Stellus Capital Investment Corporation (SCM) carries a Roarable Rating of D (Sell) with 49/100 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 2026-11-01, Stellus Capital Investment Corporation (NYSE: SCM) is rated D (Sell / SELL) by Roarable's 5-pillar RQD engine with a composite confidence score of 49/100 at a spot price of $7.04 (+3.53% 1D, market cap $200.5M). Pillar breakdown: Fundamental Cash Engine 8/20, Institutional 13F & Options Flow 12/20, Executive Insider Alignment 10/20, FRED Macro Regime Fit 12/20, and SEC Balance-Sheet Forensics 7/20. Across 1096 tracked Financials issuers, SCM ranks #876 in composite RQD confidence.
Within the Financials sector (Finance/Investors Services), SCM carries a Roarable D (49/100 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 (51/100 RQD, P/E N/A, ROIC —, cap $219.8M) and GRX (The Gabelli Healthcare & Wellness Trust of) posts a D grade (51/100 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
20D Institutional Volume Accumulation (±5.8% realized swing band)
FRED Regime × Technicals: 7% of 52W Range • RSI-14 at 43.5 (NEUTRAL RANGE)
Dilution Drag (+1.36% YoY Shares) & executive Form 4 sales trim 13 pts from alignment
While SCM currently carries a cautious 49/100 (D) rating due to Insider Conviction & Share Dilution (7/20), 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 ($7.70) and Max Pain ($7.39) 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) surged +3.53% to $7.04, 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.
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 #876 by composite RQD confidence (49/100, grade D) 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. GNT currently holds the highest overall quantitative score in the immediate peer group at 60/100 (C-) compared with SCM at 49/100 (D).
| 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 | D | 49/100 | 7.4x | — | 7.3% | +3.53% | $200.5M | Benchmark Subject |
| FTF Franklin Limited Duration Income Trust of | D | 51/100 | — | — | — | +1.12% | $219.8M | /ftf-vs-scm → |
| GRX The Gabelli Healthcare & Wellness Trust of | D | 51/100 | — | — | — | +1.15% | $173.2M | /grx-vs-scm → |
| ACV Virtus Diversified Income & Convertible Fund of | D+ | 56/100 | — | — | — | +0.13% | $249.7M | /acv-vs-scm → |
| GNT GAMCO Natural Resources Gold & Income Trust | C- | 60/100 | — | — | — | +1.10% | $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 2026-11-01, Stellus Capital Investment Corporation (NYSE: SCM) is rated D (Sell / SELL) by Roarable's 5-pillar RQD engine with a composite confidence score of 49/100 at a spot price of $7.04 (+3.53% 1D, market cap $200.5M). Pillar breakdown: Fundamental Cash Engine 8/20, Institutional 13F & Options Flow 12/20, Executive Insider Alignment 10/20, FRED Macro Regime Fit 12/20, and SEC Balance-Sheet Forensics 7/20. Across 1096 tracked Financials issuers, SCM ranks #876 in composite RQD confidence.
Within the Financials sector (Finance/Investors Services), SCM carries a Roarable D (49/100 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 (51/100 RQD, P/E N/A, ROIC —, cap $219.8M) and GRX (The Gabelli Healthcare & Wellness Trust of) posts a D grade (51/100 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 $7.04 (+3.53% on volume of 142,854 shares), positioning the stock -8.57% below its 50-day simple moving average ($7.70) and -22.12% below its 200-day simple moving average ($9.04). Across its 52-week range of $6.54 to $13.55, SCM sits at the 7.1% percentile with a 14-day RSI of 43.5 (NEUTRAL RANGE) and an implied next-earnings move of ±5.8% ($6.63 to $7.45).
Why SCM Stock surged +3.53% Today — RQD Quant Desk Flash. Stretched risk/reward at 7x P/E (7% return on capital) under elevated 10-year interest-rate pressure.
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 Paper Trading Arena account.