SLR Investment Corp. (SLRC)
NASDAQ:SLRC
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SLR Investment Corp.
(NASDAQ:SLRC)
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Rating:56Neutral
Price Target:
$14.00
▼(-13.21% Downside)
Action:Reiterated
Date:05/09/26
The score is held back primarily by weak cash-flow quality and bearish technicals (downtrend with negative momentum). This is partially offset by attractive valuation (low P/E and high yield) and an earnings-call backdrop of strong credit quality and liquidity, though near-term NII and portfolio growth pressures remain.
Positive Factors
Strong credit quality & senior‑secured focus
A nearly all senior‑secured, first‑lien portfolio with 100% of investments performing and zero nonaccruals materially reduces downside loss risk and credit volatility. This collateralized mix supports more durable interest income and protects NAV in stressed cycles, strengthening long‑term income stability.
Negative Factors
Volatile and negative operating/free cash flow
Recurring negative operating and free cash flow increases reliance on financing, realized gains, or portfolio sales to fund distributions and growth. Over months this undermines self‑funding capacity, raises sensitivity to funding markets, and constrains the ability to absorb credit stress without dilutive or costly capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong credit quality & senior‑secured focus
A nearly all senior‑secured, first‑lien portfolio with 100% of investments performing and zero nonaccruals materially reduces downside loss risk and credit volatility. This collateralized mix supports more durable interest income and protects NAV in stressed cycles, strengthening long‑term income stability.
Read all positive factors
SLR Investment Corp. (SLRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$715.76M
Dividend Yield10.8%
Average Volume (3M)531.60K
Price to Earnings (P/E)11.4
Beta (1Y)0.59
Revenue Growth-3.59%
EPS Growth2.19%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)1.64
Shares Outstanding54,554,634
10 Day Avg. Volume508,690
30 Day Avg. Volume531,597
Financial Highlights & Ratios
PEG Ratio-2.67
Price to Book (P/B)0.85
Price to Sales (P/S)3.83
P/FCF Ratio-11.71
Enterprise Value/Market Cap2.56
Enterprise Value/Revenue10.05
Enterprise Value/Gross Profit15.71
Enterprise Value/Ebitda17.29
Forecast
1Y Price Target
$15.21Price Target Upside-5.68% Downside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)1.35
Revenue Forecast (FY)$201.11M
SLR Investment Corp. Business Overview & Revenue Model
Company Description
SLR Investment Corp. is a business development company specializing in secured debt (first lien unitranche and second lien), subordinated (unsecured) debt, minority equity, leveraged buyouts, acquisitions, recapitalizations, general refinancing, g...
How the Company Makes Money
SLR Investment Corp. primarily makes money from investment income generated on its lending and investment portfolio. The core revenue stream is interest income earned on loans it extends to portfolio companies (commonly senior secured loans), incl...
SLR Investment Corp. Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Neutral
Balanced/Neutral. The call emphasized strong credit quality (100% performing, zero nonaccruals), high first-lien and senior-secured mix, ample liquidity, investment-grade ratings, and strategic actions (incentive-fee reduction, ABL sourcing partnerships) that position the company for opportunistic growth. Offsetting these positives were meaningful sequential declines in NII (~17% per-share), lower gross investment income (~9.6% down), net repayments that contracted the comprehensive portfolio (net repayments of $180M), and continued origination headwinds in Life Sciences that reduced fee income. Management presented a measured plan to rebuild fee income and earnings over multiple quarters but near-term earnings and portfolio churn pressures temper the outlook.Positive Updates
Strong Credit Quality and Portfolio Performance
100% of investments at cost were performing with zero investments on nonaccrual; watch list represented only 2.2% of the portfolio (unchanged from Q1 2021). Weighted average investment risk rating was under 2 on a 1-4 scale; ~98% of portfolio rated two or higher.
Negative Updates
Sequential Decline in Net Investment Income
Net investment income (NII) was $17.9 million, or $0.33 per share for Q1 2026, down from $21.6 million, or $0.40 per share in Q4 2025 — a sequential decline of ~17% in NII and ~17.5% on a per-share basis.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Credit Quality and Portfolio Performance
100% of investments at cost were performing with zero investments on nonaccrual; watch list represented only 2.2% of the portfolio (unchanged from Q1 2021). Weighted average investment risk rating was under 2 on a 1-4 scale; ~98% of portfolio rated two or higher.
