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STELLUS CAPITAL INVESTMENT C (SCM) Stock Fundamental Analysis

NYSE:SCM - New York Stock Exchange, Inc. - US8585681088 - Common Stock - Currency: USD

13.27  +0.1 (+0.76%)

After market: 13.72 +0.45 (+3.39%)

Fundamental Rating

4

Overall SCM gets a fundamental rating of 4 out of 10. We evaluated SCM against 230 industry peers in the Capital Markets industry. SCM has a medium profitability rating, but doesn't score so well on its financial health evaluation. SCM has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

SCM had positive earnings in the past year.
In the past year SCM has reported a negative cash flow from operations.
SCM had positive earnings in each of the past 5 years.
SCM had a negative operating cash flow in each of the past 5 years.
SCM Yearly Net Income VS EBIT VS OCF VS FCFSCM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -50M -100M

1.2 Ratios

SCM's Return On Assets of 4.67% is fine compared to the rest of the industry. SCM outperforms 64.78% of its industry peers.
The Return On Equity of SCM (12.39%) is better than 66.52% of its industry peers.
SCM has a Return On Invested Capital (3.59%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for SCM is below the industry average of 7.08%.
The last Return On Invested Capital (3.59%) for SCM is above the 3 year average (3.36%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.67%
ROE 12.39%
ROIC 3.59%
ROA(3y)2.74%
ROA(5y)3.06%
ROE(3y)7.71%
ROE(5y)8.46%
ROIC(3y)3.36%
ROIC(5y)2.97%
SCM Yearly ROA, ROE, ROICSCM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

The Profit Margin of SCM (43.77%) is better than 83.04% of its industry peers.
SCM's Profit Margin has been stable in the last couple of years.
SCM has a Operating Margin of 41.76%. This is in the better half of the industry: SCM outperforms 73.91% of its industry peers.
SCM's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 44.98%, SCM perfoms like the industry average, outperforming 45.65% of the companies in the same industry.
In the last couple of years the Gross Margin of SCM has remained more or less at the same level.
Industry RankSector Rank
OM 41.76%
PM (TTM) 43.77%
GM 44.98%
OM growth 3Y8.4%
OM growth 5Y1.06%
PM growth 3Y-6.01%
PM growth 5Y-0.5%
GM growth 3Y3.4%
GM growth 5Y-0.96%
SCM Yearly Profit, Operating, Gross MarginsSCM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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2

2. Health

2.1 Basic Checks

SCM has more shares outstanding than it did 1 year ago.
SCM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SCM has an improved debt to assets ratio.
SCM Yearly Shares OutstandingSCM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M 25M
SCM Yearly Total Debt VS Total AssetsSCM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.2 Solvency

Based on the Altman-Z score of 0.62, we must say that SCM is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.62, SCM is not doing good in the industry: 60.43% of the companies in the same industry are doing better.
SCM has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
SCM has a worse Debt to Equity ratio (1.60) than 73.91% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.6
Debt/FCF N/A
Altman-Z 0.62
ROIC/WACCN/A
WACCN/A
SCM Yearly LT Debt VS Equity VS FCFSCM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M

2.3 Liquidity

A Current Ratio of 1.21 indicates that SCM should not have too much problems paying its short term obligations.
The Current ratio of SCM (1.21) is comparable to the rest of the industry.
A Quick Ratio of 1.21 indicates that SCM should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.21, SCM perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.21
Quick Ratio 1.21
SCM Yearly Current Assets VS Current LiabilitesSCM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M

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3

3. Growth

3.1 Past

SCM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.14%.
The Earnings Per Share has been growing slightly by 5.92% on average over the past years.
SCM shows a decrease in Revenue. In the last year, the revenue decreased by -1.06%.
Measured over the past years, SCM shows a quite strong growth in Revenue. The Revenue has been growing by 12.20% on average per year.
EPS 1Y (TTM)-14.14%
EPS 3Y17.54%
EPS 5Y5.92%
EPS Q2Q%-28.57%
Revenue 1Y (TTM)-1.06%
Revenue growth 3Y18.04%
Revenue growth 5Y12.2%
Sales Q2Q%-8.59%

3.2 Future

SCM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.86% yearly.
SCM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.97% yearly.
EPS Next Y-6.83%
EPS Next 2Y-6.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.93%
Revenue Next 2Y3.97%
Revenue Next 3YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
SCM Yearly Revenue VS EstimatesSCM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20M 40M 60M 80M 100M
SCM Yearly EPS VS EstimatesSCM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

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4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 8.09, the valuation of SCM can be described as very reasonable.
79.57% of the companies in the same industry are more expensive than SCM, based on the Price/Earnings ratio.
SCM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.78.
SCM is valuated reasonably with a Price/Forward Earnings ratio of 8.68.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SCM indicates a somewhat cheap valuation: SCM is cheaper than 75.22% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, SCM is valued rather cheaply.
Industry RankSector Rank
PE 8.09
Fwd PE 8.68
SCM Price Earnings VS Forward Price EarningsSCM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
SCM Per share dataSCM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

4.3 Compensation for Growth

A cheap valuation may be justified as SCM's earnings are expected to decrease with -6.86% in the coming years.
PEG (NY)N/A
PEG (5Y)1.37
EPS Next 2Y-6.86%
EPS Next 3YN/A

