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Upturn AI SWOT - About
SCM 
Stellus Capital Investment (SCM)
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Upturn Advisory Summary
08/28/2025: 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 2.7% | Avg. Invested days 35 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 08/28/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 417.43M USD | Price to earnings Ratio 10.2 | 1Y Target Price 13.6 |
Price to earnings Ratio 10.2 | 1Y Target Price 13.6 | ||
Volume (30-day avg) 6 | Beta 0.88 | 52 Weeks Range 10.66 - 15.11 | Updated Date 08/29/2025 |
52 Weeks Range 10.66 - 15.11 | Updated Date 08/29/2025 | ||
Dividends yield (FY) 10.88% | Basic EPS (TTM) 1.43 |
Earnings Date
Report Date 2025-08-06 | When - | Estimate 0.3592 | Actual 0.34 |
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 10.2 | Forward PE 12.89 | Enterprise Value 1012621568 | Price to Sales(TTM) 4.06 |
Enterprise Value 1012621568 | Price to Sales(TTM) 4.06 | ||
Enterprise Value to Revenue 23.66 | Enterprise Value to EBITDA 11.75 | Shares Outstanding 28416100 | Shares Floating - |
Shares Outstanding 28416100 | Shares Floating - | ||
Percent Insiders 3.98 | Percent Institutions 12.83 |
Upturn AI SWOT
Stellus Capital Investment
Company Overview
History and Background
Stellus Capital Investment Corporation was formed in 2012 and is headquartered in Houston, Texas. It is a publicly traded business development company (BDC) focused on providing direct lending solutions to middle-market companies.
Core Business Areas
- Direct Lending: Provides direct lending solutions, including first lien, second lien, unitranche, and mezzanine debt, to middle-market companies. This includes funding for acquisitions, growth capital, and recapitalizations.
- Equity Investments: Makes select equity investments, often alongside debt investments, in middle-market companies. The intent is to generate additional returns and align interests with portfolio companies.
Leadership and Structure
The company is led by Robert T. Ladd (CEO), supported by a team of investment professionals. Stellus operates as an externally managed BDC with investment advisory services provided by Stellus Capital Management, LLC.
Top Products and Market Share
Key Offerings
- First Lien Debt: Provides senior secured debt to middle-market companies. This is typically the least risky debt, with the lowest yields. Competitors include other BDCs and private credit funds. Market share data is difficult to pinpoint precisely, but Stellus is a significant player in the space, and is a lower cost lender due to it's BDC status.
- Second Lien Debt: Provides subordinated debt to middle-market companies, carrying higher risk and yield than first lien debt. Competitors include other BDCs and private credit funds.
- Unitranche Debt: Combines features of both first and second lien debt. It offers a blended interest rate and simplifies the capital structure for borrowers. Competitors include other BDCs and private credit funds.
Market Dynamics
Industry Overview
The BDC industry is characterized by providing capital to middle-market companies that are underserved by traditional banks. The industry is sensitive to interest rate changes and economic conditions. There is increasing competition among BDCs and private credit funds for deals.
Positioning
Stellus is positioned as a provider of flexible capital solutions to middle-market companies. It competes on deal structuring, speed of execution, and industry expertise. Its strengths include its established relationships and experienced management team.
Total Addressable Market (TAM)
The estimated TAM for middle-market lending is in the hundreds of billions of dollars. Stellus Capital Investment is well positioned with its experienced team, to capture a fraction of this TAM.
Upturn SWOT Analysis
Strengths
- Experienced management team
- Established relationships with sponsors and borrowers
- Disciplined underwriting process
- Flexible capital solutions
- Publicly traded structure provides access to capital
Weaknesses
- Reliance on external management
- Sensitivity to interest rate changes
- Credit risk associated with lending to middle-market companies
- Small AUM compared to larger BDCs
Opportunities
- Increased demand for private credit
- Expanding into new industries and geographies
- Growing AUM through strategic acquisitions
- Capitalizing on the retreat of traditional banks from middle-market lending
Threats
- Economic downturn
- Increased competition from other BDCs and private credit funds
- Rising interest rates
- Regulatory changes
Competitors and Market Share
Key Competitors
- ARCC
- TCPC
- MAIN
- TSSL
Competitive Landscape
Stellus competes with other BDCs on deal size, pricing, and industry expertise. It attempts to create value through deal structuring and by maintaining strong relationships with sponsors.
Growth Trajectory and Initiatives
Historical Growth: Discuss Stellus Capital Investment's growth trends over the past years.
Future Projections: Provide projections for Stellus Capital Investment's future growth based on analyst estimates.
Recent Initiatives: Highlight recent strategic initiatives undertaken by Stellus Capital Investment.
Summary
Stellus Capital Investment is a mid-sized BDC providing debt and equity to middle-market companies. It has an experienced management team and flexible capital solutions, but it also faces credit risk and relies on an external manager. Rising interest rates and economic headwinds remain threats. Stellus operates in a competitive BDC marketplace that will continue to put pressure on the stock.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings, SEC reports, Analyst reports, Company Website
Disclaimers:
This analysis is for informational purposes only and does not constitute investment advice. Market share data is based on estimates and may not be precise. Financial data should be independently verified.
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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