Solar Senior Capital Ltd. is a management investment company. The Company's investment objective is to seek to maximize current income consistent with the preservation of capital.
SUNS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Solar Senior Capital Ltd. To summarize, we found that Solar Senior Capital Ltd ranked in the 81th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 564% on a DCF basis. The most interesting components of our discounted cash flow analysis for Solar Senior Capital Ltd ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 0.36 -- which is good for besting just 21.49% of its peer stocks (US stocks in the Financial Services sector with positive cash flow).
Solar Senior Capital Ltd's weighted average cost of capital (WACC) is 13%; for context, that number is higher than 86.11% of tickers in our DCF set.
Solar Senior Capital Ltd's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SUNS, try FOCS, AEL, HIG, LPLA, and RNR.
Image source One sector that has seen a sizable amount of volatility, thanks to COVID-19, is middle-market lenders. These companies generally lend to smaller businesses that cannot easily access public markets for financing and tend to offer strong returns as a result. Risks are higher as well, of course, but...
Solar Senior Capital Ltd. (the “Company”) (SUNS) declared a distribution of $0.10 per share for the month of July 2020. The distribution is payable on July 31, 2020 to stockholders of record as of July 22, 2020. A specialty finance company with expertise in several niche markets, the Company generally invests directly and indirectly in leveraged, U. S. middle market companies primarily in the form of cash flow senior secured loans, including first lien loans, and asset-based loans collateralized on a first lien basis primarily by current assets.
Solar Senior Capital Ltd. (the “Company”) (SUNS) today announced that it will release its financial results for the quarter ended June 30, 2020 on Tuesday, August 4, 2020 after the close of the financial markets. The Company will host an earnings conference call and audio webcast at 11:30 a.m. (Eastern Time) on Wednesday, August 5, 2020. All interested parties may participate in the conference call by dialing (844) 889-7785 approximately 5-10 minutes prior to the call, international callers should dial (661) 378-9929.