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SCM

Stellus Capital InvestmentNYSE:SCM Stock Report

Last Price

US$13.15

Market Cap

US$256.2m

7D

-1.6%

1Y

20.9%

Updated

16 Jan, 2022

Data

Company Financials +
SCM fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance4/6
Financial Health1/6
Dividends3/6

SCM Stock Overview

Stellus Capital Investment Corporation is a business development company specializing in investments in private middle-market companies.

Stellus Capital Investment Competitors

Ares Capital

NasdaqGS:ARCC

US$9.9b

FS KKR Capital

NYSE:FSK

US$6.4b

Prospect Capital

NasdaqGS:PSEC

US$3.4b

Main Street Capital

NYSE:MAIN

US$3.1b

Price History & Performance

Summary of all time highs, changes and price drops for Stellus Capital Investment
Historical stock prices
Current Share PriceUS$13.15
52 Week HighUS$14.74
52 Week LowUS$10.18
Beta1.33
1 Month Change4.28%
3 Month Change-3.02%
1 Year Change20.86%
3 Year Change-5.19%
5 Year Change-1.50%
Change since IPO-12.80%

Recent News & Updates

Nov 04

10% Yield, Discount To Book: Stellus Capital

Stellus Capital is a well-run BDC with a solid track record of shareholder returns. It's seeing a growing NAV/share and maintains healthy portfolio metrics. Meanwhile, SCM pays a big dividend yield including the recently declared special dividends, and I also highlight the valuation.

Nov 02

Stellus Capital - Resilient Portfolio And Sustainable Dividends

Investment thesis Stellus Capital Investment Corporation (SCM) is currently trading at $8 per share after yesterday's market plunge that sent the stock down 5% amid concerns over a resurgence in the COVID cases. Nonetheless, the resilience of the company's portfolio during the prior lockdown renders the recent stock market decline a buying opportunity. SCM's conservative approach towards fair value estimates makes NAV a reliable tool for any investment strategy. The stock is currently trading at

Oct 30

Stellus Capital Investment EPS beats by $0.02, beats on revenue

Stellus Capital Investment (SCM): Q3 Non-GAAP EPS of $0.29 beats by $0.02; GAAP EPS of $0.27 beats by $0.14.Revenue of $14M (-9.7% Y/Y) beats by $0.26M.The outstanding balance under the credit facility as of Oct. 29, 2020 was $166.5M; total balance of SBA-guaranteed debentures stood at $161M.Press Release

Shareholder Returns

SCMUS Capital MarketsUS Market
7D-1.6%-1.6%-0.5%
1Y20.9%30.2%13.7%

Return vs Industry: SCM underperformed the US Capital Markets industry which returned 30.2% over the past year.

Return vs Market: SCM exceeded the US Market which returned 13.7% over the past year.

Price Volatility

Is SCM's price volatile compared to industry and market?
SCM volatility
SCM Average Weekly Movement3.2%
Capital Markets Industry Average Movement0.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: SCM is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SCM's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2012n/aRob Laddhttps://www.stelluscapital.com/public-investors/investment-corp/

Stellus Capital Investment Corporation is a business development company specializing in investments in private middle-market companies. It invests through first lien, second lien, unitranche, and mezzanine debt financing, often with a corresponding equity investment. The fund prefers to invest in US and Canada.

Stellus Capital Investment Fundamentals Summary

How do Stellus Capital Investment's earnings and revenue compare to its market cap?
SCM fundamental statistics
Market CapUS$256.24m
Earnings (TTM)US$40.13m
Revenue (TTM)US$59.66m

6.4x

P/E Ratio

4.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SCM income statement (TTM)
RevenueUS$59.66m
Cost of RevenueUS$0
Gross ProfitUS$59.66m
ExpensesUS$19.53m
EarningsUS$40.13m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.06
Gross Margin100.00%
Net Profit Margin67.27%
Debt/Equity Ratio192.3%

How did SCM perform over the long term?

