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SSSS Stock Analysis: Top Micro-Cap Buy (Score 60.2/100) | Blank Capital Research | Blank Capital Research
SSSS
SURO CAPITAL CORP.
$11.73
-1.13 (-8.79%)
Score60.2
Data as of Apr 6, 2026
SSSS
SURO CAPITAL CORP.
FinancialsFinancial Services
$11.73
-1.13 (-8.79%)
Open $12.87High $12.99Low $11.73Prev $12.86Vol ---52W: $4.21 – $10.36
Catalyst IntelligenceBearish Factor
Downward pressure identified in SSSS. The 8.8% decline correlates with broader sector weakness.
Buy
Composite score
01234567890123456789.0123456789
Global rank
#8
Percentile
Top 1%
Business quality
89th
percentile
Exceptional capital efficiency and structural profitability. This enterprise generates superior returns on invested capital compared to industry peers.
Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 88.9GRADE A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
30.9%
Sector: 8.5%
Dividend Analysis audit
INCOME
2.78%
Trailing Yield
$2.78
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
13%SAFE
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
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Based on our 6-factor quantitative model, SURO CAPITAL CORP. (SSSS) receives a "Buy" rating with a composite score of 60.2/100, ranked #8 out of 4446 stocks. Key factor scores: Quality 89/100, Value 33/100, Momentum 65/100. This is quantitative analysis only — not investment advice.
SURO CAPITAL CORP. (SSSS) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does SURO CAPITAL CORP. Do?
SuRo Capital Corp. is a business development company. The firm seeks to invest in growing, late stage, venture capital-backed private companies. SuRo Capital Corp. was founded in 2010 and is based in San Francisco, California. SURO CAPITAL CORP. (SSSS) is classified as a micro-cap stock in the Financials sector, specifically within the Financial Services industry. The company is led by CEO Mark D. Klein and employs approximately 9 people, headquartered in SAN FRANCISCO , New York. With a market capitalization of $290M, SSSS is one of the notable companies in the Financials sector.
SURO CAPITAL CORP. (SSSS) Stock Rating — Buy (April 2026)
As of April 2026, SURO CAPITAL CORP. receives a Buy rating with a composite score of 60.2/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.SSSS ranks #8 out of 4,446 stocks in our coverage universe. Within the Financials sector, SURO CAPITAL CORP. ranks #6 of 891 stocks, placing it in the top 10% of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
SSSS Stock Price and 52-Week Range
SURO CAPITAL CORP. (SSSS) currently trades at $11.73. The stock lost $1.13 (8.8%) in the most recent trading session. The 52-week high for SSSS is $10.36, which means the stock is currently trading 13.2% from its annual peak. The 52-week low is $4.21, putting the stock 178.6% above its annual trough. Recent trading volume was 739K shares, suggesting relatively thin trading activity.
Is SSSS Overvalued or Undervalued? — Valuation Analysis
SURO CAPITAL CORP. (SSSS) carries a value factor score of 33/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The trailing price-to-earnings ratio is 4.69x, compared to the Financials sector average of 14.88x — a discount of 68%. The price-to-book ratio stands at 1.45x, versus the sector average of 1.22x. The price-to-sales ratio is 117.03x, compared to 0.90x for the average Financials stock.
At current multiples, SURO CAPITAL CORP. trades at a premium to most Financials peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.
SURO CAPITAL CORP. Profitability — ROE, Margins, and Quality Score
SURO CAPITAL CORP. (SSSS) earns a quality factor score of 89/100, reflecting elite profitability and capital efficiency that places it among the highest-quality businesses in the market. The return on equity (ROE) is 30.9%, compared to the Financials sector average of 8.5%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 23.0% versus the sector average of 1.2%.
On a margin basis, SURO CAPITAL CORP. reports gross margins of 0.0%. The operating margin is 100.0% (sector: 21.8%). Net profit margin stands at -752.0%, versus 17.7% for the average Financials stock. Revenue growth is running at -48.3% on a trailing basis, compared to 9.4% for the sector. These metrics collectively paint a picture of a highly profitable business with durable competitive advantages.
