Stock fact sheet · data as of
Stellus Capital Investment Corporation (SCM): fair value, margin of safety and Wheel Score
Financial Services · Asset Management · United States · High Yield Income
Is SCM undervalued?
At 7.05 (close of 16 Oct 2026), SCM trades 100% below the GLS average fair value of 4,324,121.34. That average comes from 9 models run on the latest filings, and 8 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Stellus Capital Investment Corporation the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
There is a wide gap between Lynch (4.12) and 10 Cap (38,916,939.87). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files SCM under High Yield Income: a dividend yield above 4%.
Nine valuation models for SCM
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 11.22 | +59% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 17.17 | +144% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 16.64 | +136% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 4.12 | -41% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 10.51 | +49% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 38,916,939.87 | +552013231% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 61.52 | +773% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 19.56 | +178% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 11.46 | +63% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -22.59 | -420% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 13.25 | +88% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Stellus Capital Investment Corporation scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 2.2/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC 2.6%, ROE 7.3%, ROA 2.6% - with debt at 1.76 times equity and a free-cash-flow yield of 27977717.4%.
The dividend yield is high at 18.86% (payout ratio 147%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.
Institutional ownership scores 2/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 2.6% |
|---|---|---|---|
| GLS Moat | 2.2 / 10 | ROE | 7.3% |
| Debt / equity | 1.76 | ROA | 2.6% |
| Free-cash-flow yield | 27977717.4% | Payout ratio | 147% |
| Institutions | 2 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 70: Good
With a Wheel Score of 70 - the Good band - Stellus Capital Investment Corporation clears the Sunday Scan's "70 or higher" rule. The parts: Value 25/25, Health 16/20, Moat 3/15, Premium 20/20, Stability 6/20; Moat (3/15) scores lowest.
Implied volatility is 53% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 5,393 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 112k shares a day on a market cap of $201M, with a beta of 0.71 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 6 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 100% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 3 / 15 | moat 2.2/10 | |
| Premium | 20 / 20 | implied volatility 53% | |
| Stability | 6 / 20 | 112k shares/day, $201M cap, beta 0.71 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 9 Nov 2026 (after the close), 24 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium. The shares go ex-dividend on 30 Oct 2026 (0.0833 per share), so a covered call sold before then carries a small early-assignment risk around that date.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Asset Management
The 12 companies below are the closest to Stellus Capital Investment Corporation by market cap within the Asset Management industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
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|---|---|---|---|---|---|
| FIFNX Fidelity Founders Fund | 27.65 | 4.92 | -462% | 20No options | $202M |
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| GMSAX Goldman Sachs Managed Futures Strategy Fund | 10.14 | 26.60 | +62% | 39No options | $203M |
| SRV NXG Cushing Midstream Energy Fund | 43.85 | 124.29 | +65% | 39No options | $205M |
| MFM Aberdeen Municipal Income Fund | 4.98 | 8.66 | +42% | 39No options | $205M |
| VPV Invesco Pennsylvania Value Municipal Income Trust | 10.97 | 9.74 | -13% | 36No options | $196M |
| PNNT PennantPark Investment Corporation | 3.15 | 15.53 | +80% | 74Good | $206M |
| IIF Morgan Stanley India Investment Fund, Inc. | 21.82 | 29.21 | +25% | 39No options | $206M |
| EICA Eagle Point Income Company Inc. | 24.94 | 38.11 | +35% | 39No options | $206M |
| AHTPX American Beacon AHL TargetRisk Fund - Investor Class | 11.21 | 15.69 | +29% | 39No options | $195M |
| GGT Gabelli Multimedia Trust Inc. | 3.93 | 19.27 | +80% | 39No options | $194M |
| BANX ArrowMark Financial Corp. | 20.02 | 34.15 | +41% | 57Fair | $194M |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about SCM
Is SCM undervalued right now?
By the GLS models, yes: at 7.05 the stock is 100% below the average fair value of 4,324,121.34 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of SCM and what does it mean?
SCM scores 70 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for SCM?
4,324,121.34 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Stellus Capital Investment Corporation report earnings next?
The next earnings report is due on 9 Nov 2026 (after the close), 24 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does SCM have listed options, and how liquid are they?
Yes. The nightly snapshot found 62 listed contracts with 5,393 open interest across all expiries and implied volatility of 53% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.