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SuRo Capital (SSSS)
NASDAQ:SSSS
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SuRo Capital
(NASDAQ:SSSS)
Rating:45Neutral
Price Target:―
Positive Factors
Analyst rating
Analyst reiterates OUTPERFORM rating and raises the 12-month price target to $9, representing approximately 22% upside.
IPO and investment gains
CoreWeave's IPO was the largest technology IPO since 2021 and its stock has risen significantly, adding approximately $2.20 to SuRo’s NAV since quarter end.
Portfolio potential
Potential monetization events within SuRo’s portfolio are increasingly likely, which will drive SuRo’s NAV, shareholder dividends/distributions, and its stock price higher.
Negative Factors
Financial performance
Net asset value per share decreased by 20.0% year-over-year, reflecting a decline in the company's financial performance.
Investment markdown
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.
Net asset value decline
Net asset value (NAV) totaled $156.8 million, or $6.68 per share, at the midpoint of management’s preliminary estimate, showing a decrease from $6.73 per share on September 30, 2024, and $7.99 per share on December 31, 2023.
SuRo Capital (SSSS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$173.11M
Dividend YieldN/A
Average Volume (3M)237.09K
Price to Earnings (P/E)―
Beta (1Y)0.88
Revenue Growth90.08%
EPS Growth-893.47%
CountryUS
Employees10
SectorFinancial
Sector Strength83
IndustryAsset Management
Share Statistics
EPS (TTM)-0.03
Shares Outstanding23,551,859
10 Day Avg. Volume401,115
30 Day Avg. Volume237,087
Financial Highlights & Ratios
PEG Ratio-0.19
Price to Book (P/B)<0.01
Price to Sales (P/S)0.00
P/FCF Ratio>-0.01
Enterprise Value/Market Cap102.66K
Enterprise Value/Revenue958.42K
Enterprise Value/Gross Profit3.98M
Enterprise Value/Ebitda-1.85
Forecast
1Y Price Target
$8.00Price Target Upside8.25% 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 Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 42.12%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements such as OpenAI's record-breaking funding round and CoreWeave's successful IPO, indicating strong growth and strategic positioning in the AI and fintech sectors. Despite challenges in the broader market context, SuRo Capital's investments show robust potential for future value creation.Q1-2025 Updates
Positive Updates
OpenAI's Record-Breaking Funding Round
OpenAI announced a $40 billion funding round at a $300 billion post-money valuation, marking the largest private capital raise ever by a technology company. This was a significant increase from its previous $7 billion round at a $150 billion post-money valuation.
CoreWeave's Successful IPO and Contract with OpenAI
CoreWeave completed the largest technology company IPO since 2021, raising $1.5 billion at a $23 billion valuation. It also announced a 5-year $11.9 billion contract with OpenAI, resulting in a 35% increase in stock price.
Canva's Global Growth
Canva's Visual Suite 2.0 launch accelerated global growth, with more than 145 million users joining the platform since 2022. Canva's annualized revenue increased by over 30%, reaching more than $3 billion.
Plaid's Strategic Investment
SuRo Capital made a $5 billion investment in Plaid, which completed a $575 million financing at a $6.1 billion post-money valuation. Plaid supports over 100 million users and is integrated with more than 8,000 digital finance apps.
Negative Updates
Challenging Public Market Environment
The first quarter of 2025 was challenging for public markets, with the NASDAQ posting its worst performance since 2022. Major indices like the Russell 2000 and the Dow Jones Industrial Average saw significant declines due to global trade tensions and tariffs.
Impact on Private Market Valuations
The decline in public markets led to a compression in private market valuations, affecting SuRo Capital's portfolio company valuations as of March 31st.
Company Guidance
During SuRo Capital's First Quarter 2025 earnings call, significant attention was given to the company's portfolio performance and future outlook, with emphasis on key metrics and developments. Notably, OpenAI's substantial growth was highlighted, having secured a $40 billion funding round at a $300 billion post-money valuation, marking a significant increase from the previous valuation. The company reported 500 million weekly active users, a jump from 300 million in December, and projected revenues escalating from $13 billion in 2025 to $174 billion by 2030. CoreWeave’s IPO raised $1.5 billion at a $23 billion valuation, with its stock price surging over 35% post-IPO. SuRo Capital's top five positions, including OpenAI and CoreWeave, accounted for 46% of their investment portfolio at fair value. The company's net asset value stood at $156.8 million, or $6.66 per share, reflecting a slight decrease from the previous quarter. Additionally, the company discussed recent investments and liquidity, including a $5 billion investment in Plaid, and outlined their strategic focus on AI and fintech sectors.SuRo Capital Financial Statement Overview
Summary
SuRo Capital's financial performance is characterized by erratic revenue spikes and fluctuating profitability, with a significant but potentially unsustainable revenue increase in 2024. The high debt levels pose leverage risks, despite solid equity, and unstable cash flow growth suggests the need for financial stabilization.Income Statement
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.30
Negative
Balance Sheet
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.45
Neutral
Cash Flow
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.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.72M | -19.50M | 6.60M | 3.46M | 1.47M | 1.82M | Gross Profit |
| 4.46M | -24.34M | 6.60M | 3.46M | 1.47M | 1.82M | EBIT |
| -4.10T | -38.12M | 10.55M | -9.78M | -9.23M | -12.22M | EBITDA |
| -3.21T | -38.12M | 0.00 | 0.00 | 156.31M | 0.00 | Net Income Common Stockholders |
| -16.87M | -38.12M | 5.07M | -132.18M | 147.07M | 75.34M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 28.18M | 20.04M | 28.18M | 40.12M | 198.44M | 45.79M | Total Assets |
| 277.60M | 10.00T> | 277.60M | 284.41M | 462.32M | 478.88M | Total Debt |
| 73.75M | 29.05T | 73.75M | 73.68M | 73.03M | 38.03M | Net Debt |
| 45.57M | 9.02T | 45.57M | 33.56M | -125.41M | -7.76M | Total Liabilities |
| 74.24M | 74.03M | 74.24M | 74.39M | 97.47M | 177.29M | Stockholders Equity |
| 203.36M | 10.00T> | 203.36M | 210.02M | 364.85M | 301.58M |
| Cash Flow | Free Cash Flow | ||||
| -3.72T | 2.37M | 2.38M | -110.56M | 183.65M | -23.62M | Operating Cash Flow |
| -3.72T | -12.47M | 2.38M | -110.56M | 183.65M | -23.62M | Investing Cash Flow |
| -30.97M | 0.00 | 0.00 | -98.72M | 325.71M | -100.19M | Financing Cash Flow |
| -136.05B | -10.51M | -14.32M | -47.76M | -31.01M | 24.56M |
SuRo Capital Technical Analysis
Positive
7.39
Price Trends
5.40
Positive
5.63
Positive
5.22
Positive
Market Momentum
0.51
Negative
75.29
Negative
76.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSSS, the sentiment is Positive. The current price of 7.39 is above the 20-day moving average (MA) of 6.31, above the 50-day MA of 5.40, and above the 200-day MA of 5.22, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 75.29 is Negative, neither overbought nor oversold. The STOCH value of 76.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 2 New Risks
1.
Our borrowings, including the 6.00% Notes due 2026 and the 6.50% Convertible Notes due 2029 are unsecured and therefore effectively subordinated to any future secured indebtedness we could incur. Q4, 2024
2.
We are subject to certain limitations and restrictions in our operations as a result of the regulations applicable to BDCs, and any failure to comply with such regulations could negatively impact our business or expose us to enforcement actions or the claims of private litigants. Q4, 2024
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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $54.11M | 4.77 | 13.04% | 33.51% | 134.64% | 35.26% | |
70 Outperform | $112.54M | 3.73 | 19.56% | 16.19% | -49.04% | ― | |
69 Neutral | $138.66M | 19.69 | 3.63% | 15.41% | 127.09% | 2519.30% | |
64 Neutral | $12.85B | 9.81 | 7.59% | 16985.65% | 12.30% | -7.71% | |
48 Neutral | $106.29M | 41.01 | -5.47% | 20.09% | -37.27% | -153.39% | |
48 Neutral | $123.69M | 25.95 | 3.56% | 13.25% | 32.38% | -90.38% | |
45 Neutral | $173.11M | ― | -9.96% | ― | 90.08% | -893.47% |
* Financial Sector Average
Performance Comparison
SSSS
SuRo Capital
7.39
3.31
81.13%
PTMN
Portman Ridge Finance
11.76
-4.97
-29.71%
RAND
Rand Capital
15.13
-0.17
-1.11%
OFS
OFS Capital
8.45
-0.10
-1.17%
MRCC
Monroe Capital
6.49
-0.38
-5.53%
GECC
Great Elm Capital
10.71
1.87
21.15%
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.