Saratoga Investment Corp New (SAR)

FairStock Score: 86/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

I look at Saratoga Investment as a lower-middle-market business development company: it lends to and takes equity in smaller, leveraged companies. That can be a decent niche, but it is not a toll bridge; the moat is thin, resting on credit selection, underwriting discipline, and access to capital. The recent record is troubling. In fiscal Q1 2027, the quarter ended 2026-05-31, net income was -$6.9 million and diluted EPS was -$0.42. In fiscal Q2 2027, the quarter ended 2026-08-31, net income was -$6.7 million and diluted EPS was -$0.41. That follows fiscal FY2026, the year ended 2026-02-28, with net income of $36.6 million and diluted EPS of $2.31; fiscal FY2025, the year ended 2025-02-28, with net income of $28.1 million and EPS of $2.02; and fiscal FY2024, the year ended 2024-02-29, with net income of $8.9 million and EPS of $0.71. The profit trend has reversed sharply.

In plain English: Saratoga Investment is a financial company that lends to and invests in smaller businesses. It earned solid profits in the fiscal years ended 2026, 2025 and 2024, but it has posted losses in the two most recent reported quarters. The price looks cheap against its stated accounting value, but the recent losses, high debt and negative cash flow make the business look fragile.

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Data as of 2026-10-13 close · note generated 2026-10-15 · 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