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Neostellar Capital
(NASDAQ:NSLR)
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Rating:56Neutral
Price Target:
$8.00
â–¼(-22.03% Downside)
Action:Reiterated
Date:09/15/26
The score is held back primarily by weak financial statement quality—especially poor cash conversion and highly volatile results—along with bearish technical momentum (below major moving averages with negative MACD). These are partially offset by very low P/E and a solid dividend yield, plus positive corporate developments around the Magnetar-backed platform launch and related restructuring.
Positive Factors
Manageable leverage
Manageable leverage provides Neostellar with greater financial flexibility as it expands its investment platform. A relatively low debt burden can reduce solvency pressure and leave more capacity to support portfolio investments, absorb volatility, or pursue strategic opportunities over the coming quarters.
Negative Factors
Weak cash conversion
Deeply negative operating and free cash flow despite accounting profits raises concerns about the durability and quality of earnings. Persistent cash shortfalls can constrain reinvestment, increase reliance on financing, and make results more sensitive to working-capital timing or portfolio realization events.
Read all positive and negative factors
Positive Factors
Negative Factors
Manageable leverage
Manageable leverage provides Neostellar with greater financial flexibility as it expands its investment platform. A relatively low debt burden can reduce solvency pressure and leave more capacity to support portfolio investments, absorb volatility, or pursue strategic opportunities over the coming quarters.
Read all positive factors
Neostellar Capital (NSLR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$198.55M
Dividend Yield3.97%
Average Volume (3M)408.76K
Price to Earnings (P/E)1.3
Beta (1Y)1.33
Revenue Growth4.18%
EPS Growth108.51%
CountryUS
Employees9
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)5.64
Shares Outstanding26,473,223
10 Day Avg. Volume361,449
30 Day Avg. Volume408,756
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)1.76
Price to Sales (P/S)5.39
P/FCF Ratio10.52
Enterprise Value/Market Cap1.89
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit2.44
Enterprise Value/Ebitda2.63
Forecast
1Y Price Target
$15.50Price Target Upside51.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)4.77
Revenue Forecast (FY)$2.93M
Neostellar Capital Business Overview & Revenue Model
Company Description
Neostellar Capital Corp. is a venture capital, mezzanine, secondary(direct) and business development company specializing in growth capital, emerging growth, late stage and venture capital-backed private companies. It prefers to invest in energy a...
Neostellar Capital Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call highlights a very strong quarter driven by significant unrealized appreciation and multiple large private-market financings that validate SuRo's portfolio and strategy, along with decisive strategic action to externalize management and partner with Magnetar (including a $20M anchor investment). However, key risks include portfolio concentration, liquidity constraints relative to commitments, the contingent nature of follow-on investments, and the fact that most of the NAV gain is unrealized and dependent on future liquidity events and execution. The positive developments and strategic partnership appear to outweigh the risks disclosed.Positive Updates
Record Quarter-over-Quarter NAV Increase
Net asset value increased from $8.09 to $14.24 per share, a $6.15 per share increase or approximately 76% quarter-over-quarter—the largest QoQ NAV increase in company history; NAV totaled approximately $361.6 million as of March 31, 2026.
Negative Updates
High Portfolio Concentration and Sector Concentration Risk
Top 5 positions represent ~72% and top 10 ~88% of the portfolio, creating concentration risk. Consumer goods & services (driven by WHOOP) comprised ~43% of the portfolio, raising sector concentration concerns despite WHOOP's strong performance.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarter-over-Quarter NAV Increase
Net asset value increased from $8.09 to $14.24 per share, a $6.15 per share increase or approximately 76% quarter-over-quarter—the largest QoQ NAV increase in company history; NAV totaled approximately $361.6 million as of March 31, 2026.
