Stellus Capital Investment Corporation

SCM

$8.68

-0.23%

2026-09-04 09:45:56 EDT-$0.02

Financial Services

Asset Management

NYSE

Active Trading

Stellus Capital Investment Corporation operates as a Business Development Company (BDC), allocating capital to privately-held, mid-sized enterprises. The firm employs various financing ...

Price Action of SCM

$8.68

-0.23%-$0.02

High—

Low—

52W High-34.0%

Rel. vol—

Interval

Range15m

Volume—SMA5SMA10

—

Stellus Capital Investment Corporation, headquartered in Houston, Texas, was founded in 2012 and is externally managed by Stellus Capital Management. As a BDC, it provides capital to privately-held mid-sized companies with $5 million to $50 million in EBITDA. Its investment strategies include first lien, second lien, unitranche, and mezzanine debt, ...Stellus Capital Investment Corporation, headquartered in Houston, Texas, was founded in 2012 and is externally managed by Stellus Capital Management. As a BDC, it provides capital to privately-held mid-sized companies with $5 million to $50 million in EBITDA. Its investment strategies include first lien, second lien, unitranche, and mezzanine debt, typically alongside equity co-investments. The firm targets opportunities in the US and Canada, focusing on private equity-backed platforms. Key personnel include CEO Robert Ladd, who also serves as Managing Partner of the investment manager. As of recent data, the company has a market cap of approximately $244 million, a dividend yield of 16.9%, and a price-to-book ratio of 0.673. It operates with a lean team, with employee numbers not explicitly disclosed but likely under 100. Financial metrics indicate a gross profit margin of 58.5%, net profit margin of 30.8%, and return on equity of 6.4%. The company pays a quarterly dividend of $1.43 per share annually. Recent events include a conference call for 2026 first-quarter results. Overall, SCM provides investors with exposure to the lower middle market private credit space, aiming for income and capital appreciation.ExpandCollapse

Founded

2012

Employees

CEO

Robert Ladd

Full Name

Stellus Capital Investment Corporation

Sector

Financial Services

Industry

Asset Management

ROE

8.05%

Market Cap

$0.25B

Current Ratio

0.91

WACC

5.75%

ROIC

-2801.59%

Contact Information

https://www.stelluscapital.com/public-investors/investment-corp

713-292-5400

4400 Post Oak Parkway, Houston, TX 77027

Key Metrics of SCM

Snapshot

Latest / TTM · 6 periods

Market Cap

$247.21M

ROCE

4.1%

EV / EBITDA

21.33x

+1.3% YoY

FCF Yield

22305594.0%

+22305600.8% YoY

Cash Conversion Cycle

37.7d

Current Ratio

0.91

Quick take

TTM —

Current ratio below 1.0

Negative working capital

Financial Highlights of SCM

Profitability trend

Latest / TTM · 6 periods

Gross Margin

59.9%

Net Margin

37.4%

P/E Ratio

8.47x

n/a

Debt / Equity

1.63

n/a

Current Ratio

0.91

Dividend Yield

15.9%

Understanding

TTM —

Current ratio below 1.0

Calendar of SCM

Upcoming

Sep 30, 2026In 26 days
Ex-dividend date
$1.48 per share
Sep 30, 2026In 26 days
Q3 FY2026 · Estimated results
Est. EPS $0.26 · Revenue $22.99M · 3 analysts
Oct 15, 2026In 41 days
Dividend payment
$1.48 per share
Dec 30, 2026
Q4 FY2026 · Estimated results
Est. EPS $0.26 · Revenue $23.15M · 3 analysts

Recent history

Aug 10, 2026
Q2 FY2026 · Results reported
EPS $0.56 · Revenue $22.30M
View filing
May 11, 2026
Q1 FY2026 · Results reported
EPS $0.06 · Revenue $24.04M
View filing
Mar 11, 2026
FY2025 · Annual results
EPS $0.95 · Revenue $66.96M
View filing
Nov 10, 2025
Q3 FY2025 · Results reported
EPS $0.23 · Revenue $17.43M
View filing
Aug 6, 2025
Q2 FY2025 · Results reported
EPS $0.36 · Revenue $19.84M
View filing
May 12, 2025
Q1 FY2025 · Results reported
EPS $0.18 · Revenue $13.97M
View filing

Financial Statements of SCM

5Y Trend (Revenue, Earnings, FCF)

Metric	Latest	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).	$67.0M	-19.1%	-7.2%
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.	$27.0M	-41.0%	+878.8%
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.	+47.8%	-22.8%	-21.1%
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).	+42.8%	-25.5%	+60.4%
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.	+40.4%	-27.1%	+955.2%
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.	$-24.4M	+14.7%	+246343345.0%
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.	-36.5%	-5.4%	+265567500.1%
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.	175.6%	+9.5%	-4.1%
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.	1.54x	-47.3%	+333.7%
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.	$1.0B	+6.2%	-1.9%