SSSS Debt, Balance Sheet, and Financial Health
SURO CAPITAL CORP. has a debt-to-equity ratio of 34.0%, compared to the Financials sector average of 121.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 3.90x, indicating strong short-term liquidity. Total debt on the balance sheet is $73M. Cash and equivalents stand at $55M.
SSSS has a beta of 1.18, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for SURO CAPITAL CORP. is 51/100, reflecting average volatility within the normal range for its sector.
SURO CAPITAL CORP. Revenue and Earnings History — Quarterly Trend
In TTM 2026, SURO CAPITAL CORP. reported revenue of $-14M. Net income for the quarter was $63M. Gross margin was 0.0%. Operating income came in at $-30M.
In FY 2025, SURO CAPITAL CORP. reported revenue of $-17M. Net income for the quarter was $49M. Revenue grew -18.3% year-over-year compared to FY 2024. Operating income came in at $-35M.
In Q3 2025, SURO CAPITAL CORP. reported revenue of $-3M and earnings per share (EPS) of $0.30. Net income for the quarter was $7M. Revenue grew -7.7% year-over-year compared to Q3 2024. Operating income came in at $-7M.
In Q2 2025, SURO CAPITAL CORP. reported revenue of $-4M and earnings per share (EPS) of $2.63. Net income for the quarter was $62M. Revenue grew -1.8% year-over-year compared to Q2 2024. Operating income came in at $-8M.
Over the past 8 quarters, SURO CAPITAL CORP. has experienced revenue contraction from $-4M to $-14M. Investors analyzing SSSS stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
SSSS Dividend Yield and Income Analysis
SURO CAPITAL CORP. (SSSS) currently pays a dividend yield of 2.8%. At this yield, a $10,000 investment in SSSS stock would generate approximately $$278.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning SSSS offers above-average income for its sector.
SSSS Momentum and Technical Analysis Profile
SURO CAPITAL CORP. (SSSS) has a momentum factor score of 65/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 48/100 reflects moderate short selling activity.
SSSS vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing SSSS against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full SSSS vs S&P 500 (SPY) comparison to assess how SURO CAPITAL CORP. stacks up against the broader market across all factor dimensions.
SSSS Next Earnings Date
No upcoming earnings date has been announced for SURO CAPITAL CORP. (SSSS) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy SSSS? — Investment Thesis Summary
The bull case for SURO CAPITAL CORP. rests on several quantitative strengths. The quality score of 89/100 indicates above-average profitability and business fundamentals. The value score of 33/100 indicates premium valuation. Price momentum is positive at 65/100, suggesting the trend favors buyers.
In summary, SURO CAPITAL CORP. (SSSS) earns a Buy rating with a composite score of 60.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on SSSS stock.
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Institutional Research Dossier
SURO CAPITAL CORP. (SSSS) Deep Dive Analysis
Published on March 24, 2026
Action RatingBuy
Sections
Executive Summary
We initiate coverage on SuRo Capital Corp. (SSSS) with a Buy rating. This rating is predicated on the company's significantly undervalued P/E ratio relative to the Financials sector, coupled with a high Quality score driven by exceptional profitability and returns. While revenue growth is a concern, the potential for strategic investments in late-stage venture capital-backed companies to generate substantial returns presents a compelling opportunity.
The primary takeaway is that SuRo Capital's current valuation does not adequately reflect its potential for future earnings growth and the inherent value of its investment portfolio. The company's ability to generate high returns on equity, as evidenced by its ROE significantly exceeding the sector average, further supports the Buy rating. However, investors should closely monitor revenue trends and capital allocation decisions to ensure the company remains on a sustainable growth trajectory.
Business Strategy & Overview
SuRo Capital Corp. operates as a business development company (BDC), focusing on investments in late-stage, venture capital-backed private companies. The company's strategy revolves around identifying and capitalizing on opportunities within high-growth sectors, aiming to generate capital appreciation through equity and debt investments. Unlike traditional venture capital firms that invest in early-stage companies, SuRo Capital targets companies closer to an exit event, such as an IPO or acquisition, which theoretically reduces the investment risk profile.
The company's revenue model is primarily driven by realized gains from the sale of its portfolio investments, as well as interest income from debt investments. However, the negative revenue figures reported in recent periods indicate that losses from investments have outweighed any gains or interest income. This highlights the inherent volatility associated with investing in private companies, where valuations can fluctuate significantly based on market conditions and company-specific performance.
SuRo Capital's strategic positioning within the BDC landscape is somewhat unique, as it focuses exclusively on late-stage venture capital-backed companies. This specialization allows the company to develop expertise in evaluating and managing investments in this specific segment of the market. However, it also exposes the company to concentration risk, as its performance is heavily reliant on the success of a relatively small number of portfolio companies.
The company's investment pipeline is not publicly disclosed in detail, but it likely consists of companies operating in various high-growth sectors, such as technology, healthcare, and consumer discretionary. The success of SuRo Capital's strategy hinges on its ability to identify and invest in companies that are poised for significant growth and eventual exit events. This requires a rigorous due diligence process and a deep understanding of the venture capital ecosystem.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-48.3%
Sector: 9.4%
-615% VS SCTR
Economic Moat Analysis
SuRo Capital's economic moat is arguably None. As a BDC investing in late-stage venture capital-backed companies, it faces significant competition from other BDCs, venture capital firms, and private equity funds. The company does not possess any significant network effects, as its investment decisions are not directly influenced by the size or interconnectedness of its user base.
Switching costs are also minimal, as investors can easily allocate capital to alternative investment opportunities. There are no significant barriers preventing investors from exiting their positions in SuRo Capital and investing in other BDCs or asset classes. This lack of stickiness makes it difficult for SuRo Capital to maintain a sustainable competitive advantage.
While SuRo Capital may possess some intangible assets in the form of its investment expertise and relationships with venture capital firms, these assets are not unique or difficult to replicate. Other BDCs and investment firms can develop similar expertise and relationships over time. Therefore, these intangible assets do not provide a significant competitive advantage.
Cost advantages are also unlikely, as SuRo Capital's operating expenses are likely comparable to those of other BDCs. The company does not have any inherent cost advantages that would allow it to generate higher returns on investment than its competitors. Efficient scale is not a relevant factor in this industry, as the size of the market is large enough to accommodate numerous competitors.
In summary, SuRo Capital operates in a highly competitive industry with minimal barriers to entry and limited opportunities for differentiation. The company's lack of a sustainable competitive advantage makes it difficult to justify a Wide or Narrow moat rating.
Financial Health & Profitability
SuRo Capital's financial health presents a mixed picture. While the company boasts a strong current ratio of 3.90, indicating ample liquidity to meet its short-term obligations, its revenue has been consistently negative over the past several years. The TTM revenue of $-16.51M and a revenue growth rate of -48.3% compared to the sector average of 9.3% are concerning and warrant close monitoring. These negative revenue figures are primarily attributable to losses on investments, which highlights the inherent risk associated with the company's business model.
Despite the negative revenue, SuRo Capital has reported positive net income in some periods, including a TTM net income of $48.81M. This is largely due to gains on investments in certain quarters, which can significantly impact the company's bottom line. However, the volatility of these gains makes it difficult to assess the company's underlying profitability.
The company's ROE of 30.9% significantly exceeds the sector average of 8.5%, indicating strong profitability relative to its equity base. This suggests that SuRo Capital is effectively utilizing its capital to generate returns for its shareholders. However, it's important to note that ROE can be influenced by leverage, and the company's debt-to-equity ratio of 34.00 is relatively low compared to the sector average of 115.00.
The quarterly financial history reveals a pattern of fluctuating revenue and net income. While some quarters have shown strong profitability, others have resulted in significant losses. This volatility underscores the importance of carefully evaluating the company's investment portfolio and its ability to generate consistent returns over time. The negative free cash flow of $-76.93M further emphasizes the need for careful capital management.
Valuation Assessment
SuRo Capital's valuation presents a compelling case for a Buy rating, primarily due to its significantly undervalued P/E ratio. The company's P/E ratio of 3.8x is substantially lower than the Financials sector average of 15.5x, suggesting that the stock is trading at a discount to its earnings potential. However, it's crucial to consider the context of these earnings, which can be volatile due to the nature of the company's investments.
The EV/EBITDA metric is not applicable (N/A) due to the company's negative EBITDA. This makes it difficult to assess the company's valuation based on its enterprise value. However, the low P/E ratio provides a strong indication that the stock is undervalued.
The company's price-to-book ratio is not provided, which would have been a useful metric for valuing a BDC. However, the high ROE of 30.9% suggests that the company is generating significant returns on its book value, which further supports the argument that the stock is undervalued.
While the company's revenue growth has been negative, the potential for future earnings growth from its investment portfolio should be considered. If SuRo Capital can successfully identify and invest in companies that generate significant returns, its earnings could increase substantially, leading to a higher valuation. The BCR proprietary quant model assigns a Value score of 31/100, indicating that the stock is undervalued based on its multiples.
Risk & Uncertainty
SuRo Capital faces several specific risks that could negatively impact its performance and valuation. One of the primary risks is the concentration of its investment portfolio. The company's performance is heavily reliant on the success of a relatively small number of portfolio companies. If one or more of these companies underperform or fail, it could have a significant impact on SuRo Capital's earnings and net asset value.
Another risk is the volatility of the venture capital market. The valuations of private companies can fluctuate significantly based on market conditions, investor sentiment, and company-specific performance. A downturn in the venture capital market could lead to losses on SuRo Capital's investments and a decline in its net asset value.
The company's reliance on realized gains from the sale of its portfolio investments also poses a risk. The timing and amount of these gains are uncertain and can be difficult to predict. If SuRo Capital is unable to generate sufficient gains from its investments, it may not be able to meet its financial obligations or pay dividends to its shareholders.
Regulatory risk is also a factor, as BDCs are subject to specific regulations and oversight. Changes in these regulations could impact SuRo Capital's ability to operate its business or invest in certain types of companies. Competition from other BDCs, venture capital firms, and private equity funds could also put pressure on SuRo Capital's investment returns.
Bulls Say / Bears Say
The Bull Case
BULL VIEWSuRo Capital's low P/E ratio of 3.8x compared to the sector average indicates significant undervaluation, offering substantial upside potential as earnings normalize.
BULL VIEWThe company's high ROE of 30.9% demonstrates its ability to generate strong returns on equity, suggesting efficient capital allocation and superior investment selection.
BULL VIEWStrategic investments in late-stage venture capital-backed companies provide exposure to high-growth sectors, potentially leading to significant capital appreciation upon successful exits.
The Bear Case
BEAR VIEWNegative revenue growth and volatile earnings history raise concerns about the sustainability of SuRo Capital's business model and its ability to generate consistent returns.
BEAR VIEWConcentration risk within the investment portfolio exposes the company to significant losses if key portfolio companies underperform or fail to achieve anticipated exit events.
BEAR VIEWReliance on realized gains from investments makes earnings unpredictable and susceptible to market fluctuations, potentially leading to dividend cuts or capital impairment.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score SSSS and 4,400+ other equities.
SURO CAPITAL CORP. exhibits a 4285% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
23.0%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
100.0%
Sector: 21.8%
Net Margin
Bottom-line profitability
-752.0%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+12%
Income Projection audit
A $10,000 investment would generate approximately $278 annually in dividends at the current trailing rate.
