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Solar Capital

Nasdaq:SLRC
Snowflake Description

Undervalued with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SLRC
Nasdaq
$492M
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

Solar Capital Ltd. is a business development company specializing in secured debt (first lien unitranche and second lien), subordinated (unsecured) debt, minority equity, and strategic income-oriented control equity investments in leveraged middle market companies. The last earnings update was 41 days ago. More info.


Add to Portfolio Compare Print
  • Solar Capital is a fund or ETF! Currently our data availability for these is poor, we only recommend using them as part of a portfolio.
  • Solar Capital has significant price volatility in the past 3 months.
SLRC Share Price and Events
7 Day Returns
9.7%
NasdaqGS:SLRC
10.8%
US Capital Markets
7.2%
US Market
1 Year Returns
-45.6%
NasdaqGS:SLRC
-11.6%
US Capital Markets
-10.4%
US Market
SLRC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Solar Capital (SLRC) 9.7% -39.8% -43.3% -45.6% -48.6% -43.1%
US Capital Markets 10.8% -15.3% -22.1% -11.6% 3.3% 23.5%
US Market 7.2% -12.6% -19.4% -10.4% 8.3% 21%
1 Year Return vs Industry and Market
  • SLRC underperformed the Capital Markets industry which returned -11.6% over the past year.
  • SLRC underperformed the Market in United States of America which returned -10.4% over the past year.
Price Volatility
SLRC
Industry
5yr Volatility vs Market
Related Companies

SLRC Value

 Is Solar Capital undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Solar Capital to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Solar Capital.

NasdaqGS:SLRC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $20.25 * 7.8%
$1.57
Book Value of Equity per Share Weighted future Book Value estimates from 2 analysts. $20.25
Discount Rate (Cost of Equity) See below 8.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:SLRC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.76
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.757 (1 + (1- 21%) (119.35%))
1.315
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.31
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.315 * 5.44%)
8.89%

Discounted Cash Flow Calculation for NasdaqGS:SLRC using Excess Returns Model Model

The calculations below outline how an intrinsic value for Solar Capital is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGS:SLRC Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (7.8% – 8.89%) * $20.25)
$-0.23
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-0.23 / (8.89% - 1.74%)
$-3.16
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $20.25 + $-3.16
$17.09
NasdaqGS:SLRC Discount to Share Price
Calculation Result
Value per share (USD) From above. $17.09
Current discount Discount to share price of $11.65
= -1 x ($11.65 - $17.09) / $17.09
31.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Solar Capital is available for.
Intrinsic value
32%
Share price is $11.65 vs Future cash flow value of $17.09
Current Discount Checks
For Solar Capital to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Solar Capital's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Solar Capital's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Solar Capital's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Solar Capital's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:SLRC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $1.33
NasdaqGS:SLRC Share Price ** NasdaqGS (2020-03-31) in USD $11.65
United States of America Capital Markets Industry PE Ratio Median Figure of 91 Publicly-Listed Capital Markets Companies 32.96x
United States of America Market PE Ratio Median Figure of 2,938 Publicly-Listed Companies 13.11x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Solar Capital.

NasdaqGS:SLRC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SLRC Share Price ÷ EPS (both in USD)

= 11.65 ÷ 1.33

8.79x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Solar Capital is good value based on earnings compared to the US Capital Markets industry average.
  • Solar Capital is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Solar Capital's expected growth come at a high price?
Raw Data
NasdaqGS:SLRC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.79x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
13.4%per year
United States of America Capital Markets Industry PEG Ratio Median Figure of 36 Publicly-Listed Capital Markets Companies 1.95x
United States of America Market PEG Ratio Median Figure of 2,007 Publicly-Listed Companies 1.01x

*Line of best fit is calculated by linear regression .

NasdaqGS:SLRC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.79x ÷ 13.4%

0.65x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Solar Capital is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Solar Capital's assets?
Raw Data
NasdaqGS:SLRC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $21.44
NasdaqGS:SLRC Share Price * NasdaqGS (2020-03-31) in USD $11.65
United States of America Capital Markets Industry PB Ratio Median Figure of 175 Publicly-Listed Capital Markets Companies 7.45x
United States of America Market PB Ratio Median Figure of 5,134 Publicly-Listed Companies 1.27x
NasdaqGS:SLRC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SLRC Share Price ÷ Book Value per Share (both in USD)

= 11.65 ÷ 21.44

0.54x

* Primary Listing of Solar Capital.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Solar Capital is good value based on assets compared to the US Capital Markets industry average.
X
Value checks
We assess Solar Capital's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. Solar Capital has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SLRC Future Performance

