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SLR Investment Corp. (SLRC)
:SLRC
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SLR Investment Corp.
(NASDAQ:SLRC)
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Rating:72Outperform
Price Target:
$17.00
â–²(7.05% Upside)
SLR Investment Corp. benefits from strong financial performance, particularly in revenue growth and cost management, and a favorable valuation with a low P/E ratio and high dividend yield. The earnings call provided positive insights into asset-based lending and strategic growth initiatives, although concerns about dividend coverage and market conditions temper the outlook. Technical indicators suggest caution due to potential overbought conditions.
Positive Factors
Strong Asset-Based Lending Performance
The focus on asset-based lending, with a significant portion of new investments, indicates a strategic growth area, enhancing revenue stability and market positioning.
Positive Portfolio Composition
A high percentage of senior secured loans in the portfolio suggests strong credit quality and resilience, which supports long-term financial stability.
Strategic Personnel Expansion
Expanding personnel in key areas reflects a commitment to strengthening operational capabilities and enhancing competitive advantage in specialty finance.
Negative Factors
Slight Underperformance of Dividend Coverage
The shortfall in dividend coverage could indicate potential pressure on cash flow management, affecting investor confidence and future dividend sustainability.
Concerns Over Private Credit Market Conditions
Rising credit risks and deteriorating lender protections in the private credit market may impact SLRC's investment returns and portfolio stability.
Challenges in Life Sciences Segment
Ongoing challenges in the life sciences segment, including regulatory uncertainties, could hinder growth and diversification efforts in this sector.
SLR Investment Corp. (SLRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$866.33M
Dividend Yield10.57%
Average Volume (3M)299.36K
Price to Earnings (P/E)9.6
Beta (1Y)0.52
Revenue Growth-6.30%
EPS Growth-6.92%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.40
Shares Outstanding54,554,634
10 Day Avg. Volume298,653
30 Day Avg. Volume299,361
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)0.89
Price to Sales (P/S)4.98
P/FCF Ratio2.84
Enterprise Value/Market Cap1.59
Enterprise Value/Revenue8.23
Enterprise Value/Gross Profit13.79
Enterprise Value/Ebitda15.30
Forecast
1Y Price Target
$16.39Price Target Upside3.21% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)1.62
Revenue Forecast (FY)$218.94M
SLR Investment Corp. Business Overview & Revenue Model
Company DescriptionSLR Investment Corp. (SLRC) is a publicly traded business development company that primarily focuses on providing tailored financing solutions to middle-market companies across various sectors. The company specializes in originating and managing a diversified investment portfolio, which includes a mix of secured and unsecured debt, as well as equity investments. SLR Investment Corp. aims to support growth-oriented businesses by offering flexible capital solutions that meet their unique financing needs.
How the Company Makes MoneySLR Investment Corp. generates revenue through interest income from its debt investments, which typically represent the largest portion of its earnings. The company invests in senior secured loans, subordinated debt, and equity in private companies, which yield interest payments and potential capital gains. Additionally, SLRC may earn fee income from transaction fees, management fees, and other service-related revenues associated with its investment activities. The company also benefits from strategic partnerships with financial institutions and other investment firms, allowing it to access a broader range of investment opportunities and enhance its overall portfolio performance.
SLR Investment Corp. Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 03, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in asset-based lending and stable portfolio credit quality. However, slight dividend underperformance and concerns in the broader private credit market and life sciences segment present challenges. The company remains strategically focused on specialty finance, personnel expansion, and maintaining a resilient portfolio.Q3-2025 Updates
Positive Updates
Strong Asset-Based Lending (ABL) Performance
SLR Investment Corp originated over $300 million in new ABL investments and experienced high demand, with a weighted average yield of 13.4%. ABL represented 44% of the total portfolio, highlighting its strategic importance and growth potential.
Positive Portfolio Composition and Credit Quality
94.8% of the comprehensive investment portfolio consisted of first lien senior secured loans, with 99.5% of debt investments performing. These metrics indicate strong credit quality and resilience in the portfolio.
Resilient Net Asset Value (NAV)
The net asset value per share increased slightly to $18.21, maintaining stability and reflecting a well-managed investment strategy.
Successful Unsecured Debt Issuance
SLR issued $125 million in 3-year unsecured notes at rates around 5.95%, enhancing capital base diversity and securing attractive debt capital costs.
Strategic Personnel Expansion
The company hired over 100 new employees, primarily in asset-based and special lending strategies, indicating a focus on strengthening operational capabilities and market position.
Negative Updates
Slight Underperformance of Dividend Coverage
Net investment income per share was $0.40, slightly below the base dividend of $0.41 per share, indicating a minor shortfall in dividend coverage.
Concerns Over Private Credit Market Conditions
Elevated concerns about credit quality and conditions in the private credit industry were noted, with rising credit risks and deteriorating lender protections in competitive markets.
Challenges in Life Sciences Segment
Life sciences portfolio experienced a quiet quarter on the origination front, with ongoing valuation challenges and regulatory uncertainties impacting investment activities.
