Sound Point Meridian Capital Inc
$11.65
+1.7%Sound Point Meridian Capital, LLC operates as a closed-end management investment company in the United States. It focuses on investing primarily in equity and mezzanine tranches of collateralized loan obligations, which are collateralized by portfolios consisting primarily of below-investment grade U.S. senior secured loans. The company was founded in 2022 and is based in New York, New York.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Low confidenceValuation lens is waiting for P/E and earnings-yield data.
Valuation inputs: P/E N/A, earnings yield N/A, momentum +1.7%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -63.5%, ROIC -34.1%).
Profitability stack: net margin +1.2%, ROE -63.5%, ROIC -34.1%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +46.9%, momentum +1.7%, net margin +1.2%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Sound Point Meridian Capital Inc Market vs Earnings Trajectory
Sound Point Meridian Capital Inc Fair Value Envelope
Sound Point Meridian Capital Inc Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Outstanding operational efficiency. The company generates substantial profit from core operations.
Net Profit Margin
Exceptional profitability. The company converts a significant portion of revenue to bottom-line earnings.
Profitability Insight
Exceptional profitability across all levels: Strong pricing power, efficient operations, and healthy bottom line indicate a high-quality business with sustainable competitive advantages.
Sound Point Meridian Capital Inc Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.
Cash Flow Quality Insight
Deteriorating cash generation: Both declining FCF and weak conversion rate signal fundamental challenges. Investigate margin pressure, rising costs, or working capital issues.
Sound Point Meridian Capital Inc Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.
Debt-to-Equity Ratio
Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Sound Point Meridian Capital Inc Street Expectations Map
Wall Street analysts project that SPMC stock may experience modest gains over the coming 12 months. The consensus 1-year price target stands at 11.75, with estimates ranging from a low of 11.50 to a high of 12.00.
The consensus 1-year price target stands at 11.75, with estimates ranging from a low of 11.50 to a high of 12.00.
Analyst Consensus Analysis
Upside Potential
Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Risk-Reward Profile
Favorable risk-reward. Potential upside significantly exceeds downside risk, offering asymmetric return profile attractive for risk-tolerant investors.
Analyst Conviction
Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.
Market Sentiment Insight
Efficient pricing: Stock trading at fair value with strong consensus suggests market has priced in expectations. Look for fundamental inflection points or new catalysts to drive meaningful moves.
Sound Point Meridian Capital Inc Insider Positioning
During the last 12 months, insiders have purchased $598K and sold $446K worth of SPMC shares, resulting in $152K of net buying activity.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
12.5K
163.50K
10.7K
154.96K
+9K
+$9K
6-9 Months
28.0K
434.27K
16.9K
290.92K
+143K
+$143K
9-12 Months
0
0.00
0
0.00
+0
+$0
Top Buyers
Desai Ujjaval
Director, Officer: Chief Executive Officer
$353K
Ketchum Stephen
Director, Officer: Chairman
$136K
Forstenhausler Matthew E.
Director
$109K
Top Sellers
Assured Guaranty Ltd
10 Percent Owner
$446K
Insider Activity Analysis
Net Insider Sentiment
Moderately bullish with $152K net buying. Insiders show cautious optimism through measured share purchases.
Buy/Sell Ratio
Positive buy/sell ratio. Buying exceeds or matches selling, indicating net positive insider sentiment.
Insider Participation
3 insider buyers vs. 1 sellers. Broad-based buying across management team suggests widespread confidence.
Insider Activity Insight
Broad-based insider buying: When multiple insiders independently decide to purchase shares, it often reflects genuine confidence rather than coordinated optics. This pattern deserves attention, especially if buying followed a price decline.
spmc Dividend History
Learning Layer
Related Guides
Build conviction on SPMC by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.