Stellus Capital Investment Corporation (SCM) carries a Roarable Rating of E (Strong Sell) with 34/100 RQD Confidence due to weak cash-flow efficiency and sensitivity to current interest rates. Wait for business cash flow and institutional buying to improve before committing fresh capital.
As of 2026-11-02, Stellus Capital Investment Corporation (NYSE: SCM) is rated E (Strong Sell / SELL) by Roarable's 5-pillar RQD engine with a composite confidence score of 34/100 at a spot price of $7.00 (-0.57% 1D, market cap $200.5M). Pillar breakdown: Fundamental Cash Engine 8/20, Institutional 13F & Options Flow 5/20, Executive Insider Alignment 10/20, FRED Macro Regime Fit 4/20, and SEC Balance-Sheet Forensics 7/20. Across 1096 tracked Financials issuers, SCM ranks #996 in composite RQD confidence.
Within the Financials sector (Finance/Investors Services), SCM carries a Roarable E (34/100 RQD), trailing P/E of 7.4x, gross margin of —, and ROIC of 7.3%. By comparison, FTF (Franklin Limited Duration Income Trust of) holds a D grade (44/100 RQD, P/E N/A, ROIC —, cap $219.8M) and GRX (The Gabelli Healthcare & Wellness Trust of) posts a D+ grade (56/100 RQD, P/E N/A, ROIC —, cap $173.2M). Among the 5-stock peer group, SCM leads on earnings multiple (7.4x) while SCM leads on capital efficiency (7.3% ROIC).
Per SCM's SEC EDGAR XBRL 10-K filing (FY2025, filed 2025-12-31, CIK 0001551901), Stellus Capital Investment Corporation generated $0 in revenue, $27.0M in net income, and -$24.4M in free cash flow against $1.04B in total assets and $0 in total debt. Key quantitative strengths: Established market leader in Financials with deep daily trading liquidity.. Primary risk factors monitored: Company executives have done more routine share selling than personal cash buying lately.. Institutional options positioning shows a 50% call / 50% put premium split.
Impersonal quantitative research (0–100 RQD rubric) — not individualized investment advice. Past performance does not guarantee future results. Full Disclaimer
Altman Z-Score 3.80 (FORTRESS SAFE (>3.0)) • Piotroski F-Score 1/9
SEC XBRL FY 2025 (10-K): 0% FCF Margin ($0 FCF) & 52% Gross Margin
Macro rate sensitivity & RSI-14 (45.2) create a -16 pt regime headwind
While SCM currently carries a cautious 34/100 (E) rating due to Macro Regime Fit (4/20), shorts face asymmetric squeeze risk if free cash flow inflects or management executes accretive buybacks.
Established market leader in Financials with deep daily trading liquidity.
Options & Short-Covering Gamma: Reclaiming the 50-day SMA ($7.67) and Max Pain ($7.35) forces dealer call-delta covering toward $14.23.
Forensic Repair Trigger: Halting share dilution (Dilution Drag (+1.36% YoY Shares)) or retiring high-cost debt immediately upgrades the SEC 10-K Forensic pillar.
Stellus Capital Investment Corporation (SCM) slipped -0.57% to $7.00, trading at 7% of its 52-week range ($6.54 – $13.55). Stretched risk/reward at 7x P/E (7% return on capital) under elevated 10-year interest-rate pressure.
Yahoo! Finance Canada report covering Stellus Capital Investment Corporation (SCM) market action, institutional positioning, and fundamental catalysts.
Stocktwits report covering Stellus Capital Investment Corporation (SCM) market action, institutional positioning, and fundamental catalysts.
TradingView report covering Stellus Capital Investment Corporation (SCM) market action, institutional positioning, and fundamental catalysts.
Yahoo Finance report covering Stellus Capital Investment Corporation (SCM) market action, institutional positioning, and fundamental catalysts.
MarketBeat report covering Stellus Capital Investment Corporation (SCM) market action, institutional positioning, and fundamental catalysts.
Stock Traders Daily report covering Stellus Capital Investment Corporation (SCM) market action, institutional positioning, and fundamental catalysts.
ad-hoc-news.de report covering Stellus Capital Investment Corporation (SCM) market action, institutional positioning, and fundamental catalysts.
ad-hoc-news.de report covering Stellus Capital Investment Corporation (SCM) market action, institutional positioning, and fundamental catalysts.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and
Multi-year comparable XBRL diluted share count not disclosed (ETF or recent listing).
vs. +6.0% actual YoY revenue growth (assuming 9.25% cost of equity & 16.5x terminal multiple).
