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Upturn AI SWOT - About
SCM 
Stellus Capital Investment (SCM)
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Upturn Advisory Summary
11/05/2025: SCM (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
6 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $13.6
1 Year Target Price $13.6
| 1 | Strong Buy |
| 0 | Buy |
| 5 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -1.9% | Avg. Invested days 32 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 11/05/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 333.89M USD | Price to earnings Ratio 8.16 | 1Y Target Price 13.6 |
Price to earnings Ratio 8.16 | 1Y Target Price 13.6 | ||
Volume (30-day avg) 6 | Beta 0.66 | 52 Weeks Range 10.44 - 14.79 | Updated Date 11/7/2025 |
52 Weeks Range 10.44 - 14.79 | Updated Date 11/7/2025 | ||
Dividends yield (FY) 13.48% | Basic EPS (TTM) 1.44 |
Earnings Date
Report Date 2025-11-05 | When - | Estimate 0.325 | Actual - |
Profitability
Profit Margin 38.24% | Operating Margin (TTM) 69.04% |
Management Effectiveness
Return on Assets (TTM) 4.51% | Return on Equity (TTM) 10.88% |
Valuation
Trailing PE 8.16 | Forward PE 12.14 | Enterprise Value 932203904 | Price to Sales(TTM) 3.25 |
Enterprise Value 932203904 | Price to Sales(TTM) 3.25 | ||
Enterprise Value to Revenue 22.65 | Enterprise Value to EBITDA 11.75 | Shares Outstanding 28416148 | Shares Floating - |
Shares Outstanding 28416148 | Shares Floating - | ||
Percent Insiders 3.98 | Percent Institutions 12.73 |
Upturn AI SWOT
Stellus Capital Investment
Company Overview
History and Background
Stellus Capital Investment Corporation was formed in 2012 and went public in 2012. It focuses on providing direct lending solutions to middle-market companies.
Core Business Areas
- Direct Lending: Providing first lien, second lien, unitranche and mezzanine debt solutions to middle-market companies.
- Equity Investments: Making select equity investments, typically in conjunction with debt investments.
Leadership and Structure
Robert T. Ladd serves as CEO. The company operates as a business development company (BDC) with an investment team focused on credit analysis and portfolio management.
Top Products and Market Share
Key Offerings
- First Lien Debt: Providing senior secured loans to middle-market companies. Market share data is not readily available on this specific product level but Stellus is a middle-market lender among many. Competitors include Ares Capital, Main Street Capital, and Golub Capital.
- Second Lien Debt: Offering subordinated debt to companies, typically carrying higher interest rates. Market share data is not readily available on this specific product level but Stellus is a middle-market lender among many. Competitors include Ares Capital, Main Street Capital, and Golub Capital.
Market Dynamics
Industry Overview
The direct lending industry for middle-market companies is competitive and sensitive to interest rate fluctuations and economic cycles. Demand for alternative financing sources persists.
Positioning
Stellus focuses on the lower end of the middle market, providing tailored financing solutions. Its competitive advantages include its experienced management team and disciplined investment approach.
Total Addressable Market (TAM)
The total addressable market for private credit is estimated to be in the trillions of dollars. Stellus Capital Investment is positioned to capture a portion of this TAM, focusing on middle-market companies with revenues between $5 million and $150 million.
Upturn SWOT Analysis
Strengths
- Experienced management team
- Disciplined investment approach
- Focus on lower middle market
- Diversified portfolio
Weaknesses
- Sensitivity to interest rate changes
- Credit risk associated with lending to smaller companies
- Dependence on external financing
- Smaller AUM relative to larger BDCs
Opportunities
- Growing demand for private credit
- Expansion of the middle market
- Potential acquisitions of smaller BDCs
- Increased deployment of capital
Threats
- Economic downturn
- Increased competition from other lenders
- Regulatory changes
- Rising interest rates
Competitors and Market Share
Key Competitors
- ARCC
- MAIN
- GBDC
Competitive Landscape
Stellus competes with larger BDCs with greater access to capital and lower cost of funds. Stellus differentiates itself through its focus on the lower middle market and its strong relationships with borrowers.
Growth Trajectory and Initiatives
Historical Growth: Growth has been consistent with the expansion of its investment portfolio.
Future Projections: Analyst estimates vary and depend on market conditions.
Recent Initiatives: Recent initiatives include expanding its origination capabilities and diversifying its investment portfolio.
Summary
Stellus Capital Investment is a BDC focused on providing direct lending to middle-market companies. They have an experienced management team and disciplined investment approach. The company is sensitive to interest rate changes and the credit risk of smaller companies. Opportunities exist in the growing demand for private credit, but they must also navigate increased competition.
Similar Stocks
Sources and Disclaimers
Data Sources:
- SEC Filings
- Company Website
- Analyst Reports
Disclaimers:
The data provided is for informational purposes only and should not be considered investment advice. Market share estimates are approximate and based on publicly available information.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Stellus Capital Investment
Exchange NYSE | Headquaters Houston, TX, United States | ||
IPO Launch date 2012-11-08 | Chairman, President & CEO Mr. Robert Thomsen Ladd | ||
Sector Financial Services | Industry Asset Management | Full time employees - | |
Full time employees - | |||
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. The fund seeks to invest in companies with an EBITDA between $5 million and $50 million.
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