Core Viewpoint - The article discusses a newly listed fixed-income security from Saratoga Investment Corp, highlighting the investment strategies employed by the team led by Denislav Iliev, who has over 15 years of experience in day trading and managing a team of analysts [1]. Group 1: Company Overview - Saratoga Investment Corp is the focus of the article, which emphasizes its recent listing of a fixed-income security on the exchange [1]. - The company is associated with the investment group Trade With Beta, which specializes in identifying mispriced investments in fixed-income and closed-end funds [1]. Group 2: Investment Strategies - Denislav Iliev leads a team of 40 analysts who utilize straightforward financial logic to identify investment opportunities [1]. - The features of the Trade With Beta service include frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of over 1200 equities, IPO previews, and hedging strategies [1].

Core Viewpoint - Software stocks have experienced a significant decline, while loan pricing has remained relatively stable, prompting Morgan Stanley to adopt a cautious stance, particularly regarding Business Development Companies (BDCs) which are deemed most vulnerable [1] Group 1: Software Stocks - Software stocks are down sharply, indicating a potential shift in market sentiment towards technology investments [1] - The decline in software stocks may reflect broader economic concerns or sector-specific challenges [1] Group 2: Loan Pricing - Loan pricing has barely moved, suggesting stability in lending conditions despite the downturn in software stocks [1] - The stability in loan pricing may provide a buffer for companies reliant on debt financing [1] Group 3: Business Development Companies (BDCs) - BDCs are highlighted as the most exposed to the current market conditions, indicating potential risks for these entities [1] - The cautious outlook from Morgan Stanley suggests that BDCs may face challenges in maintaining performance amidst the volatility in software stocks [1]

Core Viewpoint - Saratoga Investment Corp. has announced a public offering of $100 million in unsecured notes with a 7.50% interest rate, maturing in 2031, aimed at refinancing existing debt and enhancing its capital structure [1][5]. Offering Details - The offering consists of $100 million in aggregate principal amount of 7.50% unsecured notes due on February 6, 2031, with an option for the underwriters to purchase an additional $15 million [1][3]. - The notes will bear interest at a rate of 7.50% per year, payable quarterly starting May 31, 2026 [2]. - The offering is expected to close on February 6, 2026, subject to customary closing conditions [3]. Use of Proceeds - The net proceeds from the offering will be used to redeem the Company's outstanding 4.375% Notes due 2026 [5]. Credit Rating - The Company has received a private investment grade rating of "BBB+" from Egan-Jones Ratings Company, which is recognized as a Credit Rating Provider [4]. Company Overview - Saratoga Investment Corp. is a specialty finance company focused on providing customized financing solutions to U.S. middle-market businesses, primarily through senior and unitranche leveraged loans and mezzanine debt [9]. - The Company aims to generate attractive risk-adjusted returns through its debt and equity investments and is regulated as a business development company under the Investment Company Act of 1940 [10].

Core Viewpoint - During turbulent market conditions, investors often seek dividend-yielding stocks, which typically have high free cash flows and provide substantial dividends to shareholders [1]. Group 1: Investment Strategy - Dividend-yielding stocks are favored by investors in uncertain market environments [1]. - These stocks are characterized by companies that generate high free cash flows [1]. Group 2: Analyst Ratings - The article mentions the availability of analyst ratings for high-yielding stocks, allowing traders to access insights on their preferred investments [2]. - Specific high-yielding stocks in the financial sector highlighted include PennyMac Mortgage Investment Trust, Blue Owl Capital Corp, and Saratoga Investment Corp [3].

Core Viewpoint - Saratoga Investment Corp. has initiated a registered public offering of unsecured notes and received an investment grade rating of "BBB+" from Egan-Jones Ratings Company [1][2] Group 1: Offering Details - The unsecured notes are expected to be listed on the New York Stock Exchange under the trading symbol "SAV" within 30 days of the original issue date [2] - The net proceeds from this offering will be used to fully redeem the Company's outstanding 4.375% Notes due 2026 [3] Group 2: Company Overview - Saratoga Investment Corp. is a specialty finance company that provides customized financing solutions to U.S. middle-market businesses, primarily investing in senior and unitranche leveraged loans and mezzanine debt [7] - The Company aims to create attractive risk-adjusted returns through current income and long-term capital appreciation from its debt and equity investments [7] - Saratoga Investment Corp. is regulated as a business development company under the Investment Company Act of 1940 and is externally managed by Saratoga Investment Advisors, LLC [7] - The Company manages a $650 million collateralized loan obligation (CLO) fund and co-manages a joint venture fund with a $400 million CLO [7]