No active Ellis Vennor swing setup published on SCM today. View full Setup Ledger →
No direct multi-tier Butterfly edges indexed yet for SCM. Explore sector supply chains on /butterfly.
Across 1096 tracked Financials securities in the Roarable RQD universe, Stellus Capital Investment Corporation (SCM) ranks #996 by composite RQD confidence (34/100, grade E) and #883 by equity capitalization ($200.5M). Within this direct 5-issuer industry benchmark cohort, SCM leads on earnings valuation at 7.4x trailing P/E, while SCM leads on capital efficiency and profitability with 7.3% ROIC and — gross margin. GRX currently holds the highest overall quantitative score in the immediate peer group at 56/100 (D+) compared with SCM at 34/100 (E).
| Ticker / Company | Roarable Grade | RQD Score | Trailing P/E | Gross Margin | ROIC | 1D Change | Market Cap | Head-to-Head |
|---|---|---|---|---|---|---|---|---|
| SCM
ACTIVE
Stellus Capital Investment Corporation | E | 34/100 | 7.4x | — | 7.3% | -0.57% | $200.5M | Benchmark Subject |
| FTF Franklin Limited Duration Income Trust of | D | 44/100 | — | — | — | -0.18% | $219.8M | /ftf-vs-scm → |
| GRX The Gabelli Healthcare & Wellness Trust of | D+ | 56/100 | — | — | — | 0.00% | $173.2M | /grx-vs-scm → |
| ACV Virtus Diversified Income & Convertible Fund of | D- | 42/100 | — | — | — | -1.00% | $249.7M | /acv-vs-scm → |
| GNT GAMCO Natural Resources Gold & Income Trust | D | 46/100 | — | — | — | -1.93% | $152.8M | /gnt-vs-scm → |
In its most recent audited fiscal period (FY2025, filed 2025-12-31), Stellus Capital Investment Corporation (SCM) reported GAAP revenue of $0 (N/A vs. FY2024 revenue of $0 ) , GAAP net income of $27.0M, operating cash flow of -$24.4M, and free cash flow of -$24.4M (+14.7% YoY). On the balance sheet, SCM closed FY2025 with $1.04B in total assets against $0 in total debt (Altman Z-Score: N/A, Piotroski F-Score: 1/9).
| Fiscal Period | Filing Date | Revenue | Net Income | Operating Cash Flow | Free Cash Flow | Total Assets | Total Debt |
|---|---|---|---|---|---|---|---|
| FY2025 (FY) | 2025-12-31 | $0 | $27.0M | -$24.4M | -$24.4M | $1.04B | — |
| FY2024 (FY) | 2024-12-31 | $0 | $45.8M | -$28.6M | -$28.6M | $980.9M | — |
| FY2023 (FY) | 2023-12-31 | $0 | $17.5M | -$17.3M | -$17.3M | — | — |
As of 2026-11-02, Stellus Capital Investment Corporation (NYSE: SCM) is rated E (Strong Sell / SELL) by Roarable's 5-pillar RQD engine with a composite confidence score of 34/100 at a spot price of $7.00 (-0.57% 1D, market cap $200.5M). Pillar breakdown: Fundamental Cash Engine 8/20, Institutional 13F & Options Flow 5/20, Executive Insider Alignment 10/20, FRED Macro Regime Fit 4/20, and SEC Balance-Sheet Forensics 7/20. Across 1096 tracked Financials issuers, SCM ranks #996 in composite RQD confidence.
Within the Financials sector (Finance/Investors Services), SCM carries a Roarable E (34/100 RQD), trailing P/E of 7.4x, gross margin of —, and ROIC of 7.3%. By comparison, FTF (Franklin Limited Duration Income Trust of) holds a D grade (44/100 RQD, P/E N/A, ROIC —, cap $219.8M) and GRX (The Gabelli Healthcare & Wellness Trust of) posts a D+ grade (56/100 RQD, P/E N/A, ROIC —, cap $173.2M). Among the 5-stock peer group, SCM leads on earnings multiple (7.4x) while SCM leads on capital efficiency (7.3% ROIC).
