Overview Dividends

(SCM) Stellus Capital Investment - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US8585681088

Debt, Equity, Mezzanine, Unitranche

SCM EPS (Earnings per Share)

EPS Growth (3Y CAGR): -59.93%
EPS Trend (3Y Correlation): -75.7%

SCM Revenue

Revenue Growth (3Y CAGR): 71.74%
Revenue Trend (3Y Correlation): 78.0%

Description: SCM Stellus Capital Investment October 25, 2025

Stellus Capital Investment Corp. (NYSE: SCM) is a Business Development Company (BDC) that targets private middle-market firms in the United States and Canada, deploying first-lien, second-lien, unitranche, and mezzanine debt-often paired with equity stakes. The firm focuses on companies generating EBITDA of roughly $5 million to $50 million, positioning itself as a flexible capital provider in the lower-mid segment of the credit market.

Key industry context: (1) BDCs have benefited from a low-interest-rate environment, with average net asset yields hovering around 8-9% in 2024, but rising rates are compressing spreads on senior debt. (2) Middle-market M&A activity in North America grew ~12% YoY in Q2 2024, expanding the pool of potential acquisition-oriented borrowers. (3) Credit quality metrics for this EBITDA band show a weighted-average leverage ratio of 3.2×, indicating moderate default risk that BDCs like Stellus can manage through covenants and seniority structures.

For a deeper quantitative view, you might explore ValueRay’s platform to compare Stellus’s credit metrics against peers and assess how its capital structure choices perform under different economic scenarios.

SCM Stock Overview

Market Cap in USD	341m
Sub-Industry	Asset Management & Custody Banks
IPO / Inception	2012-11-08

SCM Stock Ratings

Growth Rating	44.9%
Fundamental	49.3%
Dividend Rating	87.4%
Return 12m vs S&P 500	-19.9%
Analyst Rating	3.33 of 5

SCM Dividends

Dividend Yield 12m	16.48%
Yield on Cost 5y	40.90%
Annual Growth 5y	8.56%
Payout Consistency	95.7%
Payout Ratio	37.2%

SCM Growth Ratios

Growth Correlation 3m	-71.4%
Growth Correlation 12m	34.8%
Growth Correlation 5y	96.3%
CAGR 5y	7.91%
CAGR/Max DD 3y (Calmar Ratio)	0.33
CAGR/Mean DD 3y (Pain Ratio)	1.30
Sharpe Ratio 12m	2.08
Alpha	-20.91
Beta	0.894
Volatility	22.54%
Current Volume	208.6k
Average Volume 20d	208.6k
Stop Loss	11.6 (-4.2%)
Signal	-0.93

Piotroski VR‑10 (Strict, 0-10) 4.0

Net Income (43.6m TTM) > 0 and > 6% of Revenue (6% = 7.22m TTM)

FCFTA -0.03 (>2.0%) and ΔFCFTA -3.85pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 30.27% (prev 50.38%; Δ -20.12pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA -0.03 (>3.0%) and CFO -33.3m <= Net Income 43.6m (YES >=105%, WARN >=100%)

Net Debt (598.3m) to EBITDA (10259.81b) ratio: 0.00 <= 3.0 (WARN <= 3.5)

Current Ratio 4.53 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (28.4m) change vs 12m ago 14.87% (target <= -2.0% for YES)

Gross Margin 40.99% (prev 34.23%; Δ 6.76pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 12.14% (prev 7.54%; Δ 4.61pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 0.00 (EBITDA TTM 10259.81b / Interest Expense TTM 8680.04b) >= 6 (WARN >= 3)

Altman Z'' 0.53

(A) 0.04 = (Total Current Assets 46.7m - Total Current Liabilities 10.3m) / Total Assets 1.03b

(B) -0.02 = Retained Earnings (Balance) -17.0m / Total Assets 1.03b

(D) -0.03 = Book Value of Equity -16.9m / Total Liabilities 659.4m

Total Rating: 0.53 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 49.34

1. Piotroski 4.0pt = -1.0

2. FCF Yield -3.54% = -1.77

3. FCF Margin -27.65% = -7.50

4. Debt/Equity 1.70 = 1.20

5. Debt/Ebitda 0.00 = 2.50

6. ROIC - WACC (= 2.29)% = 2.86

7. RoE 11.75% = 0.98

8. Rev. Trend 77.98% = 5.85

9. EPS Trend -75.72% = -3.79

What is the price of SCM shares?

