STELLUS CAPITAL INVESTMENT C (SCM)
US8585681088 - Common Stock
SCM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 219 industry peers in the Capital Markets industry. SCM has only an average score on both its financial health and profitability. SCM has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SCM was profitable.
SCM had a positive operating cash flow in the past year.
In the past 5 years SCM has always been profitable.
In the past 5 years SCM always reported negative operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.08%, SCM is in the better half of the industry, outperforming 70.09% of the companies in the same industry.
SCM's Return On Equity of 13.28% is fine compared to the rest of the industry. SCM outperforms 73.36% of its industry peers.
SCM has a Return On Invested Capital (3.84%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for SCM is below the industry average of 6.63%.
The last Return On Invested Capital (3.84%) for SCM is above the 3 year average (2.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 13.28% | ||
| ROIC | 3.84% |
ROA(3y)2.54%
ROA(5y)2.94%
ROE(3y)7.5%
ROE(5y)7.93%
ROIC(3y)2.85%
ROIC(5y)2.83%
1.3 Margins
SCM has a Profit Margin of 45.39%. This is amongst the best in the industry. SCM outperforms 87.85% of its industry peers.
In the last couple of years the Profit Margin of SCM has declined.
SCM's Operating Margin of 42.71% is fine compared to the rest of the industry. SCM outperforms 72.43% of its industry peers.
In the last couple of years the Operating Margin of SCM has remained more or less at the same level.
The Gross Margin of SCM (45.73%) is worse than 60.75% of its industry peers.
SCM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.71% | ||
| PM (TTM) | 45.39% | ||
| GM | 45.73% |
OM growth 3Y0.81%
OM growth 5Y-0.88%
PM growth 3Y-22.53%
PM growth 5Y-19.55%
GM growth 3Y-1.88%
GM growth 5Y-2.25%
2. Health
2.1 Basic Checks
SCM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SCM has more shares outstanding
SCM has a better debt/assets ratio than last year.
2.2 Solvency
SCM has an Altman-Z score of 0.67. This is a bad value and indicates that SCM is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.67, SCM is doing worse than 60.28% of the companies in the same industry.
The Debt to FCF ratio of SCM is 20.34, which is on the high side as it means it would take SCM, 20.34 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 20.34, SCM is in line with its industry, outperforming 47.20% of the companies in the same industry.
A Debt/Equity ratio of 1.57 is on the high side and indicates that SCM has dependencies on debt financing.
SCM's Debt to Equity ratio of 1.57 is on the low side compared to the rest of the industry. SCM is outperformed by 71.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 20.34 | ||
| Altman-Z | 0.67 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
SCM has a Current Ratio of 2.64. This indicates that SCM is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SCM (2.64) is better than 73.83% of its industry peers.
A Quick Ratio of 2.64 indicates that SCM has no problem at all paying its short term obligations.
SCM's Quick ratio of 2.64 is fine compared to the rest of the industry. SCM outperforms 73.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 2.64 |
3. Growth
3.1 Past
SCM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.29%.
Measured over the past 5 years, SCM shows a small growth in Earnings Per Share. The EPS has been growing by 6.11% on average per year.
Looking at the last year, SCM shows a small growth in Revenue. The Revenue has grown by 5.86% in the last year.
The Revenue has been growing by 14.72% on average over the past years. This is quite good.
EPS 1Y (TTM)-7.29%
EPS 3Y19.12%
EPS 5Y6.11%
EPS Q2Q%-17.02%
Revenue 1Y (TTM)5.86%
Revenue growth 3Y23.16%
Revenue growth 5Y14.72%
Sales Q2Q%-2.46%
3.2 Future
SCM is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -11.07% yearly.
Based on estimates for the next years, SCM will show a small growth in Revenue. The Revenue will grow by 0.48% on average per year.
EPS Next Y-11.43%
EPS Next 2Y-12.39%
EPS Next 3Y-11.07%
EPS Next 5YN/A
Revenue Next Year-0.08%
Revenue Next 2Y-0.59%
Revenue Next 3Y0.48%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.78, the valuation of SCM can be described as very cheap.
SCM's Price/Earnings ratio is rather cheap when compared to the industry. SCM is cheaper than 81.78% of the companies in the same industry.
SCM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
The Price/Forward Earnings ratio is 9.45, which indicates a very decent valuation of SCM.
SCM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SCM is cheaper than 71.50% of the companies in the same industry.
SCM is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.78 | ||
| Fwd PE | 9.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCM indicates a somewhat cheap valuation: SCM is cheaper than 61.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.26 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SCM's earnings are expected to decrease with -11.07% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.27
EPS Next 2Y-12.39%
EPS Next 3Y-11.07%
5. Dividend
5.1 Amount
SCM has a Yearly Dividend Yield of 11.52%, which is a nice return.
