STELLUS CAPITAL INVESTMENT C (SCM)
US8585681088 - Common Stock
Overall SCM gets a fundamental rating of 4 out of 10. We evaluated SCM against 210 industry peers in the Capital Markets industry. Both the profitability and financial health of SCM have multiple concerns. SCM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SCM was profitable.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.93%, SCM is doing worse than 60.58% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.48%, SCM is doing worse than 69.71% of the companies in the same industry.
SCM's Return On Invested Capital of 3.84% is in line compared to the rest of the industry. SCM outperforms 44.23% of its industry peers.
SCM had an Average Return On Invested Capital over the past 3 years of 2.85%. This is significantly below the industry average of 10.69%.
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 | 1.93% | ||
| ROE | 5.48% | ||
| 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 16.56%. This is comparable to the rest of the industry: SCM outperforms 46.15% of its industry peers.
SCM's Profit Margin has declined in the last couple of years.
The Operating Margin of SCM (41.15%) is better than 67.31% of its industry peers.
SCM's Operating Margin has been stable in the last couple of years.
SCM's Gross Margin of 45.72% is on the low side compared to the rest of the industry. SCM is outperformed by 62.50% of its industry peers.
In the last couple of years the Gross Margin of SCM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.15% | ||
| PM (TTM) | 16.56% | ||
| GM | 45.72% |
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
Compared to 1 year ago, SCM has more shares outstanding
The number of shares outstanding for SCM has been increased compared to 5 years ago.
Compared to 1 year ago, SCM has an improved debt to assets ratio.
2.2 Solvency
SCM has an Altman-Z score of 0.62. This is a bad value and indicates that SCM is not financially healthy and even has some risk of bankruptcy.
SCM has a Altman-Z score of 0.62. This is in the lower half of the industry: SCM underperforms 63.46% of its industry peers.
SCM has a Debt/Equity ratio of 1.80. This is a high value indicating a heavy dependency on external financing.
SCM has a worse Debt to Equity ratio (1.80) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.62 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
SCM has a Current Ratio of 2.32. This indicates that SCM is financially healthy and has no problem in meeting its short term obligations.
SCM has a better Current ratio (2.32) than 72.60% of its industry peers.
A Quick Ratio of 2.32 indicates that SCM has no problem at all paying its short term obligations.
The Quick ratio of SCM (2.32) is better than 72.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 2.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.29% over the past year.
The Earnings Per Share has been growing slightly by 6.11% on average over the past years.
SCM shows a strong growth in Revenue. In the last year, the Revenue has grown by 40.94%.
Measured over the past years, SCM shows a quite strong growth in Revenue. The Revenue has been growing by 14.72% on average per year.
EPS 1Y (TTM)30.29%
EPS 3Y19.12%
EPS 5Y6.11%
EPS growth Q2Q-2%
Revenue 1Y (TTM)40.94%
Revenue growth 3Y23.16%
Revenue growth 5Y14.72%
Revenue growth Q2Q19.91%
3.2 Future
SCM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.97% yearly.
The Revenue is expected to grow by 1.16% on average over the next years.
EPS Next Y-8.08%
EPS Next 2Y-5.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.6%
Revenue Next 2Y1.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 7.40 indicates a rather cheap valuation of SCM.
82.21% of the companies in the same industry are more expensive than SCM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.06, SCM is valued rather cheaply.
The Price/Forward Earnings ratio is 8.05, which indicates a very decent valuation of SCM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SCM indicates a somewhat cheap valuation: SCM is cheaper than 79.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.72, SCM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.4 | ||
| Fwd PE | 8.05 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SCM's earnings are expected to decrease with -5.97% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.21
EPS Next 2Y-5.97%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.44%, SCM is a good candidate for dividend investing.
SCM's Dividend Yield is rather good when compared to the industry average which is at 7.30. SCM pays more dividend than 81.25% of the companies in the same industry.
SCM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.44% |
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.
The dividend of SCM decreased in the last 3 years.
Dividend Growth(5Y)3.68%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
SCM pays out 202.63% 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.
DP202.63%
EPS Next 2Y-5.97%
EPS Next 3YN/A
STELLUS CAPITAL INVESTMENT C
NYSE:SCM (5/2/2024, 7:18:27 PM)
14.14
-0.06 (-0.42%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap341.20M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.44% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.4 | ||
| Fwd PE | 8.05 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 5.48% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 41.15% | ||
| PM (TTM) | 16.56% | ||
| GM | 45.72% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.32 | ||
| Quick Ratio | 2.32 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)30.29%
EPS 3Y19.12%
EPS 5Y
EPS growth Q2Q
EPS Next Y-8.08%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)40.94%
Revenue growth 3Y23.16%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y