SuRo Capital (SSSS) AI Stock Analysis

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SuRo Capital

(NASDAQ:SSSS)

42Neutral

SuRo Capital faces significant challenges, particularly with its erratic financial performance and high leverage, which weigh heavily on its overall score. While technical indicators show bearish momentum, the company's promising portfolio developments and strategic focus on AI infrastructure provide potential upside. However, the current valuation and financial inconsistencies present notable risks.

Positive Factors

Investment Prospects

Two significant investments, CoreWeave and OpenAI, could substantially increase the company's NAV, representing about 30% of the current value.

Market Valuation

Despite some recent market turbulence, SuRo's shares are viewed as undervalued, with the stock price at a 21% discount to the 4Q24 NAV.

Negative Factors

Asset Valuation

Learneo was marked down approximately 19%, reflecting the performance of other edtech stocks, but the remaining risk to SuRo's NAV is minimal due to its significant cash balance.

Financial Performance

Net asset value per share decreased by 20.0% year-over-year, reflecting a decline in the company's financial performance.

SuRo Capital (SSSS) vs. S&P 500 (SPY)

Market Cap

$112.58M

Dividend YieldN/A

Average Volume (3M)262.27K

Price to Earnings (P/E)―

Beta (1Y)0.97

Revenue Growth90.08%

EPS Growth-893.47%

CountryUS

Employees10

SectorFinancial

Sector Strength79

IndustryAsset Management

Share Statistics

EPS (TTM)-1.55

Shares Outstanding23,551,859

10 Day Avg. Volume225,468

30 Day Avg. Volume262,267

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)10.03

Price to Cash Flow (P/CF)-2.80

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$7.67

Price Target Upside60.46% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering3

SuRo Capital Business Overview & Revenue Model

Company DescriptionSuRo Capital Corp. (NASDAQ: SSSS) is a publicly traded investment company that primarily focuses on investing in the equity securities of venture-backed, rapidly growing private companies across various sectors including technology, education, and finance. The company seeks to provide growth capital to its portfolio companies and aims to capitalize on the expansion and maturation of these businesses.

How the Company Makes MoneySuRo Capital makes money primarily through the appreciation and eventual sale of its equity investments in private companies. The company invests in early-to-late-stage venture-backed companies with high growth potential. Revenue is generated when these portfolio companies go public through an IPO, are acquired, or experience significant valuation increases, allowing SuRo Capital to sell its shares at a profit. Additionally, the company may earn income through interest and dividends from debt securities and other investment instruments. Key factors contributing to its earnings include market conditions, the performance of its portfolio companies, and strategic investment decisions.

SuRo Capital Financial Statement Overview

Summary

SuRo Capital presents an unusual financial profile with massive revenue spikes and fluctuating profitability, raising questions about the consistency and quality of earnings. The balance sheet shows solid equity but is offset by notable debt levels, indicating leverage risk. Cash flow analysis reveals operational cash generation but with erratic growth, suggesting that the company needs to focus on stabilizing its financial performance to ensure long-term sustainability.

Income Statement

Negative

SuRo Capital's income statement reflects significant volatility, with a recent massive revenue increase to $4.67 trillion in 2024 from $6.60 million in 2023, indicating a possible one-time event or accounting anomaly. Despite this, the company shows a negative EBIT of $13.95 trillion. The absence of net income in 2024 and erratic revenue growth over the years suggest instability and potential concerns in sustainable earnings.

Balance Sheet

Neutral

The balance sheet shows a high level of stockholders' equity at $157.57 trillion, but also a substantial amount of total debt at $29.05 trillion, resulting in a moderate debt-to-equity ratio. The equity ratio is relatively healthy, but the presence of high debt and liabilities raises caution regarding financial leverage and risk.

Cash Flow

Negative

SuRo Capital's cash flow shows positive operating cash flow of $2.37 trillion in 2024 and stable free cash flow, though the free cash flow growth is unsteady. The operating cash flow to net income ratio is not calculable due to zero net income in 2024, highlighting potential cash generation issues. Financing activities show significant cash outflows, indicating possible debt servicing or capital restructuring.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
4.67T	6.60M	3.46M	1.47M	1.82M
	Gross Profit
4.67T	6.60M	3.46M	1.47M	1.82M
	EBIT
-13.95T	10.55M	-9.78M	-9.23M	-12.22M
	EBITDA
0.00	0.00	0.00	156.31M	0.00
	Net Income Common Stockholders
-38.12M	5.07M	-132.18M	147.07M	75.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.04T	28.18M	40.12M	198.44M	45.79M
	Total Assets
10.00T>	277.60M	284.41M	462.32M	478.88M
	Total Debt
29.05T	73.75M	73.68M	73.03M	38.03M
	Net Debt
9.02T	45.57M	33.56M	-125.41M	-7.76M
	Total Liabilities
74.03T	74.24M	74.39M	97.47M	177.29M
	Stockholders Equity
10.00T>	203.36M	210.02M	364.85M	301.58M
Cash Flow		Free Cash Flow
2.37T	2.38M	-110.56M	183.65M	-23.62M
	Operating Cash Flow
2.37T	2.38M	-110.56M	183.65M	-23.62M
	Investing Cash Flow
0.00	0.00	-98.72M	325.71M	-100.19M
	Financing Cash Flow
-10.51T	-14.32M	-47.76M	-31.01M	24.56M

SuRo Capital Technical Analysis

Technical Analysis Sentiment

Negative

Last Price4.78

Price Trends

50DMA

5.61

Negative

100DMA

5.68

Negative

200DMA

4.91

Negative

Market Momentum

MACD

-0.18

Positive

RSI

36.78

Neutral

STOCH

10.61

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSSS, the sentiment is Negative. The current price of 4.78 is below the 20-day moving average (MA) of 5.30, below the 50-day MA of 5.61, and below the 200-day MA of 4.91, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 36.78 is Neutral, neither overbought nor oversold. The STOCH value of 10.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SSSS.

SuRo Capital Risk Analysis

SuRo Capital disclosed 72 risk factors in its most recent earnings report. SuRo Capital 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

SuRo Capital Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAIN	74 Outperform	$4.69B	9.04	19.26%	5.67%	51.80%	12.05%
SLRC	74 Outperform	$824.32M	8.61	9.67%	11.56%	14.33%	25.35%
HTGC	67 Neutral	$3.03B	10.86	13.71%	9.15%	-1.49%	-29.48%
Sector *	64 Neutral	$13.46B	9.44	9.34%	4.72%	16.14%	-8.80%
PSEC	63 Neutral	$1.65B	―	0.78%	17.34%	-31.63%	-0.75%
TPVG	60 Neutral	$249.25M	7.58	9.26%	20.93%	22.53%	―
SSSS	42 Neutral	$112.58M	―	-21.13%	―	90.08%	-893.47%

* Financial Sector Average

Performance Comparison

SSSS

SuRo Capital

4.49

0.47

11.69%

HTGC

Hercules Capital

16.83

0.13

0.78%

MAIN

Main Street Capital

51.48

7.08

15.95%

PSEC

Prospect Capital

3.49

-1.29

-26.99%

SLRC

SLR Investment Corp.

14.50

0.87

6.38%

TPVG

TriplePoint Venture Growth

5.98

-1.86

-23.72%

SuRo Capital Earnings Call Summary

Earnings Call Date: Mar 11, 2025 | % Change Since: -9.30% | Next Earnings Date: May 8, 2025

Earnings Call Sentiment Positive

The earnings call highlighted the strong potential and promising developments in SuRo Capital's portfolio, particularly with anticipated IPOs such as CoreWeave and ongoing growth in companies like OpenAI. However, the decline in NAV and potential markdowns in the legacy portfolio present challenges. The positive highlights related to future prospects and successful exits outweigh the lowlights.

Highlights

CoreWeave's Anticipated IPO

CoreWeave filed its S-1 on March 3rd with expectations to target a valuation greater than $35 billion and raise approximately $4 billion. The company reported 2024 revenue of $1.9 billion, over eight times greater than in 2023.

OpenAI Valuation and Growth

OpenAI is in talks to raise $40 billion at a $300 billion valuation. Its revenue is expected to more than triple from $3.7 million to more than $12.5 million in a year, with 400 million active users reported.

ServiceTitan IPO Success

ServiceTitan priced its IPO at $71 per share, raising approximately $625 million and closing the first day of trading at $101 per share, reflecting a 42% increase.

Successful Exits and Returns

The company exited its position in Oklo, achieving a return of over 20 times the initially invested capital, and fully exited PublicSquare shares with significant realized gains.

Liquid Death Expands Product Line

Liquid Death aired its first national Super Bowl advertisement and expanded its product line with new soda-inspired sparkling waters.

Lowlights

Net Asset Value Decline

NAV per share decreased from $6.73 at the end of Q3 to $6.68 at year-end, with a 16% decline in 2024 attributed primarily to unrealized appreciation and net investment loss.

Potential Further Markdowns

Learneo has been significantly marked down, heavily impacting the portfolio. There is uncertainty regarding potential further markdowns in the legacy portfolio due to market volatility.

Company Guidance

During the fourth quarter and fiscal year 2024 earnings call, SuRo Capital provided significant guidance on its current portfolio and anticipated market activities. The company highlighted the expected IPO of CoreWeave, which filed its S-1 targeting a valuation over $35 billion with plans to raise approximately $4 billion. CoreWeave's revenue for 2024 was reported at $1.9 billion, an eightfold increase from 2023, with a forecast of $8 billion in 2025. SuRo Capital also discussed its investments in OpenAI, which is in talks to raise $40 billion at a $300 billion valuation, and Vast Data, which has reached over $200 million in ARR. The company reported a net asset value of $157.6 million or $6.68 per share as of December 31, 2024, and highlighted that its top five positions, including CoreWeave and OpenAI, accounted for 44% of the investment portfolio at fair value. The call emphasized SuRo Capital's strategic focus on AI infrastructure and applications, which represent 28% of its portfolio, and expressed optimism about the reopening of the IPO window for its portfolio companies.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.