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SLR Investment Corp. (SLRC)
NASDAQ:SLRC
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SLR Investment Corp.
(NASDAQ:SLRC)
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Rating:71Outperform
Price Target:―
SLR Investment Corp. demonstrates strong financial performance with substantial revenue growth and effective cost management, despite some volatility in cash flows. The stock's valuation is attractive due to a low P/E ratio and high dividend yield, appealing to income-focused investors. Technical indicators suggest a bearish trend, presenting a potential risk. The earnings call provided a cautiously optimistic outlook with robust specialty finance growth, despite some sector challenges.
Positive Factors
Revenue Growth
The substantial revenue growth indicates successful expansion and effective market penetration, enhancing the company's long-term financial stability and competitive position.
Portfolio Stability
A stable portfolio with a high percentage of secured loans reduces credit risk, ensuring consistent income and safeguarding against defaults, which is crucial for long-term sustainability.
Strong Cash Flow Improvement
Improved cash flow indicates enhanced cash generation capabilities, supporting reinvestment and shareholder returns, which is vital for sustaining growth and financial health.
Negative Factors
Cash Flow Volatility
Inconsistent cash flows can lead to challenges in meeting financial obligations and funding operations, potentially affecting the company's ability to invest in growth opportunities.
High Debt Levels
High debt levels can strain financial resources and limit flexibility, posing risks to long-term financial stability and increasing vulnerability to interest rate fluctuations.
Net Income Reporting
Without clear net income data, it is challenging to evaluate the company's profitability and efficiency, which are critical for assessing long-term financial health and investor confidence.
SLR Investment Corp. (SLRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$761.58M
Dividend Yield11.75%
Average Volume (3M)273.50K
Price to Earnings (P/E)8.6
Beta (1Y)0.56
Revenue Growth5.87%
EPS Growth-12.64%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.40
Shares Outstanding54,554,634
10 Day Avg. Volume332,191
30 Day Avg. Volume273,500
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.21
Enterprise Value/Revenue9.53
Enterprise Value/Gross Profit15.18
Enterprise Value/Ebitda15.92
Forecast
1Y Price Target
$16.38Price Target Upside17.34% Upside
Rating ConsensusHold
Number of Analyst Covering6
SLR Investment Corp. Business Overview & Revenue Model
Company DescriptionSLR Investment Corp. (SLRC) is a business development company that primarily focuses on investing in U.S. middle-market companies. The firm targets a diverse range of sectors, including healthcare, technology, manufacturing, and energy. SLRC provides a variety of financial solutions such as senior secured loans, junior loans, and equity investments, aiming to support the growth and expansion of its portfolio companies.
How the Company Makes MoneySLR Investment Corp. makes money primarily through interest and fee income generated from its lending activities. By extending senior and junior secured loans to middle-market companies, SLRC earns interest payments that form a significant portion of its revenue. Additionally, the company may generate income through equity investments, where it takes ownership stakes in companies and benefits from capital appreciation and dividends. SLRC's earnings are also influenced by strategic partnerships with financial institutions, which may provide co-investment opportunities and enhance its investment capabilities. The company's performance is closely tied to the credit quality of its portfolio and the broader economic environment, as these factors impact the repayment capacity of its borrowers.
SLR Investment Corp. Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong performance in new originations, particularly in asset-based lending, and an increase in NAV. However, net investment income was slightly below the dividend, and there was a decrease in income from SSLP. Overall, highlights and lowlights are balanced.Q2-2025 Updates
Positive Updates
Strong New Originations
SLR Investment Corp originated $567 million of new investments across the comprehensive portfolio, marking a quarterly record of new originations.
Significant Growth in Asset-Based Lending (ABL)
SLR achieved a record quarter of new ABL originations at $373 million, contributing to a strategic shift towards asset-based specialty finance strategies.
Net Asset Value (NAV) Increase
NAV per share increased slightly quarter-over-quarter to $18.19 from $18.16, reflecting stability in the company's financials.
Strong Portfolio Performance
Approximately 95.9% of the comprehensive investment portfolio consisted of first lien senior secured loans, with 99.5% of debt investments performing.
Robust Liquidity Position
SLRC had over $650 million available capital to deploy as of June 30, positioning the company well to take advantage of stable or softening economic conditions.
Negative Updates
Net Investment Income Below Dividend
Net investment income per share was $0.40, slightly below the base dividend of $0.41 per share.
Higher Portfolio Exits
The quarter experienced a higher than usual volume of exits, partially offsetting the record new originations.
