14.94 USD
-0.19 (-1.26%)
14.9643 USD
+0.02 (+0.16%)
SLRC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 237 industry peers in the Capital Markets industry. There are concerns on the financial health of SLRC while its profitability can be described as average. SLRC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- SLRC had positive earnings in the past year.
- In the past year SLRC had a positive cash flow from operations.
- In the past 5 years SLRC has always 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
- SLRC's Return On Assets of 3.56% is in line compared to the rest of the industry. SLRC outperforms 56.96% of its industry peers.
- SLRC has a Return On Equity (9.07%) which is comparable to the rest of the industry.
- SLRC has a Return On Invested Capital (3.30%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for SLRC is below the industry average of 7.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 9.07% | ||
| ROIC | 3.3% |
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
- SLRC has a Profit Margin of 41.00%. This is amongst the best in the industry. SLRC outperforms 86.08% of its industry peers.
- SLRC's Profit Margin has improved in the last couple of years.
- SLRC has a better Operating Margin (40.58%) than 73.84% of its industry peers.
- SLRC's Operating Margin has declined in the last couple of years.
- SLRC has a Gross Margin of 45.08%. This is comparable to the rest of the industry: SLRC outperforms 48.52% of its industry peers.
- SLRC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.58% | ||
| PM (TTM) | 41% | ||
| GM | 45.08% |
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
- Compared to 1 year ago, SLRC has about the same amount of shares outstanding.
- SLRC has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for SLRC has been reduced compared to a year ago.
2.2 Solvency
- SLRC has an Altman-Z score of 0.47. This is a bad value and indicates that SLRC is not financially healthy and even has some risk of bankruptcy.
- SLRC has a worse Altman-Z score (0.47) than 61.60% of its industry peers.
- The Debt to FCF ratio of SLRC is 10.91, which is on the high side as it means it would take SLRC, 10.91 years of fcf income to pay off all of its debts.
- SLRC has a Debt to FCF ratio of 10.91. This is in the better half of the industry: SLRC outperforms 61.60% of its industry peers.
- SLRC has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
- SLRC's Debt to Equity ratio of 1.15 is in line compared to the rest of the industry. SLRC outperforms 43.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 10.91 | ||
| Altman-Z | 0.47 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 1.07 indicates that SLRC should not have too much problems paying its short term obligations.
- SLRC's Current ratio of 1.07 is in line compared to the rest of the industry. SLRC outperforms 48.10% of its industry peers.
- SLRC has a Quick Ratio of 1.07. This is a normal value and indicates that SLRC is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.07, SLRC is in line with its industry, outperforming 49.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
- The earnings per share for SLRC have decreased by -7.30% in the last year.
- SLRC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.57% yearly.
- SLRC shows a decrease in Revenue. In the last year, the revenue decreased by -7.17%.
- SLRC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.48% yearly.
EPS 1Y (TTM)-7.3%
EPS 3Y7.07%
EPS 5Y0.57%
EPS Q2Q%-11.11%
Revenue 1Y (TTM)-7.17%
Revenue growth 3Y18.59%
Revenue growth 5Y8.48%
Sales Q2Q%-4.65%
3.2 Future
- The Earnings Per Share is expected to decrease by -5.24% on average over the next years.
- SLRC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.14% yearly.
EPS Next Y-7.93%
EPS Next 2Y-4.54%
EPS Next 3Y-5.24%
EPS Next 5YN/A
Revenue Next Year-6.38%
Revenue Next 2Y-3.82%
Revenue Next 3Y-4.14%
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
- SLRC is valuated reasonably with a Price/Earnings ratio of 9.05.
- SLRC's Price/Earnings ratio is a bit cheaper when compared to the industry. SLRC is cheaper than 73.84% of the companies in the same industry.
- When comparing the Price/Earnings ratio of SLRC to the average of the S&P500 Index (27.25), we can say SLRC is valued rather cheaply.
- SLRC is valuated reasonably with a Price/Forward Earnings ratio of 9.21.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SLRC indicates a somewhat cheap valuation: SLRC is cheaper than 78.06% of the companies listed in the same industry.
- SLRC is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.05 | ||
| Fwd PE | 9.21 |
4.2 Price Multiples
- 82.28% of the companies in the same industry are more expensive than SLRC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.81 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- SLRC's earnings are expected to decrease with -5.24% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)15.84
EPS Next 2Y-4.54%
EPS Next 3Y-5.24%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 10.73%, SLRC is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 5.87, SLRC pays a bit more dividend than its industry peers.
- SLRC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.73% |
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 99.33% 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.
DP99.33%
EPS Next 2Y-4.54%
EPS Next 3Y-5.24%
SLR INVESTMENT CORP / SLRC FAQ
What is the fundamental rating for SLRC stock?
ChartMill assigns a fundamental rating of 4 / 10 to SLRC.
What is the valuation status of SLR INVESTMENT CORP (SLRC) stock?
ChartMill assigns a valuation rating of 5 / 10 to SLR INVESTMENT CORP (SLRC). This can be considered as Fairly Valued.
What is the profitability of SLRC stock?
SLR INVESTMENT CORP (SLRC) has a profitability rating of 4 / 10.
What is the valuation of SLR INVESTMENT CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SLR INVESTMENT CORP (SLRC) is 9.05 and the Price/Book (PB) ratio is 0.82.
Is the dividend of SLR INVESTMENT CORP sustainable?
The dividend rating of SLR INVESTMENT CORP (SLRC) is 5 / 10 and the dividend payout ratio is 99.33%.