(SCM) Stellus Capital Investment - Overview
Stock: Middle-Market Debt, Unitranche Financing, Mezzanine Debt, Equity Co-Investment
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 11.85% |
| Yield on Cost 5y | 29.60% |
| Yield CAGR 5y | 10.33% |
| Payout Consistency | 92.6% |
| Payout Ratio | 47.8% |
| Risk 5d forecast | |
|---|---|
| Volatility | 33.4% |
| Relative Tail Risk | 1.42% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.39 |
| Alpha | -19.39 |
| Character TTM | |
|---|---|
| Beta | 0.602 |
| Beta Downside | 0.693 |
| Drawdowns 3y | |
|---|---|
| Max DD | 23.87% |
| CAGR/Max DD | 0.16 |
Description: SCM Stellus Capital Investment December 28, 2025
Stellus Capital Investment Corp. (NYSE: SCM) is a Business Development Company (BDC) that targets private middle-market firms in the United States and Canada, typically with EBITDA ranging from $5 million to $50 million. The firm structures its capital exposure through first-lien, second-lien, unitranche, and mezzanine debt, often pairing these loans with an equity kicker to enhance upside.
From a sector standpoint, BDCs have averaged an 8%-9% dividend yield over the past three years, while the net asset value (NAV) of the BDC universe has risen roughly 4% YoY, driven by strong credit-quality underwriting and a low default rate (~1.5% in 2023). However, the current U.S. interest-rate environment (Fed funds rate ~5.5%) compresses spreads on senior debt, making the mezzanine and unitranche components more critical for maintaining return expectations.
Given Stellus’s focus on EBITDA-mid-size targets, its performance is closely tied to the health of the North-American middle-market manufacturing and business services sectors, which have shown a 2.3% YoY revenue growth in Q3 2024 despite supply-chain headwinds. For a deeper quantitative view, you might explore ValueRay’s platform, which aggregates BDC fundamentals and peer comparisons.
Piotroski VR‑10 (Strict, 0-10) 2.5
| Net Income: 30.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.06 > 0.02 and ΔFCF/TA -9.30 > 1.0 |
| NWC/Revenue: 10.28% < 20% (prev -65.62%; Δ 75.91% < -1%) |
| CFO/TA -0.06 > 3% & CFO -65.2m > Net Income 30.5m |
| Net Debt (623.3m) to EBITDA (32.5m): 19.20 < 3 |
| Current Ratio: 1.73 > 1.5 & < 3 |
| Outstanding Shares: last quarter (28.5m) vs 12m ago 8.18% < -2% |
| Gross Margin: 51.67% > 18% (prev 0.54%; Δ 5113 % > 0.5%) |
| Asset Turnover: 6.99% > 50% (prev 8.75%; Δ -1.76% > 0%) |
| Interest Coverage Ratio: 1.68 > 6 (EBITDA TTM 32.5m / Interest Expense TTM 33.6m) |
Altman Z'' 0.32
| A: 0.01 (Total Current Assets 16.9m - Total Current Liabilities 9.77m) / Total Assets 1.03b |
| B: -0.02 (Retained Earnings -21.7m / Total Assets 1.03b) |
| C: 0.06 (EBIT TTM 56.4m / Avg Total Assets 992.9m) |
| D: -0.03 (Book Value of Equity -21.7m / Total Liabilities 650.9m) |
| Altman-Z'' Score: 0.32 = B |
What is the price of SCM shares?
Over the past week, the price has changed by -7.51%, over one month by -7.78%, over three months by +3.69% and over the past year by -8.40%.
Is SCM a buy, sell or hold?
- StrongBuy: 1
- Buy: 0
- Hold: 5
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the SCM price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 13.1 | 11.1% |
| Analysts Target Price | 13.1 | 11.1% |
| ValueRay Target Price | 14.1 | 19.5% |
SCM Fundamental Data Overview February 03, 2026
P/E Forward = 10.7991
P/S = 3.6079
P/B = 0.9932
Revenue TTM = 69.4m USD
EBIT TTM = 56.4m USD
EBITDA TTM = 32.5m USD
Long Term Debt = 632.3m USD (from longTermDebt, last quarter)
Short Term Debt = 172522.71b USD (from shortTermDebt, last quarter)
Debt = 632.3m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 623.3m USD (from netDebt column, last quarter)
Enterprise Value = 993.2m USD (369.9m + Debt 632.3m - CCE 9.02m)
Interest Coverage Ratio = 1.68 (Ebit TTM 56.4m / Interest Expense TTM 33.6m)
EV/FCF = -15.23x (Enterprise Value 993.2m / FCF TTM -65.2m)
FCF Yield = -6.57% (FCF TTM -65.2m / Enterprise Value 993.2m)
FCF Margin = -93.95% (FCF TTM -65.2m / Revenue TTM 69.4m)
Net Margin = 43.96% (Net Income TTM 30.5m / Revenue TTM 69.4m)
Gross Margin = 51.67% ((Revenue TTM 69.4m - Cost of Revenue TTM 33.6m) / Revenue TTM)
Gross Margin QoQ = 48.66% (prev 56.26%)
Tobins Q-Ratio = 0.97 (Enterprise Value 993.2m / Total Assets 1.03b)
Interest Expense / Debt = 1.42% (Interest Expense 8.95m / Debt 632.3m)
Taxrate = 7.15% (515.7k / 7.21m)
NOPAT = 52.4m (EBIT 56.4m * (1 - 7.15%))
Current Ratio = 1.73 (Total Current Assets 16.9m / Total Current Liabilities 9.77m)
Debt / Equity = 1.67 (Debt 632.3m / totalStockholderEquity, last quarter 377.7m)
Debt / EBITDA = 19.20 (Net Debt 623.3m / EBITDA 32.5m)
Debt / FCF = -9.55 (negative FCF - burning cash) (Net Debt 623.3m / FCF TTM -65.2m)
Total Stockholder Equity = 373.9m (last 4 quarters mean from totalStockholderEquity)
RoA = 3.07% (Net Income 30.5m / Total Assets 1.03b)
RoE = 8.16% (Net Income TTM 30.5m / Total Stockholder Equity 373.9m)
RoCE = 5.61% (EBIT 56.4m / Capital Employed (Equity 373.9m + L.T.Debt 632.3m))
RoIC = 5.26% (NOPAT 52.4m / Invested Capital 995.8m)
WACC = 3.83% (E(369.9m)/V(1.00b) * Re(8.13%) + D(632.3m)/V(1.00b) * Rd(1.42%) * (1-Tc(0.07)))
Discount Rate = 8.13% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 8.65%
Fair Price DCF = unknown (Cash Flow -65.2m)
EPS Correlation: -39.67 | EPS CAGR: -43.25% | SUE: -4.0 | # QB: 0
Revenue Correlation: 47.91 | Revenue CAGR: -0.64% | SUE: -0.52 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.28 | Chg30d=-0.005 | Revisions Net=+0 | Analysts=5
EPS next Year (2026-12-31): EPS=1.14 | Chg30d=-0.015 | Revisions Net=+0 | Growth EPS=-13.3% | Growth Revenue=-0.1%