STELLUS CAPITAL INVESTMENT C (SCM) Stock Fundamental Analysis
NYSE:SCM - New York Stock Exchange, Inc. - US8585681088 - Common Stock - Currency: USD
SCM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 232 industry peers in the Capital Markets industry. There are concerns on the financial health of SCM while its profitability can be described as average. SCM 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 SCM was profitable.
In the past year SCM has reported a negative cash flow from operations.
In the past 5 years SCM has always been profitable.
In the past 5 years SCM always reported negative operating cash flow.
1.2 Ratios
SCM has a better Return On Assets (3.73%) than 61.21% of its industry peers.
The Return On Equity of SCM (10.11%) is comparable to the rest of the industry.
SCM has a Return On Invested Capital (3.44%) which is in line with its industry peers.
SCM had an Average Return On Invested Capital over the past 3 years of 3.36%. This is below the industry average of 7.85%.
The last Return On Invested Capital (3.44%) for SCM is above the 3 year average (3.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.73% | ||
| ROE | 10.11% | ||
| ROIC | 3.44% |
ROA(3y)2.74%
ROA(5y)3.06%
ROE(3y)7.71%
ROE(5y)8.46%
ROIC(3y)3.36%
ROIC(5y)2.97%
1.3 Margins
SCM has a better Profit Margin (36.35%) than 80.60% of its industry peers.
SCM's Profit Margin has been stable in the last couple of years.
SCM has a better Operating Margin (41.87%) than 73.28% of its industry peers.
SCM's Operating Margin has been stable in the last couple of years.
The Gross Margin of SCM (44.11%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SCM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.87% | ||
| PM (TTM) | 36.35% | ||
| GM | 44.11% |
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%
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.
2.2 Solvency
Based on the Altman-Z score of 0.59, we must say that SCM is in the distress zone and has some risk of bankruptcy.
SCM has a Altman-Z score of 0.59. This is in the lower half of the industry: SCM underperforms 62.50% of its industry peers.
SCM has a Debt/Equity ratio of 1.67. This is a high value indicating a heavy dependency on external financing.
SCM's Debt to Equity ratio of 1.67 is on the low side compared to the rest of the industry. SCM is outperformed by 76.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.59 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
SCM has a Current Ratio of 0.83. This is a bad value and indicates that SCM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of SCM (0.83) is worse than 65.95% of its industry peers.
SCM has a Quick Ratio of 0.83. This is a bad value and indicates that SCM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.83, SCM is not doing good in the industry: 65.52% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The earnings per share for SCM have decreased strongly by -16.04% in the last year.
Measured over the past 5 years, SCM shows a small growth in Earnings Per Share. The EPS has been growing by 5.92% on average per year.
Looking at the last year, SCM shows a decrease in Revenue. The Revenue has decreased by -3.79% in the last year.
The Revenue has been growing by 12.20% on average over the past years. This is quite good.
EPS 1Y (TTM)-16.04%
EPS 3Y17.54%
EPS 5Y5.92%
EPS Q2Q%-16.67%
Revenue 1Y (TTM)-3.79%
Revenue growth 3Y18.04%
Revenue growth 5Y12.2%
Sales Q2Q%-4.02%
3.2 Future
SCM is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -13.17% yearly.
Based on estimates for the next years, SCM will show a small growth in Revenue. The Revenue will grow by 0.93% on average per year.
EPS Next Y-16.88%
EPS Next 2Y-13.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.04%
Revenue Next 2Y0.93%
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
With a Price/Earnings ratio of 8.87, the valuation of SCM can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SCM indicates a somewhat cheap valuation: SCM is cheaper than 78.02% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SCM to the average of the S&P500 Index (26.86), we can say SCM is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.27, the valuation of SCM can be described as very reasonable.
63.36% of the companies in the same industry are more expensive than SCM, based on the Price/Forward Earnings ratio.
SCM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 11.27 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as SCM's earnings are expected to decrease with -13.17% in the coming years.
PEG (NY)N/A
PEG (5Y)1.5
EPS Next 2Y-13.17%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.63%, SCM is a good candidate for dividend investing.
SCM's Dividend Yield is a higher than the industry average which is at 8.07.
Compared to an average S&P500 Dividend Yield of 2.43, SCM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.63% |
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 Years0
Div Non Decr Years3
5.3 Sustainability
SCM pays out 111.78% 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.
DP111.78%
EPS Next 2Y-13.17%
EPS Next 3YN/A
13.93
+0.19 (+1.38%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners12.6%
Inst Owner Change17.73%
Ins Owners3.99%
Ins Owner Change0%
Market Cap395.89M
Analysts70.91
Price Target13.87 (-0.43%)
Short Float %1.22%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.63% |
Yearly Dividend1.46
Dividend Growth(5Y)0.69%
DP111.78%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.25%
Min EPS beat(2)-11.6%
Max EPS beat(2)-8.9%
EPS beat(4)1
Avg EPS beat(4)-7.62%
Min EPS beat(4)-15.6%
Max EPS beat(4)5.61%
EPS beat(8)3
Avg EPS beat(8)-3.77%
EPS beat(12)7
Avg EPS beat(12)2.78%
EPS beat(16)7
Avg EPS beat(16)-0.72%
Revenue beat(2)0
Avg Revenue beat(2)-4.79%
Min Revenue beat(2)-7.2%
Max Revenue beat(2)-2.37%
Revenue beat(4)0
Avg Revenue beat(4)-4.01%
Min Revenue beat(4)-7.2%
Max Revenue beat(4)-2.37%
Revenue beat(8)2
Avg Revenue beat(8)-1.99%
Revenue beat(12)5
Avg Revenue beat(12)0.27%
Revenue beat(16)7
Avg Revenue beat(16)0.64%
PT rev (1m)1.49%
PT rev (3m)-1.45%
EPS NQ rev (1m)-2.81%
EPS NQ rev (3m)-9.1%
EPS NY rev (1m)-6.73%
EPS NY rev (3m)-7.11%
Revenue NQ rev (1m)-3.33%
Revenue NQ rev (3m)-1.57%
Revenue NY rev (1m)-3.34%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 11.27 | ||
| P/S | 3.82 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.06 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.57
EY11.27%
EPS(NY)1.24
Fwd EY8.88%
FCF(TTM)-2.46
FCFYN/A
OCF(TTM)-2.46
OCFYN/A
SpS3.65
BVpS13.12
TBVpS13.12
PEG (NY)N/A
PEG (5Y)1.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.73% | ||
| ROE | 10.11% | ||
| ROCE | 4.35% | ||
| ROIC | 3.44% | ||
| ROICexc | 3.48% | ||
| ROICexgc | 3.48% | ||
| OM | 41.87% | ||
| PM (TTM) | 36.35% | ||
| GM | 44.11% | ||
| 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 Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.47 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 0.59 |
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)-16.04%
EPS 3Y17.54%
EPS 5Y5.92%
EPS Q2Q%-16.67%
EPS Next Y-16.88%
EPS Next 2Y-13.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.79%
Revenue growth 3Y18.04%
Revenue growth 5Y12.2%
Sales Q2Q%-4.02%
Revenue Next Year-1.04%
Revenue Next 2Y0.93%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-2.92%
EBIT growth 3Y27.95%
EBIT growth 5Y13.38%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-175.6%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-175.6%
OCF growth 3YN/A
OCF growth 5YN/A