 How is Solar Capital expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Solar Capital expected to grow at an attractive rate?
  • Solar Capital's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Solar Capital's earnings growth is expected to exceed the United States of America market average.
  • Solar Capital's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:SLRC Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:SLRC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 13.4%
NasdaqGS:SLRC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 1.8%
United States of America Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 5.7%
United States of America Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 2.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:SLRC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:SLRC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 161 54 73 7
2020-12-31 154 -117 73 9
2020-04-01
NasdaqGS:SLRC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 155 187 56
2019-09-30 156 -49 67
2019-06-30 153 -31 71
2019-03-31 154 133 72
2018-12-31 154 191 67
2018-09-30 154 58 75
2018-06-30 153 -286 74
2018-03-31 148 -383 73
2017-12-31 143 -243 70
2017-09-30 141 -53 71
2017-06-30 145 600 79
2017-03-31 152 293 96

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Solar Capital's earnings are expected to grow by 13.4% yearly, however this is not considered high growth (20% yearly).
  • Solar Capital's revenue is expected to grow by 1.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:SLRC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Solar Capital Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SLRC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.73 1.79 1.62 6.00
2020-12-31 1.71 1.79 1.65 7.00
2020-04-01
NasdaqGS:SLRC Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 1.33
2019-09-30 1.59
2019-06-30 1.69
2019-03-31 1.70
2018-12-31 1.58
2018-09-30 1.78
2018-06-30 1.76
2018-03-31 1.73
2017-12-31 1.67
2017-09-30 1.68
2017-06-30 1.88
2017-03-31 2.27

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Solar Capital is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Solar Capital's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Solar Capital has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SLRC Past Performance

  How has Solar Capital performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Solar Capital's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Solar Capital's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Solar Capital's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Solar Capital's 1-year earnings growth is negative, it can't be compared to the US Capital Markets industry average.
Earnings and Revenue History
Solar Capital's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Solar Capital Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SLRC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 154.71 56.02 53.37
2019-09-30 155.89 67.09 52.95
2019-06-30 153.32 71.50 52.40
2019-03-31 153.83 71.66 53.18
2018-12-31 153.53 66.87 53.91
2018-09-30 154.20 75.29 55.91
2018-06-30 153.21 74.33 56.19
2018-03-31 147.91 73.32 55.11
2017-12-31 143.34 70.43 53.31
2017-09-30 141.07 70.95 52.23
2017-06-30 144.72 79.40 53.02
2017-03-31 152.20 95.80 56.46
2016-12-31 151.84 106.82 56.17
2016-09-30 146.71 74.79 52.69
2016-06-30 137.35 49.26 48.00
2016-03-31 123.96 31.36 40.06
2015-12-31 115.56 14.08 35.61
2015-09-30 117.00 33.11 38.13
2015-06-30 114.91 45.79 36.91
2015-03-31 114.94 45.60 36.81
2014-12-31 121.94 48.45 40.78
2014-09-30 123.96 72.55 41.00
2014-06-30 138.59 70.35 47.24
2014-03-31 149.73 53.25 54.06
2013-12-31 163.19 75.31 58.20
2013-09-30 169.69 69.66 58.89
2013-06-30 167.35 89.33 59.14

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Solar Capital has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Solar Capital used its assets more efficiently than the US Capital Markets industry average last year based on Return on Assets.
  • Solar Capital's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Solar Capital's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Solar Capital has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SLRC Health

 How is Solar Capital's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Solar Capital's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Solar Capital is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Solar Capital's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Solar Capital's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Solar Capital Company Filings, last reported 3 months ago.

NasdaqGS:SLRC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 905.88 587.12 436.35
2019-09-30 925.37 564.07 169.46
2019-06-30 928.98 558.84 210.55
2019-03-31 926.68 593.27 258.77
2018-12-31 919.17 473.54 207.22
2018-09-30 927.59 486.23 209.99
2018-06-30 926.79 471.66 223.91
2018-03-31 924.33 543.46 144.70
2017-12-31 921.61 539.47 150.79
2017-09-30 921.18 472.20 205.44
2017-06-30 920.92 297.17 402.98
2017-03-31 918.77 372.14 423.94
2016-12-31 918.51 387.31 312.05
2016-09-30 917.56 439.79 293.70
2016-06-30 908.84 569.96 143.51
2016-03-31 890.57 444.43 270.69
2015-12-31 882.70 429.90 277.57
2015-09-30 913.87 298.40 425.71
2015-06-30 930.77 225.00 496.82
2015-03-31 930.48 225.00 594.70
2014-12-31 936.57 225.00 635.34
2014-09-30 948.70 225.00 557.23
2014-06-30 952.92 225.00 698.33
2014-03-31 972.33 225.00 647.93
2013-12-31 995.64 225.00 586.98
2013-09-30 986.13 225.00 84.04
2013-06-30 1,008.30 368.79 8.03
  • Solar Capital's level of debt (64.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (24% vs 64.8% today).
  • Debt is well covered by operating cash flow (31.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.5x coverage).
X
Financial health checks
We assess Solar Capital's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Solar Capital has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SLRC Dividends

