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SuRo Capital (SSSS)
NASDAQ:SSSS
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SuRo Capital
(NASDAQ:SSSS)
45Neutral
Positive Factors
IPO Potential
Management is extremely excited about the prospect of IPOs in some larger investments, which could drive additional upside in the portfolio throughout the year.
Market Valuation
Despite some recent market turbulence, SuRo's shares are viewed as undervalued, with the stock price at a 21% discount to the 4Q24 NAV.
Portfolio Investments
SuRo's investment activity included a significant investment in CoreWeave and VAST Data, reinforcing its commitment to promising sectors.
Negative Factors
Net Asset Value
Net asset value per share decreased by 20.0% year-over-year, reflecting a decline in the company's financial performance.
Portfolio Risk
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.
SuRo Capital (SSSS) vs. S&P 500 (SPY)
Market Cap
$114.46M
Dividend YieldN/A
Average Volume (3M)126.60K
Price to Earnings (P/E)―
Beta (1Y)0.87
Revenue Growth90.08%
EPS Growth-893.47%
CountryUS
Employees10
SectorFinancial
Sector Strength87
IndustryAsset Management
Share Statistics
EPS (TTM)-1.55
Shares Outstanding23,551,859
10 Day Avg. Volume67,770
30 Day Avg. Volume126,597
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.68
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit<0.01
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.67Price Target Upside57.82% 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 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.―
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
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.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.67T | 6.60M | 3.46M | 1.47M | 1.82M | Gross Profit |
| 4.67T | 6.60M | 3.46M | 1.47M | 1.82M | EBIT |
| -13.95T | 10.55M | -9.78M | -9.23M | -12.22M | EBITDA |
| 0.00 | 0.00 | 0.00 | 156.31M | 0.00 | Net Income Common Stockholders |
| -38.12M | 5.07M | -132.18M | 147.07M | 75.34M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 20.04T | 28.18M | 40.12M | 198.44M | 45.79M | Total Assets |
| 10.00T> | 277.60M | 284.41M | 462.32M | 478.88M | Total Debt |
| 29.05T | 73.75M | 73.68M | 73.03M | 38.03M | Net Debt |
| 9.02T | 45.57M | 33.56M | -125.41M | -7.76M | Total Liabilities |
| 74.03T | 74.24M | 74.39M | 97.47M | 177.29M | Stockholders Equity |
| 10.00T> | 203.36M | 210.02M | 364.85M | 301.58M |
| Cash Flow | Free Cash Flow | |||
| 2.37T | 2.38M | -110.56M | 183.65M | -23.62M | Operating Cash Flow |
| 2.37T | 2.38M | -110.56M | 183.65M | -23.62M | Investing Cash Flow |
| 0.00 | 0.00 | -98.72M | 325.71M | -100.19M | Financing Cash Flow |
| -10.51T | -14.32M | -47.76M | -31.01M | 24.56M |
SuRo Capital Technical Analysis
Positive
4.86
Price Trends
5.21
Positive
5.58
Negative
4.96
Positive
Market Momentum
-0.08
Negative
60.82
Neutral
86.66
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 4.86 is above the 20-day moving average (MA) of 4.63, below the 50-day MA of 5.21, and below the 200-day MA of 4.96, indicating a bullish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 60.82 is Neutral, neither overbought nor oversold. The STOCH value of 86.66 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $55.60M | 5.47 | 14.00% | 27.08% | 134.64% | 35.26% | |
70 Outperform | $117.37M | 3.89 | 19.56% | 15.53% | -49.04% | ― | |
69 Neutral | $152.10M | 15.67 | 4.91% | 14.24% | 127.09% | 2519.30% | |
64 Neutral | $12.61B | 9.78 | 8.01% | 16985.69% | 12.73% | -4.58% | |
48 Neutral | $112.49M | 41.01 | -3.03% | 20.77% | -37.27% | -153.39% | |
48 Neutral | $116.51M | 27.96 | 3.03% | 14.07% | 32.38% | -90.38% | |
45 Neutral | $114.46M | ― | -21.13% | ― | 90.08% | -893.47% |
* Financial Sector Average
Performance Comparison
SSSS
SuRo Capital
4.86
1.07
28.23%
PTMN
Portman Ridge Finance
12.23
-4.83
-28.31%
RAND
Rand Capital
18.72
7.81
71.59%
OFS
OFS Capital
8.76
0.54
6.57%
MRCC
Monroe Capital
6.92
0.55
8.63%
GECC
Great Elm Capital
10.09
1.35
15.45%
SuRo Capital Earnings Call Summary
Earnings Call Date:Mar 11, 2025
(Q4-2024)
| % Change Since: -7.78%|
Next Earnings Date:May 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted the strong potential and promising developments in SuRo Capital's portfolio, particularly with anticipated IPOs such as CoreWeave and ongoing growth in companies like OpenAI. However, the decline in NAV and potential markdowns in the legacy portfolio present challenges. The positive highlights related to future prospects and successful exits outweigh the lowlights.Q4-2024 Updates
Positive Updates
CoreWeave's Anticipated IPO
CoreWeave filed its S-1 on March 3rd with expectations to target a valuation greater than $35 billion and raise approximately $4 billion. The company reported 2024 revenue of $1.9 billion, over eight times greater than in 2023.
OpenAI Valuation and Growth
OpenAI is in talks to raise $40 billion at a $300 billion valuation. Its revenue is expected to more than triple from $3.7 million to more than $12.5 million in a year, with 400 million active users reported.
ServiceTitan IPO Success
ServiceTitan priced its IPO at $71 per share, raising approximately $625 million and closing the first day of trading at $101 per share, reflecting a 42% increase.
Successful Exits and Returns
The company exited its position in Oklo, achieving a return of over 20 times the initially invested capital, and fully exited PublicSquare shares with significant realized gains.
Liquid Death Expands Product Line
Liquid Death aired its first national Super Bowl advertisement and expanded its product line with new soda-inspired sparkling waters.
Negative Updates
Net Asset Value Decline
NAV per share decreased from $6.73 at the end of Q3 to $6.68 at year-end, with a 16% decline in 2024 attributed primarily to unrealized appreciation and net investment loss.
Potential Further Markdowns
Learneo has been significantly marked down, heavily impacting the portfolio. There is uncertainty regarding potential further markdowns in the legacy portfolio due to market volatility.
Company Guidance
During the fourth quarter and fiscal year 2024 earnings call, SuRo Capital provided significant guidance on its current portfolio and anticipated market activities. The company highlighted the expected IPO of CoreWeave, which filed its S-1 targeting a valuation over $35 billion with plans to raise approximately $4 billion. CoreWeave's revenue for 2024 was reported at $1.9 billion, an eightfold increase from 2023, with a forecast of $8 billion in 2025. SuRo Capital also discussed its investments in OpenAI, which is in talks to raise $40 billion at a $300 billion valuation, and Vast Data, which has reached over $200 million in ARR. The company reported a net asset value of $157.6 million or $6.68 per share as of December 31, 2024, and highlighted that its top five positions, including CoreWeave and OpenAI, accounted for 44% of the investment portfolio at fair value. The call emphasized SuRo Capital's strategic focus on AI infrastructure and applications, which represent 28% of its portfolio, and expressed optimism about the reopening of the IPO window for its portfolio companies.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.