Saratoga Investment Corp 8.50% Notes due 2028 (SAZ)

Key Financials

AI Analysis

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

Viewed through a Graham lens, this is not an operating business but a $25.37 note issued by Saratoga Investment Corp, paying an 8.50% coupon and maturing in 2028. The issuer's filed record is cyclical: FY2024 net income $8.9M, EPS $0.71; FY2025 $28.1M, $2.02; FY2026 $36.6M, $2.31. That supports the FairStock STALWART label, which cites 19.9% annual profit growth over five years. But the latest two filings cut against the trend: fiscal Q1 2027 net loss $6.9M (-$0.42 EPS) and fiscal Q2 2027 net loss $6.7M (-$0.41 EPS). For a financial issuer, that volatility is the central credit question. I see no data here proving a durable competitive moat; the key strength is the contractual coupon and maturity, not pricing power. Financial health is mixed: three full fiscal years of rising profits and positive quarters in fiscal Q2 and Q3 2026, but the first half of fiscal 2027 shows losses. Valuation for the note is price, yield, and repayment risk, not P/E. At $25.37 on 2026-10-16, inside a 52-week range of $24.96-$25.95, the note is near the upper end; the 8.50% coupon is attractive only if the issuer remains sound. I would demand a margin of safety in the price and watch the loss trend closely. The growth trajectory is positive over five years but has recently reversed; that is not a comfortable combination for a creditor.

In plain English: Saratoga Investment Corp 8.50% Notes due 2028 is a bond-like IOU that pays 8.50% and matures in 2028. The issuer's reported profits are mixed: strong in fiscal 2026 but two losses in the first half of fiscal 2027. At $25.37, the note is near the top of its one-year range, so on the limited data it looks fairly priced at best rather than clearly cheap.

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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