SLR INVESTMENT CORP (SLRC) Stock Fundamental Analysis
NASDAQ:SLRC - Nasdaq - US83413U1007 - Common Stock - Currency: USD
Overall SLRC gets a fundamental rating of 4 out of 10. We evaluated SLRC against 231 industry peers in the Capital Markets industry. Both the profitability and the financial health of SLRC get a neutral evaluation. Nothing too spectacular is happening here. SLRC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SLRC was profitable.
In the past year SLRC had a positive cash flow from operations.
Each year in the past 5 years SLRC has been profitable.
The reported operating cash flow has been mixed in the past 5 years: SLRC reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.91%, SLRC is in line with its industry, outperforming 58.87% of the companies in the same industry.
SLRC has a Return On Equity of 9.64%. This is comparable to the rest of the industry: SLRC outperforms 52.81% of its industry peers.
With a Return On Invested Capital value of 3.75%, SLRC perfoms like the industry average, outperforming 46.75% of the companies in the same industry.
SLRC had an Average Return On Invested Capital over the past 3 years of 3.33%. This is below the industry average of 7.13%.
The 3 year average ROIC (3.33%) for SLRC is below the current ROIC(3.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 9.64% | ||
| ROIC | 3.75% |
ROA(3y)2.55%
ROA(5y)2.28%
ROE(3y)6.41%
ROE(5y)5.62%
ROIC(3y)3.33%
ROIC(5y)3.19%
1.3 Margins
The Profit Margin of SLRC (41.20%) is better than 81.82% of its industry peers.
In the last couple of years the Profit Margin of SLRC has grown nicely.
The Operating Margin of SLRC (41.44%) is better than 72.73% of its industry peers.
SLRC's Operating Margin has declined in the last couple of years.
SLRC has a Gross Margin (45.47%) which is comparable to the rest of the industry.
SLRC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.44% | ||
| PM (TTM) | 41.2% | ||
| GM | 45.47% |
OM growth 3Y-1.77%
OM growth 5Y-2.43%
PM growth 3Y-1.22%
PM growth 5Y2.62%
GM growth 3Y-3.67%
GM growth 5Y-2.76%
2. Health
2.1 Basic Checks
The number of shares outstanding for SLRC remains at a similar level compared to 1 year ago.
Compared to 5 years ago, SLRC has more shares outstanding
The debt/assets ratio for SLRC has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.51, we must say that SLRC is in the distress zone and has some risk of bankruptcy.
SLRC has a Altman-Z score of 0.51. This is in the lower half of the industry: SLRC underperforms 64.07% of its industry peers.
SLRC has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as SLRC would need 3.34 years to pay back of all of its debts.
The Debt to FCF ratio of SLRC (3.34) is better than 73.59% of its industry peers.
A Debt/Equity ratio of 1.04 is on the high side and indicates that SLRC has dependencies on debt financing.
With a Debt to Equity ratio value of 1.04, SLRC perfoms like the industry average, outperforming 53.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 0.51 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.05 indicates that SLRC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.05, SLRC perfoms like the industry average, outperforming 47.19% of the companies in the same industry.
SLRC has a Quick Ratio of 1.05. This is a normal value and indicates that SLRC is financially healthy and should not expect problems in meeting its short term obligations.
SLRC's Quick ratio of 1.05 is in line compared to the rest of the industry. SLRC outperforms 50.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
SLRC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.34%.
The Earnings Per Share has been growing slightly by 0.57% on average over the past years.
The Revenue has been growing slightly by 1.36% in the past year.
The Revenue has been growing by 8.48% on average over the past years. This is quite good.
EPS 1Y (TTM)2.34%
EPS 3Y7.07%
EPS 5Y0.57%
EPS Q2Q%-6.82%
Revenue 1Y (TTM)1.36%
Revenue growth 3Y18.59%
Revenue growth 5Y8.48%
Sales Q2Q%-8.47%
3.2 Future
SLRC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.46% yearly.
Based on estimates for the next years, SLRC will show a decrease in Revenue. The Revenue will decrease by -3.97% on average per year.
EPS Next Y-5.26%
EPS Next 2Y-2.95%
EPS Next 3Y-3.46%
EPS Next 5YN/A
Revenue Next Year-8.49%
Revenue Next 2Y-4.37%
Revenue Next 3Y-3.97%
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
Based on the Price/Earnings ratio of 8.93, the valuation of SLRC can be described as reasonable.
SLRC's Price/Earnings ratio is a bit cheaper when compared to the industry. SLRC is cheaper than 76.19% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.12, SLRC is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.32, the valuation of SLRC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SLRC is valued a bit cheaper than the industry average as 72.29% of the companies are valued more expensively.