 What is Solar Capital's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
14.08%
Current annual income from Solar Capital dividends. Estimated to be 14% next year.
If you bought $2,000 of Solar Capital shares you are expected to receive $282 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Solar Capital's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.95%).
  • Solar Capital's dividend is above the markets top 25% of dividend payers in United States of America (5.4%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:SLRC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United States of America Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 44 Stocks 2.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1946 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:SLRC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.63 6.00
2020-12-31 1.64 8.00
2020-04-01
NasdaqGS:SLRC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-20 1.640 11.784
2019-11-04 1.640 7.910
2019-08-05 1.640 8.008
2019-05-06 1.640 7.906
2019-02-21 1.640 7.679
2018-11-05 1.640 8.038
2018-05-07 1.640 7.729
2018-02-22 1.600 7.812
2017-11-02 1.600 7.663
2017-05-03 1.600 7.410
2017-05-02 1.600 7.221
2017-02-22 1.600 7.161
2016-08-02 1.600 7.738
2016-05-03 1.600 8.448
2015-11-05 1.600 9.413
2015-11-03 1.600 8.958
2015-08-04 1.600 9.297
2015-05-05 1.600 8.629
2015-03-05 1.600 7.932
2015-02-25 1.600 7.969
2014-08-08 1.600 8.480
2014-05-05 1.600 7.685
2014-02-25 1.600 7.253
2013-10-30 1.600 7.108
2013-07-24 1.600 7.203
2013-05-07 2.400 10.177
2013-02-25 2.400 10.125
2012-11-01 2.400 10.079
2012-07-31 2.400 10.474
2012-05-01 2.400 10.864
2012-02-22 2.400 10.932
2011-11-01 2.400 10.650
2011-08-02 2.400 11.141
2011-05-02 2.400 9.788
2011-03-01 2.400 9.927
2010-11-02 2.400 9.895
2010-08-03 2.400 11.527
2010-05-04 2.400 11.742
2010-04-06 2.400 10.374
2010-03-04 2.400 11.857
2010-02-11 2.400 13.027

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Solar Capital's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1.1x coverage).
X
Income/ dividend checks
We assess Solar Capital's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Solar Capital afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Solar Capital has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SLRC Management

 What is the CEO of Solar Capital's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Michael Gross
COMPENSATION $0
AGE 57
TENURE AS CEO 0.8 years
CEO Bio

