EAGLE POINT CREDIT CO INC (ECC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ECC - US2698081013
5.8 USD
+0.13 (+2.29%)
5.77 USD
-0.03 (-0.52%)
We assign a fundamental rating of 3 out of 10 to ECC. ECC was compared to 0 industry peers in the Unkown industry. ECC may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, ECC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- ECC had positive earnings in the past year.
- ECC had a negative operating cash flow in the past year.
- ECC had positive earnings in 4 of the past 5 years.
- ECC had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 0.83% | ||
| ROIC | 6.17% |
ROA(3y)1.32%
ROA(5y)6.59%
ROE(3y)1.24%
ROE(5y)9.12%
ROIC(3y)6.93%
ROIC(5y)6.24%
1.3 Margins
- In the last couple of years the Profit Margin of ECC has declined.
- In the last couple of years the Operating Margin of ECC has grown nicely.
- In the last couple of years the Gross Margin of ECC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 59.63% | ||
| PM (TTM) | 4.67% | ||
| GM | 62.7% |
OM growth 3Y5.72%
OM growth 5Y2.96%
PM growth 3Y-33.04%
PM growth 5YN/A
GM growth 3Y3%
GM growth 5Y2.17%
2. Health
2.1 Basic Checks
- Compared to 1 year ago, ECC has more shares outstanding
- Compared to 5 years ago, ECC has more shares outstanding
- The debt/assets ratio for ECC is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.17, we must say that ECC is in the distress zone and has some risk of bankruptcy.
- ECC has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.17 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 7.78 indicates that ECC has no problem at all paying its short term obligations.
- A Quick Ratio of 7.78 indicates that ECC has no problem at all paying its short term obligations.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.78 | ||
| Quick Ratio | 7.78 |
3. Growth
3.1 Past
- The earnings per share for ECC have decreased strongly by -23.02% in the last year.
- Measured over the past years, ECC shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.24% on average per year.
- ECC shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.26%.
- The Revenue has been growing by 22.03% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-23.02%
EPS 3Y-5.35%
EPS 5Y-2.24%
EPS Q2Q%-17.24%
Revenue 1Y (TTM)29.26%
Revenue growth 3Y26.64%
Revenue growth 5Y22.03%
Sales Q2Q%10.36%
3.2 Future
- Based on estimates for the next years, ECC will show a decrease in Earnings Per Share. The EPS will decrease by -6.40% on average per year.
- ECC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.42% yearly.
EPS Next Y-17.42%
EPS Next 2Y-11.98%
EPS Next 3Y-6.4%
EPS Next 5YN/A
Revenue Next Year13.09%
Revenue Next 2Y10.54%
Revenue Next 3Y12.42%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 5.98 indicates a rather cheap valuation of ECC.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, ECC is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 6.40, the valuation of ECC can be described as very cheap.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, ECC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.98 | ||
| Fwd PE | 6.4 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- ECC's earnings are expected to decrease with -6.40% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.98%
EPS Next 3Y-6.4%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 26.55%, ECC is a good candidate for dividend investing.
- ECC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 26.55% |
5.2 History
- ECC has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of ECC decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 1912.74% of the earnings are spent on dividend by ECC. This is not a sustainable payout ratio.
DP1912.74%
EPS Next 2Y-11.98%
EPS Next 3Y-6.4%
EAGLE POINT CREDIT CO INC / ECC FAQ
Can you provide the ChartMill fundamental rating for EAGLE POINT CREDIT CO INC?
ChartMill assigns a fundamental rating of 3 / 10 to ECC.
What is the valuation status for ECC stock?
ChartMill assigns a valuation rating of 3 / 10 to EAGLE POINT CREDIT CO INC (ECC). This can be considered as Overvalued.
Can you provide the profitability details for EAGLE POINT CREDIT CO INC?
EAGLE POINT CREDIT CO INC (ECC) has a profitability rating of 2 / 10.
What is the valuation of EAGLE POINT CREDIT CO INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for EAGLE POINT CREDIT CO INC (ECC) is 5.98 and the Price/Book (PB) ratio is 0.68.
How sustainable is the dividend of EAGLE POINT CREDIT CO INC (ECC) stock?
The dividend rating of EAGLE POINT CREDIT CO INC (ECC) is 4 / 10 and the dividend payout ratio is 1912.74%.