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Upturn AI SWOT - About
SCM 
Stellus Capital Investment (SCM)
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Upturn Advisory Summary
07/10/2025: SCM (1-star) has a low Upturn Star Rating. Not recommended to BUY.
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 5.13% | Avg. Invested days 32 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 07/10/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 427.17M USD | Price to earnings Ratio 10.38 | 1Y Target Price 13.6 |
Price to earnings Ratio 10.38 | 1Y Target Price 13.6 | ||
Volume (30-day avg) 6 | Beta 0.88 | 52 Weeks Range 10.86 - 15.13 | Updated Date 07/11/2025 |
52 Weeks Range 10.86 - 15.13 | Updated Date 07/11/2025 | ||
Dividends yield (FY) 11.47% | Basic EPS (TTM) 1.43 |
Earnings Date
Report Date 2025-06-20 | When Before Market | Estimate 0.3717 | Actual 0.35 |
Profitability
Profit Margin 36.35% | Operating Margin (TTM) 69.37% |
Management Effectiveness
Return on Assets (TTM) 4.66% | Return on Equity (TTM) 10.83% |
Valuation
Trailing PE 10.38 | Forward PE 12.63 | Enterprise Value 1009035264 | Price to Sales(TTM) 4.12 |
Enterprise Value 1009035264 | Price to Sales(TTM) 4.12 | ||
Enterprise Value to Revenue 24.8 | Enterprise Value to EBITDA 11.75 | Shares Outstanding 28416100 | Shares Floating - |
Shares Outstanding 28416100 | Shares Floating - | ||
Percent Insiders 3.98 | Percent Institutions 12.61 |
Upturn AI SWOT
Stellus Capital Investment
Company Overview
History and Background
Stellus Capital Investment Corporation was founded in 2012. It is a specialty finance company focused on providing direct lending solutions to middle market companies. It has grown steadily since its inception, focusing on building a diverse portfolio of debt investments.
Core Business Areas
- Direct Lending: Provides direct lending solutions to middle market companies. This includes first lien, second lien, unitranche and mezzanine debt, often with warrants or equity components.
Leadership and Structure
Robert T. Ladd serves as the CEO and Chairman. The company operates with a team of investment professionals managing and monitoring the portfolio.
Top Products and Market Share
Key Offerings
- First Lien Debt: Provides senior secured loans to middle market companies, offering priority in repayment. Stellus competes with other BDCs and direct lending funds; Market share data is not publicly available at a granular loan level. Competitors include Ares Capital, Main Street Capital.
- Second Lien Debt: Offers subordinated debt financing to middle market companies, carrying higher risk and higher potential return. Stellus competes with other BDCs and direct lending funds; Market share data is not publicly available at a granular loan level. Competitors include Owl Rock Capital, Golub Capital.
Market Dynamics
Industry Overview
The direct lending market for middle market companies is growing as banks retreat from this segment. Increased regulation and capital requirements for traditional lenders are driving demand for alternative financing sources.
Positioning
Stellus is positioned as a provider of flexible capital solutions for middle market companies. Their competitive advantage lies in their experienced management team and focus on relationship-driven origination.
Total Addressable Market (TAM)
The TAM for middle market lending is estimated to be in the hundreds of billions of dollars. Stellus is well-positioned to capture a portion of this market by focusing on companies with $5 million to $50 million in EBITDA.
Upturn SWOT Analysis
Strengths
- Experienced management team
- Focus on middle market lending
- Strong origination capabilities
- Disciplined underwriting process
Weaknesses
- Small market capitalization
- Dependence on external financing
- Sensitivity to interest rate changes
- High operating expenses
Opportunities
- Growing demand for direct lending
- Expansion into new geographies
- Increased deal flow from sponsor relationships
- Opportunity to increase assets under management
Threats
- Increased competition in direct lending
- Economic downturn impacting portfolio companies
- Regulatory changes
- Rising interest rates
Competitors and Market Share
Key Competitors
- ARCC
- MAIN
- GOLU
Competitive Landscape
Stellus operates in a competitive market with several larger and more established BDCs. Its focus on relationship-driven origination and flexible capital solutions helps it differentiate itself.
Growth Trajectory and Initiatives
Historical Growth: Stellus has demonstrated steady growth in its portfolio and assets under management since its inception.
Future Projections: Analysts project continued growth for Stellus, driven by increasing demand for direct lending and the company's ability to originate attractive investment opportunities.
Recent Initiatives: Stellus has been focused on expanding its origination platform and diversifying its funding sources.
Summary
Stellus Capital Investment is a middle-market direct lender showing steady growth. Its experienced management and focused strategy are strengths, while its smaller size and dependence on external financing pose challenges. The growing direct lending market presents opportunities, but economic downturns and competition are threats. Overall, Stellus has potential for continued growth, but risk mitigation is critical.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings, SEC filings, market research reports, analyst estimates.
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual research and consultation with a qualified financial advisor.
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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