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Stellus Capital Investment (SCM)

Upturn stock ratingUpturn stock rating
$13.94
Last Close (24-hour delay)
Profit since last BUY3.87%
upturn advisory
Consider higher Upturn Star rating
BUY since 15 days
  • BUY Advisory
  • SELL Advisory (Profit)​
  • SELL Advisory (Loss)​
  • Profit
  • Loss
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Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
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Upturn Advisory Summary

06/30/2025: SCM (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

rating

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Number of Analysts

rating

6 Analysts rated it

Moderately tracked stock, growing coverage, gaining market and investor attention.

1 Year Target Price $13.6

1 Year Target Price $13.6

Analysts Price Target For last 52 week
$13.6Target price
Low$10.86
Current$13.94
high$14.97

Analysis of Past Performance

Type Stock
Historic Profit -1.25%
Avg. Invested days 31
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 2.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 06/30/2025

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 397.54M USD
Price to earnings Ratio 9.78
1Y Target Price 13.6
Price to earnings Ratio 9.78
1Y Target Price 13.6
Volume (30-day avg) 6
Beta 0.88
52 Weeks Range 10.86 - 14.97
Updated Date 06/30/2025
52 Weeks Range 10.86 - 14.97
Updated Date 06/30/2025
Dividends yield (FY) 11.43%
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 9.78
Forward PE 12.06
Enterprise Value 1010456064
Price to Sales(TTM) 3.83
Enterprise Value 1010456064
Price to Sales(TTM) 3.83
Enterprise Value to Revenue 24.35
Enterprise Value to EBITDA 11.75
Shares Outstanding 28416100
Shares Floating -
Shares Outstanding 28416100
Shares Floating -
Percent Insiders 3.98
Percent Institutions 12.61

Analyst Ratings

Rating 3
Target Price 13.6
Buy -
Strong Buy 1
Buy -
Strong Buy 1
Hold 5
Sell -
Strong Sell -
Strong Sell -

ai summary icon Upturn AI SWOT

Stellus Capital Investment

stock logo

Company Overview

overview logo 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.

business area logo 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 logo 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

overview logo 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 logo 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

competitor logo 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.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization 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.