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Upturn AI SWOT - About
SAR 
Saratoga Investment Corp (SAR)
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Upturn Advisory Summary
04/01/2025: SAR (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit -13.85% | Avg. Invested days 42 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 363.68M USD | Price to earnings Ratio 10.1 | 1Y Target Price 26.04 |
Price to earnings Ratio 10.1 | 1Y Target Price 26.04 | ||
Volume (30-day avg) 129390 | Beta 1.36 | 52 Weeks Range 19.68 - 25.58 | Updated Date 04/1/2025 |
52 Weeks Range 19.68 - 25.58 | Updated Date 04/1/2025 | ||
Dividends yield (FY) 11.84% | Basic EPS (TTM) 2.51 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 22.01% | Operating Margin (TTM) 71.12% |
Management Effectiveness
Return on Assets (TTM) 5.82% | Return on Equity (TTM) 9.28% |
Valuation
Trailing PE 10.1 | Forward PE 8.53 | Enterprise Value 1039844288 | Price to Sales(TTM) 2.35 |
Enterprise Value 1039844288 | Price to Sales(TTM) 2.35 | ||
Enterprise Value to Revenue 25.3 | Enterprise Value to EBITDA - | Shares Outstanding 14346400 | Shares Floating 12853633 |
Shares Outstanding 14346400 | Shares Floating 12853633 | ||
Percent Insiders 14.92 | Percent Institutions 16.31 |
Analyst Ratings
Rating 3.71 | Target Price 26.05 | Buy 1 | Strong Buy 2 |
Buy 1 | Strong Buy 2 | ||
Hold 4 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Saratoga Investment Corp
Company Overview
History and Background
Saratoga Investment Corp. (SAR) was founded in 2006 and is a specialty finance company that invests in and provides senior and unitranche debt and mezzanine debt, as well as equity, to lower middle market companies in the United States.
Core Business Areas
- Direct Lending: Saratoga Investment Corp primarily focuses on providing financing solutions to lower middle market companies through direct lending activities.
- Equity Investments: In addition to debt financing, SAR also makes equity investments, providing both capital and operational expertise.
Leadership and Structure
The leadership team consists of experienced investment professionals. The organizational structure is designed to facilitate efficient deal sourcing, underwriting, and portfolio management.
Top Products and Market Share
Key Offerings
- Senior Debt: SAR provides senior secured debt to lower middle market companies. This offering faces competition from other BDCs and private credit funds.
- Unitranche Debt: Saratoga offers unitranche debt, a hybrid of senior and subordinated debt. Competitors include Ares Capital, Owl Rock Capital.
- Mezzanine Debt: SAR offers mezzanine debt which is higher yielding. Competitors in this market include Main Street Capital and Prospect Capital.
Market Dynamics
Industry Overview
The industry is characterized by intense competition among Business Development Companies (BDCs) and private credit funds seeking to deploy capital in the lower middle market. Economic conditions, interest rates, and regulatory changes significantly impact the industry.
Positioning
Saratoga Investment Corp. positions itself as a flexible capital provider with a focus on building long-term relationships with portfolio companies. Its competitive advantage lies in its ability to provide customized financing solutions and operational expertise.
Total Addressable Market (TAM)
The TAM for lower middle market lending is estimated to be in the hundreds of billions of dollars. Saratoga Investment Corp. is well-positioned to capture a portion of this market.
Upturn SWOT Analysis
Strengths
- Experienced management team
- Strong track record of investment performance
- Flexible capital deployment strategy
- Strong relationships with portfolio companies
Weaknesses
- Relatively small asset base compared to larger BDCs
- Concentration risk in portfolio holdings
- Sensitivity to economic downturns
- Higher operating expenses than larger BDCs
Opportunities
- Growing demand for private credit in the lower middle market
- Potential for strategic acquisitions to expand market reach
- Ability to increase fee income through asset management activities
- Leveraging technology to improve operational efficiency
Threats
- Increased competition from other BDCs and private credit funds
- Rising interest rates that could negatively impact portfolio company performance
- Economic recession that could lead to loan defaults
- Regulatory changes that could impact BDC operations
Competitors and Market Share
Key Competitors
- ARCC
- MAIN
- TINV
Competitive Landscape
Saratoga Investment Corp. competes with other BDCs and private credit funds. Its advantages include its experienced management team and flexible capital deployment strategy. Disadvantages include a smaller asset base and higher operating expenses.
Major Acquisitions
No recent major acquisitions
- Year: 2022
- Acquisition Price (USD millions): 0
- Strategic Rationale: N/A
Growth Trajectory and Initiatives
Historical Growth: Saratoga Investment Corp. has experienced strong growth in recent years, driven by increased demand for its financing solutions.
Future Projections: Analysts project continued growth for Saratoga Investment Corp. as it continues to capitalize on opportunities in the lower middle market.
Recent Initiatives: Recent initiatives include expanding its origination team and diversifying its investment portfolio.
Summary
Saratoga Investment Corp. appears to be a well-managed BDC with a strong track record. Its flexible capital deployment strategy and experienced management team are key strengths. However, its smaller asset base and sensitivity to economic downturns are factors to consider. Steady dividend yield, and growth, indicate positive future prospects, however, smaller asset base and concentration risk require monitoring.
Similar Companies
- ARCC
- MAIN
- PSEC
- TINV
Sources and Disclaimers
Data Sources:
- Company filings (10-K, 10-Q)
- Analyst reports
- Company website
- SEC.gov
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Market conditions and company performance can change rapidly. Consult with a qualified financial advisor before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Saratoga Investment Corp
Exchange NYSE | Headquaters New York, NY, United States | ||
IPO Launch date 2007-03-23 | Chairman, CEO & President Mr. Christian Long Oberbeck | ||
Sector Financial Services | Industry Asset Management | Full time employees - | |
Full time employees - | |||
Saratoga Investment Corp. is a business development company specializing in leveraged and management buyouts, acquisition financings, growth financings, recapitalization, debt refinancing, and transitional financing transactions at the lower end of middle market companies. It structures its investments as debt and equity by investing through first and second lien loans, mezzanine debt, co-investments, select high yield bonds, senior secured bonds, unsecured bonds, and preferred and common equity. The firm prefers to invest in aerospace, automotive aftermarket and services, business products and services, consumer products and services, education, environmental services, industrial services, financial services, food and beverage, healthcare products and services, logistics, distribution, manufacturing, restaurants services, food services, software services, technology services, specialty chemical, media and telecommunications. It seeks to invest in the United States. The firm primarily invests $5 million to $75 million in companies having EBITDA of $2 million or greater and revenues of $5 million to $250 million. The firm prefer to take a majority stake. It invests through direct lending as well as participation in loan syndicates. The firm was formerly known as GSC Investment Corp. Saratoga Investment Corp. was formed on 2007 and is based in New York, New York with an additional office in Florham Park, New Jersey.
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