Saratoga Investment Corp.

Saratoga Investment Corp. maintains a capital structure with total assets of $1.14 billion and total liabilities of $743.11 million, resulting in a total equity of $396.16 million. The company's liquidity position is weak, as evidenced by its cash and equivalents of only $1.68 million and a negative operating cash flow of $88.03 million in the most recent fiscal year. The price-to-book ratio of 1.03 and the price-to-tangible-book ratio of 1.03 suggest that the company is trading close to its book value, with no significant premium or discount.

Profitability metrics indicate a return on equity (ROE) of 9.24% and a return on assets (ROA) of 3.21%, which are below the industry median for BDCs, where ROE typically exceeds 12% and ROA exceeds 4%. The company's net income of $36.60 million is modest relative to its asset base, and its operating cash flow is negative, signaling potential challenges in generating consistent cash from operations.

Geographically, the company's revenue is not explicitly broken down by region, but its primary exposure is to U.S. private equity funds and leveraged loans. The company's investment strategy is concentrated in a few key segments, including private equity funds and leveraged loans, with limited diversification across asset classes. This concentration increases the risk of underperformance if these segments experience downturns.

The company's growth trajectory is mixed. While it reported a net increase in net assets of $39.22 million from operations in the nine months ended November 30, 2025, it also experienced a net decrease in net assets from shareholder distributions of $42.86 million. The company's revenue history shows a decline in net investment income from $44.97 million in the same period in 2024 to $29.01 million in 2025, indicating a potential slowdown in asset performance.

The company faces several risk factors, including liquidity risk due to its low cash reserves and negative operating cash flow. Additionally, the risk of dilution is medium, as the company has a history of issuing new shares and may continue to do so to raise capital. The company's debt-to-equity ratio of 0.0 suggests a conservative capital structure, but this may limit its ability to leverage for growth.

Recent events include the company's partial coverage by companyfacts and the backfilling of current liabilities in recent filings. The company has also disclosed that shareholders may have limited information about the underlying investments of the private equity funds in which it invests, including with respect to such funds’ holdings, liquidity, and valuation. These disclosures highlight the potential for information asymmetry and the need for investors to conduct due diligence on the company's portfolio.