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Upturn AI SWOT - About
Source Capital Closed Fund (SOR)
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Upturn Advisory Summary
09/15/2025: SOR (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.
Analysis of Past Performance
Type Stock | Historic Profit 20.97% | Avg. Invested days 78 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  5.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 09/15/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 353.98M USD | Price to earnings Ratio 9.03 | 1Y Target Price - |
Price to earnings Ratio 9.03 | 1Y Target Price - | ||
Volume (30-day avg) - | Beta 0.58 | 52 Weeks Range 37.23 - 44.55 | Updated Date 06/29/2025 |
52 Weeks Range 37.23 - 44.55 | Updated Date 06/29/2025 | ||
Dividends yield (FY) 5.79% | Basic EPS (TTM) 4.78 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 190.14% | Operating Margin (TTM) 80.87% |
Management Effectiveness
Return on Assets (TTM) 2.85% | Return on Equity (TTM) 10.92% |
Valuation
Trailing PE 9.03 | Forward PE - | Enterprise Value 353979328 | Price to Sales(TTM) 17.19 |
Enterprise Value 353979328 | Price to Sales(TTM) 17.19 | ||
Enterprise Value to Revenue 8.8 | Enterprise Value to EBITDA - | Shares Outstanding 8199740 | Shares Floating - |
Shares Outstanding 8199740 | Shares Floating - | ||
Percent Insiders 12.99 | Percent Institutions 54.77 |
Upturn AI SWOT
Source Capital Closed Fund
Company Overview
History and Background
Source Capital, Inc. (SOR) is a closed-end investment fund specializing in debt investments in small and mid-sized companies. It was founded to generate current income and, to a lesser extent, capital appreciation.
Core Business Areas
- Direct Lending: Providing senior secured loans, mezzanine debt, and equity co-investments to private companies.
- Debt Securities: Investing in publicly traded and privately held debt securities.
Leadership and Structure
Source Capital is managed by Source Capital, LLC. The leadership team consists of experienced investment professionals with backgrounds in private credit and leveraged finance. The structure involves a board of directors overseeing the fund's operations and investment strategy.
Top Products and Market Share
Key Offerings
- Senior Secured Loans: Directly originated loans to small and mid-sized businesses, offering stable income. Market share data for direct lending to this segment is fragmented and difficult to pinpoint precisely but SOR focuses on a niche area. Competitors include other BDCs and private credit funds like Ares Capital (ARCC) and Blackstone Private Credit Fund (BCRED).
- Mezzanine Debt: Higher-yielding, subordinated debt investments that offer capital appreciation potential. Market share is difficult to ascertain but it is a smaller portion of their overall portfolio. Competitors are similar to those in Senior Secured Loans.
Market Dynamics
Industry Overview
The private credit market is experiencing growth due to banks reducing lending to small and mid-sized companies. Demand for alternative financing is increasing, benefiting BDCs like Source Capital. The industry is competitive with a mix of BDCs, private credit funds, and other financial institutions.
Positioning
Source Capital focuses on the lower end of the middle market, targeting smaller companies with less access to traditional financing. This allows it to earn higher yields, but it also entails higher credit risk. They are positioned as a direct lender providing customized financing solutions.
Total Addressable Market (TAM)
The TAM for private credit is estimated to be in the trillions of dollars globally. Source Capital's specific niche is the lower middle market, representing a smaller but still significant portion of the overall TAM. Source Capital is a relatively small player, with ample room for growth within its target market segment.
Upturn SWOT Analysis
Strengths
- Experienced management team
- Focus on niche market (lower middle market)
- Direct origination capabilities
- Established track record in private credit
Weaknesses
- Smaller asset base compared to larger BDCs
- Higher concentration risk due to smaller portfolio size
- Susceptibility to economic downturns affecting portfolio companies
- High expense ratio compared to other investment vehicles
Opportunities
- Growing demand for private credit
- Expanding into new industry verticals
- Increasing scale through strategic acquisitions or partnerships
- Capitalizing on regulatory changes impacting traditional lenders
Threats
- Increased competition from other BDCs and private credit funds
- Deterioration in credit quality due to economic slowdown
- Rising interest rates impacting portfolio company debt service
- Regulatory changes affecting BDC operations
Competitors and Market Share
Key Competitors
- ARCC
- MAIN
- TPVG
Competitive Landscape
Source Capital is smaller than some of its competitors, requiring them to focus on a niche market and excel in their targeted segment. Their advantages are its specialized knowledge and ability to be more flexible, however, that has its disadvantages.
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been influenced by market conditions and deployment of capital. Data regarding assets under management (AUM) and portfolio size would illustrate this.
Future Projections: Future projections depend on market conditions, investment opportunities, and the company's ability to execute its strategy.
Recent Initiatives: Recent initiatives may include expanding into new sectors, raising additional capital, or implementing new investment strategies. These details can be found in company reports and press releases.
Summary
Source Capital (SOR) is a closed-end fund focused on lending to lower middle-market companies, offering high yield potential but with significant risks. Their success hinges on their ability to originate and manage loans effectively in a competitive environment. Small asset size and niche focus present both opportunities and vulnerabilities. Potential investors should carefully evaluate their credit risk and expense ratios.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings (SEC)
- Investment Research Reports
- Financial News Outlets
- Yahoo Finance
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. Market share data is approximate and may vary. Financial data may be outdated.
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 Source Capital Closed Fund
Exchange NYSE | Headquaters El Segundo, CA, United States | ||
IPO Launch date 1997-04-09 | CEO - | ||
Sector Financial Services | Industry Asset Management | Full time employees - | |
Full time employees - | |||
Source Capital, Inc. is a close-ended balanced fund launched and managed by First Pacific Advisors, LLC. The fund invests in the public equity markets of the United States. It seeks to invest in the stocks of companies operating across diversified sectors. The fund primarily invests in value stocks of small to mid cap companies. It employs fundamental analysis with a bottom-up stock selection approach, focusing on such factors as high liquidity, relatively unleveraged balance sheets, and long-term ability to earn above-average returns on capital to create its portfolio. The fund benchmarks the performance of its portfolio against the Russell 2500 Index, the S&P 500 Index, and the Nasdaq Composite Index. Source Capital, Inc. was formed in June 1, 1968 and is domiciled in the United States.
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