NYSE:SCM

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Executive Summary

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

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SCM is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SCM's weekly volatility has decreased from 14% to 5% over the past year.


Market Performance


7 Day Return

1.5%

SCM

1.5%

US Capital Markets

-0.4%

US Market


1 Year Return

-1.4%

SCM

45.4%

US Capital Markets

36.2%

US Market

Return vs Industry: SCM underperformed the US Capital Markets industry which returned 45.4% over the past year.

Return vs Market: SCM underperformed the US Market which returned 36.2% over the past year.


Shareholder returns

SCMIndustryMarket
7 Day1.5%1.5%-0.4%
30 Day9.0%3.3%-2.3%
90 Day2.3%14.5%5.0%
1 Year10.6%-1.4%49.0%45.4%39.1%36.2%
3 Year35.9%-0.8%35.9%25.9%48.4%39.0%
5 Year108.6%22.0%145.9%115.5%116.6%92.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

33.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SCM ($11.81) is trading below our estimate of fair value ($17.87)

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 (11.4x) compared to the US Capital Markets industry average (23.4x).

PE vs Market: SCM is good value based on its PE Ratio (11.4x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: SCM is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: SCM is good value based on its PB Ratio (0.8x) compared to the US Capital Markets industry average (19.8x).

Future Growth

How is Stellus Capital Investment forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCM's forecast earnings growth (3.9% per year) is above the savings rate (2%).

Earnings vs Market: SCM's earnings (3.9% per year) are forecast to grow slower than the US market (19.2% per year).

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

Revenue vs Market: SCM's revenue (7% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: SCM's revenue (7% 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?

-3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SCM has high quality earnings.

Growing Profit Margin: SCM's current net profit margins (35.6%) are lower than last year (43.9%).


Past Earnings Growth Analysis

Earnings Trend: SCM's earnings have declined by 3.2% per year over the past 5 years.

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

Earnings vs Industry: SCM had negative earnings growth (-21.9%) over the past year, making it difficult to compare to the Capital Markets industry average (10.4%).


Return on Equity

High ROE: SCM's Return on Equity (7.4%) is considered low.

Financial Health

How is Stellus Capital Investment's financial position?


Financial Position Analysis

Short Term Liabilities: SCM's short term assets ($21.4M) exceed its short term liabilities ($7.5M).

Long Term Liabilities: SCM's short term assets ($21.4M) do not cover its long term liabilities ($394.1M).


Debt to Equity History and Analysis

Debt Level: SCM's debt to equity ratio (143.8%) is considered high.

Reducing Debt: SCM's debt to equity ratio has increased from 118.8% to 143.8% 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 (2.4x coverage).


Balance Sheet

Dividend

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

8.46%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: SCM's dividend (8.46%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: SCM's dividend (8.46%) is in the top 25% of dividend payers in the US market (3.64%)


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 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (110.9%), SCM'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?

9.2yrs

Average management tenure


CEO

Rob Ladd (64 yo)

9.17yrs

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

NamePositionTenureCompensationOwnership
Robert Ladd
Chairman & CEO9.17yrsno data3.16%
$ 7.3m
W. Huskinson
Treasurer9.17yrsno data0.12%
$ 286.9k
Vince Gwon
Manager of Finance & Operations3.17yrsno datano data

9.2yrs

Average Tenure

Experienced Management: SCM's management team is seasoned and experienced (9.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Ladd
Chairman & CEO9.17yrsno data3.16%
$ 7.3m
Bruce Bilger
Independent Director9.17yrsUS$93.00k0.85%
$ 1.9m
J. Arnoult
Independent Director8.5yrsUS$92.00k0.21%
$ 482.7k
William Repko
Independent Director9.17yrsUS$96.00k0.051%
$ 118.1k
Dean D'Angelo
Director9.17yrsno data0.95%
$ 2.2m

9.2yrs

Average Tenure

68yo

Average Age

Experienced Board: SCM's board of directors are considered experienced (9.2 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 company bio, 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SCMNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2012

Biography

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 mezzanin...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/06 23:49
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
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.