TICC  Ticc Capital Corp.

Vuru Grade

47.50/100

Current Price

$8.02
+0.13 (+1.65%)

Growth Price

$27.66
Undervalued by 244.84%

Company Metrics

  • P/E 63.15
  • P/S 5.87
  • P/B 1.11
  • EPS 0.13
  • Cash ROIC -0.72%
  • Cash Ratio -
  • Dividend 1.16 / 14.55 %
  • Avg. Vol. 416,713.00
  • Shares 69.79M
  • Market Cap. 412.86M

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. Common Stock Quote & Summary Data
Nasdaq - Aug 19, 2011
TICC Capital Corp. ("TICC," "Company," "we," "us," or "our") is a closed-end, non-diversified management investment company that has elected to be regulated as a business development company ("BDC") under the Investment Company Act of 1940, ...
TICC Capital Corp. (TICC) Ex-Dividend Date Scheduled for December 14, 2016
Nasdaq - Dec 13, 2016
TICC Capital Corp. ( TICC ) will begin trading ex-dividend on December 14, 2016. A cash dividend payment of $0.29 per share is scheduled to be paid on December 30, 2016.
NexPoint Advisors Commences Litigation Against TICC Capital Corp.; Further ...
PR Newswire (press release) - Oct 9, 2015
DALLAS, Oct. 9, 2015 /PRNewswire/ -- NexPoint Advisors, L.P. ("NexPoint") announced today that it has commenced litigation in the United States District Court in Connecticut against TICC Capital Corp. (the "Company" or "TICC") (NASDAQ: TICC), its Board ...
TICC Sends Letter to Stockholders Outlining Benefits of BSP Agreement - Business Wire (press release)
Why We Are Short TICC Capital
Seeking Alpha - Dec 30, 2015
For months now, there has been a titanic three-way struggle for control of TICC Capital (NASDAQ:TICC) that has just (temporarily) ended in a draw.
TICC Capital: Point By Point Review Of Management's Arguments
Seeking Alpha - Aug 30, 2016
TICC Capital (TICC) has a shareholder vote coming up on whether to terminate the existing investment advisory agreement and/or replace an existing director.
TPG Specialty Lending, Inc. Sends Letter to Independent Directors of TICC ... - Business Wire (press release)
Beaten Down BDCs: TICC Capital
Seeking Alpha - Jan 20, 2015
TICC is now trading at 20% below net asset value and has a dividend yield of 15.6%. TICC has relatively high leverage and relatively high CLO exposure.
A BDC Titan Opines on TICC Capital and Consolidation in BDCs
Motley Fool - Oct 9, 2015
Last week, Ares Capital Corporation held its annual investor day conference to speak directly to analysts and investors about its business.
The Van ECK Associates Corp Boosts Stake in TICC Capital Corp. (TICC)
DailyQuint - 8 hours ago
Van ECK Associates Corp raised its stake in TICC Capital Corp. (NASDAQ:TICC) by 21.6% during the fourth quarter, Holdings Channel reports.
TPG Turns Activist in Bid to Fire Manager of Lender TICC Capital
Bloomberg - Aug 24, 2016
TPG, which manages more than $70 billion in alternative assets, is agitating for change at publicly traded lender TICC Capital Corp. The managers of TICC should be fired for subpar performance and the board should include a new director chosen by TPG, ...
Activist: TICC Capital Has 3 Choices
Motley Fool - Sep 25, 2015
If you like activism, you should love what's going on at TICC Capital (NASDAQ:TICC). As the current management team plans its exit, there's an ongoing 3-way race for the job of managing its $934 million of assets.
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.

$8.02 Current Price

$27.66 Growth Price (DCF)

Undervalued by 244.84%


Growth Rate Assumed by Market: -65.43%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$4.20 Book Price

Overvalued by 47.59%


Very Poor Cash Return on Invested Capital over the past 5 years

TICC has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

TICC has lost $0.72 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow -114.53M -36.18M -57.70M 2.08M 243.81M
divided by
Invested Capital 424.12M 756.02M 998.17M 1.04B 722.07M
Cash ROIC -27.00% -4.79% -5.78% 0.20% 33.77%

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 $2.71 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 14.21M 68.32M 58.94M -3.35M -66.13M
divided by
Stockholders' Equity 305.10M 409.60M 526.24M 520.81M 360.93M
Return on Equity 4.66% 16.68% 11.20% -0.64% -18.32%

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
2006200720082009201020112012201320142015
Free Cash Flow 21.88M -70.56M 143.36M 24.36M 18.73M -114.53M -36.18M -57.70M 2.08M 243.81M

Weak Balance Sheet

TICC's financial position is not ideal. The key is to check whether TICC is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash - - - - - - - - - -
Current Assets - - - - - - - - - -
Total Assets 334.82M 396.39M 204.96M 225.34M 317.90M 424.12M 756.02M 998.17M 1.04B 722.07M
Current Liabilities - - - - - - - - - -
Total Liabilities 63.48M 139.02M 1.60M 1.25M 3.78M 119.02M 346.42M 471.92M 521.83M 361.13M
Stockholder' Equity 271.34M 257.37M 203.37M 224.09M 314.12M 305.10M 409.60M 526.24M 520.81M 360.93M
Current Ratio - - - - - - - - - -
TL-to-TA 0.19 0.35 0.01 0.01 0.01 0.28 0.46 0.47 0.50 0.50

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
2006200720082009201020112012201320142015
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
2006200720082009201020112012201320142015
Net Income 26.33M -11.65M -53.27M 35.18M 63.95M 14.21M 68.32M 58.94M -3.35M -66.13M
divided by
Revenue 34.98M -1.31M 32.49M 20.51M 33.51M 43.94M 63.91M 87.32M 94.42M 66.53M
Net Profit Margin 75.27% 886.18% -163.94% 171.56% 190.85% 32.33% 106.90% 67.50% -3.55% -99.41%

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
2006200720082009201020112012201320142015
Gross Profit - - - - - - - - - -
divided by
Revenue 34.98M -1.31M 32.49M 20.51M 33.51M 43.94M 63.91M 87.32M 94.42M 66.53M
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
2006200720082009201020112012201320142015
Capital Expenditure - - - - - - - - - -
divided by
Net Income 26.33M -11.65M -53.27M 35.18M 63.95M 14.21M 68.32M 58.94M -3.35M -66.13M
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
2006200720082009201020112012201320142015
Dividend Paid 20.85M 26.26M 21.67M 14.46M 20.78M 29.58M 42.25M 58.18M 67.32M 67.65M
divided by
Shares Outstanding 19.49M 20.55M 24.31M 26.62M 27.25M 32.43M 40.58M 61.11M 68.86M 69.79M
Dividend Paid Per Share 1.07 1.28 0.89 0.54 0.76 0.91 1.04 0.95 0.98 0.97
Price at Year End 8.37 5.32 2.41 4.97 10.07 8.65 9.82 10.28 7.42 5.88
Dividend Yield 12.78% 24.02% 36.98% 10.93% 7.57% 10.55% 10.60% 9.26% 13.18% 16.49%

No History of Stock Buybacks over the past 10 years

We're neutral on this. It's not necessarily good or bad that TICC hasn't initiated a stock buyback.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 19.49M 20.55M 24.31M 26.62M 27.25M 32.43M 40.58M 61.11M 68.86M 69.79M
Stock Bought Back - -5.13% -15.50% -8.68% -2.31% -15.97% -20.07% -33.60% -11.25% -1.33%
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