Saratoga Investment Corp. (SAZ) Stock Analysis
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Saratoga Investment Corp. (SAZ) trades at $25.33 with AI Score 34/100 (Grade D). Saratoga Investment Corp. is a business development company (BDC) specializing in providing financing solutions to middle-market companies in the United States. Market cap: $320M, Sector: Financial services.
Price as of Jul 20, 2026 · Last analyzed: May 10, 2026Analyst Coverage for SAZ: SAZ does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates SAZ against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
SAZ: the 3 scored disciplines are evenly split. Dominant signal: Ken Griffin bearish.
How is this calculated? →Why this analysis is different
- A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
- An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
- Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.
Saratoga Investment Corp. (SAZ) Financial Services Profile
Saratoga Investment Corp. is a publicly traded BDC focused on providing customized financing to U.S. middle-market companies. With over 200 years of combined experience, their investment professionals manage a portfolio exceeding $4 billion. The company aims to generate current income and capital appreciation for investors.
What Is the Investment Thesis for SAZ?
Saratoga Investment Corp. presents a compelling investment case based on its established position in the middle-market lending space and its focus on generating attractive returns for shareholders. The company's high dividend yield of 14.67% offers a significant income stream for investors. Saratoga's experienced management team and disciplined investment approach contribute to the stability of its portfolio. Growth catalysts include the increasing demand for financing from middle-market companies and the potential for strategic acquisitions. However, potential risks include economic downturns that could impact the credit quality of its loan portfolio and regulatory changes affecting BDCs. With a P/E ratio of 9.6, Saratoga appears reasonably valued compared to its peers.
Based on FMP financials and quantitative analysis
SAZ Key Highlights
- Market capitalization of $320M, reflecting its size and market presence within the BDC sector.
- P/E ratio of 9.6, suggesting a potentially undervalued investment relative to its earnings.
- Profit margin of 27.8%, indicating efficient operations and strong profitability.
- Gross margin of 75.5%, highlighting the company's ability to generate substantial revenue from its investments.
- Dividend yield of 14.67%, providing a significant income stream for investors.
Who Are SAZ's Competitors?
SAZ is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| ARCC Ares Capital Corporation | $18.98 | -0.99% | $13.6B | 81 |
| MAIN Main Street Capital Corporation | $54.59 | -1.41% | $5.08B | 77 |
| TCPC BlackRock TCP Capital Corp. | $3.21 | -3.02% | $269M | — |
| SAJ Saratoga Investment Corp. | $25.38 | +0.00% | $320M | 34 |
| SAY Saratoga Investment Corp. | $25.26 | -0.08% | $320M | 33 |
| KCHVU Kochav Defense Acquisition Corp. | $10.54 | +0.00% | $356M | 54 |
| KCHV Kochav Defense Acquisition Corp. | $10.39 | +0.00% | $356M | 46 |
| GLADZ Gladstone Capital Corporation 7.75% Notes due 2028 | $25.23 | -0.01% | $563M | 45 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are SAZ's Key Strengths?
- Experienced management team with a proven track record.
- High dividend yield provides an attractive income stream for investors.
- Customized financing solutions meet the specific needs of middle-market companies.
- Diversified investment portfolio mitigates risk.
What Are SAZ's Weaknesses?
- Relatively small market capitalization compared to larger BDCs.
- Dependence on external financing to fund investments.
- Exposure to credit risk from its loan portfolio.
- Sensitivity to changes in interest rates.
What Could Drive SAZ Stock Higher?
- Continued demand for financing from middle-market companies.
- Strategic acquisitions to expand its asset base.
- Development of new financing products and services.
- Increased investment in equity securities for capital appreciation.
What Are the Key Risks for SAZ?
- Financial-distress signal — its Altman Z-Score of -0.36 sits in the distress zone (elevated bankruptcy risk).
- Weak fundamentals — a Piotroski F-Score of 3/9 flags soft profitability, leverage or efficiency.
- Economic downturns could impact the credit quality of its loan portfolio.
- Increased competition from other BDCs and lenders.
