SAR

Saratoga Investment Corp.

Fundamental data last updated:November 2, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Financial Services

industry

Asset Management

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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 $50 million in companies having EBITDA of $2 million or greater and revenues of $8 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. is based in New York, New York with an additional office in Florham Park, New Jersey.

 


VALUATION

P/E

9.77

Market Cap ($M USD)

$367.16M

Forward P/E

10.01

PEG

-4.31

PRICE TO SALES

3.70

PRICE TO BOOK

0.90

EV / EBITDA

28.23

5-Year Average P/E

Free Cash Flow Yield

-23.98%

DCF Value

$18.42

Graham Number

$36.04

Price to FCF

-4.17

EV to FCF

-12.21

Earnings Yield

10.23%

FCF Yield

-23.98%

DIVIDEND

Yield

14.40%

Annual Payout

$3.25

Payout Ratio

143.03%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$2.31

Next Year EPS Growth Estimate

$2.26

Next Year Revenue Growth Estimate

$128.50M

Return on Equity (ROE)

9.06%

FREE CASH FLOW

Operating Margin

38.39%

Debt-to-Equity

1.84

Piotroski F-Score

4

Altman Z-Score

0.38

Return on Invested Capital (ROIC)

3.60%

Current Ratio

0.36

Quick Ratio

0.36

Net Debt to EBITDA

18.59

Interest Coverage

0.77

Gross Profit margin

50.31%

FCF PER SHARE

$-5.55

REVENUE PER SHARE

$6.26

Gainseekers Quantitative Analysis

Summary

Saratoga Investment Corp. presents a perplexing valuation scenario. Recent pricing indicated it traded significantly below its DCF value, suggesting a potential mispricing by the market. However, the Forward P/E of 9.67 and an Earnings Yield of 10.43% imply some level of value, yet the negative Altman Z-score raises red flags about financial distress. The company’s negative Price/Book ratio is unusual and signals potential accounting or valuation anomalies. Overall, while there are hints of value, the financial health appears precarious.

AI Exposure / Tech Reliance

Operating within the asset management industry, Saratoga Investment Corp. is positioned to leverage AI for enhanced data analytics and investment decision-making. However, its traditional business model may face challenges adapting to rapid tech shifts without significant innovation. The company's resilience will depend on its ability to integrate these technologies effectively.

The Bull Case

For the value-seeking investor, Saratoga offers intriguing prospects. A robust FCF Yield of 14.38% and a Piotroski F-Score of 6 suggest operational efficiency and potential for cash generation. The operating margin of 43.09% indicates strong pricing power, while a modest ROIC of 0.05% reflects cautious capital allocation. These metrics collectively paint a picture of a company with the potential to deliver returns despite broader market volatility.

The Bear Case

Yet, the bear case is compelling. The astronomical EV to EBITDA ratio of 209.00 suggests severe overvaluation, while the negative Debt/Equity ratio indicates potential financial instability. The Altman Z-score further underscores distress, and the company's proximity to its 52-week high raises concerns about technical overextension. These structural weaknesses could overshadow any perceived value.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

N/A

Institutional Ownership %

1-Year Beta

0.62

Insider Buying % (6 Mo)

Distance to 52-Week High

13.60%

Distance to 52-Week Low

7.93%

EARNINGS SURPRISE %

0.00%

50-DAY SMA

$22.39

200-DAY SMA

$23.14

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.