XAI Octagon Floating Rate & Alternative Income Term Trust Fundamental Analysis
XAI Octagon Floating Rate & Alternative Income Term Trust Fundamental Analysis
XAI Octagon Floating Rate & Alternative Income Term Trust (XFLT-PA) shows weak financial fundamentals with a PE ratio of 27.54, profit margin of 16.10%, and ROE of 2.18%. 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 49.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze XFLT-PA's fundamental strength across five key dimensions:
Efficiency Score
WeakXFLT-PA struggles to generate sufficient returns from assets.
Valuation Score
ModerateXFLT-PA shows balanced valuation metrics.
Growth Score
WeakXFLT-PA faces weak or negative growth trends.
Financial Health Score
ModerateXFLT-PA shows balanced financial health with some risks.
Profitability Score
ExcellentXFLT-PA achieves industry-leading margins.
Key Financial Metrics
Is XFLT-PA Expensive or Cheap?
P/E Ratio
XFLT-PA trades at 27.54 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, XFLT-PA's PEG of -0.32 indicates potential undervaluation.
Price to Book
The market values XAI Octagon Floating Rate & Alternative Income Term Trust at 0.61 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.76 times EBITDA. This is generally considered low.
How Well Does XFLT-PA Make Money?
Net Profit Margin
For every $100 in sales, XAI Octagon Floating Rate & Alternative Income Term Trust keeps $16.10 as profit after all expenses.
Operating Margin
Core operations generate 46.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.18 in profit for every $100 of shareholder equity.
ROA
XAI Octagon Floating Rate & Alternative Income Term Trust generates $1.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
XAI Octagon Floating Rate & Alternative Income Term Trust generates strong operating cash flow of $60.53M, reflecting robust business health.
Free Cash Flow
XAI Octagon Floating Rate & Alternative Income Term Trust generates strong free cash flow of $60.53M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.62 in free cash annually.
FCF Yield
XFLT-PA converts 20.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.32
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.81
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How XFLT-PA Stacks Against Its Sector Peers
| Metric | XFLT-PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.54 | 20.97 | Worse (Expensive) |
| ROE | 2.18% | 612.00% | Weak |
| Net Margin | 16.10% | -16901.00% (disorted) | Strong |
| Debt/Equity | 0.45 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 0.81 | 932.77 | Weak Liquidity |
| ROA | 1.34% | -844.00% (disorted) | Weak |
XFLT-PA outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews XAI Octagon Floating Rate & Alternative Income Term Trust'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