Stellus Capital Investment Corp (SCM) Stock Analysis
Verdict: WATCH (do not buy)
Heavy insider buying at a 32% discount to NAV offsets dividend coverage stress from declining interest income — key risk is portfolio credit quality.
Investment score: 57/100
Analysis as of
Is Stellus Capital Investment Corp stock worth reviewing? AI model thesis
From the model's perspective, Stellus Capital presents a high-yielding (12.37%) BDC trading at a 32% discount to book value (P/B 0.68x) backed by heavy insider buying, balanced by credit deterioration risks and earnings deceleration.
7-factor investment score
- Valuation: 68/100 (weight 20%)
- Financial Health: 42/100 (weight 15%)
- Technical Momentum: 48/100 (weight 15%)
- Earnings Quality: 38/100 (weight 15%)
- Insider Sentiment: 85/100 (weight 10%)
- Analyst Consensus: 70/100 (weight 10%)
- Risk-Adjusted Return: 55/100 (weight 15%)
Stellus Capital Investment Corp opportunities and risks
What speaks for SCM
- Significant Discount to Net Asset Value (P/B 0.68x)
What speaks against SCM
- Credit Quality Deterioration in Middle-Market Portfolio
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| SCM | 8.5x | 3.2x | 21.3x | 59.9% | 37.4% | 22305594.1% |
| HRZN | 12.2x | 2.2x | 23.0x | 77.6% | 4.6% | 62.0% |
| PSBD | n/a | 5.0x | 1597.9x | 50.8% | -47.9% | 15616.4% |
| SAR | 17.8x | 2.9x | 17.6x | 56.6% | 16.6% | -50.5% |
| RWAY | 60.0x | 4.5x | 30.8x | 54.0% | 12.4% | -26.9% |
| NSLR | 1.8x | 0.0x | 94325.4x | 0.1% | 0.0% | -11263274.0% |
| Peer median | 12.2x | 2.9x | 30.8x | 54.0% | 4.6% | -26.9% |
Frequently asked questions about Stellus Capital Investment Corp (SCM)
Is SCM stock a good investment?
The cached TradeMates AI model rates Stellus Capital Investment Corp as WATCH (do not buy) with an investment score of 57/100. From the model's perspective, Stellus Capital presents a high-yielding (12.37%) BDC trading at a 32% discount to book value (P/B 0.68x) backed by heavy insider buying, balanced by credit deterioration risks and earnings deceleration. This is algorithmic model output, not personal investment advice.
Is SCM stock a buy?
The TradeMates model verdict for SCM is WATCH (do not buy) with an investment score of 57/100. Treat this as a model signal to review, not a personal buy recommendation.