SLR Investment Corp. (SLRC) AI Stock Analysis

• Market Cap: $884.33M
• Dividend Yield: 10.13%
• Average Volume (3M): 133.43K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.52
• Revenue Growth: 14.33%
• EPS Growth: 25.35%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 76
• Industry: Asset Management
• EPS (TTM): 0.41
• Shares Outstanding: 54,554,634
• 10 Day Avg. Volume: 156,812
• 30 Day Avg. Volume: 133,427
• PEG Ratio: -1.18
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.89
• Enterprise Value/Market Cap: 1.56
• Enterprise Value/Revenue: 1.90
• Enterprise Value/Gross Profit: 14.19
• Enterprise Value/Ebitda: 3.48
• 1Y Price Target: $16.21
• Price Target Upside: 0.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 71 Outperform
• Price Target: ―

SLR Investment Corp. demonstrates strong financial performance with substantial revenue growth and effective cost management, despite some volatility in cash flows. The stock's valuation is attractive due to a low P/E ratio and high dividend yield, appealing to income-focused investors. Technical indicators suggest a bearish trend, presenting a potential risk. The earnings call provided a cautiously optimistic outlook with robust specialty finance growth, despite some sector challenges.

Positive Factors

Dividends

Control company dividends grew approximately $2 million quarter-over-quarter, led by Kingsbridge and SLR Business Credit.

Investment Pipeline

SLRC has an attractive investment pipeline and is well-positioned to benefit from low leverage.

Negative Factors

Financial Performance

SLR Equipment Finance was written down by approximately $6 million, resulting in net losses in most quarters since 3Q22.

Ratings

The analyst maintains an Underweight rating on the stock.

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, growth capital and strategic income-oriented control equity investments in leveraged middle market companies. The fund invests in aerospace and defense; air freight & logistics; asset management; automotive; banking; beverage, food and tobacco; building products; buildings and real estate; broadcasting and entertainment; cargo transport; commercial services and supplies; communications equipment; chemicals, plastics and rubber; containers, packaging and glass; construction & engineering; diversified/conglomerate manufacturing; consumer Finance; distributors; diversified/conglomerate services; diversified financial services; diversified real estate activities; food products; Footwear; Education Services; diversified telecommunications services; electronics; farming and agriculture; finance; grocery; health care equipment and supplies; health care facilities; education and childcare; home and office furnishing, durable consumer products; hotels, motels, inns and gaming; insurance; restaurants, leisure, amusement, and entertainment; leisure equipment tolls and services, media, multiline retail, multi sector holdings; paper and forest products; personal products; professional services, research and consulting services, software; specialty retail; textiles apparel and luxury goods, thrifts and mortgage finance, trading companies and distributors, utilities, and wireless telecommunication services; industrial conglomerates; internet software and services, IT services, machinery; mining, steel, iron, and non-precious metals; oil and gas; personal, food and miscellaneous services; printing and publishing; retail stores; telecommunications; textiles and leather; and utilities. It also invests in life sciences with focus on specialty pharmaceuticals, medical devices, biotech, health Care Providers and services; health Care technology, enabling technologies and tools. The fund primarily invests in United States. The fund's investments generally range between $5 million and $100 million. The fund invests in companies with revenues between $50 million and $1 billion and EBITDA between $15 million and $100 million. It invests in the form of senior secured loans, mezzanine loans, and equity securities. It may also seek investments in thinly traded public companies and also make secondary investments. The fund makes non-control equity investments. It primarily exits within three years of the initial capital commitment.

How the Company Makes Money

SLR Investment Corp. makes money primarily through interest and fee income generated from its lending activities. By extending senior and junior secured loans to middle-market companies, SLRC earns interest payments that form a significant portion of its revenue. Additionally, the company may generate income through equity investments, where it takes ownership stakes in companies and benefits from capital appreciation and dividends. SLRC's earnings are also influenced by strategic partnerships with financial institutions, which may provide co-investment opportunities and enhance its investment capabilities. The company's performance is closely tied to the credit quality of its portfolio and the broader economic environment, as these factors impact the repayment capacity of its borrowers.