Mr. Michael Stuart Gross serves as a Partner of Solar Capital Partners, LLC. He serves as a Managing Member of the Solar Capital Partners, LLC investment adviser. Mr. Gross has been the Chairman and President of Solar Senior Capital, Ltd. since December 2010 and serves as its Co-Chief Executive Officer since June 11, 2019 and served as Chief Executive Officer from December 2010 until June 11, 2019. He has been President of SCP Private Credit Income BDC LLC since June 2018 and also has been its Director since May 2018 and serves as its Chairman since 2018. Mr. Gross serves as Co-Chief Executive Officer of SCP Private Credit Income BDC LLC since June 10, 2019 and served as its Chief Executive Officer since June 2018 until June 10, 2019. He serves as President and Principal Financial Officer at Marathon Acquisition Corp., where he served as the Chairman, Chief Executive Officer and Secretary from April 2006 to August 2008. He is employed at Laureate Education Inc. From July 2006 to 2009, Mr. Gross served as Senior Partner of Magnetar Capital LLC and was previously its Chief Investment Officer of Credit and Private Investment Business. He was a Founder and served as a Senior Partner from 1990 to February 2006 at Apollo Global Management LLC. He had primary responsibility for Apollo Management, L.P.'s debt-oriented activities. He also served as the Managing Partner of Apollo Investment Management, L.P. From 1987 to 1990, he worked in mergers and acquisitions at Drexel Burnham Lambert. Mr. Gross has been the Chairman and Director at GSL Holdings, Inc. since September 2008. He served as the Chairman of the Board of Global Ship Lease, Inc. since September 2008 until November 15, 2018. Mr. Gross has served as the Managing Member, the Chairman of the Board of Directors and the Chief Executive Officer of Solar Capital LLC since its inception in February 2007. Solar Capital LLC converted to Solar Capital Ltd. in November 2007. Mr. Gross has been the Chairman of the Board of Directors of Solar Capital Ltd. since December 2007, and President since November 2007 and serves as its Co-Chief Executive Officer since June 11, 2019 and served as its Chief Executive Officer from November 2007 until June 11, 2019. He has been a Director of Saks Inc., since 1994. Mr. Gross serves as a Director of Marathon Acquisition Corp. He has been a Director of Encompass Services Corp. since February 2000 and Solar Senior Capital Ltd. since 2007. Mr. Gross has been a Director of Imagyn Medical Technologies Inc. since June 1996. He has been a Member of Supervisory Board of Memorex Telex N.V. since June 1994 and Crumbs Bake Shop, Inc. since April 2010. Mr. Gross is the Chairman of the Board of Mt. Sinai Children's Center Foundation and serves as a Trustee of The Mount Sinai Hospital. He is a Founding Member of the Youth Renewal Fund. He serves as a Director of Global Ship Lease, Inc. He serves on the Board of Trustees of the Trinity School and on the Corporate Advisory Board of the University of Michigan Business School. He serves as a Director at Clark Retail Enterprises Inc., Furniture Brands International Inc. and Proffitts Inc. Mr. Gross served as a Director at Educate Inc. from April 2004 to February 2, 2004, CVEO Corporation since 1992, Florsheim Group Inc. from 1994 to August 7, 2002 and Allied Waste Industries Inc. from May 1997 to September 29, 2005. Mr. Gross served as a Director at Jarden Corporation from March 26, 2007 to April 15, 2016 and as its Lead Director until April 15, 2016. He served as a Director of Pacer International Inc. since April 1, 2000, United Rentals (North America), Inc. since April 2000, Alternative Asset Management Acquisition Corp since March 2007 and SkyTerra Communications Inc. from August 1999 to June 8, 2005. He served as a Director of Breuners Home Furnishings Corporation. He served as a Director of Laureate Education, Inc. Mr. Gross served as a Director of United Rentals Inc. from January 1999 to June 10, 2008 and Lead Director since April 12, 2006. He was a Member of the Advisory Board of 57th Street General Acquisition Corp. since April 2010. He has over 25 years of experience in the private equity, distressed debt and mezzanine lending businesses. Mr. Gross received an M.B.A. from the Kellogg Graduate School of Management at Northwestern University and graduated with high distinction, beta gamma sigma, from the University of Michigan with a B.B.A. in Accounting.

CEO Compensation
  • Insufficient data for Michael to compare compensation growth.
  • Insufficient data for Michael to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Solar Capital management team in years:

4.3
Average Tenure
57.5
Average Age
  • The tenure for the Solar Capital management team is about average.
Management Team

Michael Gross

TITLE
Chairman
AGE
57
TENURE
0.8 yrs

Bruce Spohler

TITLE
COO, Co-CEO & Interested Director
AGE
58
TENURE
0.8 yrs

Rich Peteka

TITLE
Treasurer
AGE
57
TENURE
7.8 yrs

Richard Pivirotto

TITLE
Investor Relations

Guy Talarico

TITLE
Chief Compliance Officer
AGE
64
TENURE
11.7 yrs

Anthony Storino

TITLE
Head of Healthcare Venture Lending
Board of Directors Tenure

Average tenure and age of the Solar Capital board of directors in years:

12.3
Average Tenure
57
Average Age
  • The average tenure for the Solar Capital board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Michael Gross

