SOR
Source Capital, Inc. (SOR) Management Analysis (2026)
Overall Score
Capital Allocation
Balance sheet is exceptionally clean with net debt essentially flat to zero and a very high current ratio of 15.7x.
Management is returning capital via a dividend of $2.4996 per share, with a dividend yield of 5.35%.
Book value per share of $48.27 and price-to-book of 0.97x suggest disciplined capital deployment relative to equity value.
Execution Profitability
Operating performance is strong, with ROE of 11.5%, ROIC of 8.6%, and ROA of 11.0%.
Margins are very high, including gross margin of 94.8% and net margin of 139.0%, indicating strong operating leverage.
Interest coverage of 602.1x and debt-service coverage of 532.4x indicate minimal financial strain.
Balance Sheet Discipline
Debt-to-equity and debt-to-assets are both effectively zero, leaving the company with negligible leverage.
Cash per share of $9.55 and net current asset value of $75.7M provide substantial liquidity support.
The cash conversion cycle is negative at -8.5 days, reflecting efficient working-capital management.
Sources
- Company filings (10-K, 10-Q, investor presentations)
- Financial and market data providers
- Public news and industry information
🔒 Go Beyond This Framework
This is one of 10 institutional-grade frameworks Invetso runs on Source Capital, Inc.. Unlock the complete analysis — SWOT, Economic Moat, Porter’s Five Forces, Management, PESTLE and the Invetso Quality Score.