(SCM) Stellus Capital Investment - Ratings and Ratios

Stellus Capital Investment Corporation (NYSE: SCM) is a business development company (BDC) that specializes in providing financing solutions to private middle-market companies in the United States and Canada. The firm primarily invests through first lien, second lien, unitranche, and mezzanine debt financing, often complementing these investments with equity stakes to align interests with portfolio companies. Stellus targets businesses with EBITDA between $5 million and $50 million, focusing on industries with stable cash flows and growth potential. The company emphasizes a disciplined investment approach, leveraging its expertise in credit analysis and structuring to mitigate risk while seeking attractive returns. Stellus Capital Investment Corporation is externally managed by Stellus Capital Management, LLC, a team with extensive experience in middle-market lending. For more information, visit their website at https://www.stelluscapital.com/public-investors/in.

Based on the provided data, here is a 3-month forecast for Stellus Capital Investment Corporation (NYSE: SCM): - Technical Outlook: SCM is currently trading at $15.37, above its SMA 20 ($15.01) and SMA 50 ($14.27), indicating short-term bullish momentum. However, the SMA 200 ($13.45) remains below current levels, suggesting long-term support. The ATR of 0.20 indicates moderate volatility, with potential price fluctuations of ±$0.60 over the next 3 months. - Fundamental Outlook: With a P/E of 7.70 and forward P/E of 11.42, SCM appears undervalued relative to its earnings expectations. The P/B ratio of 1.14 suggests the stock is fairly valued relative to book value. The RoE of 13.28% indicates strong profitability. Given these metrics, SCM is likely to maintain its dividend yield while potentially seeing modest capital appreciation. - Expected Price Range: $14.77 to $15.97.