Source Capital, Inc. (SOR)
Valuation Overview•Is Source Capital, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 55/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. The company currently retains all capital for reinvestment and growth rather than returning it to shareholders.
SOR demonstrates adequate business quality with stable profitability. This is backed by a fortress balance sheet, holding significant net cash ($3,675) and minimal debt risk.
The company maintains stable top-line performance however, earnings have severely contracted over the same period. This growth is supported by elite operational efficiency, sustaining an impressive 109.4% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $4.5M | +31.3% | — | — | +19.9% | |
| EBITDA | $3.7M | — | -1.9% | — | — | |
| Net Income | $15.1M | -27.0% | -1.9% | — | -8.2% | |
| EPS (Diluted) | $1.83 | -26.5% | -1.2% | -9.2% | -7.7% | |
| Free Cash Flow | $0.00 | — | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 108.9% | 82.3% | 86.9% | 81.3% |
| Operating Margin | 109.4% | -2.5% | 36.5% | 53.4% |
| Net Margin | 137.0% | 37.6% | 60.5% | 50.2% |
| FCF Margin | — | — | — | 39.9% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q1'26Latest | — | $3.57 | — | ||
| Q3'25 | — | $1.83 | — | ||
| Q1'25 | — | $1.55 | — | ||
| Q3'24 | — | $3.23 | — | ||
| Q1'24 | — | $2.86 | — | ||
| Q3'23 | — | $3.64 | — | ||
| Q4'22 | — | $1.20 | — | ||
| Q2'22 | — | $1.00 | — |
Total return is +11.1% (1Y), lagging the benchmark by -11.1%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -0.6% | -8.0% | — |
| 1Y | +11.1% | -11.1% | +5.9% |
| 3YCAGR | +13.8% | -5.7% | +28.3% |
| 5YCAGR | +6.9% | -4.4% | +39.5% |
| 10YCAGR | +7.0% | -6.1% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Source Capital, Inc. (SOR) valuation, health, and returns.
Based on peer relative multiples, Source Capital, Inc. appears Cheap versus peers compared to industry peers.
Source Capital, Inc. has multiple valuation anchors: Peer Relative Fair Value: $215.88. A convergence of these signals offers higher conviction.
Source Capital, Inc. displays fair financial health with a composite quality score of 55/100, supported by a Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of 8.2%.
Source Capital, Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Source Capital, Inc.'s current growth trajectory is Accelerating. The company achieved +31.3% 1Y revenue growth and -26.5% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Buy based on 1 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for Source Capital, Inc. include: -9.8% 1-year max drawdown. Volatility risk is characterized by a beta of 0.47x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.