See historical performance and comparison

Dividends

8.7%

Current Dividend Yield

50%

Payout Ratio

Does SCM pay a reliable dividends?

See SCM dividend history and benchmarks
When do you need to buy SCM by to receive an upcoming dividend?
Stellus Capital Investment dividend dates
Ex Dividend DateJan 27 2022
Dividend Pay DateFeb 15 2022
Days until Ex dividend10 days
Days until Dividend pay date29 days

Does SCM pay a reliable dividends?

See SCM dividend history and benchmarks

Valuation

Is Stellus Capital Investment undervalued compared to its fair value and its price relative to the market?

38.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SCM ($13.15) is trading below our estimate of fair value ($21.45)

Significantly Below Fair Value: SCM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SCM is good value based on its PE Ratio (6.4x) compared to the US Capital Markets industry average (15.9x).

PE vs Market: SCM is good value based on its PE Ratio (6.4x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: SCM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SCM is good value based on its PB Ratio (0.9x) compared to the US Capital Markets industry average (42.4x).

Future Growth

How is Stellus Capital Investment forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-23.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCM's earnings are forecast to decline over the next 3 years (-23.8% per year).

Earnings vs Market: SCM's earnings are forecast to decline over the next 3 years (-23.8% per year).

High Growth Earnings: SCM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SCM's revenue (3.9% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: SCM's revenue (3.9% 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 SCM's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Stellus Capital Investment performed over the past 5 years?

4.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SCM has a high level of non-cash earnings.

Growing Profit Margin: SCM's current net profit margins (67.3%) are higher than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: SCM's earnings have grown by 4.5% per year over the past 5 years.

Accelerating Growth: SCM's earnings growth over the past year (669.7%) exceeds its 5-year average (4.5% per year).

Earnings vs Industry: SCM earnings growth over the past year (669.7%) exceeded the Capital Markets industry 86.4%.


Return on Equity

High ROE: SCM's Return on Equity (14.6%) is considered low.

Financial Health

How is Stellus Capital Investment's financial position?


Financial Position Analysis

Short Term Liabilities: SCM's short term assets ($41.3M) exceed its short term liabilities ($19.7M).

Long Term Liabilities: SCM's short term assets ($41.3M) do not cover its long term liabilities ($531.7M).


Debt to Equity History and Analysis

Debt Level: SCM's net debt to equity ratio (178.7%) is considered high.

Reducing Debt: SCM's debt to equity ratio has increased from 114.8% to 192.3% over the past 5 years.

Debt Coverage: SCM's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SCM's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

Dividend

What is Stellus Capital Investment current dividend yield, its reliability and sustainability?

8.67%

Current Dividend Yield


Upcoming Dividend Payment

TodayJan 17 2022Ex Dividend DateJan 27 2022Dividend Pay DateFeb 15 202219 days from Ex DividendBuy in the next 10 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SCM's dividend (8.67%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: SCM's dividend (8.67%) is in the top 25% of dividend payers in the US market (3.44%)


Stability and Growth of Payments

Stable Dividend: SCM has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SCM has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.5%), SCM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SCM's dividends in 3 years are not forecast to be well covered by earnings (105.9% payout ratio).

Management

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

10.0yrs

Average management tenure


CEO

Rob Ladd (65 yo)

10yrs

Tenure

Mr. Robert T. Ladd, also known as Rob, is the Managing Partner at Stellus Capital Management, LLC. Prior to this, he was a Director at the firm. He was previously a Founding Partner, Chairman, President an...


Leadership Team

Experienced Management: SCM's management team is seasoned and experienced (10 years average tenure).


Board Members

Experienced Board: SCM's board of directors are seasoned and experienced ( 10 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SCM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Stellus Capital Investment Corporation's employee growth, exchange listings and data sources


Key Information


Location

  • Stellus Capital Investment Corporation
  • 4400 Post Oak Parkway
  • Suite 2200
  • Houston
  • Texas
  • 77027
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/16 23:23
End of Day Share Price2022/01/14 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.