Saratoga Investment Corp. (SAR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Vinci Partners Investments Ltd.

PennantPark Investment Corp.

Saratoga Investment Corp.

Diamond Hill Investment Group, Inc.

P10, Inc.

TriplePoint Venture Growth BDC Corp.

Fidus Investment Corp.

GCM Grosvenor, Inc.

Gladstone Capital Corp.

AlTi Global, Inc.

Gladstone Investment Corp.

Why is Saratoga Investment Corp. ?

Strong Long Term Fundamental Strength with a 4.10% CAGR growth in Net Sales

Positive results in May 25

DEBT-EQUITY RATIO (HY) Lowest at 140.35 %
INTEREST COVERAGE RATIO(Q) Highest at 212.77
RAW MATERIAL COST(Y) Fallen by -73.2% (YoY)

With ROE of 7.36%, it has a very attractive valuation with a 0.89 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -11.55%, its profits have risen by 219.6% ; the PEG ratio of the company is 0.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.55% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Saratoga Investment Corp. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Saratoga Investment Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Saratoga Investment Corp.

-5.6%

-0.33

23.35%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.10%

EBIT Growth (5y)

16.71%

EBIT to Interest (avg)

2.44

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

3.23%

Dividend Payout Ratio

146.62%

Pledged Shares

Institutional Holding

21.46%

ROCE (avg)

29.33%

ROE (avg)

9.44%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.89

EV to EBIT

1.76

EV to EBITDA

1.77

EV to Capital Employed

0.77

EV to Sales

1.36

PEG Ratio

0.06

Dividend Yield

14.47%

ROCE (Latest)

43.85%

ROE (Latest)

7.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

21What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 140.35 %

INTEREST COVERAGE RATIO(Q)

Highest at 212.77

RAW MATERIAL COST(Y)

Fallen by -73.2% (YoY

CASH AND EQV(HY)

Highest at USD 429.01 MM

NET SALES(Q)

At USD 35.22 MM has Grown at 31.88%

PRE-TAX PROFIT(Q)

Highest at USD 14.04 MM

NET PROFIT(Q)

Highest at USD 13.93 MM

-1What is not working for the Company

DIVIDEND PER SHARE(HY)

Lowest at USD 12.75

Here's what is working for Saratoga Investment Corp.

Interest Coverage Ratio

Highest at 212.77

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At USD 14.04 MM has Grown at 85.01%

over average net sales of the previous four periods of USD 7.59 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 13.93 MM has Grown at 92.92%

over average net sales of the previous four periods of USD 7.22 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Debt-Equity Ratio

Lowest at 140.35 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales

At USD 35.22 MM has Grown at 31.88%

over average net sales of the previous four periods of USD 26.71 MM

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Pre-Tax Profit

Highest at USD 14.04 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 13.93 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Cash and Eqv

Highest at USD 429.01 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -73.2% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Saratoga Investment Corp.

Dividend per share

Lowest at USD 12.75

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)