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Upturn AI Summary - About
Stellus Capital Investment(SCM)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for SCM
09/25/2026: SCM (1-star) is currently NOT-A-BUY. Pass it for now.
Stellus Capital Investment Corporation is a Business Development Company that primarily provides debt financing to lower middle-market companies. Its main strength lies in a disciplined, experienced management team focused on senior secured debt and recurring income. The company’s growth story centers on its ability to source proprietary loans in an underserved market niche. Key risks include exposure to economic downturns that could trigger defaults and interest rate sensitivity inherent to its loan portfolio. This stock may suit income-focused investors who understand the credit risks of private lending and are looking for monthly dividend distributions while monitoring portfolio credit quality and market valuations.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Weak fit | As a BDC, the primary investment thesis is income generation rather than capital appreciation. |
| Momentum investor | Weak fit | BDC stocks generally exhibit lower volatility and momentum compared to high-growth technology or cyclical sectors. |
| Value investor | Mixed fit | Value investors may look at the discount or premium to NAV, though the underlying credit risk requires deep analysis. |
| Dividend investor | Strong fit | The monthly dividend structure is specifically designed for income-focused investors. |
| Low-risk investor | Weak fit | The inherent credit risk of middle-market lending makes this unsuitable for those seeking capital preservation. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium | Stock prices for BDCs can fluctuate based on broader market sentiment and interest rate expectations. |
| Valuation risk | Medium | Investors must monitor if the stock trades at a significant premium or discount to its Net Asset Value. |
| Competition risk (middle-market lending) | High | Increased competition for loans can pressure interest spreads and underwriting standards. |
| Business quality | Medium | The quality of the loan portfolio and the ability to manage credit risk are paramount. |
| Dividend income | Medium / high | The dividend is dependent on the performance of the underlying loan portfolio. |
| Execution risk | Medium | Success relies on the external manager's ability to source and underwrite deals effectively. |
Price Behavior
Steep Decline
The stock price has dropped sharply with strong downward pressure.
Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit -9.59% | Avg. Invested days 35 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 09/25/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 219.30M USD | Price to earnings Ratio 7.55 | 1Y Target Price 10.12 |
Price to earnings Ratio 7.55 | 1Y Target Price 10.12 | ||
Volume (30-day avg) 141.8K shares | Beta 0.67 | 52 Weeks Range 6.69 - 12.38 | Updated Date 09/25/2026 |
52 Weeks Range 6.69 - 12.38 | Updated Date 09/25/2026 | ||
Dividends yield (FY) 18.94% | Basic EPS (TTM) 1.02 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Interest Income | Interest earned on first and second lien debt investments provided to middle-market companies. | The company acts like a lender, earning money from the interest payments on loans it makes to businesses. |
| Dividend and Fee Income | Dividends from equity co-investments and origination/servicing fees charged to borrowers. | Additional income comes from equity stakes in these businesses and fees charged for structuring their loans. |
Valuation
Trailing PE 7.55 | Forward PE 7.51 | Enterprise Value 813.58M | Price to Sales(TTM) 2.26 |
Enterprise Value 813.58M | Price to Sales(TTM) 2.26 | ||
Enterprise Value to Revenue 22.16 | Enterprise Value to EBITDA 11.75 | Shares Outstanding 28.48M | Shares Floating - |
Shares Outstanding 28.48M | Shares Floating - | ||
Percent Insiders 4.31 | Percent Institutions 14.23 |
Upturn AI Summary
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.
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
About Stellus Capital Investment
Exchange NYSE | Headquarters Houston, TX, United States | ||
IPO Launch date 2012-11-08 | President, CEO & Chairman 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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