As of October 26, 2025, the stock is trading at USD 12.11 with a total of 208,600 shares traded.
Over the past week, the price has changed by +0.92%, over one month by -8.49%, over three months by -15.56% and over the past year by -5.21%.

Is Stellus Capital Investment a good stock to buy?

No, based on ValueRay´s Fundamental Analyses, Stellus Capital Investment (NYSE:SCM) is currently (October 2025) a stock to sell. It has a ValueRay Fundamental Rating of 49.34 and therefor a negative outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of SCM is around 13.19 USD . This means that SCM is currently overvalued and has a potential downside of 8.92%.

Is SCM a buy, sell or hold?

Stellus Capital Investment has received a consensus analysts rating of 3.33. Therefor, it is recommend to hold SCM.

Strong Buy: 1
Buy: 0
Hold: 5
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the SCM price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	13.6	12.3%
Analysts Target Price	13.6	12.3%
ValueRay Target Price	14	15.7%

SCM Fundamental Data Overview October 20, 2025

Market Cap USD = 341.0m (341.0m USD * 1.0 USD.USD)
P/E Trailing = 8.3333
P/E Forward = 12.1359
P/S = 3.3183
P/B = 0.9917
Beta = 0.894
Revenue TTM = 120.3m USD
EBIT TTM = 56.4m USD
EBITDA TTM = 10259.81b USD
Long Term Debt = 593.0m USD (from longTermDebt, last fiscal year)
Short Term Debt = 172310.20b USD (from shortTermDebt, last quarter)
Debt = 638.3m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 598.3m USD (from netDebt column, last quarter)
Enterprise Value = 939.3m USD (341.0m + Debt 638.3m - CCE 40.0m)
Interest Coverage Ratio = 0.00 (Ebit TTM 56.4m / Interest Expense TTM 8680.04b)
FCF Yield = -3.54% (FCF TTM -33.3m / Enterprise Value 939.3m)
FCF Margin = -27.65% (FCF TTM -33.3m / Revenue TTM 120.3m)
Net Margin = 36.23% (Net Income TTM 43.6m / Revenue TTM 120.3m)
Gross Margin = 40.99% ((Revenue TTM 120.3m - Cost of Revenue TTM 71.0m) / Revenue TTM)
Gross Margin QoQ = 75.76% (prev 48.20%)
Tobins Q-Ratio = 0.91 (Enterprise Value 939.3m / Total Assets 1.03b)
Interest Expense / Debt = 1.36m% (Interest Expense 8680.01b / Debt 638.3m)
Taxrate = 4.06% (429.0k / 10.6m)
NOPAT = 54.1m (EBIT 56.4m * (1 - 4.06%))
Current Ratio = 4.53 (Total Current Assets 46.7m / Total Current Liabilities 10.3m)
Debt / Equity = 1.70 (Debt 638.3m / totalStockholderEquity, last quarter 375.4m)
Debt / EBITDA = 0.00 (Net Debt 598.3m / EBITDA 10259.81b)
Debt / FCF = -17.99 (negative FCF - burning cash) (Net Debt 598.3m / FCF TTM -33.3m)
Total Stockholder Equity = 371.1m (last 4 quarters mean from totalStockholderEquity)
RoA = 4.21% (Net Income 43.6m / Total Assets 1.03b)
RoE = 11.75% (Net Income TTM 43.6m / Total Stockholder Equity 371.1m)
RoCE = 5.85% (EBIT 56.4m / Capital Employed (Equity 371.1m + L.T.Debt 593.0m))
RoIC = 5.53% (NOPAT 54.1m / Invested Capital 978.6m)
WACC = 3.24% (E(341.0m)/V(979.3m) * Re(9.31%) + (debt cost/tax rate unavailable))
Discount Rate = 9.31% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 8.52%
Fair Price DCF = unknown (Cash Flow -33.3m)
EPS Correlation: -75.72 | EPS CAGR: -59.93% | SUE: -4.0 | # QB: 0
Revenue Correlation: 77.98 | Revenue CAGR: 71.74% | SUE: -0.14 | # QB: 0

Additional Sources for SCM Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
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Fund Manager Positions: Dataroma | Stockcircle