SLR Investment Corp. (SLRC) AI Stock Analysis

• Market Cap: $848.87M
• Dividend Yield: 10.55%
• Average Volume (3M): 256.88K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.54
• Revenue Growth: -6.30%
• EPS Growth: -6.92%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.40
• Shares Outstanding: 54,554,634
• 10 Day Avg. Volume: 278,084
• 30 Day Avg. Volume: 256,884
• PEG Ratio: 0.36
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 4.98
• P/FCF Ratio: 2.84
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 8.23
• Enterprise Value/Gross Profit: 13.79
• Enterprise Value/Ebitda: 15.30
• 1Y Price Target: $16.96
• Price Target Upside: 9.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 1.6
• Revenue Forecast (FY): $219.00M

• Rating: 72 Outperform
• Price Target: $17.00 ▲(9.40% 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. 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. 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. 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.

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	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

• Technical Analysis Sentiment: Positive
• Last Price: 15.54
• 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 15.54 is above the 20-day moving average (MA) of 15.42, above the 50-day MA of 14.89, and above the 200-day MA of 15.17, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 58.08 is Neutral, neither overbought nor oversold. The STOCH value of 19.75 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
SLRC	72 Outperform	$848.87M	9.42	9.07%	10.55%	-6.30%	-6.92%
FDUS	68 Neutral	$721.26M	8.42	11.92%	11.51%	-12.17%	-14.93%
BCSF	68 Neutral	$901.67M	9.66	8.18%	13.10%	-26.08%	-27.65%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CGBD	67 Neutral	$933.89M	11.13	7.03%	13.28%	-8.23%	-35.72%
NMFC	66 Neutral	$988.23M	14.68	5.43%	14.01%	36.15%	-38.59%
PFLT	63 Neutral	$915.78M	12.87	6.80%	13.47%	36.91%	-48.79%

SLR Investment Corp. Corporate Events

SLR Investment Corp. Holds Annual Stockholders Meeting

On November 19, 2025, SLR Investment Corp. held its Annual Meeting of Stockholders where two key matters were voted upon. Stockholders elected Andrea C. Roberts and David S. Wachter as directors for a three-year term, and ratified KPMG LLP as the independent registered public accounting firm for the year ending December 31, 2025.