Flaherty & Crumrine Preferred Securities Income Fund Inc. Fundamental Analysis (NYSE: FFC)
Flaherty & Crumrine Preferred Securities Income Fund Inc. Fundamental Analysis (NYSE: FFC)
Flaherty & Crumrine Preferred Securities Income Fund Inc. (NYSE: FFC) shows moderate financial fundamentals with a PE ratio of 10.76, profit margin of 78.75%, and ROE of 8.56%. The company generates $0.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze FFC's fundamental strength across five key dimensions:
Efficiency Score
WeakFFC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFFC trades at attractive valuation levels.
Growth Score
ModerateFFC shows steady but slowing expansion.
Financial Health Score
ExcellentFFC maintains a strong and stable balance sheet.
Profitability Score
ModerateFFC maintains healthy but balanced margins.
Key Financial Metrics
Is FFC Expensive or Cheap?
P/E Ratio
FFC trades at 10.76 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FFC's PEG of -0.20 indicates potential undervaluation.
Price to Book
The market values Flaherty & Crumrine Preferred Securities Income Fund Inc. at 0.90 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.26 times EBITDA. This is generally considered low.
How Well Does FFC Make Money?
Net Profit Margin
For every $100 in sales, Flaherty & Crumrine Preferred Securities Income Fund Inc. keeps $78.75 as profit after all expenses.
Operating Margin
Core operations generate 1.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.56 in profit for every $100 of shareholder equity.
ROA
Flaherty & Crumrine Preferred Securities Income Fund Inc. generates $5.25 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Flaherty & Crumrine Preferred Securities Income Fund Inc. generates strong operating cash flow of $47.44M, reflecting robust business health.
Free Cash Flow
Flaherty & Crumrine Preferred Securities Income Fund Inc. generates strong free cash flow of $47.44M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.98 in free cash annually.
FCF Yield
FFC converts 6.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.49
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How FFC Stacks Against Its Sector Peers
| Metric | FFC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.76 | 21.05 | Better (Cheaper) |
| ROE | 8.56% | 653.00% | Weak |
| Net Margin | 78.75% | -610.00% (disorted) | Strong |
| Debt/Equity | 0.59 | 0.88 | Strong (Low Leverage) |
| Current Ratio | 5.65 | 891.58 | Strong Liquidity |
| ROA | 5.25% | 6602.00% | Weak |
FFC outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Flaherty & Crumrine Preferred Securities Income Fund Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical