SLR INVESTMENT CORP (SLRC) Stock Fundamental Analysis
NASDAQ:SLRC - Nasdaq - US83413U1007 - Common Stock - Currency: USD
Overall SLRC gets a fundamental rating of 4 out of 10. We evaluated SLRC against 225 industry peers in the Capital Markets industry. While SLRC is still in line with the averages on profitability rating, there are concerns on its financial health. SLRC 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 SLRC was profitable.
In the past year SLRC had a positive cash flow from operations.
In the past 5 years SLRC has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: SLRC reported negative operating cash flow in multiple years.
1.2 Ratios
SLRC has a Return On Assets of 3.96%. This is comparable to the rest of the industry: SLRC outperforms 58.90% of its industry peers.
SLRC has a Return On Equity (9.75%) which is comparable to the rest of the industry.
The Return On Invested Capital of SLRC (3.63%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for SLRC is below the industry average of 6.82%.
The 3 year average ROIC (3.05%) for SLRC is below the current ROIC(3.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.96% | ||
| ROE | 9.75% | ||
| ROIC | 3.63% |
ROA(3y)2.24%
ROA(5y)2.08%
ROE(3y)5.55%
ROE(5y)4.93%
ROIC(3y)3.05%
ROIC(5y)3.21%
1.3 Margins
Looking at the Profit Margin, with a value of 40.89%, SLRC belongs to the top of the industry, outperforming 83.11% of the companies in the same industry.
In the last couple of years the Profit Margin of SLRC has declined.
SLRC has a Operating Margin of 40.75%. This is in the better half of the industry: SLRC outperforms 68.95% of its industry peers.
SLRC's Operating Margin has declined in the last couple of years.
SLRC has a Gross Margin (44.94%) which is comparable to the rest of the industry.
SLRC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.75% | ||
| PM (TTM) | 40.89% | ||
| GM | 44.94% |
OM growth 3Y-6.19%
OM growth 5Y-3.82%
PM growth 3Y37.78%
PM growth 5Y-5.23%
GM growth 3Y-6.82%
GM growth 5Y-3.99%
2. Health
2.1 Basic Checks
Compared to 1 year ago, SLRC has about the same amount of shares outstanding.
Compared to 5 years ago, SLRC has more shares outstanding
The debt/assets ratio for SLRC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.57, we must say that SLRC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.57, SLRC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Debt to FCF ratio of SLRC is 5.94, which is a neutral value as it means it would take SLRC, 5.94 years of fcf income to pay off all of its debts.
SLRC has a Debt to FCF ratio (5.94) which is in line with its industry peers.
A Debt/Equity ratio of 1.11 is on the high side and indicates that SLRC has dependencies on debt financing.
SLRC has a Debt to Equity ratio (1.11) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 5.94 | ||
| Altman-Z | 0.57 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
SLRC has a Current Ratio of 1.07. This is a normal value and indicates that SLRC is financially healthy and should not expect problems in meeting its short term obligations.
SLRC has a Current ratio of 1.07. This is comparable to the rest of the industry: SLRC outperforms 47.95% of its industry peers.
SLRC has a Quick Ratio of 1.07. This is a normal value and indicates that SLRC is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.07, SLRC perfoms like the industry average, outperforming 47.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.23% over the past year.
SLRC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.15% yearly.
The Revenue has been growing slightly by 5.79% in the past year.
SLRC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.36% yearly.
EPS 1Y (TTM)7.23%
EPS 3Y6.27%
EPS 5Y-1.15%
EPS Q2Q%7.14%
Revenue 1Y (TTM)5.79%
Revenue growth 3Y23.51%
Revenue growth 5Y8.36%
Sales Q2Q%0.22%
3.2 Future
SLRC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.65% yearly.
The Revenue is expected to decrease by -1.99% on average over the next years.
EPS Next Y6.98%
EPS Next 2Y0.06%
EPS Next 3Y-0.65%
EPS Next 5YN/A
Revenue Next Year2.32%
Revenue Next 2Y-1.89%
Revenue Next 3Y-1.99%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.92, which indicates a very decent valuation of SLRC.
Based on the Price/Earnings ratio, SLRC is valued a bit cheaper than 71.69% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.62. SLRC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.49, the valuation of SLRC can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SLRC indicates a somewhat cheap valuation: SLRC is cheaper than 66.67% of the companies listed in the same industry.
SLRC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.92 | ||
| Fwd PE | 10.49 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SLRC is valued cheaper than 83.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.19 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SLRC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.42
PEG (5Y)N/A
EPS Next 2Y0.06%
EPS Next 3Y-0.65%
5. Dividend
5.1 Amount
SLRC has a Yearly Dividend Yield of 9.24%, which is a nice return.
Compared to an average industry Dividend Yield of 10.21, SLRC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, SLRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.24% |
5.2 History
The dividend of SLRC has a limited annual growth rate of 1.82%.
SLRC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
92.46% of the earnings are spent on dividend by SLRC. This is not a sustainable payout ratio.
The Dividend Rate of SLRC has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP92.46%
EPS Next 2Y0.06%
EPS Next 3Y-0.65%
17.65
-0.09 (-0.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners37.04%
Inst Owner Change-63.68%
Ins Owners2.76%
Ins Owner Change0%
Market Cap962.81M
Analysts70
Price Target16.66 (-5.61%)
Short Float %0.42%
Short Ratio1.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.24% |
Yearly Dividend1.78
Dividend Growth(5Y)1.82%
DP92.46%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.97%
Min EPS beat(2)2.6%
Max EPS beat(2)3.35%
EPS beat(4)4
Avg EPS beat(4)1.76%
Min EPS beat(4)0.32%
Max EPS beat(4)3.35%
EPS beat(8)5
Avg EPS beat(8)-0.45%
EPS beat(12)6
Avg EPS beat(12)-2.38%
EPS beat(16)6
Avg EPS beat(16)-2.39%
Revenue beat(2)1
Avg Revenue beat(2)0.32%
Min Revenue beat(2)-0.42%
Max Revenue beat(2)1.07%
Revenue beat(4)1
Avg Revenue beat(4)-0.88%
Min Revenue beat(4)-2.65%
Max Revenue beat(4)1.07%
Revenue beat(8)2
Avg Revenue beat(8)-1.1%
Revenue beat(12)2
Avg Revenue beat(12)-2.44%
Revenue beat(16)2
Avg Revenue beat(16)-2.95%
PT rev (1m)0%
PT rev (3m)0.51%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-0.26%
EPS NY rev (1m)0.06%
EPS NY rev (3m)1.46%
Revenue NQ rev (1m)-1.47%
Revenue NQ rev (3m)-1.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.92 | ||
| Fwd PE | 10.49 | ||
| P/S | 4.07 | ||
| P/FCF | 5.19 | ||
| P/OCF | 5.19 | ||
| P/B | 0.97 | ||
| P/tB | 0.97 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.78
EY10.08%
EPS(NY)1.68
Fwd EY9.53%
FCF(TTM)3.4
FCFY19.26%
OCF(TTM)3.4
OCFY19.26%
SpS4.34
BVpS18.2
TBVpS18.2
PEG (NY)1.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.96% | ||
| ROE | 9.75% | ||
| ROCE | 4.6% | ||
| ROIC | 3.63% | ||
| ROICexc | 4.35% | ||
| ROICexgc | 4.35% | ||
| OM | 40.75% | ||
| PM (TTM) | 40.89% | ||
| GM | 44.94% | ||
| FCFM | 78.37% |
ROA(3y)2.24%
ROA(5y)2.08%
ROE(3y)5.55%
ROE(5y)4.93%
ROIC(3y)3.05%
ROIC(5y)3.21%
ROICexc(3y)3.74%
ROICexc(5y)4.15%
ROICexgc(3y)3.74%
ROICexgc(5y)4.15%
ROCE(3y)3.86%
ROCE(5y)4.06%
ROICexcg growth 3Y-1.02%
ROICexcg growth 5Y-4.33%
ROICexc growth 3Y-1.02%
ROICexc growth 5Y-4.33%
OM growth 3Y-6.19%
OM growth 5Y-3.82%
PM growth 3Y37.78%
PM growth 5Y-5.23%
GM growth 3Y-6.82%
GM growth 5Y-3.99%
F-Score7
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 5.94 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.32 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 191.65% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 0.57 |
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)7.23%
EPS 3Y6.27%
EPS 5Y-1.15%
EPS Q2Q%7.14%
EPS Next Y6.98%
EPS Next 2Y0.06%
EPS Next 3Y-0.65%
EPS Next 5YN/A
Revenue 1Y (TTM)5.79%
Revenue growth 3Y23.51%
Revenue growth 5Y8.36%
Sales Q2Q%0.22%
Revenue Next Year2.32%
Revenue Next 2Y-1.89%
Revenue Next 3Y-1.99%
Revenue Next 5YN/A
EBIT growth 1Y6.29%
EBIT growth 3Y15.87%
EBIT growth 5Y4.22%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y150.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y150.62%
OCF growth 3YN/A
OCF growth 5YN/A