TITLE
Chairman
AGE
57
TENURE
12.3 yrs

Bruce Spohler

TITLE
COO, Co-CEO & Interested Director
AGE
58
TENURE
10.5 yrs

David Wachter

TITLE
Independent Director
COMPENSATION
$122K
AGE
56
TENURE
12.3 yrs

Steve Hochberg

TITLE
Independent Director
COMPENSATION
$127K
AGE
57
TENURE
12.3 yrs

Len Potter

TITLE
Independent Director
COMPENSATION
$121K
AGE
57
TENURE
10.5 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Solar Capital individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
24. Mar 20 Buy Guy Talarico Individual 20. Mar 20 20. Mar 20 3,200 $10.35 $33,120
23. Mar 20 Buy Michael Gross Individual 23. Mar 20 23. Mar 20 50,000 $9.45 $472,500
23. Mar 20 Buy Bruce Spohler Individual 23. Mar 20 23. Mar 20 53,526 $9.32 $498,862
23. Mar 20 Buy David Wachter Individual 20. Mar 20 20. Mar 20 20,000 $10.59 $211,800
23. Mar 20 Buy Richard Peteka Individual 23. Mar 20 23. Mar 20 5,000 $8.99 $44,931
20. Mar 20 Buy Michael Gross Individual 18. Mar 20 20. Mar 20 39,101 $9.90 $356,396
17. Mar 20 Buy Michael Gross Individual 13. Mar 20 17. Mar 20 40,000 $14.66 $549,650
17. Mar 20 Buy Richard Peteka Individual 16. Mar 20 16. Mar 20 8,000 $13.32 $106,528
27. Feb 20 Buy Michael Gross Individual 25. Feb 20 25. Feb 20 15,000 $19.61 $294,150
10. Mar 20 Buy Michael Gross Individual 06. Mar 20 10. Mar 20 47,125 $18.71 $822,928
03. Mar 20 Buy Michael Gross Individual 28. Feb 20 28. Feb 20 13,000 $18.68 $242,840
27. Feb 20 Buy Michael Gross Individual 26. Feb 20 27. Feb 20 26,000 $19.48 $501,670
17. Dec 19 Buy Guy Talarico Individual 13. Dec 19 13. Dec 19 7,150 $20.87 $149,146
15. Nov 19 Sell Steven Hochberg Individual 14. Nov 19 14. Nov 19 -15,000 $20.57 $-308,609
X
Management checks
We assess Solar Capital's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Solar Capital has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SLRC News

Simply Wall St News

SLRC Company Info

Description

Solar Capital Ltd. is a business development company specializing in secured debt (first lien unitranche and second lien), subordinated (unsecured) debt, minority equity, and strategic income-oriented control equity investments in leveraged middle market companies. The fund invests in aerospace and defense; air freight & logistics; asset management; automotive; banking; beverage, food and tobacco; building products; buildings and real estate; broadcasting and entertainment; cargo transport; commercial services and supplies; communications equipment; chemicals, plastics and rubber; containers, packaging and glass; construction & engineering; diversified/conglomerate manufacturing; consumer Finance; distributors; diversified/conglomerate services; diversified financial services; diversified real estate sctivities; food products; Footwear; Education Services; diversified telecommunications services; electronics; farming and agriculture; finance; grocery; health care equipment and supplies; health care facilities; education and childcare; home and office furnishing, durable consumer products; hotels, motels, inns and gaming; insurance; restaurants, leisure, amusement, and entertainment; leisure equipment tolls and services, media, multiline retail, multi sector holdings; paper and forest products; personal products; professional services, research and consulting services, software; specialty retail; textiles apparel and luxury goods, thrifts and mortgage finance, trading companies and distributors, utilities, and wireless telecommunication services; industrial conglomerates; internet software and services, IT services, machinery; mining, steel, iron, and non precious metals; oil and gas; personal, food and miscellaneous services; printing and publishing; retail stores; telecommunications; textiles and leather; and utilities. It also invests in life sciences with focus on specialty pharmaceuticals, medical devices, biotech, health Care Providers and services; health Care technology, enabling technologies and tools. The fund primarily invests in United States. The fund’s investments generally range between $5 million and $100 million. The fund invests in companies with revenues between $50 million and $1 billion and EBITDA between $15 million and $100 million. It invests in the form of senior secured loans, mezzanine loans, and equity securities. It may also seek investments in thinly traded public companies and also make secondary investments. The fund makes non-control equity investments. It primarily exits within three years of the initial capital commitment.

Details
Name: Solar Capital Ltd.
SLRC
Exchange: NasdaqGS
Founded: 2007
$491,916,014
42,260,826
Website: http://www.solarcapltd.com
Address: Solar Capital Ltd.
500 Park Avenue,
3rd Floor,
New York,
New York, 10022,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS SLRC Common Stock Nasdaq Global Select US USD 09. Feb 2010
DB ZSL Common Stock Deutsche Boerse AG DE EUR 09. Feb 2010
LSE 0L7O Common Stock London Stock Exchange GB USD 09. Feb 2010
BRSE ZSL Common Stock Berne Stock Exchange CH CHF 09. Feb 2010
Number of employees
Current staff
Staff numbers
0
Solar Capital employees.
Industry
Asset Management and Custody Banks
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/01 00:31
End of day share price update: 2020/03/31 00:00
Last estimates confirmation: 2020/03/31
Last earnings filing: 2020/02/20
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.