Saratoga Investment (SAR)
NYSE:SAR
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Saratoga Investment
(NYSE:SAR)
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Rating:62Neutral
Price Target:
$25.00
▲(8.13% Upside)
Action:ReiteratedDate:05/06/26
The score is held back primarily by balance-sheet and cash-flow risk (high leverage/negative equity snapshot and volatile cash generation), despite strong valuation (low P/E and high yield) and supportive technical momentum. The earnings call and recent financings point to good liquidity and credit quality, but near-term earnings pressure (lower NII/yield compression) limits upside confidence.
Positive Factors
Strong liquidity / dry powder
Nearly $396M of committed liquidity (cash, undrawn SBIC debentures and revolvers) gives Saratoga durable optionality to fund originations and avoid forced asset sales. This strengthens NAV preservation, enables measured AUM growth without immediate external financing, and reduces short-term refinancing pressure.
Negative Factors
Elevated leverage / balance-sheet red flags
Reported debt-to-equity near 2.0 and a TTM snapshot indicating negative equity are structural concerns. Elevated leverage amplifies sensitivity to mark-to-market asset moves, constrains strategic flexibility, increases vulnerability to funding stress, and could pressure dividend policy under adverse scenarios.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong liquidity / dry powder
Nearly $396M of committed liquidity (cash, undrawn SBIC debentures and revolvers) gives Saratoga durable optionality to fund originations and avoid forced asset sales. This strengthens NAV preservation, enables measured AUM growth without immediate external financing, and reduces short-term refinancing pressure.
Read all positive factors
Saratoga Investment (SAR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
N/A
Dividend Yield14.11%
Average Volume (3M)113.69K
Price to Earnings (P/E)7.8
Beta (1Y)0.62
Revenue Growth31.71%
EPS Growth-1.43%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)2.44
Shares Outstanding16,224,197
10 Day Avg. Volume108,924
30 Day Avg. Volume113,695
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)>-0.01
Price to Sales (P/S)0.00292
P/FCF Ratio>-0.01
Enterprise Value/Market Cap10.00T>
Enterprise Value/Revenue2.67K
Enterprise Value/Gross Profit5.21K
Enterprise Value/Ebitda210.27
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.31
Revenue Forecast (FY)$122.28M
Saratoga Investment Business Overview & Revenue Model
Company Description
Saratoga Investment Corp. is a business development company specializing in leveraged and management buyouts, acquisition financings, growth financings, recapitalization, debt refinancing, and transitional financing transactions at the lower end o...
How the Company Makes Money
Saratoga Investment makes money primarily from investment income generated on its portfolio of middle-market investments. Its key revenue streams typically include: (1) Interest income from debt investments: The largest source of earnings generall...
Saratoga Investment Earnings Call Summary
Earnings Call Date:Jan 07, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jul 14, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong balance sheet liquidity, NAV growth in aggregate, high-quality portfolio credit metrics, continued originations and disciplined underwriting, and continued dividend support. However, material year-over-year declines in NII and NII per share, yield compression from lower short-term rates and tighter spreads, elevated repayments impacting near-term earnings, and increased operating shares/expenses were notable headwinds. On balance, the company appears well positioned with significant dry powder and strong long-term performance metrics, offsetting near-term earnings pressure.Positive Updates
NAV Growth and Portfolio Fair Value
Quarter-end NAV of $413.2M, up 10.2% year-over-year (from $375M) and up 0.7% sequentially (from $410.5M). Total portfolio fair value was 1.7% above cost and the core non‑CLO portfolio was 2.1% above cost.
Negative Updates
Year‑over‑Year NII Declines and Yield Compression
Adjusted NII was $9.8M this quarter, down 21.3% YoY. Adjusted NII per share was $0.61, down 32.2% YoY (but up 5.2% QoQ). Adjusted NII yield declined to 9.5% from 13.3% a year ago, reflecting lower SOFR base rates and tighter spreads on new originations.
Read all updates
Q3-2026 Updates
Positive
Negative
NAV Growth and Portfolio Fair Value
Quarter-end NAV of $413.2M, up 10.2% year-over-year (from $375M) and up 0.7% sequentially (from $410.5M). Total portfolio fair value was 1.7% above cost and the core non‑CLO portfolio was 2.1% above cost.
Read all positive updates
Company Guidance
Management's guidance was cautious but constructive: they reiterated a focus on NAV preservation and accretive capital deployment of $395.6M of dry powder (comprised of $169.6M cash, $136M undrawn SBIC III debentures and $90M undrawn revolvers) to grow AUM ($1.016B) and NAV ($413.2M, $25.59/share), while maintaining the $0.25/month dividend ($0.75/quarter; annualized yield ~12.9% at $23.19) to be reviewed quarterly; they expect to deploy capital to lift adjusted NII (Q3 adj. NII $9.8M, $0.61/share, 9.5% yield; adj. NII QoQ +7.8% but YoY -21.3%), improve run-rate earnings (net interest margin $13.5M, weighted avg core BDC yield 10.6%), and sustain strong credit metrics (portfolio fair value 1.7% above cost, core non‑CLO +2.1%, 83.9% first‑lien, 99.8% top‑rated credits, nonaccrual only Pepper Palace at 0.2% FV/0.4% cost); they flagged net originations $17.2M in Q3 (originations $72.1M; repayments included a $12M baby bond), post‑quarter closings of ~$89.3M vs $30.5M repayments, available capacity ~$396M, callable baby bonds ~$269M, and a $175M 4.375% note maturing Feb‑2026 which they will address using cash or capital markets as appropriate.Saratoga Investment Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
32
Negative
Cash Flow
38
Negative
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 101.77M | 125.71B | 94.16M | 69.55M | 69.85M | 77.46M |
| Gross Profit | 52.11M | 0.00 | 42.10M | 20.36M | 36.35M | 57.58M |
| EBITDA | 1.29B | 0.00 | 31.97M | 11.70M | 26.76M | 48.52M |
| Net Income | 38.54M | 0.00 | 28.09M | 8.93M | 24.68M | 45.74M |
Balance Sheet | ||||||
| Total Assets | 1.20B | 389.58B | 1.19B | 1.19B | 1.08B | 876.24M |
| Cash, Cash Equivalents and Short-Term Investments | 52.30M | 22.32B | 148.22M | 8.69M | 65.75M | 47.26M |
| Total Debt | 764.68M | 293.33B | 781.82M | 803.67M | 711.13M | 498.88M |
| Total Liabilities | 783.76M | 493.70B | 798.88M | 820.98M | 731.20M | 520.46M |
| Stockholders Equity | 413.21M | -104.12B | 392.67M | 370.22M | 346.96M | 355.78M |
Cash Flow | ||||||
| Free Cash Flow | 22.92M | -88.03B | 197.54M | -157.21M | -130.37M | -203.13M |
| Operating Cash Flow | 22.92M | -88.03B | 197.54M | -157.21M | -130.37M | -203.13M |
| Investing Cash Flow | -38.45M | -124.87B | 0.00 | 0.00 | 2.25B | -55.08B |
| Financing Cash Flow | -65.08M | -94.91B | -33.32M | 101.64M | 173.58M | 226.09M |
Saratoga Investment Technical Analysis
Positive
23.12
Price Trends
22.43
Positive
22.33
Positive
22.15
Positive
Market Momentum
0.21
Negative
61.87
Neutral
87.24
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAR, the sentiment is Positive. The current price of 23.12 is above the 20-day moving average (MA) of 22.03, above the 50-day MA of 22.43, and above the 200-day MA of 22.15, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 61.87 is Neutral, neither overbought nor oversold. The STOCH value of 87.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SAR.
Saratoga Investment Risk Analysis
Saratoga Investment disclosed 82 risk factors in its most recent earnings report. Saratoga Investment reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Saratoga Investment Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $13.77B | 35.16 | 9.22% | 9.64% | 14.51% | -20.45% | |
68 Neutral | $843.24M | ― | 1.29% | 14.17% | 12.25% | -86.65% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $670.20M | 2.10 | 24.70% | 11.02% | -19.47% | 61.85% | |
62 Neutral | ― | 7.82 | 9.56% | 14.11% | 31.71% | -1.43% | |
62 Neutral | $314.73M | 10.64 | 5.42% | 16.61% | 84.11% | 56.99% | |
53 Neutral | $369.77M | -0.98 | -12.44% | 21.13% | -139.70% | -46.02% |
* Financial Sector Average
SAR
Saratoga Investment
23.89
1.98
9.05%
GAIN
Gladstone Investment
16.83
4.37
35.12%
NMFC
New Mountain Finance
8.56
-0.28
-3.13%
PNNT
Pennantpark Investment
4.82
-0.67
-12.14%
ARCC
Ares Capital
19.18
0.35
1.86%
TCPC
BlackRock TCP Capital
4.39
-1.27
-22.40%
Saratoga Investment Corporate Events
Private Placements and Financing
Saratoga Investment Issues New Unsecured Notes Due 2029
Positive
Apr 14, 2026
On April 10, 2026, Saratoga Investment Corp. privately issued $25 million of 7.25% unsecured notes due 2029 to an institutional investor, with potential to increase the issuance to a total of $50 million by July 10, 2026. The notes, which closed o...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Saratoga Investment Updates At-The-Market Equity Offering Program
Positive
Mar 13, 2026
On March 13, 2026, Saratoga Investment Corp. and its adviser amended their existing equity distribution agreement with Lucid Capital Markets, Ladenburg Thalmann, Compass Point, and Raymond James to migrate the company’s at-the-market common ...
Business Operations and StrategyPrivate Placements and Financing
Saratoga Investment Completes $100 Million Unsecured Notes Offering
Positive
Feb 6, 2026
On February 6, 2026, Saratoga Investment Corp. closed a $100 million public offering of 7.50% unsecured notes due 2031, issued under a supplemental indenture with U.S. Bank Trust Company as trustee. The notes, which pay interest quarterly beginnin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.