Stellus Capital Investment (SCM) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Stellus Capital Investment stock (SCM) is currently trading at $9.23. Stellus Capital Investment PE ratio is 9.96. Stellus Capital Investment PS ratio (Price-to-Sales) is 2.68. Analyst consensus price target for SCM is $11.00. WallStSmart rates SCM as Underperform.
- SCM PE ratio analysis and historical PE chart
- SCM PS ratio (Price-to-Sales) history and trend
- SCM intrinsic value — DCF, Graham Number, EPV models
- SCM stock price prediction 2025 2026 2027 2028 2029 2030
- SCM fair value vs current price
- SCM insider transactions and insider buying
- Is SCM undervalued or overvalued?
- Stellus Capital Investment financial analysis — revenue, earnings, cash flow
- SCM Piotroski F-Score and Altman Z-Score
- SCM analyst price target and Smart Rating
Stellus Capital Investment
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SCM Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Stellus Capital Investment (SCM)
SCM trades 78% above its Graham fair value of $6.46, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Stellus Capital Investment (SCM) · 9 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in operating margin, price/book, profit margin. Concerns around market cap and return on equity. Mixed signals suggest waiting for clearer direction before acting.
Stellus Capital Investment (SCM) Key Strengths (3)
Keeps $57 of every $100 in revenue after operating costs
Trading below book value, meaning the market prices it less than net assets
Keeps $27 of every $100 in revenue as net profit
Supporting Valuation Data
Stellus Capital Investment (SCM) Areas to Watch (6)
Revenue declining -1.60%, a shrinking business
Earnings declining -43.70%, profits shrinking
Very low institutional interest at 14.09%
Micro-cap company with very limited liquidity and high volatility
Low profitability relative to shareholder equity
Revenue is fairly priced at 2.68x sales
Supporting Valuation Data
Stellus Capital Investment (SCM) Detailed Analysis Report
Overall Assessment
This company scores 47/100 in our Smart Analysis, earning a D+ grade. Out of 9 metrics analyzed, 3 register as strengths (avg 10.0/10) while 6 fall into concern territory (avg 2.3/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Operating Margin, Price/Book, Profit Margin. Valuation metrics including Price/Book (0.70) suggest the stock is attractively priced. Profitability is solid with Operating Margin at 56.60%, Profit Margin at 26.50%.
The Bear Case
The primary concerns are Revenue Growth, EPS Growth, Institutional Own.. Some valuation metrics including Price/Sales (2.68) suggest expensive pricing. Growth concerns include Revenue Growth at -1.60%, EPS Growth at -43.70%, which may limit upside. Profitability pressure is visible in Return on Equity at 7.30%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Revenue Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 7.30% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at -1.60% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. Revenue Growth and EPS Growth are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
SCM Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
SCM's Price-to-Sales ratio of 2.68x trades at a deep discount to its historical average of 17.63x (1th percentile). The current valuation is 96% below its historical high of 70.53x set in Nov 2013, and 9% above its historical low of 2.46x in Mar 2026. Over the past 12 months, the PS ratio has compressed from ~5.0x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for Stellus Capital Investment (SCM) · FINANCIAL SERVICES › ASSET MANAGEMENT
The Big Picture
Stellus Capital Investment faces headwinds with declining revenue, though profitability provides a cushion. Revenue reached 102M with 2% decline year-over-year. Profit margins are strong at 26.5%, reflecting pricing power and operational efficiency.
Key Findings
Profit margin of 26.5% and operating margin of 56.6% demonstrate strong pricing power and operational efficiency.
Generating 7M in free cash flow and 7M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Dividend sustainability with a current yield of 17.5%. Watch payout ratio and free cash flow coverage.
Debt management: total debt of 632M is significantly higher than cash (9M). Monitor refinancing risk.
Sector dynamics: monitor ASSET MANAGEMENT industry trends, competitive moves, and regulatory changes that could impact Stellus Capital Investment.
Bottom Line
Stellus Capital Investment faces challenges with declining revenue. While profitability provides a buffer, the long-term trajectory needs to improve. Watch for management's strategic response and whether the company can stabilize or pivot to new growth drivers.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(7 last 3 months)
| Insider | Type | Shares |
|---|---|---|
LADD, ROBERT T. Director, President and CEO | Buy | +1,700 |
Data sourced from SEC Form 4 filings
Last updated: 10:06:54 AM
About Stellus Capital Investment(SCM)
NYSE
FINANCIAL SERVICES
ASSET MANAGEMENT
USA
Stellus Capital Investment Corporation (SCM) operates as a prominent business development company focused on providing tailored debt and equity financing solutions for private middle-market enterprises. With a strong investment management foundation, Stellus aims to generate attractive risk-adjusted returns while ensuring capital preservation for its shareholders. The company's diversified portfolio includes senior secured loans, subordinated debt, and equity investments across multiple sectors, positioning it effectively to capitalize on growth opportunities in an evolving market landscape. Stellus is committed to consistent income generation and prudent risk management, making it a compelling choice for institutional investors seeking resilient investment strategies.