| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 0/6 |
| Past Performance | 4/6 |
| Financial Health | 1/6 |
| Dividends | 3/6 |
SCM Stock Overview
Stellus Capital Investment Corporation is a business development company specializing in investments in private middle-market companies.
Stellus Capital Investment Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$13.15 |
| 52 Week High | US$14.74 |
| 52 Week Low | US$10.18 |
| Beta | 1.33 |
| 1 Month Change | 4.28% |
| 3 Month Change | -3.02% |
| 1 Year Change | 20.86% |
| 3 Year Change | -5.19% |
| 5 Year Change | -1.50% |
| Change since IPO | -12.80% |
Recent News & Updates
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.
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
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
| SCM | US Capital Markets | US Market | |
|---|---|---|---|
| 7D | -1.6% | -1.6% | -0.5% |
| 1Y | 20.9% | 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
| SCM volatility | |
|---|---|
| SCM Average Weekly Movement | 3.2% |
| Capital Markets Industry Average Movement | 0.7% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.9% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2012 | n/a | Rob Ladd | https://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
| SCM fundamental statistics | |
|---|---|
| Market Cap | US$256.24m |
| Earnings (TTM) | US$40.13m |
| Revenue (TTM) | US$59.66m |
6.4x
P/E Ratio4.3x
P/S RatioIs SCM overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SCM income statement (TTM) | |
|---|---|
| Revenue | US$59.66m |
| Cost of Revenue | US$0 |
| Gross Profit | US$59.66m |
| Expenses | US$19.53m |
| Earnings | US$40.13m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 2.06 |
| Gross Margin | 100.00% |
| Net Profit Margin | 67.27% |
| Debt/Equity Ratio | 192.3% |
How did SCM perform over the long term?
See historical performance and comparisonDividends
8.7%
Current Dividend Yield50%
Payout RatioDoes SCM pay a reliable dividends?
See SCM dividend history and benchmarks| Stellus Capital Investment dividend dates | |
|---|---|
| Ex Dividend Date | Jan 27 2022 |
| Dividend Pay Date | Feb 15 2022 |
| Days until Ex dividend | 10 days |
| Days until Dividend pay date | 29 days |
Does SCM pay a reliable dividends?
See SCM dividend history and benchmarksValuation
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
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
- Name: Stellus Capital Investment Corporation
- Ticker: SCM
- Exchange: NYSE
- Founded: 2012
- Industry: Asset Management and Custody Banks
- Sector: Diversified Financials
- Implied Market Cap: US$256.241m
- 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
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/16 23:23 |
| End of Day Share Price | 2022/01/14 00:00 |
| Earnings | 2021/09/30 |
| 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.