Read all positive updates
Company Guidance
Management summarized a clear strategic pivot and provided a host of metrics: Q1 NAV rose to ~$361.6M ($14.24/share) from $8.09/share at year‑end — a $6.15 per‑share (~76%) quarter‑over‑quarter increase (the largest in company history), driven by a $6.25/share net change in unrealized appreciation, $0.04/share net realized gains and $0.02/share stock‑based compensation, partially offset by $0.16/share net investment loss, with 25,387,393 shares outstanding; liquidity at 3/31 was ~ $46M (≈$43.3M cash + $2.7M unrestricted public securities) plus ~$15.9M of public securities subject to lockup. They announced a Board‑approved externalization to Neostellar Advisors (a joint vehicle with Magnetar, which has ~ $18B AUM), subject to a June 10 shareholder vote and an anticipated July 1 rebrand, with a Magnetar affiliate expected to invest $20M and pre‑existing investments excluded from any new incentive‑fee calculation to preserve stockholder value and deliver annual expense savings. Deployment and portfolio activity highlighted $5M funded to a $20M commitment (Magnetar SPV) for TensorWave (up to $15M remaining subject to milestones), a subsequent ~ $9.5–$10M investment in ClickHouse, a $225k Huntress Labs secondary, realized proceeds including ~$3M from CW Opportunity 2 LP (≈$902k return of capital + $2.1M realized gain), ~$1.4M net proceeds (≈$891k realized gain) from sales of 440,246 GrabAGunDigital shares (retaining 599,754 shares, ~58% of original), and a $246k distribution from True Global Ventures; other market markers cited included WHOOP’s $575M Series G at a $10.1B valuation (2.5M members, 103% YoY bookings growth in 2025, $1.1B exit run rate, positive operating cash flow), OpenAI’s financing with $122B committed at an $852B post‑money, VAST valued at $30B (vs. $9.1B in 2023), and Canva at a reported $42B valuation.Neostellar Capital Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
71
Positive
Cash Flow
33
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 299.81B | 67.00M | 4.67M | 6.60M | 3.46M | 1.47M |
| Gross Profit | 154.01M | 61.92M | -24.34M | 20.25M | -118.86M | 157.78M |
| EBITDA | 142.92M | 48.81M | -38.12M | 5.07M | -132.18M | 147.07M |
| Net Income | 142.92M | 48.81M | -38.12M | 5.07M | -132.18M | 147.07M |
Balance Sheet | ||||||
| Total Assets | 10.00T> | 276.02M | 231.60M | 277.60M | 284.41M | 462.32M |
| Cash, Cash Equivalents and Short-Term Investments | 12.94T | 49.03M | 20.04M | 28.18M | 40.12M | 198.44M |
| Total Debt | 26.42T | 69.77M | 73.25M | 73.75M | 73.39M | 73.03M |
| Total Liabilities | 64.27T | 70.70M | 74.03M | 74.24M | 74.39M | 97.47M |
| Stockholders Equity | 10.00T> | 205.32M | 157.57M | 203.36M | 210.02M | 364.85M |
Cash Flow | ||||||
| Free Cash Flow | -29.85T | 34.32M | 2.37M | -10.35M | -11.84M | -142.06M |
| Operating Cash Flow | -29.85T | 34.32M | 2.37M | -10.35M | -11.84M | -142.06M |
| Investing Cash Flow | 3.41M | 0.00 | 0.00 | 12.73M | -98.72M | 325.71M |
| Financing Cash Flow | -6.28T | -5.28M | -10.51M | -14.32M | -47.76M | -31.01M |
Neostellar Capital Technical Analysis
Negative
10.26
Price Trends
9.39
Negative
10.97
Negative
10.77
Negative
Market Momentum
-0.60
Negative
27.79
Positive
33.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NSLR, the sentiment is Negative. The current price of 10.26 is above the 20-day moving average (MA) of 8.14, above the 50-day MA of 9.39, and below the 200-day MA of 10.77, indicating a bearish trend. The MACD of -0.60 indicates Negative momentum. The RSI at 27.79 is Positive, neither overbought nor oversold. The STOCH value of 33.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NSLR.
Neostellar Capital Risk Analysis
Neostellar Capital disclosed 72 risk factors in its most recent earnings report. Neostellar 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
Neostellar Capital Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $151.84M | 8.92 | 6.83% | 14.93% | -0.46% | 416.27% | |
73 Outperform | $218.39M | 6.83 | 0.04% | 14.33% | 47.16% | 34.42% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $196.63M | 4.86 | 10.97% | 20.79% | 12.61% | -3.62% | |
56 Neutral | $198.55M | 1.33 | <0.01% | 3.97% | 4.18% | 108.51% |
* Financial Sector Average
NSLR
Neostellar Capital
7.50
-2.05
-21.43%
WHF
WhiteHorse
7.00
1.09
18.34%
TPVG
TriplePoint Venture Growth
4.81
0.18
3.98%
NXDT
NexPoint Diversified Real Estate Trust
5.18
2.15
71.13%
LIEN
Chicago Atlantic BDC
9.49
0.24
2.59%
Neostellar Capital Corporate Events
Business Operations and StrategyDelistings and Listing ChangesPrivate Placements and Financing
Neostellar Capital launches Magnetar-backed Nasdaq investment platform
Positive
Jul 21, 2026
On July 15, 2026, Neostellar Capital Corp. completed its transition from an internally managed to an externally managed BDC by entering into a new investment advisory agreement with Neostellar Advisors LLC, which now oversees sourcing, structuring...
Business Operations and StrategyFinancial Disclosures
Neostellar Capital Reports June Net Asset Value Update
Positive
Jul 8, 2026
In a July 8, 2026 release, Neostellar Capital Corp. reported preliminary net asset value for June 30, 2026 of $13.25 to $13.75 per share, down from $14.24 per share at March 31, 2026 but up from $9.18 a year earlier. The unaudited figures highligh...
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.