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SuRo Capital (SSSS)
NASDAQ:SSSS
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SuRo Capital
(NASDAQ:SSSS)
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Rating:45Neutral
Price Target:―
SuRo Capital's stock score reflects significant financial instability and leverage risk, countered by promising investment prospects in AI and upcoming IPOs highlighted in the earnings call. The technical analysis suggests possible rebound potential, although valuation metrics remain unattractive.
Positive Factors
AI Investment Strategy
The company's focus on AI investments positions it well for growth in a rapidly expanding sector, potentially leading to significant returns as AI technologies continue to evolve and gain market traction.
Anticipated IPOs
The upcoming IPOs of portfolio companies like CoreWeave signal potential substantial value realization for SuRo Capital, enhancing its investment returns and validating its investment strategy.
Successful Exits
Achieving high returns on exits like Oklo demonstrates SuRo Capital's ability to identify and capitalize on lucrative investment opportunities, supporting its long-term growth and financial health.
Negative Factors
High Debt Levels
The substantial debt levels pose leverage risks, potentially straining cash flow and limiting financial flexibility, which could impact the company's ability to invest in new opportunities or weather economic downturns.
Net Asset Value Decline
The decline in NAV indicates potential challenges in portfolio valuation and performance, which may affect investor confidence and the company's ability to attract new capital.
Volatile Revenue Growth
The volatility in revenue growth suggests instability in earnings, raising concerns about the sustainability of financial performance and the reliability of future cash flows.
SuRo Capital (SSSS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$234.82M
Dividend Yield2.55%
Average Volume (3M)190.31K
Price to Earnings (P/E)5.1
Beta (1Y)0.94
Revenue Growth168.31%
EPS GrowthN/A
CountryUS
Employees10
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)2.23
Shares Outstanding23,888,107
10 Day Avg. Volume230,319
30 Day Avg. Volume190,315
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.89
Price to Sales (P/S)-7.21
P/FCF Ratio59.31
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue3.49
Enterprise Value/Gross Profit3.74
Enterprise Value/Ebitda4.56
Forecast
1Y Price Target
$10.00Price Target Upside1.83% 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:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The call was largely positive, highlighting significant gains in net asset value, successful investments, and strategic achievements such as the CoreWeave and OpenAI successes. While there are liquidity constraints and some investment restrictions, the overall financial performance and strategic direction remain strong.Q2-2025 Updates
Positive Updates
Record-Breaking Net Asset Value
SuRo Capital reported a net asset value of $9.18 per share, marking a 38% increase from the prior quarter, the largest increase since inception.
CoreWeave Investment Success
CoreWeave's stock price climbed over 200% post-IPO, and SuRo Capital sold approximately 40% of its initial CoreWeave investment, generating $25.3 million in net proceeds and a $15.3 million realized gain.
OpenAI's Landmark Financing
OpenAI closed a $40 billion financing round at a $300 billion post-money valuation. Reports indicate discussions for a secondary sale at a $500 billion valuation, making it the world's most valuable private tech company.
Significant Realized Gains
SuRo Capital fully exited its investment in ServiceTitan for a $6 million realized gain.
Dividend Declaration
A cash dividend of $0.25 per share was declared and paid, with intentions to announce additional distributions throughout the year.
Successful SPAC Merger
Colombier Acquisition Corp. II completed its merger with GrabAGun, further validating SuRo Capital's SPAC sponsor strategy.
New Investments and Growth
New investments included a $5 million investment in Plaid and a follow-on investment in Liquid Death. Plaid's latest financing round reached a $6.1 billion valuation.
Negative Updates
Liquidity Constraints
As of June 30, SuRo Capital had $52.4 million of liquid assets, with $49.9 million in cash and $2.5 million in unrestricted public securities, indicating limited liquidity.
Unrealized Gains and Stock Restrictions
The CoreWeave investment via CW Opportunity 2 LP remained materially discounted due to non-registration and trading restrictions.
