SLR Investment Corp. (SLRC) AI Stock Analysis

• Market Cap: $777.95M
• Dividend Yield: 11.66%
• Average Volume (3M): 240.55K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.56
• Revenue Growth: 5.87%
• EPS Growth: -12.64%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.40
• Shares Outstanding: 54,554,634
• 10 Day Avg. Volume: 293,828
• 30 Day Avg. Volume: 240,554
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.16
• Enterprise Value/Revenue: 9.53
• Enterprise Value/Gross Profit: 15.18
• Enterprise Value/Ebitda: 15.92
• 1Y Price Target: $16.38
• Price Target Upside: 16.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• 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. Business Overview & Revenue Model

Company Description

SLR Investment Corp. is a business development company specializing in secured debt (first lien unitranche and second lien), subordinated (unsecured) debt, minority equity, leveraged buyouts, acquisitions, recapitalizations, general refinancing, growth capital and strategic income-oriented control equity investments in leveraged middle market companies. The fund invests in aerospace and defense; air freight & logistics; asset management; automotive; banking; beverage, food and tobacco; building products; buildings and real estate; broadcasting and entertainment; cargo transport; commercial services and supplies; communications equipment; chemicals, plastics and rubber; containers, packaging and glass; construction & engineering; diversified/conglomerate manufacturing; consumer Finance; distributors; diversified/conglomerate services; diversified financial services; diversified real estate activities; food products; Footwear; Education Services; diversified telecommunications services; electronics; farming and agriculture; finance; grocery; health care equipment and supplies; health care facilities; education and childcare; home and office furnishing, durable consumer products; hotels, motels, inns and gaming; insurance; restaurants, leisure, amusement, and entertainment; leisure equipment tolls and services, media, multiline retail, multi sector holdings; paper and forest products; personal products; professional services, research and consulting services, software; specialty retail; textiles apparel and luxury goods, thrifts and mortgage finance, trading companies and distributors, utilities, and wireless telecommunication services; industrial conglomerates; internet software and services, IT services, machinery; mining, steel, iron, and non-precious metals; oil and gas; personal, food and miscellaneous services; printing and publishing; retail stores; telecommunications; textiles and leather; and utilities. It also invests in life sciences with focus on specialty pharmaceuticals, medical devices, biotech, health Care Providers and services; health Care technology, enabling technologies and tools. The fund primarily invests in United States. The fund's investments generally range between $5 million and $100 million. The fund invests in companies with revenues between $50 million and $1 billion and EBITDA between $15 million and $100 million. It invests in the form of senior secured loans, mezzanine loans, and equity securities. It may also seek investments in thinly traded public companies and also make secondary investments. The fund makes non-control equity investments. It primarily exits within three years of the initial capital commitment.

How the Company Makes Money

SLR 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. 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 14.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 14.07 is below the 20-day moving average (MA) of 15.31, below the 50-day MA of 15.75, and below the 200-day MA of 15.65, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 16.64 is Positive, neither overbought nor oversold. The STOCH value of 2.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLRC.

SLR Investment Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLRC	71 Outperform	$777.95M	8.76	8.95%	11.66%	5.87%	-12.64%
FDUS	68 Neutral	$690.62M	8.46	11.80%	11.70%	-14.09%	-27.46%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CGBD	67 Neutral	$881.40M	10.33	6.60%	14.49%	-17.05%	-40.15%
BCSF	66 Neutral	$870.54M	8.07	9.42%	13.55%	-3.29%	-16.86%
NMFC	65 Neutral	$957.25M	11.89	6.18%	14.45%	39.05%	-32.62%
PFLT	63 Neutral	$856.25M	10.21	7.37%	14.45%	55.25%	-47.71%