Saratoga Investment Corp 7.50% Notes due 2031 (SAV)

Key Financials

AI Analysis

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

I approach Saratoga's 7.50% notes due 2031 as a credit, not as equity. The stated coupon is 7.50%, and the price was $24.69 at the 2026-10-16 close, inside a 52-week range of $24.22-$25.55. The issuer's filed record shows real profitability over the longer run: FY2026 (year ended 2026-02-28) net income was $36.6M with diluted EPS of $2.31, up from FY2025's $28.1M/$2.02 and FY2024's $8.9M/$0.71. FairStock's computed Lynch category is STALWART, citing profit growth of 19.9% a year over five years. That is a favorable backward-looking record. But the recent trend is troubling: fiscal Q1 2027 (quarter ended 2026-05-31) had a net loss of $6.9M and EPS of -$0.42, and fiscal Q2 2027 (quarter ended 2026-08-31) lost $6.7M, or -$0.41 per diluted share. Those losses contrast with fiscal Q3 2026 (quarter ended 2025-11-30), when net income was $12.0M and EPS $0.74, and fiscal Q2 2026 (quarter ended 2025-08-31), when net income was $13.3M and EPS $0.84. The figures do not demonstrate a durable competitive moat; profitability has swung sharply. The supplied data include no revenue, debt/equity, cash flow, or interest-coverage figures, so I cannot judge financial health or the issuer's ability to pay the note with confidence. Equity-style valuation metrics are N/A, and FairStock Score is N/A; for a note, price near the middle of its range says little without credit terms and coverage. The growth trajectory is mixed: a strong multiyear record, but two consecutive reported losses. I would require evidence of stable earnings and coverage before calling the note a sound value.

In plain English: Saratoga's 7.50% notes due 2031 are a loan to the company that pays a set rate of interest. The company's last full year was profitable, but its two most recent reported quarters showed losses. At $24.69, the note is near the middle of its one-year price range, and the figures given are not enough to say it is clearly cheap or expensive.

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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