Sound Point Meridian Capital, Inc. (SPMC) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 22.11%
• Average Volume (3M): 24.71K
• Price to Earnings (P/E): 73.0
• Beta (1Y): 0.87
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.53
• Shares Outstanding: 20,496,910
• 10 Day Avg. Volume: 22,746
• 30 Day Avg. Volume: 24,713
• PEG Ratio: -0.06
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 6.28
• P/FCF Ratio: -3.81
• Enterprise Value/Market Cap: 10.00T>
• Enterprise Value/Revenue: 3.60
• Enterprise Value/Gross Profit: 9.20
• Enterprise Value/Ebitda: 25.95
• 1Y Price Target: $17.50
• Price Target Upside: 22.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.53
• Revenue Forecast (FY): $74.82M

• Rating: 57 Neutral
• Price Target: $14.00 ▼(-1.62% Downside)

The score is held back primarily by weak cash conversion (negative operating/free cash flow despite strong reported earnings) and a mixed earnings outlook with NAV declines and spread compression. Technicals are also soft (below key moving averages, negative MACD). The very high dividend yield provides some support, but the high P/E and payout shortfall versus NII temper the valuation and income positives.

Sound Point Meridian Capital, Inc. Business Overview & Revenue Model

Company Description

Sound Point Meridian Capital, LLC operates as a closed-end management investment company in the United States. It focuses on investing primarily in equity and mezzanine tranches of collateralized loan obligations, which are collateralized by portfolios consisting primarily of below-investment grade U.S. senior secured loans. The company was founded in 2022 and is based in New York, New York.

How the Company Makes Money

Sound Point Meridian Capital, Inc. Financial Statement Overview

Summary

Reported profitability and solvency look very strong (high margins, debt-free balance sheet), but cash generation is a major concern: deeply negative operating and free cash flow despite strong net income signals weak cash conversion and lowers confidence in earnings quality. Data consistency issues between periods also reduce reliability.

Income Statement

Profitability is exceptionally strong, with near break-even cost structure and very high operating and net margins (both ~99%) in the latest annual period. Revenue growth is also extremely high in 2025-03-31 (annual) versus the prior period, indicating a sharp step-up in top-line scale. The main weakness is that the results look unusually “perfect” for an asset manager (margins and earnings essentially tracking revenue), which can signal one-time items, classification effects, or a business mix that may be less repeatable.

Balance Sheet

The balance sheet shows no debt and a large equity base relative to assets, which is a strong solvency profile and provides flexibility through cycles. Return on equity is solid in the latest annual period (~22%), supporting the quality of earnings. A key concern is data consistency: the 2023-12-31 equity and assets values appear dramatically smaller than 2025-03-31, and the implied return on equity for 2023 is extraordinarily high, which makes year-to-year comparability less reliable based on the provided figures.

Cash Flow

Cash generation is the clear weakness: operating cash flow and free cash flow are deeply negative (about -$106M) in both periods despite very strong reported net income. This suggests earnings are not converting into cash in the periods shown, raising questions about working-capital movements, timing, or other cash uses that are overwhelming operating profitability. While free cash flow growth is shown as strongly positive in 2025-03-31 (annual), it is still negative in absolute terms, so the underlying cash profile remains pressured.

Breakdown	TTM	Dec 2024	Dec 2023
Income Statement
Total Revenue	100.88M	64.51M	64.51M
Gross Profit	39.44M	64.39M	64.39M
EBITDA	13.98M	63.60M	63.60M
Net Income	119.59K	63.60M	63.60M
Balance Sheet
Total Assets	541.29M	303.21M	303.21K
Cash, Cash Equivalents and Short-Term Investments	3.71M	4.99M	4.99K
Total Debt	77.50M	0.00	0.00
Total Liabilities	195.07M	9.05M	9.05K
Stockholders Equity	346.22M	294.17M	294.17K
Cash Flow
Free Cash Flow	-20.74B	-106.38M	-106.38M
Operating Cash Flow	-20.74B	-106.38M	-106.38M
Investing Cash Flow	-186.75M	0.00	0.00
Financing Cash Flow	17.81B	85.46M	85.46M