Company Guidance
In the second quarter of 2025, SuRo Capital reported a significant increase in net asset value (NAV) to $9.18 per share, marking a 38% rise from the previous quarter. This growth was largely driven by their AI-focused investments, particularly in CoreWeave, which saw its stock price climb over 200% post-IPO. The company capitalized on this by selling approximately 40% of its initial CoreWeave investment, garnering $25.3 million in net proceeds and realizing $15.3 million in gains. Additionally, SuRo Capital fully exited its investment in ServiceTitan, realizing a gain of $6 million. OpenAI's substantial market activity, including a $40 billion financing round, and Canva's potential secondary tender offer at a $37 billion valuation, further underscored the robust AI and tech investment climate. SuRo Capital declared a $0.25 per share cash dividend, with plans for additional distributions later in the year, reflecting ongoing monetization of investments and a strong liquidity position of $52.4 million in liquid assets by June 30, 2025.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 | 73.35M | -19.50M | 6.60M | 3.46M | 1.47M | 1.82M |
| Gross Profit | 68.40M | -24.34M | 6.60M | 3.46M | 1.47M | 1.82M |
| EBITDA | 56.11M | -38.12M | 0.00 | 0.00 | 156.31M | 0.00 |
| Net Income | 56.11M | -38.12M | 5.07M | -132.18M | 147.07M | 75.34M |
Balance Sheet | ||||||
| Total Assets | 295.05M | 231.60M | 277.60M | 284.41M | 462.32M | 478.88M |
| Cash, Cash Equivalents and Short-Term Investments | 49.85M | 20.04M | 28.18M | 40.12M | 198.44M | 45.79M |
| Total Debt | 73.37M | 73.25M | 73.75M | 73.68M | 73.03M | 38.03M |
| Total Liabilities | 75.64M | 74.03M | 74.24M | 74.39M | 97.47M | 177.29M |
| Stockholders Equity | 219.41M | 157.57M | 203.36M | 210.02M | 364.85M | 301.58M |
Cash Flow | ||||||
| Free Cash Flow | -3.32M | 2.37M | 2.38M | -110.56M | 183.65M | -23.62M |
| Operating Cash Flow | -3.32M | 2.37M | 2.38M | -110.56M | 183.65M | -23.62M |
| Investing Cash Flow | 0.00 | 0.00 | 0.00 | -98.72M | 325.71M | -100.19M |
| Financing Cash Flow | -1.17M | -10.51M | -14.32M | -47.76M | -31.01M | 24.56M |
SuRo Capital Technical Analysis
Positive
9.82
Price Trends
8.81
Positive
8.11
Positive
6.74
Positive
Market Momentum
0.21
Negative
73.32
Negative
83.87
Negative
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 9.82 is above the 20-day moving average (MA) of 9.16, above the 50-day MA of 8.81, and above the 200-day MA of 6.74, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 73.32 is Negative, neither overbought nor oversold. The STOCH value of 83.87 is Negative, 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 0 New Risks
SuRo Capital Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $235.96M | 10.17 | 12.44% | 13.15% | ― | ― | |
69 Neutral | $151.66M | 79.28 | 1.01% | 14.29% | -17.51% | -75.48% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $162.47M | 45.69 | 1.21% | 25.54% | -49.76% | -84.43% | |
59 Neutral | $225.01M | 5.41 | 11.78% | 20.29% | 377.90% | ― | |
45 Neutral | $234.82M | 5.06 | 29.40% | 2.55% | 168.31% | ― |
* Financial Sector Average
SSSS
SuRo Capital
9.82
5.96
154.40%
WHF
WhiteHorse
6.84
-2.68
-28.15%
TPVG
TriplePoint Venture Growth
5.57
-0.11
-1.94%
MRCC
Monroe Capital
7.00
0.00
0.00%
NXDT
NexPoint Diversified Real Estate Trust
3.49
-1.69
-32.63%
LIEN
Chicago Atlantic BDC
10.60
-0.72
-6.36%
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.