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 it does not seem to be growing.
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.
SCM had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
SCM's Return On Assets of 3.73% is in line compared to the rest of the industry. SCM outperforms 59.91% of its industry peers.
SCM has a Return On Equity (10.11%) which is in line with its industry peers.
SCM's Return On Invested Capital of 3.44% is in line compared to the rest of the industry. SCM outperforms 41.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SCM is below the industry average of 7.89%.
The 3 year average ROIC (3.36%) for SCM is below the current ROIC(3.44%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 36.35%, SCM is doing good in the industry, outperforming 79.31% of the companies in the same industry.
SCM's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 41.87%, SCM is in the better half of the industry, outperforming 74.14% of the companies in the same industry.
SCM's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 44.11%, SCM perfoms like the industry average, outperforming 42.24% of the companies in the same industry.
SCM's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 5 years ago, SCM has more shares outstanding
Compared to 1 year ago, SCM has an improved debt to assets ratio.
2.2 Solvency
SCM has an Altman-Z score of 0.57. 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 (0.57) is worse than 62.93% 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 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.57 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.83 indicates that SCM may have some problems paying its short term obligations.
SCM has a Current ratio of 0.83. This is in the lower half of the industry: SCM underperforms 64.66% of its industry peers.
A Quick Ratio of 0.83 indicates that SCM may have some problems paying its short term obligations.
SCM has a Quick ratio of 0.83. This is in the lower half of the industry: SCM underperforms 64.22% of its industry peers.
| 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.
SCM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.92% yearly.
Looking at the last year, SCM shows a decrease in Revenue. The Revenue has decreased by -3.79% in the last year.
SCM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.20% yearly.
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 -10.45% yearly.
Based on estimates for the next years, SCM will show a small growth in Revenue. The Revenue will grow by 3.97% on average per year.
EPS Next Y-10.89%
EPS Next 2Y-10.45%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.38%
Revenue Next 2Y3.97%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.45, the valuation of SCM can be described as reasonable.
SCM's Price/Earnings ratio is rather cheap when compared to the industry. SCM is cheaper than 80.60% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.25, SCM is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.09, the valuation of SCM can be described as very reasonable.
68.97% 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 22.15, SCM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.45 | ||
| Fwd PE | 10.09 |
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 -10.45% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.43
EPS Next 2Y-10.45%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.95%, SCM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.15, SCM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, SCM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.95% |
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
111.78% of the earnings are spent on dividend by SCM. 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-10.45%
EPS Next 3YN/A
13.27
-0.12 (-0.9%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners11.03%
Inst Owner Change17.73%
Ins Owners4.16%
Ins Owner Change0%
Market Cap377.13M
Analysts70.91
Price Target13.67 (3.01%)
Short Float %1.01%
Short Ratio1.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.95% |
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)0%
PT rev (3m)-2.9%
EPS NQ rev (1m)-6.47%
EPS NQ rev (3m)3.65%
EPS NY rev (1m)-4.35%
EPS NY rev (3m)-0.4%
Revenue NQ rev (1m)2.18%
Revenue NQ rev (3m)5.36%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)3.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.45 | ||
| Fwd PE | 10.09 | ||
| P/S | 3.64 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.01 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.57
EY11.83%
EPS(NY)1.32
Fwd EY9.91%
FCF(TTM)-2.46
FCFYN/A
OCF(TTM)-2.46
OCFYN/A
SpS3.65
BVpS13.12
TBVpS13.12
PEG (NY)N/A
PEG (5Y)1.43
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 | 0.57 |
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-10.89%
EPS Next 2Y-10.45%
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 Year2.38%
Revenue Next 2Y3.97%
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