Sachem Capital Corp. 6.00% Notes due 2027 (SCCE)

Key Financials

AI Analysis

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

Graham taught me to begin with safety of principal, and for a 6.00% note due 2027, the issuer's ability to pay interest and repay principal matters more than any stock valuation. Sachem's filed record is uneven. In fiscal 2023 (year ended 2023-12-31), it reported revenue of $64.7 million and net income of $15.9 million, or $0.27 per diluted share. In fiscal 2024 (year ended 2024-12-31), revenue fell to $57.5 million and net income swung to a loss of $39.6 million, or -$0.93 per diluted share. Fiscal 2025 (year ended 2025-12-31) showed net income of $6.3 million, or $0.04 per diluted share, which is why the computed Lynch category is TURNAROUND—returned to profit after a loss within the last three years. But the first half of 2026 is again weak: fiscal Q1 2026 (quarter ended 2026-03-31) had a net loss of $6.1 million, or -$0.15 per diluted share, and fiscal Q2 2026 (quarter ended 2026-06-30) had a net loss of $5.4 million, or -$0.14 per diluted share. That is roughly $11.5 million of losses across those two reported quarters. The data do not give revenue for those quarters, nor D/E, ROE, ROCE, P/E, or P/B, so FairStock's valuation and return calculations are unavailable. At $24.55 on the 2026-10-16 close, inside a 52-week range of $22.16 to $24.78, the note is priced near its high and offers a 6.00% coupon, so the market is not paying a large distress discount. I see no evidence of a durable moat in these figures, and the repeated swing from profit to loss argues for caution. The key is whether future filings show sustained positive net income and cash coverage.

In plain English: This is a real-estate company's 6.00% note due in 2027, so the main question is whether the company can pay what it owes, not whether its shares are cheap. The business looks weak and uneven: it lost money in fiscal 2024, earned a small profit in fiscal 2025, then lost money again in the first half of 2026. At $24.55, the note price is near the top of its 52-week range and does not look deeply discounted versus the risks shown in the filings.

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

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

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