Read all positive updates
Company Guidance
Management said they expect NII to recover toward roughly $0.40 per share (Q1 NII $0.33) and for net income/total‑return ROE to remain above public and private BDC averages (Q1 net income $0.31/share ≈ 7% annualized ROE), supported by a $3.2 billion comprehensive portfolio (NAV $18.16/share at 3/31/26), 94.5% first‑lien / ~98% senior‑secured loans, 100% of investments at cost performing and a 2.2% watch list. Near‑term growth levers are focused on specialty finance—particularly ABL (Q1 ABL originations $77M, repayments $194M, ABL portfolio ≈ $1.4B / ~43% of total) and life sciences (Q1 life sciences ≈ $180M, ~6% of portfolio; historically ~22% of quarterly gross income)—with management expecting net portfolio growth in ABL through the remainder of 2026 and churn to normalize over the next 12–24 months to boost fee income. To fund growth while preserving capital they cited >$900M available liquidity (including ~$54M undrawn at SSLP), revolving commitments increased to $720M, total debt outstanding ≈ $1.1B with net debt/equity 1.14x (target range 0.9x–1.25x), one $75M unsecured maturity in Dec‑2026, plus governance actions—Board declared a $0.31 quarterly distribution (payable 6/26/26), lowered performance fee to 17.5% (from 20%), and extended a $50M repurchase program—to align incentives and support the path back to higher earnings.SLR Investment Corp. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 182.54M | 220.14M | 176.45M | 159.05M | 74.40M | 99.41M |
| Gross Profit | 116.78M | 161.44M | 104.99M | 86.54M | 28.32M | 69.53M |
| EBITDA | 106.12M | 163.57M | 95.76M | 76.39M | 18.34M | 59.57M |
| Net Income | 89.73M | 92.54M | 95.76M | 76.39M | 18.34M | 59.57M |
Balance Sheet | ||||||
| Total Assets | 2.54B | 2.57B | 2.45B | 2.52B | 2.54B | 2.01B |
| Cash, Cash Equivalents and Short-Term Investments | 11.19M | 15.72M | 414.27M | 344.15M | 428.33M | 322.94M |
| Total Debt | 1.14B | 1.15B | 1.03B | 1.18B | 1.09B | 812.04M |
| Total Liabilities | 1.55B | 1.58B | 1.46B | 1.54B | 1.54B | 1.17B |
| Stockholders Equity | 990.75M | 995.99M | 992.93M | 986.64M | 999.73M | 842.28M |
Cash Flow | ||||||
| Free Cash Flow | -91.63M | -72.02M | 156.13M | -3.71M | 91.06M | -135.10M |
| Operating Cash Flow | -91.63M | -72.02M | 156.13M | -3.71M | 91.06M | -135.10M |
| Investing Cash Flow | 18.66M | 0.00 | 153.18M | -73.18M | -78.26M | -127.72M |
| Financing Cash Flow | 6.10M | 22.05M | -239.20M | -7.30M | 14.34M | 69.26M |
SLR Investment Corp. Technical Analysis
Negative
16.13
Price Trends
14.54
Negative
14.57
Negative
14.65
Negative
Market Momentum
-0.58
Positive
31.12
Neutral
32.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLRC, the sentiment is Negative. The current price of 16.13 is above the 20-day moving average (MA) of 14.11, above the 50-day MA of 14.54, and above the 200-day MA of 14.65, indicating a bearish trend. The MACD of -0.58 indicates Positive momentum. The RSI at 31.12 is Neutral, neither overbought nor oversold. The STOCH value of 32.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLRC.
SLR Investment Corp. Risk Analysis
SLR Investment Corp. disclosed 6 risk factors in its most recent earnings report. SLR Investment Corp. 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
SLR Investment Corp. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $711.26M | 8.31 | 11.45% | 11.47% | -15.44% | -2.66% | |
69 Neutral | $810.61M | 6.94 | 5.84% | 13.64% | -8.63% | -30.41% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $862.75M | 59.32 | 6.57% | 13.18% | 2.31% | -35.07% | |
59 Neutral | $766.95M | ― | -4.83% | 14.17% | -24.31% | -157.16% | |
56 Neutral | $715.76M | 11.40 | 9.04% | 10.80% | -3.59% | 2.19% | |
56 Neutral | $749.87M | ― | 4.42% | 13.63% | 15.30% | -48.57% |
* Financial Sector Average
SLRC
SLR Investment Corp.
12.97
-1.82
-12.30%
FDUS
Fidus Investment
18.63
0.58
3.22%
NMFC
New Mountain Finance
7.94
-1.28
-13.88%
PFLT
Pennantpark
8.11
-0.71
-8.06%
CGBD
Carlyle Secured Lending Inc
10.68
-1.46
-12.06%
BCSF
Bain Capital Specialty Finance
13.21
-0.18
-1.36%
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.