Oxford Lane Capital Corp. 6.75% Notes due 2031
Oxford Lane Capital Corp. 6.75% Notes due 2031 Fundamental Analysis
Oxford Lane Capital Corp. 6.75% Notes due 2031 (OXLCL) shows weak financial fundamentals with a PE ratio of 215.85, profit margin of 0.84%, and ROE of 0.20%. The company generates $0.4B in annual revenue with moderate year-over-year growth of 3.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze OXLCL's fundamental strength across five key dimensions:
Efficiency Score
WeakOXLCL struggles to generate sufficient returns from assets.
Valuation Score
ModerateOXLCL shows balanced valuation metrics.
Growth Score
WeakOXLCL faces weak or negative growth trends.
Financial Health Score
ExcellentOXLCL maintains a strong and stable balance sheet.
Profitability Score
ModerateOXLCL maintains healthy but balanced margins.
Key Financial Metrics
Is OXLCL Expensive or Cheap?
P/E Ratio
OXLCL trades at 215.85 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, OXLCL's PEG of -2.26 indicates potential undervaluation.
Price to Book
The market values Oxford Lane Capital Corp. 6.75% Notes due 2031 at 0.43 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.10 times EBITDA. This is generally considered low.
How Well Does OXLCL Make Money?
Net Profit Margin
For every $100 in sales, Oxford Lane Capital Corp. 6.75% Notes due 2031 keeps $0.84 as profit after all expenses.
Operating Margin
Core operations generate 11.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.20 in profit for every $100 of shareholder equity.
ROA
Oxford Lane Capital Corp. 6.75% Notes due 2031 generates $0.14 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Oxford Lane Capital Corp. 6.75% Notes due 2031 generates strong operating cash flow of $673.41M, reflecting robust business health.
Free Cash Flow
Oxford Lane Capital Corp. 6.75% Notes due 2031 generates strong free cash flow of $673.41M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $9.38 in free cash annually.
FCF Yield
OXLCL converts 91.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
215.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.01
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
485.31
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.002
vs 25 benchmark
ROA
Return on assets percentage
0.001
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How OXLCL Stacks Against Its Sector Peers
| Metric | OXLCL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 215.85 | 18.86 | Worse (Expensive) |
| ROE | 0.20% | 847.00% | Weak |
| Net Margin | 0.84% | 4202.00% | Weak |
| Debt/Equity | 0.38 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 485.31 | 667.17 | Strong Liquidity |
| ROA | 0.14% | -21543.00% (disorted) | Weak |
OXLCL outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Oxford Lane Capital Corp. 6.75% Notes due 2031's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-36.67%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
319.61%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-126.50%
Industry Style: Value, Dividend, Cyclical
Declining