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 12.15%, SCM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.30, SCM pays a bit more dividend than its industry peers.
SCM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.46.
Industry RankSector Rank
Dividend Yield 12.15%

5.2 History

The dividend of SCM has a limited annual growth rate of 0.69%.
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)0.69%
Div Incr Years2
Div Non Decr Years3
SCM Yearly Dividends per shareSCM Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

81.93% of the earnings are spent on dividend by SCM. 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.
DP81.93%
EPS Next 2Y-6.86%
EPS Next 3YN/A
SCM Yearly Income VS Free CF VS DividendSCM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -50M -100M
SCM Dividend Payout.SCM Dividend Payout, showing the Payout Ratio.SCM Dividend Payout.PayoutRetained Earnings

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STELLUS CAPITAL INVESTMENT C

NYSE:SCM (4/25/2025, 8:04:00 PM)

After market: 13.72 +0.45 (+3.39%)

13.27

+0.1 (+0.76%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)03-04 2025-03-04/amc
Earnings (Next)05-07 2025-05-07/amc
Inst Owners11.03%
Inst Owner Change0.92%
Ins Owners4.16%
Ins Owner Change0%
Market Cap377.13M
Analysts70.91
Price Target13.67 (3.01%)
Short Float %0.78%
Short Ratio0.91
Dividend
Industry RankSector Rank
Dividend Yield 12.15%
Yearly Dividend1.46
Dividend Growth(5Y)0.69%
DP81.93%
Div Incr Years2
Div Non Decr Years3
Ex-Date06-30 2025-06-30 (0.1333)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.6%
Min EPS beat(2)-15.6%
Max EPS beat(2)-11.6%
EPS beat(4)1
Avg EPS beat(4)-7.39%
Min EPS beat(4)-15.6%
Max EPS beat(4)5.61%
EPS beat(8)4
Avg EPS beat(8)-2.32%
EPS beat(12)7
Avg EPS beat(12)2.89%
EPS beat(16)7
Avg EPS beat(16)-0.62%
Revenue beat(2)0
Avg Revenue beat(2)-3.23%
Min Revenue beat(2)-4.09%
Max Revenue beat(2)-2.37%
Revenue beat(4)0
Avg Revenue beat(4)-3.06%
Min Revenue beat(4)-4.09%
Max Revenue beat(4)-2.37%
Revenue beat(8)3
Avg Revenue beat(8)-0.97%
Revenue beat(12)5
Avg Revenue beat(12)0.37%
Revenue beat(16)7
Avg Revenue beat(16)0.9%
PT rev (1m)-2.9%
PT rev (3m)-3.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.11%
EPS NY rev (1m)0%
EPS NY rev (3m)4.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.05%
Revenue NY rev (1m)3.08%
Revenue NY rev (3m)3.08%
Valuation
Industry RankSector Rank
PE 8.09
Fwd PE 8.68
P/S 3.6
P/FCF N/A
P/OCF N/A
P/B 1.02
P/tB 1.02
EV/EBITDA N/A
EPS(TTM)1.64
EY12.36%
EPS(NY)1.53
Fwd EY11.51%
FCF(TTM)-1.01
FCFYN/A
OCF(TTM)-1.01
OCFYN/A
SpS3.69
BVpS13.02
TBVpS13.02
PEG (NY)N/A
PEG (5Y)1.37
Profitability
Industry RankSector Rank
ROA 4.67%
ROE 12.39%
ROCE 4.54%
ROIC 3.59%
ROICexc 3.66%
ROICexgc 3.66%
OM 41.76%
PM (TTM) 43.77%
GM 44.98%
FCFM N/A
ROA(3y)2.74%
ROA(5y)3.06%
ROE(3y)7.71%
ROE(5y)8.46%
ROIC(3y)3.36%
ROIC(5y)2.97%
ROICexc(3y)3.48%
ROICexc(5y)3.08%
ROICexgc(3y)3.48%
ROICexgc(5y)3.08%
ROCE(3y)4.26%
ROCE(5y)3.76%
ROICexcg growth 3Y19.04%
ROICexcg growth 5Y4.29%
ROICexc growth 3Y19.04%
ROICexc growth 5Y4.29%
OM growth 3Y8.4%
OM growth 5Y1.06%
PM growth 3Y-6.01%
PM growth 5Y-0.5%
GM growth 3Y3.4%
GM growth 5Y-0.96%
F-Score3
Asset Turnover0.11
Health
Industry RankSector Rank
Debt/Equity 1.6
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 1.51
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.21
Quick Ratio 1.21
Altman-Z 0.62
F-Score3
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)-14.14%
EPS 3Y17.54%
EPS 5Y5.92%
EPS Q2Q%-28.57%
EPS Next Y-6.83%
EPS Next 2Y-6.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.06%
Revenue growth 3Y18.04%
Revenue growth 5Y12.2%
Sales Q2Q%-8.59%
Revenue Next Year1.93%
Revenue Next 2Y3.97%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y0.41%
EBIT growth 3Y27.95%
EBIT growth 5Y13.38%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-65.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-65.93%
OCF growth 3YN/A
OCF growth 5YN/A