- Regulatory changes affecting the BDC industry.
- Rising interest rates could increase borrowing costs.
What Are the Growth Opportunities for SAZ?
- Expansion of Lending Activities: Saratoga can capitalize on the growing demand for financing from middle-market companies by expanding its lending activities. The middle-market represents a significant opportunity, with numerous companies seeking capital for growth, acquisitions, and recapitalizations. By increasing its loan origination capabilities and expanding its geographic reach, Saratoga can grow its portfolio and generate higher returns. The timeline for this growth is ongoing, with continuous efforts to identify and pursue attractive lending opportunities. The market size for middle-market lending is estimated to be in the hundreds of billions of dollars.
- Strategic Acquisitions: Saratoga can pursue strategic acquisitions of other BDCs or asset management firms to expand its asset base and diversify its investment portfolio. Acquisitions can provide access to new markets, industries, and investment strategies. By carefully selecting acquisition targets and integrating them effectively, Saratoga can enhance its competitive position and generate synergies. The timeline for potential acquisitions is opportunistic, depending on market conditions and the availability of suitable targets. The market for BDC acquisitions is dynamic, with ongoing consolidation activity.
- Increased Investment in Equity Securities: Saratoga can increase its investment in equity securities of middle-market companies to enhance its capital appreciation potential. Equity investments can provide higher returns compared to debt investments, although they also carry higher risk. By carefully selecting equity investments and actively managing its portfolio, Saratoga can generate significant capital gains. The timeline for this growth is long-term, with a focus on identifying and supporting companies with strong growth prospects. The market for equity investments in middle-market companies is substantial, with numerous opportunities for value creation.
- Development of New Financing Products: Saratoga can develop new financing products and services to meet the evolving needs of middle-market companies. This could include offering specialized loans, mezzanine financing, or other customized solutions. By innovating and differentiating its product offerings, Saratoga can attract new clients and enhance its competitive advantage. The timeline for product development is ongoing, with continuous efforts to identify and address unmet market needs. The market for specialized financing products is growing, driven by the increasing complexity of middle-market transactions.
- Enhanced Portfolio Management: Saratoga can enhance its portfolio management capabilities to improve the performance and stability of its investment portfolio. This includes implementing more sophisticated risk management techniques, actively monitoring portfolio company performance, and providing operational support to portfolio companies. By enhancing its portfolio management capabilities, Saratoga can reduce credit losses and generate higher returns. The timeline for this improvement is ongoing, with continuous efforts to refine and optimize its portfolio management processes. The market for portfolio management services is competitive, with numerous firms offering specialized expertise.
What Opportunities Does SAZ Have?
- Growing demand for financing from middle-market companies.
- Potential for strategic acquisitions to expand its asset base.
- Development of new financing products and services.
- Increased investment in equity securities for capital appreciation.
What Threats Does SAZ Face?
- Economic downturns could impact the credit quality of its loan portfolio.
- Increased competition from other BDCs and lenders.
- Regulatory changes affecting the BDC industry.
- Rising interest rates could increase borrowing costs.
What Are SAZ's Competitive Advantages?
- Experienced investment team with over 200 years of combined experience.
- Established relationships with middle-market companies and intermediaries.
- Customized financing solutions tailored to meet the specific needs of each portfolio company.
- Disciplined investment approach focused on generating attractive returns while managing risk.
What Does SAZ Do?
Saratoga Investment Corp. was established to provide tailored financing solutions to middle-market companies across the United States. As a business development company (BDC), Saratoga focuses on delivering both current income and capital appreciation through its investments. The company's investment strategy centers on providing debt and equity capital to businesses that typically have limited access to traditional financing sources. Saratoga's team of seasoned investment professionals brings over 200 years of combined experience, having invested over $4 billion in middle-market businesses. These professionals possess deep expertise in sourcing, underwriting, and managing investments across various industries. Saratoga's financing solutions are customized to meet the specific needs of each portfolio company, supporting their growth, acquisitions, and recapitalizations. Saratoga's approach involves close collaboration with management teams to create value and drive long-term success. The company's investment portfolio is diversified across various sectors, mitigating risk and enhancing stability. Saratoga Investment Corp. is publicly traded on the New York Stock Exchange under the ticker SAR.
