Saratoga Investment Corp. (SAR) AI Stock Analysis

Saratoga Investment Corp., based in New York, New York, operates as a specialized business development company focusing on investment opportunities in the lower middle market segment. Established as GSC Investment Corp. and rebranded as Saratoga Investment Corp., the firm specializes in a diverse array of financial transactions including leveraged buyouts, management buyouts, acquisition financings, growth financings, recapitalizations, debt refinancing, and transitional financings. It structures investments through debt and equity instruments, such as first and second lien loans, mezzanine debt, co-investments, high yield bonds, senior secured bonds, unsecured bonds, and equity. The firm typically invests between $5 million to $50 million in companies with EBITDA of $2 million or greater and revenues ranging from $8 million to $250 million.

Saratoga Investment Corp. grew revenue from $70.7M in FY2022 to $143.9M in FY2024 before experiencing a decline of 34.6% to $94.2M in FY2025. In FY2026, revenue increased 5.4% to $99.2M, with net income reaching $36.6M, representing a net margin of 36.9% and EPS of $2.38. Across the 5-year period from FY2021 to FY2026, revenue achieved a CAGR of 11.5%. For the trailing twelve months ended August 31, 2026, revenue stood at $124.7M with an operating margin of 68.7% and a net profit margin of -3.4%. In the latest quarter, quarterly revenue grew 1.8% year-over-year, while quarterly earnings expanded by 16.3%.

As of August 31, 2026, Saratoga Investment Corp. held $95.9M in cash and short-term investments against total debt of $886.1M, resulting in net debt of $790.3M. Total assets were $1.26B, shareholders' equity was $352.6M, and the current ratio stood at 7.61, with a debt-to-equity ratio of 2.51. In FY2026, operating cash flow and free cash flow were both -$88.0M, with capital expenditures of $2. During FY2026, capital deployment included $52.4M paid in dividends and $54,314 in share buybacks, while the share count increased 41.1% over 5 years.

SAR trades at a forward P/E of 11.7x, compared to 10.8x for the median of its US-listed Financial Services peers. Its price-to-sales multiple is 1.9x, below the peer median of 3.2x, while its price-to-book ratio is 0.7x. Over the 1-year period, the stock declined 18.3%, trailing the S&P 500 (SPY) return of 16.8%. Over a 5-year horizon, SAR declined 7.3%, compared to an 83.0% return for SPY.

Saratoga Investment Corp. offers a forward annual dividend of $3.00, representing a dividend yield of 19.58% and a payout ratio of 48.3%. Dividends are distributed monthly, and the company has paid dividends for 20 consecutive years. Its 5-year annualized dividend growth rate is 16.9%, with the last ex-dividend date listed as December 3, 2026.

Wall Street coverage includes 1 Buy and 6 Hold ratings, with 0 Strong Buy, Sell, or Strong Sell ratings. The mean price target is $20.00, which is 30.5% above the last close of $15.32. For the current fiscal year ending February 28, 2027, consensus estimates project revenue of $126.9M and EPS of $1.90, reflecting a 19.9% decline in EPS. Saratoga Investment Corp. beat EPS estimates in 1 of the last 4 quarters.

This page is an AI-written research summary of Saratoga Investment Corp. (SAR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: SAR income statement, SAR balance sheet, SAR key metrics, SAR analyst forecast, SAR chart. See the SAR stock overview for the latest quote and news.