Decreased Income from SSLP
SLRC earned $1.1 million from the SSLP during the quarter, which is lower than previous quarters indicating a decrease in income from this source.
Company Guidance
During the SLR Investment Corporation's second quarter earnings call for 2025, the company reported impressive metrics, showcasing financial stability and strategic growth. For the quarter ending June 30, 2025, SLR achieved a net investment income of $0.40 per share and a net income of $0.44 per share, with a slight increase in NAV per share to $18.19. The company reported a 10% equity return on an annualized net income basis, although net investment income per share was slightly below the base dividend of $0.41. SLR's comprehensive investment portfolio grew by $180 million to $3.2 billion, bolstered by record new originations of $567 million and repayments of $387 million. The portfolio's annualized growth rate over the past five years reached 15.5%. With over 95% of the portfolio consisting of first lien senior secured loans, and 99.5% of debt investments performing, SLR demonstrated strong credit quality. The company also highlighted its strategic focus on asset-based lending (ABL), originating a record $373 million in ABL commitments, and maintaining a portfolio allocation of 83% in specialty finance investments. At quarter-end, SLR's net debt-to-equity ratio stood at 1.17x, and the firm had available capital of over $650 million to leverage market opportunities.SLR Investment Corp. Financial Statement Overview
Summary
SLR Investment Corp. has shown substantial revenue growth and effective cost management, leading to improved EBIT margins. The balance sheet reflects strong equity and no debt, suggesting low financial risk. However, the volatility in cash flows over the years raises concerns about cash management consistency. 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 | 176.33M | 176.45M | 201.33M | 28.32M | 69.53M | 23.60M |
| Gross Profit | 110.75M | 104.99M | 141.37M | 22.91M | 25.37M | -8.84M |
| EBITDA | 105.56M | 95.76M | 148.90M | 64.43M | 89.44M | 42.61M |
| Net Income | 88.82M | 95.76M | 76.39M | 65.96M | 59.57M | 15.45M |
Balance Sheet | ||||||
| Total Assets | 2.54B | 2.45B | 2.52B | 2.54B | 2.01B | 1.94B |
| Cash, Cash Equivalents and Short-Term Investments | 23.88M | 414.27M | 344.15M | 19.11M | 322.94M | 388.78M |
| Total Debt | 0.00 | 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 | 992.35M | 992.93M | 986.64M | 999.73M | 842.28M | 852.02M |
Cash Flow | ||||||
| Free Cash Flow | 162.33M | 309.31M | -76.88M | 91.06M | -135.10M | -62.60M |
| Operating Cash Flow | 162.33M | 309.31M | -76.88M | 91.06M | -135.10M | -62.60M |
| Investing Cash Flow | -122.94M | 0.00 | -61.24M | -78.26M | -127.72M | -43.68M |
| Financing Cash Flow | -74.71M | -239.20M | -7.30M | 14.34M | 69.26M | 15.03M |
SLR Investment Corp. Technical Analysis
Negative
13.96
Price Trends
15.64
Negative
15.75
Negative
15.63
Negative
Market Momentum
-0.45
Positive
25.25
Positive
22.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLRC, the sentiment is Negative. The current price of 13.96 is below the 20-day moving average (MA) of 14.97, below the 50-day MA of 15.64, and below the 200-day MA of 15.63, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 25.25 is Positive, neither overbought nor oversold. The STOCH value of 22.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 1 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $761.58M | 8.57 | 8.95% | 11.75% | 5.87% | -12.64% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $906.91M | 10.63 | 6.60% | 13.93% | -17.05% | -40.15% | |
66 Neutral | $886.10M | 8.22 | 9.42% | 13.18% | -3.29% | -16.86% | |
65 Neutral | $698.75M | 8.56 | 11.80% | 11.44% | -14.09% | -27.46% | |
65 Neutral | $974.27M | 12.11 | 6.18% | 14.08% | 39.05% | -32.62% | |
63 Neutral | $836.41M | 9.98 | 7.37% | 14.59% | 55.25% | -47.71% |
* Financial Sector Average
SLRC
SLR Investment Corp.
13.96
0.15
1.09%
FDUS
Fidus Investment
19.75
2.14
12.15%
NMFC
New Mountain Finance
9.16
-1.18
-11.41%
PFLT
Pennantpark $
8.43
-2.07
-19.71%
CGBD
Carlyle Secured Lending Inc
12.20
-3.59
-22.74%
BCSF
Bain Capital Specialty Finance
13.66
-1.24
-8.32%
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.