Saratoga Investment Corp.
- Open
- 19.37
- Day high
- 19.62
- Day low
- 19.37
- Prev close
- 19.41
- Volume
- 23K
- Mkt cap
- $319M
- P/E (TTM)
- 19.6
- EPS (TTM)
- $1.00
- P/B
- 0.8
- P/S
- 3.2
- Yield
- 16.60%
- Per share
- $3.25
Saratoga Investment Corp. (SAR) is a Financial Services company listed on NYSE. The stock is down 23% over the past year.
Saratoga Investment Corp. (SAR) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
SAR earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 8, 2026 | $0.54 | $0.47 | -13.0% | $31M | -1.9% |
| May 6, 2026 | $0.53 | $0.53 | +0.0% | $31M | +0.9% |
| Jan 7, 2026 | $0.59 | $0.61 | +3.4% | $27M | -11.6% |
| Oct 7, 2025 | $0.67 | $0.58 | -13.4% | $33M | +0.4% |
| Jul 8, 2025 | $0.69 | $0.66 | -4.3% | $29M | -10.7% |
| Jan 8, 2025 | $0.92 | $0.90 | -2.2% | $35.9B | +9.4% |
| Oct 8, 2024 | $0.94 | $0.97 | +3.2% | $43M | +15.8% |
| Jul 9, 2024 | $0.97 | $1.05 | +8.2% | $17M | -51.9% |
| Jan 9, 2024 | $1.06 | $1.01 | -4.7% | $-1M | -103.0% |
| Oct 9, 2023 | $1.02 | $1.08 | +5.9% | $10M | -71.6% |
| Jul 10, 2023 | $0.91 | $1.08 | +18.7% | $2M | -93.7% |
| May 2, 2023 | $0.80 | $0.98 | +22.5% | $24M | -16.6% |
SAR insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 8, 2023 | Oberbeck Christian Ldirector, 10 percent owner, officer: CEO, Director and President | Buy | 2,000 | $23.81 |
| Aug 2, 2022 | Looney Steven Mdirector: | Buy | 1,250 | $23.54 |
| Aug 12, 2020 | Oberbeck Christian Ldirector, 10 percent owner, officer: CEO and Director | Buy | 2,000 | $17.67 |
| Aug 12, 2020 | Oberbeck Christian Ldirector, 10 percent owner, officer: CEO and Director | Buy | 5,000 | $17.51 |
| Jul 24, 2020 | Oberbeck Christian Lofficer: CEO and Director | Buy | 1,000 | $16.89 |
| Jul 24, 2020 | Oberbeck Christian Lofficer: CEO and Director | Buy | 3,000 | $17.50 |
| Jul 24, 2020 | Oberbeck Christian Lofficer: CEO and Director | Buy | 2,000 | $17.53 |
| Jul 14, 2020 | Oberbeck Christian Ldirector, 10 percent owner, officer: CEO and Director | Buy | 500 | $16.00 |
| May 22, 2020 | Oberbeck Christian Ldirector, 10 percent owner, officer: CEO and Director | Buy | 5,000 | $14.91 |
| May 15, 2020 | Oberbeck Christian Ldirector, 10 percent owner, officer: CEO and Director | Buy | 4,000 | $12.41 |
| May 14, 2020 | Steenkamp Henri Jofficer: CFO, CCO, Treasurer, Secretary | Buy | 1,203 | $12.90 |
| May 14, 2020 | Steenkamp Henri Jofficer: CFO, CCO, Treasurer, Secretary | Buy | 797 | $13.00 |
| May 13, 2020 | Oberbeck Christian Ldirector, 10 percent owner, officer: CEO and Director | Buy | 3,000 | $12.94 |
| May 11, 2020 | WILLIAMS GEORGE CABELL IIIdirector | Buy | 12,104 | $12.76 |
| May 11, 2020 | Oberbeck Christian Ldirector, 10 percent owner, officer: CEO and Director | Buy | 8,000 | $13.11 |
Source: SAR SEC Form 4 filings, latest May 8, 2023. For informational purposes only — not investment advice.
See the full SAR insider & 13F page →Saratoga Investment Corp. company profile
Overview
Saratoga Investment Corp. (NYSE:SAR) is a business development company founded in 2007 that specializes in providing debt and equity financing to lower middle market companies. Originally known as GSC Investment Corp., the company rebranded to Saratoga Investment Corp. and operates as a regulated investment company under the Investment Company Act of 1940. Based in New York with an additional office in New Jersey, Saratoga focuses on leveraged buyouts, acquisition financing, growth capital, and refinancing transactions for companies with revenues between $8 million and $250 million.
Business
Saratoga Investment Corp. operates as a business development company (BDC), which is a specialized type of investment firm that provides capital to small and medium-sized businesses. BDCs are publicly traded companies that function similarly to private equity firms but with greater regulatory oversight and liquidity for investors. The company's core business involves providing financing solutions to lower middle market companies through various investment structures. First lien debt represents the largest portion of their portfolio at approximately 88% of total investments, which means they hold senior secured loans that have first priority in repayment if a borrower defaults. They also invest in second lien loans, mezzanine debt, and equity positions, creating a diversified investment approach that balances risk and return. Saratoga's investment focus spans multiple industries including aerospace, automotive aftermarket, business services, consumer products, healthcare, manufacturing, technology services, and specialty chemicals. The company typically invests between $5 million and $50 million per transaction in companies with EBITDA (earnings before interest, taxes, depreciation, and amortization) of $2 million or greater. They often prefer to take majority stakes in their portfolio companies, giving them significant influence over business operations and strategic direction. The company also manages a Collateralized Loan Obligation (CLO) fund, which is a structured financial product that pools various loans and sells different tranches to investors based on risk levels. Additionally, Saratoga holds three Small Business Investment Company (SBIC) licenses, which provide access to government-backed funding at favorable rates to support small business lending.
