SAR Stock Analysis: Saratoga Investment | NYSE
Asset Management | NYSE, USA | Market Cap: 317m USD | 12M Return: -11.9% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 3.50M
EPS Trend: -95.1%
Qual. Beats: 0
Rev. Trend: 78.7%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality
Saratoga Investment Corp. (SAR) is a publicly traded business development company (BDC) that provides flexible financing solutions to lower middle market companies in the United States. As a BDC, the firm operates under the Investment Company Act of 1940, a regulatory framework designed to facilitate capital flow to smaller and mid-sized businesses that often lack access to traditional public capital markets.
The company focuses on a broad range of transaction types, including leveraged and management buyouts, acquisition and growth financings, recapitalizations, debt refinancings, and transitional financings. SAR structures its investments through both debt and equity instruments, including first and second lien loans, mezzanine debt, co-investments, select high yield bonds, senior secured bonds, unsecured bonds, and preferred and common equity. Investments are made directly as well as through loan syndicates, and the fund generally prefers to take a majority stake in its portfolio companies.
Saratoga invests across a diverse set of industries, including aerospace, automotive aftermarket, business and consumer products and services, education, environmental services, industrial services, financial services, food and beverage, healthcare, logistics, distribution, manufacturing, restaurants, software and technology services, specialty chemicals, and media and telecommunications. The fund typically targets companies with EBITDA of $2 million or greater and revenues between $10 million and $150 million, with annual revenue ranges of $8 to $250 million, and generally invests between $60 million and $75 million per transaction.
- Fed rate cuts compress net investment income margins
- Middle market credit losses pressure net asset value
- Loan origination growth sustains dividend coverage
| Net Income: 16.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.12 > 0.02 and ΔFCF/TA -27.00 > 1.0 |
| NWC/Revenue: -9.35% < 20% (prev 126.2%; Δ -135.5% < -1%) |
| CFO/TA -0.12 > 3% & CFO -146.3m > Net Income 16.8m |
| Net Debt (529.2m) to EBITDA (4.85b): 0.11 < 3 |
| Current Ratio: 0.88 > 1.5 & < 3 |
| Outstanding Shares: last quarter (16.3m) vs 12m ago 5.92% < -2% |
| Gross Margin: 56.59% > 18% (prev 48.76%; Δ 7.83% > 0.5%) |
| Asset Turnover: 8.39% > 50% (prev 8.37%; Δ 0.02% > 0%) |
| Interest Coverage Ratio: 0.92 > 6 (EBIT TTM 46.6m / Interest Expense TTM 50.5m) |
| A: -0.01 (Total Current Assets 71.1m - Total Current Liabilities 80.5m) / Total Assets 1.20b |
| B: -0.05 (Retained Earnings -62.2m / Total Assets 1.20b) |
| C: 0.04 (EBIT TTM 46.6m / Avg Total Assets 1.20b) |
| D: 0.46 (Book Value of Equity 378.5m / Total Liabilities 819.0m) |
| Altman-Z'' = 0.53 = B |
As of July 28, 2026, the stock is trading at USD 19.37 with a total of 164,561 shares traded. Over the past week, the price has changed by -0.21%, over one month by -12.04%, over three months by -10.63% and over the past year by -11.94%.
Current recommended Stop Loss: 18.50 (which is 4.5% or 1.4 ATR below the current price).
Saratoga Investment has received a consensus analysts rating of 3.88. Therefore, it is recommended to buy SAR.
- StrongBuy: 3
- Buy: 1
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 21.2 | 9.4% |
P/E Trailing = 20.0103
P/E Forward = 13.1234
P/S = 2.5496
P/B = 0.8451
Revenue TTM = 100.7m USD
EBIT TTM = 46.6m USD
EBITDA TTM = 4.85b USD
Long Term Debt = unknown (none)
Short Term Debt = 70.0m USD (from shortTermDebt, last fiscal year)
Debt = 590.0m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 529.2m USD (calculated: Debt 590.0m - CCE 60.8m)
Enterprise Value = 845.8m USD (316.6m + Debt 590.0m - CCE 60.8m)
Interest Coverage Ratio = 0.92 (Ebit TTM 46.6m / Interest Expense TTM 50.5m)
EV/FCF = -5.78x (Enterprise Value 845.8m / FCF TTM -146.3m)
FCF Yield = -17.30% (FCF TTM -146.3m / Enterprise Value 845.8m)
FCF Margin = -145.3% (FCF TTM -146.3m / Revenue TTM 100.7m)
Net Margin = 16.64% (Net Income TTM 16.8m / Revenue TTM 100.7m)
Gross Margin = 56.59% ((Revenue TTM 100.7m - Cost of Revenue TTM 43.7m) / Revenue TTM)
Gross Margin QoQ = 77.70% (prev 15.75%)
Tobins Q-Ratio = 0.71 (Enterprise Value 845.8m / Total Assets 1.20b)
Interest Expense / Debt = 8.56% (Interest Expense 50.5m / Debt 590.0m)
Taxrate = 1.77% (825k / 46.6m)
NOPAT = 45.8m (EBIT 46.6m * (1 - 1.77%))
Current Ratio = 0.88 (Total Current Assets 71.1m / Total Current Liabilities 80.5m)
Debt / Equity = 1.56 (Debt 590.0m / totalStockholderEquity, last quarter 378.5m)
Debt / EBITDA = 0.11 (Net Debt 529.2m / EBITDA 4.85b)
Debt / FCF = -3.62 (negative FCF - burning cash) (Net Debt 529.2m / FCF TTM -146.3m)
Total Stockholder Equity = 399.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 1.40% (Net Income 16.8m / Total Assets 1.20b)
RoE = 4.19% (Net Income TTM 16.8m / Total Stockholder Equity 399.6m)
RoCE = 4.17% (EBIT 46.6m / Capital Employed (Total Assets 1.20b - Current Liab 80.5m))
RoIC = 3.66% (NOPAT 45.8m / Invested Capital 1.25b)
WACC = 8.14% (E(316.6m)/V(906.6m) * Re(7.65%) + D(590.0m)/V(906.6m) * Rd(8.56%) * (1-Tc(0.02)))
Discount Rate = 7.65% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 95.54 | Cagr: 8.17%
[DCF] Fair Price = unknown (Cash Flow -146.3m)
EPS Correlation: -95.07 | EPS CAGR: -25.84% | SUE: -0.42 | # QB: 0
Revenue Correlation: 78.74 | Revenue CAGR: 11.41% | SUE: -0.03 | # QB: 0
EPS current Quarter (2026-08-31): EPS=0.49 | Chg30d=-10.63% | Revisions=-38% | Analysts=7
EPS next Quarter (2026-11-30): EPS=0.50 | Chg30d=-8.56% | Revisions=-38% | Analysts=7
EPS current Year (2027-02-28): EPS=1.95 | Chg30d=-8.60% | Revisions=-38% | GrowthEPS=-17.5% | GrowthRev=+0.0%
EPS next Year (2028-02-29): EPS=2.04 | Chg30d=-3.13% | Revisions=+0% | GrowthEPS=+4.4% | GrowthRev=+3.3%
[Analyst] Revisions Ratio: -50% (up=3, down=12)