NYSE
SCM
Last Price
US $8.48
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Stellus Capital Investment Corporation cash flow to debt ratio of -3.75% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial stability - Healthy cash flow growth.
Stellus Capital Investment Corporation's free cash flow has increased -14.66% from $-28.65M last year to $-24.45M, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
Stellus Capital Investment Corporation's debt to equity ratio is 1.70, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
Stellus Capital Investment Corporation's debt has increased relative to shareholder equity from 1.60 last year to 1.70 today, signaling weakened financials
Financial risk - Net debt/EBITDA.
Stellus Capital Investment Corporation has a net debt to EBITDA ratio of 21.90x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
Stellus Capital Investment Corporation earns at least as much interest as it pays. Interest obligations are fully covered.
Financial risk - Profit margin growth.
Stellus Capital Investment Corporation's profit margin has decreased (-44.47%) in the last year from 55.42% to 30.78%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
Stellus Capital Investment Corporation's short-term assets of $26.59M exceed its short-term liabilities of $17.30M
Decreasing performance - ROA.
Stellus Capital Investment Corporation's return on assets of 2.37% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
Stellus Capital Investment Corporation's return on equity of 6.38%, is lower than 15.00%, indicating bad performance
Decreasing performance - Earnings quality.
Stellus Capital Investment Corporation's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation
Increasing performance - Earnings stability.
Stellus Capital Investment Corporation had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Decreasing performance - Free cash flow.
Stellus Capital Investment Corporation has negative free cash flow, indicating the company is burning cash rather than generating it
Decreasing performance - FCF yield.
Stellus Capital Investment Corporation has negative free cash flow, indicating cash burn
Decreasing performance - Healthy earnings growth.
Stellus Capital Investment Corporation's yearly earnings has decreased -41.01% since last year from $45.84M to $27.05M, signaling decreasing performance
Decreasing performance - Healthy revenue growth.
Stellus Capital Investment Corporation's yearly revenue has decreased -1.02% since last year from $104.74M to $103.67M, signaling decreasing performance
Decreasing performance - ROIC.
ROIC 3.27% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.
Increasing performance - 3-year revenue CAGR.
Stellus Capital Investment Corporation's 3-year revenue CAGR of 13.81% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Stellus Capital Investment Corporation had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Stellus Capital Investment Corporation had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Stellus Capital Investment Corporation has insufficient data to evaluate this check.
Undervalued - Earnings yield.
Stellus Capital Investment Corporation has an earnings yield of 9.72%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Stellus Capital Investment Corporation is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model
Overvalued - EV/EBITDA.
Stellus Capital Investment Corporation has an EV/EBITDA ratio of 25.26x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings
Overvalued - PEG ratio value.
Stellus Capital Investment Corporation has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails
Undervalued - P/B ratio.
Stellus Capital Investment Corporation has a price-to-book ratio of 0.67x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Stellus Capital Investment Corporation has a price-to-sales ratio of 3.17x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
6.38%
Return on equity
ROIC: 3.27%
Valuation History
10.2X
Price to Earnings
EV/EBITDA: 25.3X
Cash flow
Profit margin
6.20%
(FY vs FY)
Cash flow Y/Y
-32.26%
(FY vs FY)
Fair Value
Market $8.48
175.47%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.