Stellus Capital Investment Corporation (SCM) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+65.8%

$11.79

vs $7.11 price

Levered DCF

-$70.32

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

0.37

Distress zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	13.35×	7.69×	16.06×	17.92×	7.57×	10.46×	9.81×	7.9×
P/B	0.97×	0.95×	0.88×	0.94×	0.89×	0.77×	0.96×	0.92×
P/S	5.37×	4.26×	5.31×	5.71×	4.13×	5.06×	5.57×	6.65×
EV / EBITDA	34.46×	19.49×	52.01×	51.39×	19.6×	27.68×	22.25×	11.97×
Gross margin	47.8%	61.9%	39.9%	46.1%	69.5%	61.9%	67.9%	55.7%
Operating margin	42.8%	57.4%	30.1%	34.9%	60.5%	50.7%	58.7%	112.4%
Net margin	40.4%	55.4%	32.9%	31.9%	54.7%	48.3%	56.7%	84.3%
Current ratio	1.54×	2.92×	6.11×	11.52×	9.91×	9.98×	4.36×	2.47×
Debt / equity	1.76×	1.6×	1.8×	2.19×	1.82×	1.44×	1.35×	1.3×
Interest coverage	0.82×	1.51×	0.5×	0.65×	1.98×	1.33×	1.83×	2.83×
Dividend yield	12.6%	10.7%	12.6%	10.3%	8.3%	11.5%	9.5%	10.5%
Payout ratio	167.4%	81.9%	202.6%	183.5%	62.7%	120.5%	93.3%	82.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	7.3%	12.4%	5.5%	5.3%	11.8%	7.4%	9.8%	11.7%
Return on invested capital	2.6%	4.7%	1.8%	1.6%	4.1%	3.0%	4.1%	6.6%
Return on assets	2.6%	4.7%	1.9%	1.6%	4.1%	3.0%	4.1%	5.0%
Free cash flow yield	-6.8%	-8.1%	-6.1%	-21.7%	-30.0%	-1.6%	-35.9%	-49.6%
Earnings yield	7.5%	13.0%	6.2%	5.6%	13.2%	9.5%	10.2%	12.7%
Enterprise value	$986.4M	$925.2M	$832.5M	$815.4M	$727.8M	$586.6M	$610M	$481.4M
Net debt / EBITDA	21.9×	12.07×	34.34×	35.05×	12.77×	17.69×	12.77×	6.83×
Cash conversion cycle (days)	-97	-80	-23	-31	-74	-28	-85	-51