Saratoga Investment Corp. (NYSE:SAR), a business development company (BDC) that provides financing solutions to middle-market companies in the United States, reported impressive financial results for the fiscal third quarter of 2026, which ended on November 30, 2025. The company announced an EPS of $0.61, beating the estimated $0.59, and revenue of approximately $31.6 million, surpassing the estimated $31.3 million.
SAR's financial performance showed a 5.2% increase in net investment income (NII) per share. The net asset value (NAV) per share increased by 0.7% from the previous quarter, indicating stability. The company achieved a quarterly return on equity (ROE) of 13.5%, contributing to a last twelve months (LTM) ROE of 9.7%, which is significantly higher than the BDC industry average of 6.6%.
The company declared an actual dividend of $1.00 per share for the fiscal third quarter of 2026, including a special dividend of $0.25 per share. Christian L. Oberbeck, Chairman and CEO, provided insights into the company's performance and strategic direction, highlighting the strength and resilience of SAR's business model.
SAR's price-to-earnings (P/E) ratio is approximately 14.81, reflecting the market's valuation of its earnings. The price-to-sales ratio is notably low at 0.011, suggesting that the company's stock is valued at a fraction of its sales. The enterprise value to sales ratio stands at 9.51, reflecting the company's valuation in relation to its sales.
The enterprise value to operating cash flow ratio is 12.73, providing insight into the company's cash flow efficiency. The earnings yield is 6.75%, offering a perspective on the return on investment. The debt-to-equity ratio is -3.44, indicating a unique capital structure with more liabilities than equity. Lastly, the current ratio is 0.074, which may suggest liquidity challenges in meeting short-term obligations.
