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Stellus Capital InvestmentSCM -1.48%46 Return-on-Tangible-Equity is 17.76% as of Jun. 2026, which is 60% above its 10-year median of 11.12. GuruFocus rates SCM with a GF Score™ of 46/100 and a GF Value™ of $12.06 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,588 Asset Management companies, Stellus Capital Investment ranks better than 52.14% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Stellus Capital Investment's annualized net income for the quarter that ended in Jun. 2026 was $64.82 Mil. Stellus Capital Investment's average shareholder tangible equity for the quarter that ended in Jun. 2026 was $364.98 Mil. Therefore, Stellus Capital Investment's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 17.76%.
The historical rank and industry rank for Stellus Capital Investment's Return-on-Tangible-Equity or its related term are showing as below:
SCM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.17 Med: 11.12 Max: 13.83
Current: 8.03
During the past 13 years, Stellus Capital Investment's highest Return-on-Tangible-Equity was 13.83%. The lowest was 5.17%. And the median was 11.12%.
SCM's Return-on-Tangible-Equity is ranked better than 52.14% of 1588
companies
in the Asset Management industry
Industry Median: 7.5
vs SCM: 8.03
Stellus Capital Investment (NYSE:SCM) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Stellus Capital Investment Return-on-Tangible-Equity Related Terms
Stellus Capital Investment Return-on-Tangible-Equity Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Stellus Capital Investment Return-on-Tangible-Equity Chart
SCM vs IDE, ETX, FT: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Stellus Capital Investment's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Stellus Capital Investment Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Stellus Capital Investment's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Stellus Capital Investment's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 17.76% mean?
Stellus Capital Investment (SCM) has a Return-on-Tangible-Equity of 17.76% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Stellus Capital Investment and its competitors. This is 60% above median its historical median of 11.12. Over the past decade, Stellus Capital Investment's Return-on-Tangible-Equity has ranged from 5.17 to 13.83. According to the industry distribution chart, Stellus Capital Investment ranks #760 out of 1588 companies in the Asset Management industry, placing it in the top 47.9%.
Is Stellus Capital Investment's Return-on-Tangible-Equity too high?
Stellus Capital Investment's current Return-on-Tangible-Equity of 17.76% is 60% above median its 10-year median of 11.12. Over the past 10 years, this metric has ranged from a low of 5.17 to a high of 13.83. The Asset Management industry median Return-on-Tangible-Equity is 7.50. Stellus Capital Investment's value of 17.76% is 136.8% above this industry median. Based on the distribution chart, Stellus Capital Investment ranks #760 out of 1588 companies in the Asset Management industry, which is above the industry midpoint. Overall, Stellus Capital Investment has a GF Score™ of 46/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Stellus Capital Investment's Return-on-Tangible-Equity compare to IDE and ETX?
According to the Asset Management industry distribution chart, Stellus Capital Investment ranks #760 out of 1588 companies for Return-on-Tangible-Equity. This puts Stellus Capital Investment in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.50. Stellus Capital Investment's value of 17.76% is 136.8% above this benchmark. Historically, Stellus Capital Investment's own Return-on-Tangible-Equity has ranged from 5.17 to 13.83 over the past decade. While the company's 10-year median is 11.12 vs. the industry median of 7.50, Stellus Capital Investment has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Asset Management company?
The median Return-on-Tangible-Equity among Asset Management companies is 7.50, based on 1,588 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Stellus Capital Investment's current Return-on-Tangible-Equity of 17.76% is 136.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Stellus Capital Investment and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stellus Capital Investment's current Return-on-Tangible-Equity is 17.76%, which is 60% above median its own 10-year median of 11.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Stellus Capital Investment stock overvalued right now?
Based on GuruFocus' analysis, Stellus Capital Investment (SCM) is currently considered Modestly Undervalued. The stock's GF Value™ is $12.06, compared to a current price of $8.66 — trading 28.2% below its estimated fair value. The current Return-on-Tangible-Equity is 17.76%, which is 60% above median its 10-year median of 11.12 and 136.8% above the Asset Management industry median of 7.50. Stellus Capital Investment's overall GF Score™ is 46/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Stellus Capital Investment (SCM), the current Return-on-Tangible-Equity is 17.76% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Stellus Capital Investment (SCM) Overvalued in 2026?
Based on GuruFocus' analysis, Stellus Capital Investment stock appears to be undervalued.
The current stock price of $8.66 is trading 28.2% below its estimated GF Value™ of $12.06.
GuruFocus considers Stellus Capital Investment to be Modestly Undervalued.
Key valuation signals for SCM:
Return-on-Tangible-Equity: 17.76% (60% above median its 10-year median of 11.12)
GF Value™: $12.06 vs. price of $8.66 (28.2% below fair value)
Industry Position: 136.8% above the Asset Management median (#760 of 1588)
No single metric tells the full story. See the SCM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Stellus Capital Investment Corp is a closed-end, non-diversified management investment company. Its objective is to maximize the total return to its stockholders in the form of current income and capital appreciation. It invests in private middle-market companies through first lien, second lien, and unsecured debt financing, often with a corresponding equity investment. The company invests in various sectors, such as business services, energy, general industrial, government services, healthcare, software, and specialty finance. The business activity of the firm functions throughout the United States, and it generates revenue in the form of interest income on debt investments, capital gains, and distributions.
46GF Score
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