Actual vs Estimate

A Dec 31Q Sep 30

Metric	Annual (A vs E)	Annual Surprise	Quarter (A vs E)	Quarter Surprise
EPS Surprise	0.95 vs 1.31	-27.5%	0.56 vs 0.26	+115.4%
Revenue Surprise	$67.0M vs $103.3M	-35.2%	$22.3M vs $23.0M	-3.0%

Insider Transactions of SCM

Acquisitions (A)

Since Mar 13, 2026

Disposals (D)

Since Mar 13, 2026

Monthly shares of acquisitions/disposals with close price trend (shared daily price source)

Insider Trading Snapshot

Date	Executive	Title	Security	Side	Shares	Price
Jun 23, 2026	Arnoult J Tim	director	Common Stock	A	700	$8.29
May 19, 2026	Arnoult J Tim	director	Common Stock	A	9,000	$9.05
May 13, 2026	Arnoult J Tim	director	Common Stock	A	1,000	$9.27
Mar 16, 2026	Ladd Robert T.	director, officer: President and CEO	Common Stock	A	1,700	$8.45
Mar 13, 2026	Bilger Bruce R	director	Common Stock	A	4,600	$8.75

Earnings Call Transcript of SCM

1 transcript segments

Q2 2026

Unknown Speaker

Operator: Good morning, ladies and gentlemen, and thank you for standing by. At this time, I would like to welcome everyone to Stellus Capital Investment Corporation's conference call to report financial results for its second fiscal quarter ended June 30, 2026. This conference is being recorded today, August 11, 2026. It is now my pleasure to turn the call over to Mr. Robert Ladd, Chief Executive Officer of Stellus Capital Investment Corporation. Mr. Ladd, you may begin your conference. Robert Ladd: Okay. Thank you, Jenny, and good morning, everyone. Thank you for joining the call. Welcome to our conference call covering the quarter ended June 30, 2026. We have 6 topics to cover this morning. First, the financial results for the second quarter, portfolio and asset quality, the outlook for Q3 and beyond, an update on our adviser joining Ridgepost Capital, our $20 million share buyback program and opportunities for growth. Joining me this morning is Todd Huskinson, our Chief Financial Officer, who will cover important information about forward-looking statements. Todd, I'll turn it over to you. W. Huskinson: Thank you, Rob. I'd like to remind everyone that today's call is being recorded. Please note that this call is the property of Stellus Capital Investment Corporation and that any unauthorized broadcast of this call in any form is strictly prohibited. Audio replay of the call will be available by using the telephone number and PIN provided in our press release announcing this call. I'd also like to call your attention to the customary safe harbor disclosure in our press release regarding forward-looking information. Today's conference call may also include forward-looking statements and projections, and we ask that you refer to our most recent filing with the SEC for important factors that could cause actual results to differ materially from these projections. We will not update any forward-looking statements unless required by law. To obtain copies of our latest SEC filings, please visit our website at www.stelluscapital.com under the Public Investors link or call us at (713) 292-5400. Now I'll cover our operating results for the quarter, but I would like to start with our life-to-date activity. Since our IPO in November of 2012, we've invested approximately $2.9 billion in more than 225 portfolio companies while navigating multiple market and credit cycles. Over this time, we've received approximately $1.9 billion of repayments while maintaining disciplined credit performance. We believe our track record, our underwriting process and deep sponsor relationships provide us with meaningful competitive advantages, reflecting more than 20 years of working together as an investment team and nearly 14 years of operating as a public BDC. Our focus remains on preserving capital while generating attractive risk-adjusted returns for our shareholders. And we think our long-term credit performance as well as our 14-year track record of return on equity …

Leadership Team of SCM

2 executives

Name	Title	Gender	Year Born	Status
William Todd Huskinson	Chief Financial Officer, Treasurer, Secretary & Chief Compliance Officer	Male	1964	Active
Robert T. Ladd	Chairman, President & Chief Executive Officer	Male	1956	Active

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Historical Employee Count of SCM

Current

Minimum

Maximum

Recent Filings

Report Date	Form Type	Filing Date	SEC Filing
Dec 31, 2025	10-K	Mar 11, 2026	View
Dec 31, 2024	10-K	Mar 4, 2025	View
Dec 31, 2023	10-K	Mar 4, 2024	View
Dec 31, 2021	10-K	Mar 1, 2022	View

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Stellus Capital Investment Corporation