STELLUS CAPITAL INVESTMENT C (SCM) Stock Fundamental Analysis
NYSE:SCM - US8585681088 - Common Stock
14.7 USD
+0.13 (+0.89%)
We assign a fundamental rating of 3 out of 10 to SCM. SCM was compared to 239 industry peers in the Capital Markets industry. While SCM is still in line with the averages on profitability rating, there are concerns on its financial health. SCM does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year SCM was profitable.
SCM had a negative operating cash flow in the past year.
Each year in the past 5 years SCM has been profitable.
In the past 5 years SCM always reported negative operating cash flow.
1.2 Ratios
SCM has a Return On Assets (3.80%) which is in line with its industry peers.
The Return On Equity of SCM (10.47%) is better than 61.51% of its industry peers.
SCM has a Return On Invested Capital (3.20%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for SCM is below the industry average of 7.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.8% | ||
| ROE | 10.47% | ||
| ROIC | 3.2% |
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
Looking at the Profit Margin, with a value of 38.24%, SCM belongs to the top of the industry, outperforming 81.59% of the companies in the same industry.
In the last couple of years the Profit Margin of SCM has remained more or less at the same level.
SCM has a Operating Margin of 39.94%. This is in the better half of the industry: SCM outperforms 70.71% of its industry peers.
In the last couple of years the Operating Margin of SCM has remained more or less at the same level.
The Gross Margin of SCM (43.01%) 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 | 39.94% | ||
| PM (TTM) | 38.24% | ||
| GM | 43.01% |
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.
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 0.61. This is a bad value and indicates that SCM is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SCM (0.61) is worse than 60.25% of its industry peers.
A Debt/Equity ratio of 1.70 is on the high side and indicates that SCM has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.70, SCM is doing worse than 76.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.61 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
SCM has a Current Ratio of 2.00. This indicates that SCM is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SCM (2.00) is better than 71.13% of its industry peers.
A Quick Ratio of 2.00 indicates that SCM has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.00, SCM is doing good in the industry, outperforming 71.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
The earnings per share for SCM have decreased strongly by -23.12% in the last year.
The Earnings Per Share has been growing slightly by 5.92% on average over the past years.
Looking at the last year, SCM shows a decrease in Revenue. The Revenue has decreased by -4.69% in the last year.
Measured over the past years, SCM shows a quite strong growth in Revenue. The Revenue has been growing by 12.20% on average per year.
EPS 1Y (TTM)-23.12%
EPS 3Y17.54%
EPS 5Y5.92%
EPS Q2Q%-29.17%
Revenue 1Y (TTM)-4.69%
Revenue growth 3Y18.04%
Revenue growth 5Y12.2%
Sales Q2Q%-3.49%
3.2 Future
Based on estimates for the next years, SCM will show a very negative growth in Earnings Per Share. The EPS will decrease by -11.91% on average per year.
Based on estimates for the next years, SCM will show a decrease in Revenue. The Revenue will decrease by -1.78% on average per year.
EPS Next Y-18.41%
EPS Next 2Y-14.47%
EPS Next 3Y-11.91%
EPS Next 5YN/A
Revenue Next Year-2.31%
Revenue Next 2Y-0.55%
Revenue Next 3Y-1.78%
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 10.28 indicates a reasonable valuation of SCM.
SCM's Price/Earnings ratio is a bit cheaper when compared to the industry. SCM is cheaper than 74.90% of the companies in the same industry.
SCM is valuated cheaply when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
SCM is valuated correctly with a Price/Forward Earnings ratio of 12.25.
63.60% of the companies in the same industry are more expensive than SCM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.48, SCM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.28 | ||
| Fwd PE | 12.25 |
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 -11.91% in the coming years.
PEG (NY)N/A
PEG (5Y)1.74
EPS Next 2Y-14.47%
EPS Next 3Y-11.91%
5. Dividend
5.1 Amount
SCM has a Yearly Dividend Yield of 10.97%, which is a nice return.
Compared to an average industry Dividend Yield of 7.91, SCM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, SCM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.97% |
5.2 History
The dividend of SCM has a limited annual growth rate of 0.69%.
SCM has been paying a dividend for at least 10 years, so it has 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 111.10% 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.
DP111.1%
EPS Next 2Y-14.47%
EPS Next 3Y-11.91%
NYSE:SCM (9/4/2025, 3:04:26 PM)
14.7
+0.13 (+0.89%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners12.52%
Inst Owner Change2.48%
Ins Owners3.99%
Ins Owner Change0%
Market Cap417.77M
Analysts72
Price Target13.87 (-5.65%)
Short Float %2.68%
Short Ratio4.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.97% |
Yearly Dividend1.46
Dividend Growth(5Y)0.69%
DP111.1%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.33%
Min EPS beat(2)-8.9%
Max EPS beat(2)-3.76%
EPS beat(4)0
Avg EPS beat(4)-9.97%
Min EPS beat(4)-15.6%
Max EPS beat(4)-3.76%
EPS beat(8)2
Avg EPS beat(8)-4.57%
EPS beat(12)6
Avg EPS beat(12)1.68%
EPS beat(16)7
Avg EPS beat(16)-0.85%
Revenue beat(2)0
Avg Revenue beat(2)-4.87%
Min Revenue beat(2)-7.2%
Max Revenue beat(2)-2.53%
Revenue beat(4)0
Avg Revenue beat(4)-4.05%
Min Revenue beat(4)-7.2%
Max Revenue beat(4)-2.37%
Revenue beat(8)1
Avg Revenue beat(8)-2.7%
Revenue beat(12)5
Avg Revenue beat(12)0.31%
Revenue beat(16)7
Avg Revenue beat(16)0.51%
PT rev (1m)0%
PT rev (3m)1.49%
EPS NQ rev (1m)-2.84%
EPS NQ rev (3m)-11.38%
EPS NY rev (1m)-1.84%
EPS NY rev (3m)-8.45%
Revenue NQ rev (1m)-1.45%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)-1.28%
Revenue NY rev (3m)-4.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.28 | ||
| Fwd PE | 12.25 | ||
| P/S | 4.07 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.11 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.43
EY9.73%
EPS(NY)1.2
Fwd EY8.16%
FCF(TTM)-1.17
FCFYN/A
OCF(TTM)-1.17
OCFYN/A
SpS3.62
BVpS13.21
TBVpS13.21
PEG (NY)N/A
PEG (5Y)1.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.8% | ||
| ROE | 10.47% | ||
| ROCE | 4.05% | ||
| ROIC | 3.2% | ||
| ROICexc | 3.33% | ||
| ROICexgc | 3.33% | ||
| OM | 39.94% | ||
| PM (TTM) | 38.24% | ||
| GM | 43.01% | ||
| 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 | 1.7 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.43 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2 | ||
| Quick Ratio | 2 | ||
| Altman-Z | 0.61 |
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)-23.12%
EPS 3Y17.54%
EPS 5Y5.92%
EPS Q2Q%-29.17%
EPS Next Y-18.41%
EPS Next 2Y-14.47%
EPS Next 3Y-11.91%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.69%
Revenue growth 3Y18.04%
Revenue growth 5Y12.2%
Sales Q2Q%-3.49%
Revenue Next Year-2.31%
Revenue Next 2Y-0.55%
Revenue Next 3Y-1.78%
Revenue Next 5YN/A
EBIT growth 1Y-11.36%
EBIT growth 3Y27.95%
EBIT growth 5Y13.38%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-193.79%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-193.79%
OCF growth 3YN/A
OCF growth 5YN/A