SLR Investment Corp. Financial Statement Overview

Summary

SLR Investment Corp. has shown substantial revenue growth and effective cost management, leading to improved EBIT margins. The balance sheet reflects strong equity and no debt, suggesting low financial risk. However, the volatility in cash flows over the years raises concerns about cash management consistency. The lack of reported net income in the latest period limits a full assessment of profitability.

Income Statement

SLR Investment Corp. shows a strong revenue growth trajectory, with a significant increase from $28.32M in 2022 to $232.43M in 2024. The EBIT margin improved considerably from 26.43% in 2021 to 98.34% in 2024, indicating efficient cost management. However, the net income for 2024 is not reported, which limits a comprehensive profitability analysis.

Balance Sheet

The company maintains a strong equity position, with a consistent stockholders' equity over the years, peaking at $992.93M in 2024. The equity ratio remained stable, reflecting financial stability. The debt-to-equity ratio was zero in 2024, showing no reliance on debt, but the absence of total debt might suggest underutilization of leverage.

Cash Flow

SLR Investment Corp. demonstrated a positive shift in operating cash flow from -$76.88M in 2023 to $309.32M in 2024, indicating improved cash generation capabilities. Free cash flow also turned positive, supporting potential reinvestment and shareholder returns. However, the volatility in cash flows over the years suggests potential instability in cash management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
166.13M	176.45M	201.33M	28.32M	69.53M	23.60M
	Gross Profit
97.01M	104.99M	141.37M	22.91M	25.37M	-8.84M
	EBIT
87.81M	95.76M	148.90M	74.84M	59.57M	15.45M
	EBITDA
87.81M	95.76M	148.90M	64.43M	89.44M	42.61M
	Net Income Common Stockholders
87.81M	95.76M	76.39M	65.96M	59.57M	15.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
467.00M	414.27M	344.15M	19.11M	322.94M	388.78M
	Total Assets
2.50B	2.45B	2.52B	2.54B	2.01B	1.94B
	Total Debt
1.04B	1.03B	1.18B	1.09B	812.04M	671.45M
	Net Debt
572.41M	617.42M	-344.15M	657.66M	489.10M	282.68M
	Total Liabilities
1.51B	1.46B	1.54B	1.54B	1.17B	1.08B
	Stockholders Equity
990.49M	992.93M	986.64M	999.73M	842.28M	852.02M
Cash Flow		Free Cash Flow
370.12M	309.31M	-76.88M	91.06M	-135.10M	-62.60M
	Operating Cash Flow
370.12M	309.31M	-76.88M	91.06M	-135.10M	-62.60M
	Investing Cash Flow
0.00	0.00	-61.24M	-78.26M	-127.72M	-43.68M
	Financing Cash Flow
-211.24M	-239.20M	-7.30M	14.34M	69.26M	15.03M

SLR Investment Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLRC, the sentiment is Positive. The current price of 16.18 is below the 20-day moving average (MA) of 16.30, above the 50-day MA of 15.69, and above the 200-day MA of 15.42, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 50.69 is Neutral, neither overbought nor oversold. The STOCH value of 14.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLRC.

SLR Investment Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NCDL	75 Outperform	$835.68M	8.85	10.56%	10.80%	37.08%	-2.29%
SLRC	71 Outperform	$884.33M	10.07	8.86%	10.13%	14.33%	25.35%
TRIN	71 Outperform	$922.57M	6.51	17.56%	14.29%	46.14%	34.91%
PFLT	70 Outperform	$1.03B	11.59	7.59%	11.99%	93.63%	24.41%
CGBD	67 Neutral	$1.02B	10.70	6.92%	12.96%	-11.85%	-3.73%
BCSF	66 Neutral	$967.84M	8.54	9.87%	12.06%	12.24%	-3.21%
Sector *	65 Neutral	$12.76B	9.91	7.89%	78.91%	12.06%	-7.95%