SCM's Dividend Yield is a higher than the industry average which is at 9.65.
SCM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.52% |
5.2 History
The dividend of SCM has a limited annual growth rate of 3.68%.
SCM has paid a dividend for at least 10 years, which is a reliable track record.
SCM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.68%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
SCM pays out 81.39% of its income as dividend. This is not a sustainable payout ratio.
SCM's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP81.39%
EPS Next 2Y-12.39%
EPS Next 3Y-11.07%
STELLUS CAPITAL INVESTMENT C
NYSE:SCM (1/3/2025, 8:04:00 PM)
After market: 13.85 0 (0%)13.85
-0.04 (-0.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners14.14%
Inst Owner Change-17.94%
Ins Owners4.33%
Ins Owner Change0%
Market Cap374.78M
Analysts70.91
Price Target14.15 (2.17%)
Short Float %0.58%
Short Ratio0.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.52% |
Dividend Growth(5Y)3.68%
DP81.39%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.99%
Min EPS beat(2)-15.6%
Max EPS beat(2)5.61%
EPS beat(4)2
Avg EPS beat(4)-2.75%
Min EPS beat(4)-15.6%
Max EPS beat(4)6.96%
EPS beat(8)5
Avg EPS beat(8)2.7%
EPS beat(12)7
Avg EPS beat(12)3.07%
EPS beat(16)7
Avg EPS beat(16)-0.1%
Revenue beat(2)0
Avg Revenue beat(2)-3.24%
Min Revenue beat(2)-4.09%
Max Revenue beat(2)-2.38%
Revenue beat(4)1
Avg Revenue beat(4)-2.16%
Min Revenue beat(4)-4.09%
Max Revenue beat(4)1.22%
Revenue beat(8)4
Avg Revenue beat(8)0.31%
Revenue beat(12)6
Avg Revenue beat(12)1.06%
Revenue beat(16)7
Avg Revenue beat(16)0.87%
PT rev (1m)-0.89%
PT rev (3m)-0.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.15%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-6.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.46%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)-2.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.78 | ||
| Fwd PE | 9.45 | ||
| P/S | 3.5 | ||
| P/FCF | 13.26 | ||
| P/OCF | 13.26 | ||
| P/B | 1.02 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.78
EY12.85%
EPS(NY)1.47
Fwd EY10.58%
FCF(TTM)1.04
FCFY7.54%
OCF(TTM)1.04
OCFY7.54%
SpS3.96
BVpS13.54
TBVpS13.54
PEG (NY)N/A
PEG (5Y)1.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 13.28% | ||
| ROCE | 4.86% | ||
| ROIC | 3.84% | ||
| ROICexc | 4% | ||
| ROICexgc | 4% | ||
| OM | 42.71% | ||
| PM (TTM) | 45.39% | ||
| GM | 45.73% | ||
| FCFM | 26.38% |
ROA(3y)2.54%
ROA(5y)2.94%
ROE(3y)7.5%
ROE(5y)7.93%
ROIC(3y)2.85%
ROIC(5y)2.83%
ROICexc(3y)2.98%
ROICexc(5y)2.94%
ROICexgc(3y)2.98%
ROICexgc(5y)2.94%
ROCE(3y)3.61%
ROCE(5y)3.58%
ROICexcg growth 3Y12.59%
ROICexcg growth 5Y1.79%
ROICexc growth 3Y12.59%
ROICexc growth 5Y1.79%
OM growth 3Y0.81%
OM growth 5Y-0.88%
PM growth 3Y-22.53%
PM growth 5Y-19.55%
GM growth 3Y-1.88%
GM growth 5Y-2.25%
F-Score7
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 20.34 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.56 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 58.12% | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 2.64 | ||
| Altman-Z | 0.67 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.29%
EPS 3Y19.12%
EPS 5Y6.11%
EPS Q2Q%-17.02%
EPS Next Y-11.43%
EPS Next 2Y-12.39%
EPS Next 3Y-11.07%
EPS Next 5YN/A
Revenue 1Y (TTM)5.86%
Revenue growth 3Y23.16%
Revenue growth 5Y14.72%
Sales Q2Q%-2.46%
Revenue Next Year-0.08%
Revenue Next 2Y-0.59%
Revenue Next 3Y0.48%
Revenue Next 5YN/A
EBIT growth 1Y11.11%
EBIT growth 3Y24.15%
EBIT growth 5Y13.71%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y142.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y142.43%
OCF growth 3YN/A
OCF growth 5YN/A