Core Insights - DPC Dash, the exclusive master franchisee for Domino's Pizza in China, Hong Kong, and Macau, demonstrated strong growth in Q4 2025, enhancing consumer loyalty through store expansion, product innovation, and effective marketing strategies [1][2]. Store Expansion - The company executed a "go broader, go deeper" strategy, achieving a total of 1,315 stores by December 31, 2025, with 307 net new stores and entry into 21 new cities, expanding coverage to 60 cities in mainland China [2]. - On January 1, 2026, DPC Dash opened 62 new stores across 46 cities, continuing its robust expansion momentum [2]. Sales Performance - Positive same-store sales growth (SSSG) was maintained in Tier-1 cities during Q4 2025, with group-level SSSG remaining positive in the second half of 2025, indicating strong brand resilience [3]. New Store Performance - Newly opened stores showed strong performance, with the first store in Dalian generating sales close to RMB 700,000 on its grand opening day, reflecting the company's effective store operation system and market penetration capabilities [4]. Consumer Engagement - DPC Dash's loyalty program grew to 35.6 million members by December 31, 2025, up from 24.5 million in 2024, indicating significant year-over-year growth in brand recognition and user loyalty [5]. Product Innovation - The company launched two new pizzas: the Sicilian-Inspired Beef & Bamboo Shoot Pizza and the Madrid-Inspired Beef and Shrimp Pizza, while also upgrading two popular pizzas with additional toppings, enhancing consumer experience and brand recognition [6]. Marketing Strategies - DPC Dash implemented seasonal marketing campaigns, including Halloween promotions and the return of the "Mega Week" promotion, while collaborating with Sanrio character Kuromi to attract younger consumers [7]. Industry Recognition - Throughout 2025, DPC Dash received multiple industry awards for food quality, safety, brand marketing, and digitalization, including the "Annual Seven-Star Awards for Outstanding Contribution in Food Safety & Public Health" [8][9]. Future Strategy - Looking ahead, DPC Dash plans to deepen its 4D strategy focusing on Development, Delicious Pizza at Value, Delivery, and Digital, aiming to explore market potential and optimize operational efficiency [11].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Performance - Saratoga Investment Corp. reported an EPS of $0.61, beating the estimated $0.59, and revenue of approximately $31.6 million, surpassing the estimated $31.3 million [1][6] - The financial performance showed a 5.2% increase in net investment income (NII) per share, and the net asset value (NAV) per share increased by 0.7% from the previous quarter [2] - The company achieved a quarterly return on equity (ROE) of 13.5%, contributing to a last twelve months (LTM) ROE of 9.7%, significantly higher than the BDC industry average of 6.6% [2][6] Dividends - The company declared an actual dividend of $1.00 per share for the fiscal third quarter of 2026, which includes a special dividend of $0.25 per share [3] Valuation Metrics - The price-to-earnings (P/E) ratio is approximately 14.81, reflecting the market's valuation of its earnings [4] - 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 [4] - The enterprise value to sales ratio stands at 9.51, indicating the company's valuation in relation to its sales [4] Cash Flow and Capital Structure - The enterprise value to operating cash flow ratio is 12.73, providing insight into the company's cash flow efficiency [5] - The earnings yield is 6.75%, offering a perspective on the return on investment [5] - The debt-to-equity ratio is -3.44, indicating a unique capital structure with more liabilities than equity [5] - The current ratio is 0.074, which may suggest liquidity challenges in meeting short-term obligations [5]