Per SCM's SEC EDGAR XBRL 10-K filing (FY2025, filed 2025-12-31, CIK 0001551901), Stellus Capital Investment Corporation generated $0 in revenue, $27.0M in net income, and -$24.4M in free cash flow against $1.04B in total assets and $0 in total debt. Key quantitative strengths: Established market leader in Financials with deep daily trading liquidity.. Primary risk factors monitored: Company executives have done more routine share selling than personal cash buying lately.. Institutional options positioning shows a 50% call / 50% put premium split.
SCM last traded at $7.00 (-0.57% on volume of 164,550 shares), positioning the stock -8.74% below its 50-day simple moving average ($7.67) and -22.22% below its 200-day simple moving average ($9.00). Across its 52-week range of $6.54 to $13.55, SCM sits at the 6.6% percentile with a 14-day RSI of 45.2 (NEUTRAL RANGE) and an implied next-earnings move of ±5.9% ($6.59 to $7.41).
Why SCM Stock slipped -0.57% Today — RQD Quant Desk Flash. Stretched risk/reward at 7x P/E (7% return on capital) under elevated 10-year interest-rate pressure.
Per the Roarable RQD rating, SCM carries an RQD Score of 34 and a letter grade of E, labeled "Roarable Strong Sell — Forensic Risk / Avoid." The five pillars are scored as follows: Fundamental Cash Engine at 8 / 20 (ROIC 7.3%; FCF yield -12.19%), Whale 13F Flow at 5 / 20 (institutional accumulation and options positioning), Insider Conviction at 7 / 20 (SEC Form 4 and Congressional PTR cluster flow), Macro Regime Fit at 4 / 20 (Beta 1.0; sector sensitivity), and Forensic Balance Sheet at 10 / 20 (Altman Z 2.5; Piotroski F 1/9; Debt/Equity 0.5).
For a prospective investor evaluating the stock today, the rating points to weakness across nearly every pillar. The cash engine is negative on a free-cash-flow yield basis, meaning reported free cash flow does not currently support the equity value on a yield measure, though the 7.3% ROIC indicates some capital productivity. The institutional and insider pillars are only modestly weighted, so there is limited evidence of strong conviction support. The forensic pillar's Piotroski F-Score of 1 out of 9 is the weakest quality signal in the set and is the most important single risk flag. Upside drivers would need to come from a turnaround in cash generation, which the source data does not demonstrate. The low forward P/E of 6.9 is a valuation observation, but per the Roarable RQD rating it is outweighed by the forensic and cash-flow deficiencies.
Stellus Capital Investment Corporation (SCM) is listed on the NYSE and classified in the Financials sector, Finance/Investors Services industry, per the SEC financials and profile sections. The source data does not describe its products, client base, or revenue model. Per the profile, the company has a market capitalization of $0.2B. Revenue is reported as $0.0M across all listed periods, so the source data does not establish a conventional operating revenue line.
| Period | Revenue | Operating Income | Net Income | EPS | FCF | Cash | Debt |
|---|---|---|---|---|---|---|---|
| FY 2025 | $0.0M | $0.0M | $27.0M | N/A | $-24.4M | $25.1M | N/A |
| FY 2024 | $0.0M | $0.0M | $45.8M | N/A | $-28.6M | $20.1M | N/A |
| FY 2023 | $0.0M | $0.0M | $17.5M | N/A | $-17.3M | N/A | N/A |
Per the market data section, gross, operating, and net margins are each reported as 0%, and ROIC is 7.3%. Per the Roarable RQD rating, the Altman Z-Score is 2.5 and the Piotroski F-Score is 1 out of 9. Debt/Equity is 0.5 per the Roarable RQD rating. Reported net income declined from $45.8M in FY 2024 to $27.0M in FY 2025, while free cash flow remained negative in each reported year. Cash rose from $20.1M to $25.1M over FY 2024 to FY 2025.
Per the recent news and catalysts section, six items are tagged to SCM, each with a YELLOW light and MARKET WIRE impact label. The items reference a Q4 2026 dividend of $0.25 payable monthly in increments of $0.0833 across November and December 2026 and January 2027, a Q3 2026 earnings date and estimates item, and technical and institutional-positioning commentary from secondary outlets. The summaries are generic and do not contain verified fundamental content. Per the Butterfly Supply-Chain Graph, no proprietary signals or supply-chain links are recorded. Risk watch items include the negative free cash flow in each reported year and the low Piotroski score, both of which are unaddressed by the dividend announcement in the source data.
