Saratoga Investment Corp. is a specialty finance company that provides customized financing solutions to U.S. middle-market businesses. The company invests primarily in ...
Saratoga Investment Corp. is a business development company (BDC) specializing in customized financing for U.S. middle-market companies. Founded on March 21, 2007, and headquartered in New York, NY, it operates under the management of Saratoga Investment Advisors, LLC. The company invests primarily in senior and unitranche leveraged loans and mezzanine ...Saratoga Investment Corp. is a business development company (BDC) specializing in customized financing for U.S. middle-market companies. Founded on March 21, 2007, and headquartered in New York, NY, it operates under the management of Saratoga Investment Advisors, LLC. The company invests primarily in senior and unitranche leveraged loans and mezzanine debt, with a lesser focus on equity investments, to finance change of ownership transactions, strategic acquisitions, recapitalizations, and growth initiatives. It typically invests between $60 million and $75 million per deal, targeting companies with revenues of $10 million to $150 million and EBITDA of $2 million or more. As of the latest data, the company has total assets of approximately $1.19 billion and investments in 48 portfolio companies. The company is listed on the New York Stock Exchange under the ticker 'SAR' and has a market capitalization of around $318 million. With a focus on long-term partnerships, the company generates revenue through interest income, dividends, and capital appreciation. Key executives include CEO Chris Oberbeck and CFO Henri Steenkamp. The company has a dividend yield of 15% and a price-to-earnings ratio of 20.01, reflecting its income-oriented investment strategy. Despite its niche, it competes with other BDCs and specialty finance firms. The company's employee size is small, typical for a BDC, with a lean team of finance professionals. As of the latest TTM data, revenue per share is $6.20, net income per share is $1.03, and the company has a return on equity of 4.2%. The company's future growth is tied to the middle-market lending environment and its ability to source quality investments.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$99.2M
+5.4%
+106.3%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$36.6M
+30.3%
-126.4%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+50.3%
+12.5%
+393.5%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+38.4%
+13.1%
+1558.1%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+36.9%
+23.7%
-9.7%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-88.0M
-144.6%
+71.9%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-88.7%
-142.3%
+86.4%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
184.2%
-7.5%
-15.4%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.36x
-98.7%
+1498.0%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Saratoga Investments Corp's Fiscal First Quarter 2027 Financial Results Conference Call. Please note that today's call is being recorded. During today's presentation, all parties will be in listen only mode. Following management's prepared remarks, we will open the line for questions. At this time, I would like to turn the call over to Saratoga Investment Corp.'s Chief Financial and Chief Compliance Officer, Mr. Henri J. Steenkamp. Sir, please go ahead.
Henri J. Steenkamp: Thank you. I would like to welcome everyone to Saratoga Investment Corp's fiscal first quarter 2027 earnings conference call. Today's conference call includes forward looking statements and projections. We ask you to refer to our most recent filings with the SEC for important factors that could cause actual results to differ materially from these forward looking statements and projections. We do not undertake to update our forward looking statements unless required to do so by law. Today, we will be referencing a presentation during our call. You can find our fiscal first quarter 2027 shareholder presentation in the Events and Presentations section of our Investor Relations website. A link to our IR page is in the earnings press release distributed last night. For everyone new to our story, please note that our fiscal year end is February 28, so any reference to Q1 results reflects our May 30 first quarter end period. A replay of this conference call will also be available Please refer to our earnings press release for details. I would now like to turn the call over to our Chairman and Chief Executive Officer, Christian L. Oberbeck, who will be making a few introductory remarks.
Christian L. Oberbeck: Thank you, Henri, and welcome, everyone. Saratoga Investment Corp. Highlights this quarter include net positive originations of $31 million including 2 new portfolio companies originated in the quarter. Sustained long term AUM growth with AUM growing 1.6% during the quarter and reaching close to a record level $1.126 billion Latest 12 months return on equity of 4.0%, continuing to beat the BDC industry average of 2.4%,, and importantly, continued overall solid performance from the core BDC portfolio in a challenging and volatile macro environment. With core BDC portfolio fair value, remaining within 0.2% of cost. Demonstrating solid overall credit quality in a challenging and volatile macroeconomic environment. Continuing our historical strong dividend distribution history, we announced a monthly base dividend $0.25 per share or $0.75 per share in aggregate for the second quarter of fiscal 2027, which when annualized represents a 14% yield based on the stock price of $21.42 as of 07/06/2026, offering strong current income. Originations and AUM growth during the quarter contributed to adjusted NII of $0.47 per share compared to $0.53 per share last quarter. Overall, our adjusted NII continues …