Sound Point Meridian Capital, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SCM	60 Neutral	$373.13M	11.97	8.20%	12.83%	90.34%	-44.25%
SPMC	57 Neutral	―	73.05	1.05%	22.11%	―	―
PNNT	57 Neutral	$385.90M	11.89	6.83%	16.61%	-3.09%	200.66%
MRCC	55 Neutral	$139.96M	-34.64	-2.25%	14.03%	-34.92%	-132.22%
TCPC	50 Neutral	$485.29M	-55.20	-1.15%	21.13%	-91.81%	78.46%
GECC	45 Neutral	$97.43M	-13.24	-5.98%	22.43%	47.01%	-179.46%

Sound Point Meridian Capital, Inc. Corporate Events

Sound Point Meridian Capital Announces Preliminary Year-End NAV

Sound Point Meridian Capital, Inc. reported that its management’s unaudited estimate of net asset value per share of common stock as of December 31, 2025, ranged between $13.97 and $14.07. For the quarter ended December 31, 2025, the company estimated unaudited net investment income between $0.40 and $0.48 per share and an unaudited realized loss between $0.01 and $0.09 per share, offering investors an early view of its fourth-quarter and year-end financial position.

The most recent analyst rating on (SPMC) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on Sound Point Meridian Capital, Inc. stock, see the SPMC Stock Forecast page.

Sound Point Meridian Capital Updates NAV Estimate

On November 30, 2025, Sound Point Meridian Capital, Inc. estimated the net asset value per share of its common stock to be between $14.66 and $14.76. This estimation provides stakeholders with a financial benchmark, reflecting the company’s current valuation and potentially influencing investor decisions.

The most recent analyst rating on (SPMC) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Sound Point Meridian Capital, Inc. stock, see the SPMC Stock Forecast page.

Sound Point Meridian Reports Q2 2025 Financial Results

On November 13, 2025, Sound Point Meridian Capital, Inc. announced its financial results for the second fiscal quarter ending September 30, 2025. The company reported a net asset value per share of $16.91 and a net investment income of $11.0 million. However, it faced a GAAP net loss of $17.2 million due to realized and unrealized losses on investments. The company also declared monthly distributions for its common and preferred stock to be paid in early 2026. These results reflect the company’s ongoing challenges in managing its investment portfolio, particularly in the CLO market, impacting its financial performance and stakeholder returns.

The most recent analyst rating on (SPMC) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Sound Point Meridian Capital, Inc. stock, see the SPMC Stock Forecast page.

Sound Point Meridian Releases October NAV Estimate

Sound Point Meridian Capital, Inc. announced an unaudited estimate of their net asset value per share for October 31, 2025, ranging between $16.12 and $16.22. This estimation provides stakeholders with an insight into the company’s financial standing as of that date, potentially impacting investor confidence and market perception.

The most recent analyst rating on (SPMC) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Sound Point Meridian Capital, Inc. stock, see the SPMC Stock Forecast page.

Sound Point Meridian Capital Appoints New CFO

On November 5, 2025, Sound Point Meridian Capital, Inc. announced the appointment of Daniel Fabian as the new Chief Financial Officer, effective December 31, 2025, following the departure of Kevin Gerlitz. Mr. Fabian, who joined Sound Point Capital Management, LP in May 2025, brings over 20 years of experience in the global asset management sector and will oversee finance, tax, valuations, technology, and fund reporting functions, potentially enhancing the company’s operational scalability.

The most recent analyst rating on (SPMC) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Sound Point Meridian Capital, Inc. stock, see the SPMC Stock Forecast page.

Sound Point Meridian Declares Q4 2026 Stock Distributions

On November 5, 2025, Sound Point Meridian Capital, Inc. announced the declaration of distributions for its common and preferred stock for the fourth fiscal quarter of 2026. The company declared a monthly distribution of $0.25 per share on its common stock and distributions on its Series A and Series B Term Preferred Stock, reflecting annual distribution rates of 8.00% and 7.875% respectively. These distributions are scheduled for January, February, and March 2026, and are expected to be paid from net investment income, capital gains, or return of capital, with tax characteristics to be reported to stockholders after the 2025 calendar year.

The most recent analyst rating on (SPMC) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Sound Point Meridian Capital, Inc. stock, see the SPMC Stock Forecast page.