Stellus Capital Investment
Market Cap
US$230.1m
Last Updated
2021/03/06 23:49 UTC
Data Sources
Company Financials +
Executive Summary
Stellus Capital Investment Corporation is a business development company specializing in investments in private middle-market companies. More Details
Rewards
Snowflake Analysis
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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
| SCM | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.5% | 1.5% | -0.4% |
| 30 Day | 9.0% | 3.3% | -2.3% |
| 90 Day | 2.3% | 14.5% | 5.0% |
| 1 Year | 10.6%-1.4% | 49.0%45.4% | 39.1%36.2% |
| 3 Year | 35.9%-0.8% | 35.9%25.9% | 48.4%39.0% |
| 5 Year | 108.6%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
3 years ago | Simply Wall St
What Is Stellus Capital Investment Corporation's (SCM) Share Price Doing?3 years ago | Simply Wall St
How Analysts See Stellus Capital Investment Corporation (SCM) Perform Over The Next Year?3 years ago | Simply Wall St
Why Stellus Capital Investment Corporation's (SCM) ROE Of 9.7% Does Not Tell The Whole StoryValuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 9.17yrs | no data | 3.16% $ 7.3m | |
| Treasurer | 9.17yrs | no data | 0.12% $ 286.9k | |
| Manager of Finance & Operations | 3.17yrs | no data | no data |
9.2yrs
Average Tenure
Experienced Management: SCM's management team is seasoned and experienced (9.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 9.17yrs | no data | 3.16% $ 7.3m | |
| Independent Director | 9.17yrs | US$93.00k | 0.85% $ 1.9m | |
| Independent Director | 8.5yrs | US$92.00k | 0.21% $ 482.7k | |
| Independent Director | 9.17yrs | US$96.00k | 0.051% $ 118.1k | |
| Director | 9.17yrs | no data | 0.95% $ 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
- Name: Stellus Capital Investment Corporation
- Ticker: SCM
- Exchange: NYSE
- Founded: 2012
- Industry: Asset Management and Custody Banks
- Sector: Diversified Financials
- Market Cap: US$230.130m
- Shares outstanding: 19.49m
- Website: https://www.stelluscapital.com/public-investors/investment-corp/
Location
- Stellus Capital Investment Corporation
- 4400 Post Oak Parkway
- Suite 2200
- Houston
- Texas
- 77027
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SCM | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Nov 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/06 23:49 |
| End of Day Share Price | 2021/03/05 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.