Stellus Capital Investment Corporation (SCM) Stock

Stellus Capital Investment Corporation (SCM) is a Financial Services stock trading at $7.01 (as of 2026-07-24), with a market capitalization of $203.06M and a trailing P/E of 8.6. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Stellus Capital Investment Corporation is a business development company that provides debt and related equity investments to private middle-market businesses. It invests using first lien, second lien, unitranche, and mezzanine financing, with a focus on U.S. and Canada companies.

Understand Stellus Capital Investment Corporation: how it makes money

Stellus Capital Investment Corporation invests in private middle-market companies, primarily through first lien, second lien, unitranche, and mezzanine debt (often alongside an equity stake), with a focus on US and Canada businesses.

The profit engine is lending to private middle-market firms at negotiated yields, then managing credit quality (non-accrual and rating categories) while continuing to originate new investments.

Business quality (Weak): A focused private-credit business model, where key watch items are income generation (Loan Portfolio Yield) and credit performance (Non-Accrual Loans as a Percentage of Fair Value). The fund’s concentration in private middle-market investing also means results can be sensitive to deal timing and borrower credit outcomes.

Valuation: At 10× earnings, SCM trades in line with the Asset Management average (10×). Note: one-time items can distort reported P/E.

Bull case

Income driver tied to underwriting: Loan Portfolio Yield is explicitly tracked, which aligns with the core business of making first lien, second lien, unitranche, and mezzanine debt investments (often with equity).
Credit monitoring is central: The company tracks non-accrual exposure (Non-Accrual Loans as a Percentage of Fair Value), providing a direct signal for downside in debt income quality.
Ongoing investment activity: It reports Investments Made During the Period (Cost Basis) and New Investments, showing continued portfolio build activity during the quarter.

Bear case

Non-accrual risk can reduce interest income: Non-Accrual Loans as a Percentage of Fair Value is tracked as a risk indicator, and higher non-accrual would imply weaker debt income performance.
Portfolio rating categories suggest potential credit pressure: Several portfolio rating category metrics are tracked (including portions rated three or below), which can indicate more stress in parts of the portfolio.
Private middle-market lending is not “set and forget”: Because the fund invests in private middle-market companies with an EBITDA profile, results can be sensitive to changes in borrower conditions and the pace of new investments and repayments.

Valuation — source: SEC EDGAR (first-party)
Price	$7.01
Market Cap	$203.06M
P/E Ratio	8.6
Price / Book	0.56
Price / Sales	2.12
DCF Value (model)	$13.74
DCF Upside vs Price	95.9%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$97.76M
Net Margin	27.7%
Revenue Growth (YoY)	-7.8%
EPS Growth (YoY)	-66.7%

Valuation vs Sector & Industry
Stock P/E	8.6
Sector P/E (Financial Services)	8.9
Industry P/E (Asset Management)	8.9
vs Sector	-3.7%
vs Industry	-4.0%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	TWO SIGMA ADVISERS, LP ($3.36M)
Institutional Holders Tracked	10

Company
Sector	Financial Services
Industry	Asset Management
CEO	Robert Thomsen Ladd
Employees	0
Country	US
IPO Date	2012-11-08

Related Companies (Business model: Closed-End Fund; 8 closest by market cap; US-domiciled)

Data as of 2026-07-24.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.