Company Guidance
During the third quarter of 2025 earnings call for SLR Investment Corporation, the company reported net investment income of $0.40 per share and net income of $0.43 per share, with a net asset value per share of $18.21 as of September 30, 2025. The company's portfolio achieved a 9.4% annualized return on equity, although net investment per share was slightly below the base dividend of $0.41 per share. SLR originated $447 million in new investments and received $419 million in repayments during the quarter, marking a 12.7% year-over-year increase in new originations. The company emphasized its shift towards asset-based lending (ABL) strategies, reporting that 93% of third-quarter originations were in specialty finance, and highlighted a 17.1% annualized portfolio growth rate since 2020. The portfolio's composition at quarter-end was 94.8% first lien senior secured loans, with a performing debt investment rate of 99.5% at cost. The company's liquidity position was strong, with over $850 million of available capital for deployment. The call also noted the hiring of over 100 new employees over the past two years to support the expansion of the ABL platform, and the strategic addition of Mac Fowle as President of Asset-Based Lending.SLR Investment Corp. Financial Statement Overview
Summary
SLR Investment Corp. demonstrates strong revenue growth and improved EBIT margins, indicating effective cost management. The balance sheet shows strong equity with no debt, suggesting low financial risk. However, cash flow volatility raises concerns about cash management consistency, and 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.75
Positive
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.70
Positive
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.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 167.35M | 176.45M | 159.05M | 74.40M | 99.41M | 50.76M |
| Gross Profit | 99.90M | 104.99M | 86.54M | 28.32M | 69.53M | 23.60M |
| EBITDA | 90.07M | 95.76M | 76.39M | 18.34M | 59.57M | 15.45M |
| Net Income | 90.07M | 95.76M | 76.39M | 18.34M | 59.57M | 15.45M |
Balance Sheet | ||||||
| Total Assets | 2.53B | 2.45B | 2.52B | 2.54B | 2.01B | 1.94B |
| Cash, Cash Equivalents and Short-Term Investments | 394.45M | 414.27M | 344.15M | 428.33M | 322.94M | 388.78M |
| Total Debt | 1.14B | 1.03B | 1.18B | 1.09B | 812.04M | 671.45M |
| Total Liabilities | 1.54B | 1.46B | 1.54B | 1.54B | 1.17B | 1.08B |
| Stockholders Equity | 993.29M | 992.93M | 986.64M | 999.73M | 842.28M | 852.02M |
Cash Flow | ||||||
| Free Cash Flow | 197.46M | 156.13M | -3.71M | 91.06M | -135.10M | -62.60M |
| Operating Cash Flow | 197.46M | 156.13M | -3.71M | 91.06M | -135.10M | -62.60M |
| Investing Cash Flow | -93.09M | 153.18M | -73.18M | -78.26M | -127.72M | -43.68M |
| Financing Cash Flow | -55.55M | -239.20M | -7.30M | 14.34M | 69.26M | 15.03M |
SLR Investment Corp. Technical Analysis
Positive
15.88
Price Trends
15.11
Positive
15.56
Positive
15.59
Positive
Market Momentum
0.13
Negative
64.87
Neutral
91.78
Negative
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 15.88 is above the 20-day moving average (MA) of 15.34, above the 50-day MA of 15.11, and above the 200-day MA of 15.59, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 64.87 is Neutral, neither overbought nor oversold. The STOCH value of 91.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLRC.
SLR Investment Corp. Risk Analysis
SLR Investment Corp. disclosed 3 risk factors in its most recent earnings report. SLR Investment Corp. reported the most risks in the "Legal & Regulatory" 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $866.33M | 9.62 | 9.07% | 10.57% | -6.30% | -6.92% | |
71 Outperform | $717.62M | 8.38 | 11.92% | 11.43% | -12.17% | -14.93% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $913.47M | 10.89 | 7.03% | 14.19% | -8.23% | -35.72% | |
66 Neutral | $991.33M | 14.73 | 5.43% | 13.40% | 36.15% | -38.59% | |
63 Neutral | $903.87M | 12.70 | 6.80% | 13.50% | 36.91% | -48.79% | |
63 Neutral | $925.67M | 9.92 | 8.18% | 12.61% | -26.08% | -27.65% |
* Financial Sector Average
SLRC
SLR Investment Corp.
15.88
0.70
4.61%
FDUS
Fidus Investment
19.70
0.62
3.25%
NMFC
New Mountain Finance
9.61
-0.97
-9.17%
PFLT
Pennantpark $
9.11
-0.89
-8.90%
CGBD
Carlyle Secured Lending Inc
12.53
-2.96
-19.11%
BCSF
Bain Capital Specialty Finance
14.27
-1.03
-6.73%
SLR Investment Corp. Corporate Events
SLR Investment Corp. Reports Stable Q3 2025 Earnings
Nov 6, 2025
SLR Investment Corp. is a closed-end investment company that operates as a business development company under the Investment Company Act of 1940, specializing in providing capital solutions to U.S. upper middle market companies through cash flow, asset-based, and life sciences senior secured loans.
SLR Investment Corp. Reports Stable Q2 2025 Results
Aug 7, 2025
SLR Investment Corp. is a closed-end investment company specializing in providing senior secured loans to U.S. upper middle market companies across various niche sectors, including cash flow, asset-based, and life sciences finance.
SLR Investment Corp Reports Record Quarter in Earnings Call
Aug 7, 2025
SLR Investment Corp’s recent earnings call conveyed a robust performance for the quarter, marked by record-breaking originations and strong asset-based lending results. Despite facing challenges such as net investment income falling slightly below the base dividend and subdued sponsor finance activity, the company remains well-positioned with a high-quality portfolio and strategic infrastructure investments.
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.