Revenue model
Saratoga generates revenue primarily through interest income from its debt investments and dividend income from equity positions. The company's floating-rate loan portfolio (99% of credit assets) allows it to benefit from rising interest rates, as borrowers pay higher interest when rates increase. The core BDC portfolio currently yields approximately 11.5%, while the CLO fund generates higher yields around 16-24%. The company's customers are primarily private equity sponsors and middle market companies seeking growth capital, acquisition financing, or refinancing solutions. These borrowers typically have established cash flows but need capital to execute strategic initiatives, complete buyouts, or refinance existing debt. Several factors influence Saratoga's profitability margins. Rising interest rates generally increase revenue since most loans are floating-rate, while falling rates would compress yields. Credit quality directly impacts returns, as defaults reduce income and require reserves. The company maintains high underwriting standards, with 99.7% of credits currently rated in their highest internal category. Market competition from larger private credit platforms and direct lenders can pressure pricing and deal flow. Economic conditions affect both deal volume and credit performance - during economic downturns, M&A activity typically declines, reducing new investment opportunities, while portfolio company performance may deteriorate. The company's cost of capital also impacts margins, as they must fund investments through a combination of equity, debt, and government-backed SBIC funding.
Competitive moat
Saratoga's competitive moat is moderately strong but faces ongoing challenges from larger competitors. The company's primary advantages include its SBIC licenses, which provide access to government-backed funding at below-market rates - a significant cost advantage that larger private credit firms cannot easily replicate. These licenses are limited in number and difficult to obtain, creating a regulatory barrier to entry. The company's focus on the lower middle market provides some protection from competition with larger private credit platforms that typically target larger deals. This market segment often requires more hands-on due diligence and relationship management, favoring specialized players like Saratoga over massive institutional funds. The company has built deep relationships with private equity sponsors in this space over nearly two decades of operation. However, the moat faces significant pressure from expanding private credit markets. Larger players like Apollo, Blackstone, and KKR are increasingly moving down-market, bringing substantial capital and aggressive pricing that can squeeze margins and reduce deal flow. The company's relatively small size (under $1 billion in assets) limits its ability to compete on large transactions or provide the full-service capabilities that larger sponsors increasingly demand. Regulatory changes could also impact the competitive landscape, particularly around BDC structures or SBIC licensing. Additionally, the company's dependence on external market conditions for deal flow creates vulnerability during periods of low M&A activity, as evidenced by recent quarters with minimal new platform investments.
Risks & safety
Saratoga presents a moderate margin of safety with strong liquidity but elevated leverage levels. **Cash and Liquidity:** - Strong cash position with $148 billion in cash and short-term investments - Available liquidity of approximately $205 million for new investments - Positive free cash flow generation **Debt and Solvency:** - Debt-to-equity ratio of 1.86x, within acceptable BDC ranges but elevated - Long-term, fixed-rate, covenant-free debt structure provides stability - Debt maturities spread over 2-10 years, reducing refinancing risk - SBIC funding provides favorable cost of capital **Valuation Metrics:** - Trading at 0.92x price-to-book ratio, slight discount to NAV - Dividend yield of 12.1% appears sustainable based on current earnings - Current ratio of 0.28 indicates tight short-term liquidity management **Other Considerations:** - High portfolio quality with 99.7% of credits in top rating category - Two investments currently on non-accrual status - Floating-rate portfolio provides interest rate protection - Regulated BDC structure requires specific leverage and distribution requirements
Recent development
Over the past few years, Saratoga has implemented several strategic initiatives to strengthen its market position and financial flexibility. The company successfully obtained a third SBIC license, expanding its access to government-backed funding and increasing its total SBIC capacity. This provides a significant competitive advantage through lower-cost capital compared to traditional debt financing. The company has transitioned to a monthly dividend structure while increasing the quarterly base dividend to $0.75 per share, representing a substantial increase from historical levels. This change reflects improved earnings capacity and provides more predictable income for shareholders. Saratoga has been expanding its business development capabilities by adding personnel and resources for deal sourcing, recognizing the increasingly competitive environment for quality investments. The company raised $32.4 million through an At-The-Market equity offering to maintain balance sheet flexibility and support future growth. The firm has demonstrated disciplined capital allocation during challenging market conditions, maintaining high underwriting standards even when deal flow declined significantly. Rather than chase lower-quality opportunities, management has focused on supporting existing portfolio companies through follow-on investments and maintaining substantial liquidity for when market conditions improve. Recent portfolio management activities include restructuring troubled investments like Zollege and Pepper Palace, bringing in new management teams and potentially taking equity control to maximize recovery value. The company also successfully resolved several non-accrual situations, including the full repayment of the Noland investment with significant interest recognition.
SAR company profile · for informational purposes only — not investment advice.
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