What Products and Services Does SAZ Offer?
- Provides customized financing solutions to middle-market companies in the United States.
- Invests in debt and equity securities of middle-market companies.
- Supports companies' growth, acquisitions, and recapitalizations.
- Manages a diversified portfolio of investments across various sectors.
- Collaborates with management teams to create value and drive long-term success.
- Generates current income and capital appreciation for investors.
How Does SAZ Make Money?
- Originate and structure loans and investments in middle-market companies.
- Generate revenue through interest income, dividends, and capital gains.
- Manage a portfolio of investments to maximize returns and minimize risk.
- Fund investments through debt and equity offerings.
What Industry Does SAZ Operate In?
Saratoga Investment Corp. operates within the business development company (BDC) sector, which plays a crucial role in providing financing to middle-market companies. The BDC industry has experienced growth in recent years, driven by the increasing demand for alternative financing solutions. The competitive landscape includes other publicly traded BDCs, private credit funds, and traditional lenders. Saratoga differentiates itself through its customized financing solutions, experienced investment team, and focus on building long-term relationships with portfolio companies. The industry is subject to regulatory oversight, including compliance with the Investment Company Act of 1940.
Who Are SAZ's Key Customers?
- Middle-market companies seeking financing for growth, acquisitions, or recapitalizations.
- Companies with limited access to traditional financing sources.
- Companies across various industries in the United States.
Net sellingInsider Activity
The most recent 12 insider filings for Saratoga Investment Corp. break down as 10 sales and 2 purchases. On net that is roughly 47K shares disposed (about $0), a signal worth weighing alongside the fundamentals.
FY2026 estForward Outlook
Wall Street analysts project Saratoga Investment Corp. revenue of about $125.4M for fiscal 2026, with EPS near $2.48.
F-Score 3/9Financial Health
Saratoga Investment Corp.'s Piotroski F-Score is 3/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of -0.36 places it in the distress zone, a signal of elevated financial risk.
ROE 4%Key Financial Metrics
Return on equity for Saratoga Investment Corp. stands at 4.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.4%, showing how much profit it generates from its asset base. SAZ trades at a trailing price-to-earnings ratio of 9.57, below the Financial Services sector average of ~18x. Its free cash flow yield is -46.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 5.83 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 5.4%, the inverse of the P/E and a quick read on earnings relative to price.
Saratoga Investment Corp. (SAZ) Valuation Context
Valued at $320M, SAZ is classified as a small-cap stock. Relative to its peer group, SAZ's quantitative score of 34/100 is below the peer average of 56/100.
Company Profile
Saratoga Investment Corp. operates in the Investment - Banking & Investment Services industry within the Financial Services sector. It is headquartered in New York, US. The company is led by CEO Chris Long Oberbeck. SAZ has traded publicly since 2023.
SAZ Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2026
Bull Case vs Bear Case
Bull Case
- Saratoga's insider buying could signal strong confidence in the company's future prospects, suggesting they believe the stock is undervalued. It's like when insiders loaded up on Apple before a major product launch.
- Community sentiment seems generally positive, with many discussions focusing on Saratoga's potential for long-term growth. Similar to the early days of Netflix, when subscribers saw the value before Wall Street fully did.
- The market appears to be viewing Saratoga as a relatively stable income play in a volatile environment, attracting investors seeking predictable returns. Think of it like a bond proxy in a low-interest-rate world.
- Recent developments suggest Saratoga is actively managing its portfolio and seeking new investment opportunities, indicating a proactive approach to growth. This reminds me of how Berkshire Hathaway constantly seeks undervalued assets.
Bear Case
- Some community members express concern about Saratoga's exposure to certain sectors that may be facing headwinds, potentially impacting their portfolio performance. It's similar to concerns about banks' exposure to subprime mortgages in 2008.
