Saratoga Investment Corp 8.00% Notes due 2027 (SAJ)

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I start by remembering that this is a note, not an equity claim. The issuer is in financial services, and the security pays an 8.00% coupon and matures in 2027; the quoted price was $25.33 at the 2026-10-16 close. The earnings record is uneven. In fiscal 2024, ended 2024-02-29, net income was $8.9M and EPS was $0.71; in fiscal 2025, ended 2025-02-28, net income was $28.1M and EPS was $2.02; in fiscal 2026, ended 2026-02-28, net income was $36.6M and EPS was $2.31. That looks like a strong five-year profit-growth record, and the computed Lynch category is STALWART, based on profit growth of 19.9% a year over five years. But the recent direction is troubling: in fiscal Q1 2027, the quarter ended 2026-05-31, net income was -$6.9M and EPS was -$0.42; in fiscal Q2 2027, the quarter ended 2026-08-31, net income was -$6.7M and EPS was -$0.41. Earlier, in fiscal Q2 2026, the quarter ended 2025-08-31, net income was $13.3M and EPS was $0.84, and in fiscal Q3 2026, the quarter ended 2025-11-30, net income was $12.0M and EPS was $0.74. So the swing from profit to loss is sharp. I see no durable competitive moat in the supplied data; financial-services profits can be cyclical and credit-sensitive. The supplied P/E, P/B and ROE are not available, so I cannot lean on them. For a note, my main question is credit quality: can the issuer service the 8.00% coupon and repay in 2027? The quoted price of $25.33 sits near the low end of its 52-week range but does not offer an obvious bargain for a credit claim; the latest losses mean I would demand clear evidence that they are temporary.

In plain English: Saratoga Investment Corp is a financial-services company, and this security is its 8.00% note due in 2027 rather than its common stock. The company earned money in fiscal 2026 but lost money in the two latest reported quarters, so the business looks mixed. At $25.33 the note sits near the low end of its 52-week range and looks fair rather than clearly cheap or expensive given those recent losses.

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Data as of 2026-10-16 close · note generated 2026-10-20 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2027 10-Q (period ended 2026-08-31) · fiscal Q1 2027 10-Q (period ended 2026-05-31) · fiscal Q3 2026 10-Q (period ended 2025-11-30) · fiscal Q2 2026 10-Q (period ended 2025-08-31) · FY2026 10-K (period ended 2026-02-28) · FY2025 10-K (period ended 2025-02-28) · FY2024 10-K (period ended 2024-02-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer