SAR

Company Overview — What Does SARATOGA INVESTMENT CORP. Do?

Saratoga Investment Corp. is a business development company specializing in leveraged and management buyouts, acquisition financings, growth financings, recapitalization, debt refinancing, and transitional financing transactions at the lower end of middle market companies. It structures its investments as debt and equity by investing through first and second lien loans, mezzanine debt, co-investments, select high yield bonds, senior secured bonds, unsecured bonds, and preferred and common equity. The firm prefers to invest in aerospace, automotive aftermarket and services, business products and services, consumer products and services, education, environmental services, industrial services, financial services, food and beverage, healthcare products and services, logistics, distribution, manufacturing, restaurants services, food services, software services, technology services, specialty chemical, media and telecommunications. It seeks to invest in the United States. The firm primarily invests $5 million to $50 million in companies having EBITDA of $2 million or greater and revenues of $8 million to $250 million. The firm prefer to take a majority stake. It invests through direct lending as well as participation in loan syndicates. The firm was formerly known as GSC Investment Corp. Saratoga Investment Corp. is based in New York, New York with an additional office in Florham Park, New Jersey. SARATOGA INVESTMENT CORP. (SAR) is classified as a small-cap stock in the Financials sector, specifically within the Financial Services industry. The company is led by CEO Chris L. Oberbeck and employs approximately 3,211 people, headquartered in Baltimore, New York. With a market capitalization of $347M, SAR is one of the notable companies in the Financials sector.

SARATOGA INVESTMENT CORP. (SAR) Stock Rating — Reduce (April 2026)

As of April 2026, SARATOGA INVESTMENT CORP. receives a Reduce rating with a composite score of 34.6/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.SAR ranks #3,519 out of 4,446 stocks in our coverage universe. Within the Financials sector, SARATOGA INVESTMENT CORP. ranks #791 of 891 stocks, placing it in the lower half 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%).

SAR Stock Price and 52-Week Range

SARATOGA INVESTMENT CORP. (SAR) currently trades at $22.21. The stock gained $0.19 (0.9%) in the most recent trading session. The 52-week high for SAR is $25.64, which means the stock is currently trading -13.4% from its annual peak. The 52-week low is $21.10, putting the stock 5.3% above its annual trough. Recent trading volume was 118K shares, suggesting relatively thin trading activity.

Is SAR Overvalued or Undervalued? — Valuation Analysis

SARATOGA INVESTMENT CORP. (SAR) carries a value factor score of 70/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 1.31x, compared to the Financials sector average of 14.88x — a discount of 91%. The price-to-book ratio stands at 0.86x, versus the sector average of 1.22x. The price-to-sales ratio is 2.42x, compared to 0.90x for the average Financials stock. On an enterprise value basis, SAR trades at 7.48x EV/EBITDA, versus 3.26x for the sector.

Based on these multiples, SARATOGA INVESTMENT CORP. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.

SARATOGA INVESTMENT CORP. Profitability — ROE, Margins, and Quality Score

SARATOGA INVESTMENT CORP. (SAR) earns a quality factor score of 10/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 65.8%, compared to the Financials sector average of 8.5%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 22.7% versus the sector average of 1.2%.

On a margin basis, SARATOGA INVESTMENT CORP. reports gross margins of 46.1%. The operating margin is 53.9% (sector: 21.8%). Net profit margin stands at 185.7%, versus 17.7% for the average Financials stock. Revenue growth is running at -10.7% on a trailing basis, compared to 9.4% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.

SAR Debt, Balance Sheet, and Financial Health

SARATOGA INVESTMENT CORP. has a debt-to-equity ratio of 263.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. Total debt on the balance sheet is $1.08B. Cash and equivalents stand at $52M.

SAR has a beta of 0.62, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for SARATOGA INVESTMENT CORP. is 83/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.

SARATOGA INVESTMENT CORP. Revenue and Earnings History — Quarterly Trend

In TTM 2026, SARATOGA INVESTMENT CORP. reported revenue of $147M and earnings per share (EPS) of $0.74. Net income for the quarter was $272M. Gross margin was 46.1%. Operating income came in at $75M.

In Q3 2025, SARATOGA INVESTMENT CORP. reported revenue of $36M and earnings per share (EPS) of $0.74. Net income for the quarter was $66M. Gross margin was 46.1%. Revenue grew -10.7% year-over-year compared to Q3 2024. Operating income came in at $20M.

In Q2 2025, SARATOGA INVESTMENT CORP. reported revenue of $30M and earnings per share (EPS) of $0.84. Net income for the quarter was $60M. Gross margin was 54.6%. Revenue grew 217.1% year-over-year compared to Q2 2024. Operating income came in at $14M.

In Q1 2025, SARATOGA INVESTMENT CORP. reported revenue of $40M and earnings per share (EPS) of $0.91. Net income for the quarter was $71M. Gross margin was 49.5%. Revenue grew 13.1% year-over-year compared to Q1 2024. Operating income came in at $20M.

Over the past 8 quarters, SARATOGA INVESTMENT CORP. has demonstrated a growth trajectory, with revenue expanding from $36M to $147M. Investors analyzing SAR stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

SAR Dividend Yield and Income Analysis

SARATOGA INVESTMENT CORP. (SAR) currently pays a dividend yield of 17.0%. At this yield, a $10,000 investment in SAR stock would generate approximately $$1703.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning SAR offers above-average income for its sector. With a net margin of 185.7%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.

SAR Momentum and Technical Analysis Profile

SARATOGA INVESTMENT CORP. (SAR) has a momentum factor score of 37/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 12/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.

SAR vs Competitors — Financials Sector Ranking and Peer Comparison

Within the Financials sector, SARATOGA INVESTMENT CORP. (SAR) ranks #791 out of 891 stocks based on the Blank Capital composite score. This places SAR in the lower half of all Financials stocks in our coverage universe. Key competitors and sector peers include WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) with a score of 62.9/100, OPPENHEIMER HOLDINGS INC (OPY) with a score of 62.6/100, Enact Holdings, Inc. (ACT) with a score of 61.6/100, International General Insurance Holdings Ltd. (IGIC) with a score of 61.3/100, and PARKE BANCORP, INC. (PKBK) with a score of 60.4/100.

Comparing SAR against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full SAR vs S&P 500 (SPY) comparison to assess how SARATOGA INVESTMENT CORP. stacks up against the broader market across all factor dimensions.

SAR Next Earnings Date

No upcoming earnings date has been announced for SARATOGA INVESTMENT CORP. (SAR) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy SAR? — Investment Thesis Summary

The quantitative profile for SARATOGA INVESTMENT CORP. suggests caution. The quality score of 10/100 flags below-average profitability. The value score of 70/100 suggests attractive pricing relative to fundamentals. Momentum is weak at 37/100, a headwind for near-term performance. Low volatility (stability score 83/100) reduces downside risk.

In summary, SARATOGA INVESTMENT CORP. (SAR) earns a Reduce rating with a composite score of 34.6/100 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 SAR stock.

Related Resources for SAR Investors

Explore more research and tools: SAR vs S&P 500 comparison, top Financials stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare SAR head-to-head with peers: SAR vs WTM, SAR vs OPY, SAR vs ACT.