Stellus Capital Investment Corp. (SCM) 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

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.

Stellus Capital Investment Corp.

Why is Stellus Capital Investment Corp. ?

Flat results in Jun 25

NET PROFIT(HY) At USD 15.14 MM has Grown at -30.21%
RAW MATERIAL COST(Y) Grown by 7.15% (YoY)

With ROE of 10.11%, it has a very attractive valuation with a 1.02 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 -7.29%, its profits have risen by 45.2% ; the PEG ratio of the company is 0.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.29% 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 Stellus Capital Investment Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Stellus Capital Investment Corp.

-39.1%

-0.29

24.32%

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)

17.38%

EBIT Growth (5y)

11.43%

EBIT to Interest (avg)

2.17

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

3.96%

Dividend Payout Ratio

167.76%

Pledged Shares

Institutional Holding

16.33%

ROCE (avg)

20.53%

ROE (avg)

8.13%

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

0.69

EV to EBIT

0.72

EV to EBITDA

0.72

EV to Capital Employed

0.28

EV to Sales

0.44

PEG Ratio

Dividend Yield

16.08%

ROCE (Latest)

39.42%

ROE (Latest)

7.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

Mildly Bearish

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

4What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 594.23%

RAW MATERIAL COST(Y)

Fallen by -10.32% (YoY

CASH AND EQV(HY)

Highest at USD 368.21 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 13.24 times

-21What is not working for the Company

ROCE(HY)

Lowest at 6.44%

INTEREST COVERAGE RATIO(Q)

Lowest at 123.28

PRE-TAX PROFIT(Q)

Lowest at USD 2.02 MM

NET PROFIT(Q)

Lowest at USD 1.66 MM

EPS(Q)

Lowest at USD 0.06

Here's what is working for Stellus Capital Investment Corp.

Cash and Eqv

Highest at USD 368.21 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 13.24 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 594.23%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -10.32% (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 Stellus Capital Investment Corp.

Pre-Tax Profit

At USD 2.02 MM has Fallen at -72.05%

over average net sales of the previous four periods of USD 7.21 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 1.66 MM has Fallen at -75.7%

over average net sales of the previous four periods of USD 6.81 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest Coverage Ratio

Lowest at 123.28

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

Lowest at USD 2.02 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 1.66 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.06

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)