Per the Butterfly Supply-Chain Graph, supply_chain is recorded as NONE, with no butterfly links and no proprietary signals. The source data therefore does not establish upstream or downstream dependencies, sector correlation chains, or 2nd-order bottlenecks. Sector-level context is limited to the Financials classification and the Beta of 1.0 per the market data section.
Real-time company headlines, analyst actions, and sector developments for Stellus Capital Investment Corporation (SCM) • Click "Debate This Headline" to argue it in the Roar Pit below
Yahoo! Finance Canada report covering Stellus Capital Investment Corporation (SCM) market action, institutional positioning, and fundamental catalysts.
Stocktwits report covering Stellus Capital Investment Corporation (SCM) market action, institutional positioning, and fundamental catalysts.
TradingView report covering Stellus Capital Investment Corporation (SCM) market action, institutional positioning, and fundamental catalysts.
Yahoo Finance report covering Stellus Capital Investment Corporation (SCM) market action, institutional positioning, and fundamental catalysts.
MarketBeat report covering Stellus Capital Investment Corporation (SCM) market action, institutional positioning, and fundamental catalysts.
Stock Traders Daily report covering Stellus Capital Investment Corporation (SCM) market action, institutional positioning, and fundamental catalysts.
ad-hoc-news.de report covering Stellus Capital Investment Corporation (SCM) market action, institutional positioning, and fundamental catalysts.
ad-hoc-news.de report covering Stellus Capital Investment Corporation (SCM) market action, institutional positioning, and fundamental catalysts.
Welcome to the SCM (Stellus Capital Investment Corporation) Roar Pit. Current RQD Composite is 34/100 (Roarable Strong Sell — Forensic Risk / Avoid) in Finance/Investors Services. Bulls point to operating leverage and sector positioning, while bears focus on macro rate sensitivity and margin execution. Pick your side (🐂 Bull or 🐻 Bear) and drop your price target below.
Everyone in here is repeating the bull case on SCM, but look at what you are paying: 7.4x trailing P/E with tightening sector spreads. Unless Stellus Capital Investment Corporation expands free cash flow yield next quarter, I would rather wait for a pullback closer to the 200-day moving average before touching this.
Looking at the 5-pillar RQD breakdown on SCM, the market is fixating on short-term headline noise in Finance/Investors Services and ignoring the balance sheet and cash flow trajectory. At $7.04 (52-wk range $6.54 - $13.55), any beat on forward guidance forces shorts and underweight funds to chase.
To protect compute speed and zero-delay Cboe BZX data quality for active members, our current $9.95/month Roarable Pro cohort is 100% full. Join the priority waiting list below and we will notify you the moment the next batch of Pro accounts opens (and lock in your $9.95/mo rate).
Link your personal ChatGPT, Claude Desktop, or Cursor via Roarable's Model Context Protocol (`mcp.roarable.com`) to query all 5,289 stocks, inspect Butterfly supply chains, and trade your `$100K Arena` account.
Interrogate SEC 10-K/10-Q filings on demand and ask custom ticker, valuation, or short-thesis questions directly to any of our 8 specialized AI Quant Analysts.
Command our AI agents to sort and sift 5,289 stocks by custom formulas, follow multi-indicator technical & cash-flow setups, and send you instant Email/SMS breakout & downgrade alerts.
Unlock sub-second Cboe BZX streaming quotes, pre-market/after-hours delta scanners, instant SEC Form 4 insider cluster alerts, and unlimited portfolio stress-testing.
All 8 Roarable Analysts (Mara Quenwick, Devon Kess, Gideon Vane, Eliott Vance, Sorel Thorne, Corin Hale, Tessa Rane, and Felix Orven) are proprietary AI Quant Analysts and automated algorithmic specialists — not human financial advisors, fiduciaries, or registered broker-dealers. While one-to-many daily stock ratings and briefings are free, custom 1-on-1 Q&A, custom AI sifting/indicator alert agents, and personal ChatGPT/Claude MCP connections consume dedicated per-user compute and require a $9.95/month Roarable Pro membership. All AI outputs are for educational and research purposes only and never constitute individualized investment advice.
Enter your Google email below for instant 1-step account activation, daily A–E stock rating alerts, and immediate access to your $100,000.00 Virtual Cash Arena account (100% free — no credit card required).