- Insider selling, even if for personal reasons, can sometimes create a negative perception among investors, leading to selling pressure. Remember when Elon Musk's share sales spooked Tesla investors?
- Market perception of Saratoga might be influenced by broader economic uncertainty, leading to a cautious approach from investors. Just like during the COVID-19 pandemic, when even solid companies faced market skepticism.
- There are discussions in the community about potential risks associated with Saratoga's investment strategy, particularly regarding the credit quality of some of their holdings. This is akin to the worries surrounding high-yield bonds during economic downturns.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
SAZ Latest News
No recent news available for SAZ.
SAZ Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for SAZ.
Price Targets
Wall Street price target analysis for SAZ.
SAZ MoonshotScore
What does this score mean?
The MoonshotScore rates SAZ 0-100 on quantitative fundamentals — growth, financial health, valuation, momentum, and risk.
Leadership: Chris Long Oberbeck
CEO
Chris Long Oberbeck serves as the CEO of Saratoga Investment Corp. He brings extensive experience in investment management and corporate finance. Prior to joining Saratoga, Oberbeck held leadership positions at various financial institutions, where he focused on middle-market lending and private equity investments. His background includes expertise in structuring and managing complex financial transactions. Oberbeck's experience spans various industries, providing him with a broad perspective on investment opportunities. He is actively involved in industry organizations and community initiatives.
Track Record: Under Chris Long Oberbeck's leadership, Saratoga Investment Corp. has experienced growth in its asset base and has maintained a strong focus on generating attractive returns for shareholders. He has overseen the expansion of the company's lending activities and the diversification of its investment portfolio. Oberbeck has also played a key role in strengthening the company's relationships with middle-market companies and intermediaries. His strategic decisions have contributed to the company's financial stability and long-term success.
SAZ Financial Services Stock FAQ
What does the AI Score mean for SAZ?
SAZ holds an AI Score of 34/100 (Grade: D). This is an educational research signal, not a buy or sell recommendation. Saratoga Investment Corp. is a business development company (BDC) specializing in providing financing solutions to middle-market companies in the United States. With experienced investment …
What does Saratoga Investment Corp 8.50% do?
Saratoga Investment Corp. is a business development company (BDC) that provides customized financing solutions to middle-market companies in the United States. The company focuses on providing debt and equity capital to businesses that typically have limited access to traditional financing sources. Saratoga's investment strategy centers on generating both current income and capital appreciation.
What do analysts say about SAZ stock?
Analyst coverage of Saratoga Investment Corp. (SAZ) typically focuses on its dividend yield, portfolio credit quality, and growth prospects. The consensus view often highlights the company's high dividend yield as an attractive feature for income-seeking investors. Analysts also assess the company's ability to maintain its dividend payout in light of economic conditions and portfolio performance.
What are the main risks for SAZ?
Saratoga Investment Corp. faces several key risks, including credit risk, interest rate risk, and regulatory risk. Credit risk arises from the possibility that portfolio companies may default on their loans, leading to losses for Saratoga. Interest rate risk stems from the potential for rising interest rates to increase borrowing costs and reduce the value of its investments.
What are the key factors to evaluate for SAZ?
Saratoga Investment Corp. (SAZ) holds an AI score of 34/100 (low). P/E: 9.6x vs the S&P 500's ~20-25x. Not financial advice.
How frequently does SAZ data refresh on this page?
SAZ's price was last updated on Jul 20, 2026 and refreshes on page view during U.S. market hours — it is not a real-time exchange feed. Fundamentals update after quarterly filings; the MoonshotScore recalculates nightly; news aggregates continuously.
What has driven SAZ's recent stock price performance?
Saratoga Investment Corp. (SAZ) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Experienced management team with a proven track record. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider SAZ overvalued or undervalued right now?
Saratoga Investment Corp. (SAZ) trades at 9.6x earnings. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
How do I research SAZ before investing?
Before investing in Saratoga Investment Corp. (SAZ), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) analyst consensus ratings and price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- The information provided is based on available data and is intended for informational purposes only.
- Investment decisions should be based on thorough research and consultation with a financial advisor.