projected NII, or net investment income.
TICC Capital: Preliminary Proxy Reveals Advisor's Ambitions
Seeking Alpha - May 31, 2017
TICC Capital (TICC) issued a Preliminary Proxy just hours after 2 of 7 directors resigned out of the blue (both were in the filing).
TICC Capital Corp. Announces Receipt of Co-Investment Exemptive Relief
Marketwired (press release) - Jun 15, 2017
GREENWICH, CT--(Marketwired - Jun 15, 2017) - TICC Capital Corp. ( NASDAQ : TICC) ("TICC" or the "Company") announced today that on June 14, 2017, the Securities and Exchange Commission issued an order permitting TICC and certain of its affiliates, ...
Bull Of The Day: TICC Capital Corp
Nasdaq - Jul 6, 2017
TICC Capital Corp (TICC) is a Zacks Rank #2 (Buy) and sports an "A" for value and momentum as well as a "C" for growth.
Head-To-Head Contrast: TICC Capital Corp. (TICC) vs. Its Peers
The Ledger Gazette - Oct 23, 2017
TICC Capital Corp. (NASDAQ: TICC) is one of 576 publicly-traded companies in the “Closed End Funds” industry, but how does it contrast to its peers?
Somewhat Favorable Press Coverage Somewhat Unlikely to Impact TICC Capital ... - Week Herald
$0.16 EPS Expected for TICC Capital Corp. (TICC)
WeeklyHub - Oct 14, 2017
Investors sentiment decreased to 2.22 in Q2 2017. Its down 0.25, from 2.47 in 2017Q1. It fall, as 3 investors sold TICC Capital Corp. shares while 15 reduced holdings. 16 funds opened positions while 24 raised stakes. 7.82 million shares or 0.23% less ...
TICC Capital Corp. (NASDAQ:TICC) Getting Somewhat Favorable Press Coverage ... - TrueBlueTribune
Ticc Capital Corp (NASDAQ:TICC) Institutional Investors Q2 2017 Sentiment
BZ Weekly - Oct 20, 2017
Ticc Capital Corp (NASDAQ:TICC) institutional sentiment decreased to 2.22 in Q2 2017. Its down -0.25, from 2.47 in 2017Q1. The ratio turned negative, as 40 investment professionals increased or started new holdings, while 18 sold and decreased their ...
Ticc Capital Corp Sentiment Improves on Better Stock Potential - Weekly Register
Exane Derivatives Sold A Little More TICC Capital Corp. – Closed End (TICC ... - Modern Readers
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for TICC to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate TICC's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$6.67 Current Price

$25.59 Growth Price (DCF)

Undervalued by 283.69%


Growth Rate Assumed by Market: -114.26%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$5.27 Book Price

Overvalued by 20.99%


Inconsistent Cash Return on Invested Capital over the past 5 years

TICC has somewhat efficiently invested its financial resources in buildings, projects, and equipment. However, there has been some inconsistency from year-to-year. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

TICC has created $10.74 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow -36.18M -57.70M 2.08M 243.81M 185.67M
divided by
Invested Capital 756.02M 998.17M 1.04B 722.07M 612.46M
Cash ROIC -4.79% -5.78% 0.20% 33.77% 30.32%

Poor Return on Equity over the past 5 years

TICC has shown an inability to deliver strong results for shareholders. This could be due to poor management, TICC operating in a highly competitive industry, or having a weak business in general.

TICC has only generated $7.50 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 68.32M 58.94M -3.35M -66.13M 110.36M
divided by
Stockholders' Equity 409.60M 526.24M 520.81M 360.93M 385.99M
Return on Equity 16.68% 11.20% -0.64% -18.32% 28.59%

Mediocre Business Performance over the past 10 years

TICC isn't a strong business and might be consistently attempting to fuel growth with debt or has trouble staying profitable. The lack of predictability in free cash flow should be concerning for the reliability of future earnings.

TICC has been unable to consistently create value for shareholders.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow -70.56M 143.36M 24.36M 18.73M -114.53M -36.18M -57.70M 2.08M 243.81M 185.67M

Good Balance Sheet

TICC's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash - - - - - - - - - -
Current Assets - - - - - - - - - -
Total Assets 396.39M 204.96M 225.34M 317.90M 424.12M 756.02M 998.17M 1.04B 722.07M 612.46M
Current Liabilities - - - - - - - - - -
Total Liabilities 139.02M 1.60M 1.25M 3.78M 119.02M 346.42M 471.92M 521.83M 361.13M 226.46M
Stockholder' Equity 257.37M 203.37M 224.09M 314.12M 305.10M 409.60M 526.24M 520.81M 360.93M 385.99M
Current Ratio - - - - - - - - - -
TL-to-TA 0.35 0.01 0.01 0.01 0.28 0.46 0.47 0.50 0.50 0.37

Low or No Reinvestment of Profits over the past 10 years

TICC has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to TICC operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings - -956,575.00 -3.44M -2.15M -3.85M -4.27M -3.16M -3.25M - -
Retained Earnings Growth - - -259.41% 37.34% -78.83% -10.93% 26.12% -2.96% 100.00% -

Erratic Net Profit Margins over the past 10 years

TICC has had highly erratic net profit margins which are a great cause for concern. This company may operate in a highly volatile industry, or it may just have poor performance. Look at reasons for this inconsistency to understand if there is any reason to look past it.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income -11.65M -53.27M 35.18M 63.95M 14.21M 68.32M 58.94M -3.35M -66.13M 110.36M
divided by
Revenue -1.31M 32.49M 20.51M 33.51M 43.94M 63.91M 87.32M 94.42M 66.53M 49.32M
Net Profit Margin 886.18% -163.94% 171.56% 190.85% 32.33% 106.90% 67.50% -3.55% -99.41% 223.78%

Weak Pricing Power over the past 10 years

TICC is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that TICC has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit - - - - - - - - - -
divided by
Revenue -1.31M 32.49M 20.51M 33.51M 43.94M 63.91M 87.32M 94.42M 66.53M 49.32M
Gross Margin - - - - - - - - - -

Low Capital Intensity over the past 10 years

TICC has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that TICC may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

-% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure - - - - - - - - - -
divided by
Net Income -11.65M -53.27M 35.18M 63.95M 14.21M 68.32M 58.94M -3.35M -66.13M 110.36M
Capital Expenditure Ratio - - - - - - - - - -

Very Strong Dividend History over the past 10 years

TICC has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests TICC is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 26.26M 21.67M 14.46M 20.78M 29.58M 42.25M 58.18M 67.32M 67.65M 59.72M
divided by
Shares Outstanding 20.55M 24.31M 26.62M 27.25M 32.43M 40.58M 61.11M 68.86M 69.79M 61.77M
Dividend Paid Per Share 1.28 0.89 0.54 0.76 0.91 1.04 0.95 0.98 0.97 0.97
Price at Year End 5.32 2.41 4.97 10.07 8.65 9.82 10.28 7.42 5.88 6.61
Dividend Yield 24.02% 36.98% 10.93% 7.57% 10.55% 10.60% 9.26% 13.18% 16.49% 14.62%

History of Stock Buybacks over the past 10 years

TICC has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 20.55M 24.31M 26.62M 27.25M 32.43M 40.58M 61.11M 68.86M 69.79M 61.77M
Stock Bought Back - -15.50% -8.68% -2.31% -15.97% -20.07% -33.60% -11.25% -1.33% 12.97%
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