Eagle Point Credit Company Inc.
Eagle Point Credit Company Inc. Fundamental Analysis
Eagle Point Credit Company Inc. (ECCW) shows moderate financial fundamentals with a PE ratio of 14.24, profit margin of 15.32%, and ROE of 3.20%. The company generates $0.1B in annual revenue with weak year-over-year growth of -29.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 12.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ECCW's fundamental strength across five key dimensions:
Efficiency Score
WeakECCW struggles to generate sufficient returns from assets.
Valuation Score
ExcellentECCW trades at attractive valuation levels.
Growth Score
WeakECCW faces weak or negative growth trends.
Financial Health Score
ExcellentECCW maintains a strong and stable balance sheet.
Profitability Score
ModerateECCW maintains healthy but balanced margins.
Key Financial Metrics
Is ECCW Expensive or Cheap?
P/E Ratio
ECCW trades at 14.24 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ECCW's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values Eagle Point Credit Company Inc. at 0.44 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.23 times EBITDA. This is generally considered low.
How Well Does ECCW Make Money?
Net Profit Margin
For every $100 in sales, Eagle Point Credit Company Inc. keeps $15.32 as profit after all expenses.
Operating Margin
Core operations generate 76.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.20 in profit for every $100 of shareholder equity.
ROA
Eagle Point Credit Company Inc. generates $2.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Eagle Point Credit Company Inc. generates strong operating cash flow of $19.03M, reflecting robust business health.
Free Cash Flow
Eagle Point Credit Company Inc. generates strong free cash flow of $19.03M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.54 in free cash annually.
FCF Yield
ECCW converts 12.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.44
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.35
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How ECCW Stacks Against Its Sector Peers
| Metric | ECCW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.24 | 18.86 | Better (Cheaper) |
| ROE | 3.20% | 847.00% | Weak |
| Net Margin | 15.32% | 4202.00% | Weak |
| Debt/Equity | 0.35 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 3.18 | 667.17 | Strong Liquidity |
| ROA | 2.23% | -21543.00% (disorted) | Weak |
ECCW outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Eagle Point Credit Company Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
623.32%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
383.30%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-558.59%
Industry Style: Value, Dividend, Cyclical
Declining