NasdaqGS:SUNS

Stock Analysis Report

Executive Summary

Solar Senior Capital Ltd. is a business development company specializing in investments in leveraged, middle-market companies in the United States.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

How has Solar Senior Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SUNS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.0%

SUNS

0.2%

US Capital Markets

0.06%

US Market


1 Year Return

9.2%

SUNS

17.8%

US Capital Markets

19.4%

US Market

Return vs Industry: SUNS underperformed the US Capital Markets industry which returned 17.8% over the past year.

Return vs Market: SUNS underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

SUNSIndustryMarket
7 Day2.0%0.2%0.06%
30 Day2.1%0.2%1.1%
90 Day3.6%6.8%8.9%
1 Year18.4%9.2%20.2%17.8%21.9%19.4%
3 Year34.1%4.8%38.8%30.9%48.9%39.3%
5 Year81.4%18.2%81.4%64.5%71.9%53.1%

Price Volatility Vs. Market

How volatile is Solar Senior Capital's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Solar Senior Capital undervalued compared to its fair value and its price relative to the market?

20.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SUNS ($18.29) is trading above our estimate of fair value ($17.57)

Significantly Below Fair Value: SUNS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SUNS is good value based on its PE Ratio (20.2x) compared to the Capital Markets industry average (36x).

PE vs Market: SUNS is poor value based on its PE Ratio (20.2x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: SUNS is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: SUNS is good value based on its PB Ratio (1.1x) compared to the US Capital Markets industry average (6.6x).

Future Growth

How is Solar Senior Capital forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUNS's forecast earnings growth (11.4% per year) is above the savings rate (1.7%).

Earnings vs Market: SUNS's earnings (11.4% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: SUNS's earnings are forecast to grow, but not significantly.

Revenue vs Market: SUNS's revenue (7.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: SUNS's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SUNS's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Solar Senior Capital performed over the past 5 years?

13.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUNS has a large one-off loss of $8.0M impacting its September 30 2019 financial results.

Growing Profit Margin: SUNS's current net profit margins (35.7%) are lower than last year (58.3%).


Past Earnings Growth Analysis

Earnings Trend: SUNS's earnings have grown by 13.4% per year over the past 5 years.

Accelerating Growth: SUNS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SUNS had negative earnings growth (-36%) over the past year, making it difficult to compare to the Capital Markets industry average (8.4%).


Return on Equity

High ROE: SUNS's Return on Equity (5.5%) is considered low.


Return on Assets


Return on Capital Employed

Financial Health

How is Solar Senior Capital's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SUNS has a low level of unsold assets or inventory.

Debt Coverage by Assets: SUNS's debt is not covered by short term assets (assets are 0.9x debt).


Financial Institutions Analysis

Asset Level: SUNS's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SUNS has a sufficient allowance for bad loans.

Low Risk Liabilities: SUNS reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SUNS has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SUNS has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SUNS has an appropriate level of bad loans.

Dividend

What is Solar Senior Capital's current dividend yield, its reliability and sustainability?

7.71%

Current Dividend Yield


Dividend Yield vs Market

company7.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years7.7%

Current dividend yield vs market & industry

Notable Dividend: SUNS's dividend (7.71%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: SUNS's dividend (7.71%) is in the top 25% of dividend payers in the US market (3.7%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SUNS has been paying a dividend for less than 10 years.

Growing Dividend: SUNS's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (155.9%), SUNS's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Michael Gross (57yo)

0.7yrs

Tenure

0

Mr. Michael Stuart Gross serves as a Partner of Solar Capital Partners, LLC. He serves as a Managing Member of the Solar Capital Partners, LLC investment adviser. Mr. Gross has been the Chairman and Presid ...


Leadership Team

NamePositionTenureCompensationOwnership
Michael Gross
Chairman0.7yrsno data2.08% $6.1m
Bruce Spohler
COO, Co-CEO & Director9.2yrsno data0.025% $73.2k
Richard Peteka
CFO, Treasurer & Secretary7.8yrsno data0.039% $114.3k
Richard Pivirotto
Investor Relations0yrsno datano data
Guy Talarico
Chief Compliance Officer9.2yrsno datano data

4.2yrs

Average Tenure

57.5yo

Average Age

Experienced Management: SUNS's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Gross
Chairman0.7yrsno data2.08% $6.1m
Bruce Spohler
COO, Co-CEO & Director9.2yrsno data0.025% $73.2k
Steven Hochberg
Independent Director9.1yrsUS$64.50k0.12% $365.8k
David Wachter
Independent Director9.1yrsUS$62.00k0.057% $166.6k
Leonard Potter
Independent Director9.1yrsUS$61.25k0.039% $114.3k

9.1yrs

Average Tenure

57yo

Average Age

Experienced Board: SUNS's board of directors are considered experienced (9.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Solar Senior Capital Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Solar Senior Capital Ltd.
  • Ticker: SUNS
  • Exchange: NasdaqGS
  • Founded: 2010
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$293.467m
  • Shares outstanding: 16.05m
  • Website: https://www.solarseniorcap.com

Location

  • Solar Senior Capital Ltd.
  • 500 Park Avenue
  • 3rd Floor
  • New York
  • New York
  • 10022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SUNSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 2011
SL8BST (Boerse-Stuttgart)YesCommon StockDEEURFeb 2011

Biography

Solar Senior Capital Ltd. is a business development company specializing in investments in leveraged, middle-market companies in the United States. The fund invests in the form of senior secured loans, including first lien, unitranche, and second lien debt instruments. It does not invest in start-up companies or companies having speculative business plans. The fund prefers debt investments between $5 million and $30 million in companies with EBITDA between $20 million and $60 million. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 01:47
End of Day Share Price2020/02/18 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.