Sachem Capital Corp. 7.125% Notes due 2027 (SCCF)

Key Financials

AI Analysis

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

Let me be clear about what this security is: SCCF is not equity in Sachem Capital. It is a promise to pay 7.125% a year and return principal in 2027, so my first question is not whether the business is wonderful but whether the borrower can pay. The record is not reassuring. In fiscal 2023 the company earned $15.9 million on $64.7 million of revenue. In fiscal 2024 it lost $39.6 million, or $0.93 a diluted share. Fiscal 2025 looked like a repair, with $6.3 million of net income and $0.04 per share, and the screen's rules call this a turnaround precisely because it returned to profit after a loss within three years. But the 2026 filings break that story: fiscal Q1 2026 lost $6.1 million ($0.15 per share) and fiscal Q2 2026 lost $5.4 million ($0.14), $11.5 million of red ink in six months against $6.3 million of profit for all of fiscal 2025. A lender that swings that violently is telling you something about its loan book. The price says the same in miniature: $24.60 against $25 face, near the top of a $22.30 to $24.84 range, though the trough was a steep discount that said the market once demanded a real penalty to hold this paper. No P/E, P/B or ROE is meaningful here, and no balance sheet coverage figures were given to me. Graham's test for a bond is margin of safety in assets, and I cannot verify it. Until I can, 7.125% is not income; it is compensation for uncertainty.

In plain English: This is not a share of a company; it is a loan note that pays 7.125% interest a year and is supposed to hand back its $25 face value in 2027. The borrower is a real estate lender whose results have swung wildly: it lost $39.6 million in fiscal 2024, made $6.3 million in fiscal 2025, and then lost money again in the first two quarters of fiscal 2026. At $24.60 it trades close to the highest price it has reached in the past year, so buyers are paying nearly full face value and getting little cushion for the risk.

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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