SLRC is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.93 | ||
| Fwd PE | 9.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SLRC indicates a rather cheap valuation: SLRC is cheaper than 89.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.75 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SLRC's earnings are expected to decrease with -3.46% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)15.62
EPS Next 2Y-2.95%
EPS Next 3Y-3.46%
5. Dividend
5.1 Amount
SLRC has a Yearly Dividend Yield of 10.57%, which is a nice return.
Compared to an average industry Dividend Yield of 8.46, SLRC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, SLRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.57% |
5.2 History
The dividend of SLRC has a limited annual growth rate of 0.02%.
SLRC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)0.02%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SLRC pays out 93.43% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of SLRC has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP93.43%
EPS Next 2Y-2.95%
EPS Next 3Y-3.46%
15.62
+0.17 (+1.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners37.04%
Inst Owner Change1.58%
Ins Owners2.76%
Ins Owner Change0%
Market Cap852.07M
Analysts70
Price Target17.12 (9.6%)
Short Float %0.46%
Short Ratio1.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.57% |
Yearly Dividend1.64
Dividend Growth(5Y)0.02%
DP93.43%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.81%
Min EPS beat(2)0.27%
Max EPS beat(2)3.35%
EPS beat(4)4
Avg EPS beat(4)1.75%
Min EPS beat(4)0.27%
Max EPS beat(4)3.35%
EPS beat(8)5
Avg EPS beat(8)-0.64%
EPS beat(12)7
Avg EPS beat(12)-1.6%
EPS beat(16)7
Avg EPS beat(16)-2.3%
Revenue beat(2)1
Avg Revenue beat(2)-1%
Min Revenue beat(2)-3.07%
Max Revenue beat(2)1.07%
Revenue beat(4)1
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-3.07%
Max Revenue beat(4)1.07%
Revenue beat(8)2
Avg Revenue beat(8)-1.45%
Revenue beat(12)2
Avg Revenue beat(12)-2.17%
Revenue beat(16)2
Avg Revenue beat(16)-2.87%
PT rev (1m)0%
PT rev (3m)3.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.91%
EPS NY rev (1m)0%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.93 | ||
| Fwd PE | 9.32 | ||
| P/S | 3.67 | ||
| P/FCF | 2.75 | ||
| P/OCF | 2.75 | ||
| P/B | 0.86 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.75
EY11.2%
EPS(NY)1.68
Fwd EY10.73%
FCF(TTM)5.67
FCFY36.3%
OCF(TTM)5.67
OCFY36.3%
SpS4.26
BVpS18.2
TBVpS18.2
PEG (NY)N/A
PEG (5Y)15.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 9.64% | ||
| ROCE | 4.75% | ||
| ROIC | 3.75% | ||
| ROICexc | 4.72% | ||
| ROICexgc | 4.72% | ||
| OM | 41.44% | ||
| PM (TTM) | 41.2% | ||
| GM | 45.47% | ||
| FCFM | 133.08% |
ROA(3y)2.55%
ROA(5y)2.28%
ROE(3y)6.41%
ROE(5y)5.62%
ROIC(3y)3.33%
ROIC(5y)3.19%
ROICexc(3y)4.11%
ROICexc(5y)4.01%
ROICexgc(3y)4.11%
ROICexgc(5y)4.01%
ROCE(3y)4.22%
ROCE(5y)4.04%
ROICexcg growth 3Y9.35%
ROICexcg growth 5Y-2.7%
ROICexc growth 3Y9.35%
ROICexc growth 5Y-2.7%
OM growth 3Y-1.77%
OM growth 5Y-2.43%
PM growth 3Y-1.22%
PM growth 5Y2.62%
GM growth 3Y-3.67%
GM growth 5Y-2.76%
F-Score8
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 3.34 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.43 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 323.02% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 0.51 |
F-Score8
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)2.34%
EPS 3Y7.07%
EPS 5Y0.57%
EPS Q2Q%-6.82%
EPS Next Y-5.26%
EPS Next 2Y-2.95%
EPS Next 3Y-3.46%
EPS Next 5YN/A
Revenue 1Y (TTM)1.36%
Revenue growth 3Y18.59%
Revenue growth 5Y8.48%
Sales Q2Q%-8.47%
Revenue Next Year-8.49%
Revenue Next 2Y-4.37%
Revenue Next 3Y-3.97%
Revenue Next 5YN/A
EBIT growth 1Y4.58%
EBIT growth 3Y16.49%
EBIT growth 5Y5.84%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y502.32%
FCF growth 3YN/A
FCF growth 5Y10.62%
OCF growth 1Y502.32%
OCF growth 3YN/A
OCF growth 5Y10.62%