Assets and Management - Assets Under Management (AUM) increased to $1.016 billion, a 5.8% rise from $960.1 million year-over-year and a 2.1% increase from the previous quarter[7]. - The fair value of Saratoga Investment's portfolio was $1.016 billion, excluding $169.6 million in cash and cash equivalents, invested in 46 portfolio companies and other financial instruments[11]. - Total assets increased to $1,196,961,951 as of November 30, 2025, compared to $1,191,543,857 on February 28, 2025, reflecting a growth of approximately 0.4%[27]. - Total investments at fair value rose to $1,015,950,344, up from $978,077,750, indicating an increase of about 3.9%[27]. Investment Income - Net Investment Income (NII) per share rose to $0.61, reflecting a $0.03 increase from the previous quarter, but down from $0.90 year-over-year[3]. - Total Investment Income for the quarter was $31.6 million, a decrease of 11.8% from $35.9 million in the same quarter last year, but an increase of 3.3% from $30.6 million last quarter[7]. - Net investment income for the three months ended November 30, 2025, was $9,786,386, a decrease of 21.3% from $12,435,655 in the same period of 2024[30]. - For the nine months ended November 30, 2025, net investment income totaled $29,009,151, down from $44,968,058 in 2024, a decrease of approximately 35.6%[38]. Dividends - Dividends declared for the quarter were $0.75 per share, up from $0.74 per share in the same quarter last year[3]. - Saratoga Investment declared a base quarterly dividend of $0.75 per share for the fourth quarter of fiscal 2026, with three monthly dividends of $0.25 per share[14]. Debt and Financing - The company entered into a new credit agreement with Valley National Bank for $85.0 million, with an initial draw of $32.5 million to repay existing debt[10]. - The company maintained a cash position of $169.6 million, down from $200.8 million last quarter, but still significant for future investments[5]. - Total liabilities decreased to $783,755,039 as of November 30, 2025, down from $798,878,389, a decline of about 1.9%[27]. - Interest and debt financing expenses decreased to $36,735,463 for the nine months ended November 30, 2025, compared to $39,135,022 in the previous year, a reduction of approximately 6.1%[33]. Portfolio Composition - The overall portfolio composition consisted of 83.9% first lien term loans, 0.8% second lien term loans, and 1.6% unsecured loans[11]. - The weighted average current yield on the portfolio was 9.7%, with 10.4% on first lien term loans and 15.6% on second lien term loans[11]. - The weighted average interest rate on the core BDC portfolio decreased to 10.6%, down from 11.3% last quarter and 11.8% year-over-year[7]. Shareholder Actions - The company purchased 1,035,203 shares of common stock at an average price of $22.05, totaling approximately $22.8 million under its Share Repurchase Plan[19]. - Saratoga Investment has sold 8,591,915 shares for gross proceeds of $227.2 million at an average price of $26.37 since the start of its equity distribution agreement[15]. - The company has $136.0 million in undrawn SBA debentures available from its existing SBIC III license[15]. Performance Metrics - Return on Equity (ROE) for the last twelve months was 9.7%, up from 9.2% year-over-year, and quarterly ROE was 13.5%[4]. - The net increase in net assets resulting from operations for the nine months ended November 30, 2025, was $39,217,382, compared to $28,763,019 in the same period of 2024, representing a growth of 36.5%[33]. - The asset coverage ratio improved to 168.4% from 162.9%, indicating a stronger asset base relative to liabilities[28]. - The net investment income yield for the three months ended November 30, 2025, was 9.5%, down from 13.3% in 2024, indicating a decrease of 28.6%[36].

Core Insights - Saratoga Investment Corp. reported a 5.2% increase in net investment income (NII) per share and a 0.7% increase in net asset value (NAV) from the previous quarter, with NAV per share remaining stable [1][3] - The company achieved a quarterly return on equity (ROE) of 13.5%, generating a last twelve months (LTM) ROE of 9.7%, which exceeds the business development company (BDC) industry average of 6.6% [1][4] Financial Performance - As of November 30, 2025, assets under management (AUM) increased to $1.016 billion, up 5.8% from $960.1 million a year ago and up 2.1% from $995.3 million in the previous quarter [2][7] - The net asset value (NAV) was $413.2 million, reflecting an increase of $38.3 million from $374.9 million a year ago and a slight increase of $2.7 million from $410.5 million in the previous quarter [7][30] - Total investment income for the quarter was $31.6 million, a decrease of 11.8% from $35.9 million a year ago but an increase of 3.3% from $30.6 million in the previous quarter [7][31] - Net investment income (NII) per share was $0.61, up from $0.58 in the previous quarter but down from $0.90 a year ago [2][31] - Earnings per share (EPS) for the quarter was $0.74, compared to $0.84 in the previous quarter and $0.64 a year ago [2][31] Dividend and Shareholder Returns - The company declared a base dividend of $0.75 per share for the fourth quarter of fiscal 2026, maintaining a monthly dividend of $0.25 per share [3][15] - Total dividends declared for fiscal year 2026 amounted to $3.25 per share, including a special dividend of $0.25 per share [3][15] Investment Activity - The company reported net originations of $17.2 million during the quarter, with total investments made amounting to $72.1 million, including three new investments and nine follow-ons [4][11] - The fair value of the portfolio increased by $2.5 million during the quarter, with a total portfolio fair value of $1.016 billion [6][11] Credit Quality and Leverage - The overall credit quality improved, with 99.8% of credits rated in the highest category, and only one investment remaining on non-accrual status [4][6] - The company’s regulatory leverage ratio was reported at 168.4%, reflecting a decrease from 160.1% last year [4][30] Market Position and Outlook - The company noted an increase in M&A activity despite competitive market dynamics, indicating a positive outlook for future investment opportunities [4][5] - Management expressed confidence in the resilience of the portfolio and the ability to generate consistent investment performance amid macroeconomic uncertainties [5][22]