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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

P10, Inc.

Vinci Partners Investments Ltd.

Gladstone Investment Corp.

Diamond Hill Investment Group, Inc.

GCM Grosvenor, Inc.

AlTi Global, Inc.

PennantPark Investment Corp.

Fidus Investment Corp.

Saratoga Investment Corp.

Gladstone Capital Corp.

TriplePoint Venture Growth BDC 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 -4.37%, 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 -4.37% 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Saratoga Investment Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Saratoga Investment Corp.

-9.63%

-0.24

23.35%

S&P 500

22.24%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.26%

EBIT Growth (5y)

11.10%

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

17.39%

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

0.82

EV to EBIT

1.89

EV to EBITDA

1.89

EV to Capital Employed

0.69

EV to Sales

1.22

PEG Ratio

Dividend Yield

12.78%

ROCE (Latest)

36.68%

ROE (Latest)

9.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

5What is working for the Company

ROCE(HY)

Highest at 9.28%

DIVIDEND PER SHARE(HY)

Highest at USD 17.12

DEBTORS TURNOVER RATIO(HY)

Highest at 17.12 times

-15What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 85.81

RAW MATERIAL COST(Y)

Grown by 7.96% (YoY

NET SALES(Q)

At USD 30.84 MM has Fallen at -11.29%

PRE-TAX PROFIT(Q)

Lowest at USD -1.78 MM

NET PROFIT(Q)

Lowest at USD -1.91 MM

EPS(Q)

Lowest at USD -0.16

Here's what is working for Saratoga Investment Corp.

Dividend per share

Highest at USD 17.12 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Debtors Turnover Ratio

Highest at 17.12 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Pre-Tax Profit

At USD -1.78 MM has Fallen at -117.97%

over average net sales of the previous four periods of USD 9.93 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -1.91 MM has Fallen at -119.38%

over average net sales of the previous four periods of USD 9.87 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest Coverage Ratio

Lowest at 85.81

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At USD 30.84 MM has Fallen at -11.29%

over average net sales of the previous four periods of USD 34.77 MM

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Pre-Tax Profit

Lowest at USD -1.78 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -1.91 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD -0.16

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 7.96% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales