WHITEHORSE FINANCE INC (WHF) Stock Fundamental Analysis
NASDAQ:WHF - Nasdaq - US96524V1061 - Common Stock - Currency: USD
Taking everything into account, WHF scores 3 out of 10 in our fundamental rating. WHF was compared to 229 industry peers in the Capital Markets industry. There are concerns on the financial health of WHF while its profitability can be described as average. WHF has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
WHF had positive earnings in the past year.
WHF had a positive operating cash flow in the past year.
Each year in the past 5 years WHF has been profitable.
The reported operating cash flow has been mixed in the past 5 years: WHF reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.60%, WHF is doing worse than 60.70% of the companies in the same industry.
The Return On Equity of WHF (3.79%) is worse than 65.50% of its industry peers.
With a decent Return On Invested Capital value of 4.60%, WHF is doing good in the industry, outperforming 62.01% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WHF is below the industry average of 7.23%.
The last Return On Invested Capital (4.60%) for WHF is above the 3 year average (4.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 3.79% | ||
| ROIC | 4.6% |
ROA(3y)2.12%
ROA(5y)2.86%
ROE(3y)4.98%
ROE(5y)6.74%
ROIC(3y)4.4%
ROIC(5y)3.74%
1.3 Margins
WHF's Profit Margin of 11.69% is in line compared to the rest of the industry. WHF outperforms 42.36% of its industry peers.
WHF's Profit Margin has declined in the last couple of years.
WHF's Operating Margin of 40.12% is fine compared to the rest of the industry. WHF outperforms 70.74% of its industry peers.
In the last couple of years the Operating Margin of WHF has declined.
WHF has a Gross Margin of 46.85%. This is comparable to the rest of the industry: WHF outperforms 50.66% of its industry peers.
WHF's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.12% | ||
| PM (TTM) | 11.69% | ||
| GM | 46.85% |
OM growth 3Y0.18%
OM growth 5Y-2.92%
PM growth 3Y-34.56%
PM growth 5Y-23.96%
GM growth 3Y-0.25%
GM growth 5Y-2.13%
2. Health
2.1 Basic Checks
Compared to 1 year ago, WHF has about the same amount of shares outstanding.
The number of shares outstanding for WHF has been increased compared to 5 years ago.
The debt/assets ratio for WHF has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.51, we must say that WHF is in the distress zone and has some risk of bankruptcy.
WHF has a Altman-Z score of 0.51. This is in the lower half of the industry: WHF underperforms 64.63% of its industry peers.
WHF has a debt to FCF ratio of 4.48. This is a neutral value as WHF would need 4.48 years to pay back of all of its debts.
The Debt to FCF ratio of WHF (4.48) is better than 67.25% of its industry peers.
WHF has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
WHF has a worse Debt to Equity ratio (1.23) than 61.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 4.48 | ||
| Altman-Z | 0.51 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.52 indicates that WHF may have some problems paying its short term obligations.
WHF's Current ratio of 0.52 is on the low side compared to the rest of the industry. WHF is outperformed by 74.67% of its industry peers.
WHF has a Quick Ratio of 0.52. This is a bad value and indicates that WHF is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of WHF (0.52) is worse than 74.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The earnings per share for WHF have decreased strongly by -22.37% in the last year.
Measured over the past 5 years, WHF shows a small growth in Earnings Per Share. The EPS has been growing by 1.13% on average per year.
Looking at the last year, WHF shows a very negative growth in Revenue. The Revenue has decreased by -10.11% in the last year.
The Revenue has been growing slightly by 6.71% on average over the past years.
EPS 1Y (TTM)-22.37%
EPS 3Y4.48%
EPS 5Y1.13%
EPS Q2Q%-37.63%
Revenue 1Y (TTM)-10.11%
Revenue growth 3Y8.76%
Revenue growth 5Y6.71%
Sales Q2Q%-8.87%
3.2 Future
Based on estimates for the next years, WHF will show a decrease in Earnings Per Share. The EPS will decrease by -9.75% on average per year.
WHF is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -9.05% yearly.
EPS Next Y-17.25%
EPS Next 2Y-9.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-15.2%
Revenue Next 2Y-9.05%
Revenue Next 3YN/A
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.38, the valuation of WHF can be described as very cheap.
Based on the Price/Earnings ratio, WHF is valued cheaper than 89.52% of the companies in the same industry.
WHF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.85.
Based on the Price/Forward Earnings ratio of 6.96, the valuation of WHF can be described as very cheap.
89.52% of the companies in the same industry are more expensive than WHF, based on the Price/Forward Earnings ratio.
WHF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.38 | ||
| Fwd PE | 6.96 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, WHF is valued cheaply inside the industry as 89.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.69 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as WHF's earnings are expected to decrease with -9.75% in the coming years.
PEG (NY)N/A
PEG (5Y)5.63
EPS Next 2Y-9.75%
EPS Next 3YN/A
5. Dividend
5.1 Amount
WHF has a Yearly Dividend Yield of 16.51%, which is a nice return.
WHF's Dividend Yield is rather good when compared to the industry average which is at 8.38. WHF pays more dividend than 93.45% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, WHF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.51% |
5.2 History
The dividend of WHF has a limited annual growth rate of 1.98%.
WHF has been paying a dividend for at least 10 years, so it has a reliable track record.
WHF has decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.98%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
WHF pays out 382.35% of its income as dividend. This is not a sustainable payout ratio.
WHF's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP382.35%
EPS Next 2Y-9.75%
EPS Next 3YN/A
9.12
-0.16 (-1.72%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners16.75%
Inst Owner Change1.92%
Ins Owners21.31%
Ins Owner Change0%
Market Cap211.95M
Analysts48.33
Price Target11.48 (25.88%)
Short Float %0.94%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.51% |
Yearly Dividend1.79
Dividend Growth(5Y)1.98%
DP382.35%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.85%
Min EPS beat(2)-13.41%
Max EPS beat(2)-4.29%
EPS beat(4)1
Avg EPS beat(4)-7.03%
Min EPS beat(4)-13.41%
Max EPS beat(4)0.45%
EPS beat(8)3
Avg EPS beat(8)-3.02%
EPS beat(12)5
Avg EPS beat(12)-1.99%
EPS beat(16)6
Avg EPS beat(16)-2.89%
Revenue beat(2)0
Avg Revenue beat(2)-14.26%
Min Revenue beat(2)-26.04%
Max Revenue beat(2)-2.49%
Revenue beat(4)0
Avg Revenue beat(4)-14.54%
Min Revenue beat(4)-26.04%
Max Revenue beat(4)-2.49%
Revenue beat(8)3
Avg Revenue beat(8)-6.42%
Revenue beat(12)5
Avg Revenue beat(12)-4.26%
Revenue beat(16)5
Avg Revenue beat(16)-4.12%
PT rev (1m)0%
PT rev (3m)-1.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.28%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)-7.6%
Revenue NY rev (1m)7.74%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.38 | ||
| Fwd PE | 6.96 | ||
| P/S | 2.28 | ||
| P/FCF | 2.69 | ||
| P/OCF | 2.69 | ||
| P/B | 0.74 | ||
| P/tB | 0.74 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.43
EY15.68%
EPS(NY)1.31
Fwd EY14.36%
FCF(TTM)3.39
FCFY37.16%
OCF(TTM)3.39
OCFY37.16%
SpS3.99
BVpS12.31
TBVpS12.31
PEG (NY)N/A
PEG (5Y)5.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 3.79% | ||
| ROCE | 5.82% | ||
| ROIC | 4.6% | ||
| ROICexc | 4.69% | ||
| ROICexgc | 4.69% | ||
| OM | 40.12% | ||
| PM (TTM) | 11.69% | ||
| GM | 46.85% | ||
| FCFM | 84.85% |
ROA(3y)2.12%
ROA(5y)2.86%
ROE(3y)4.98%
ROE(5y)6.74%
ROIC(3y)4.4%
ROIC(5y)3.74%
ROICexc(3y)4.47%
ROICexc(5y)3.79%
ROICexgc(3y)4.47%
ROICexgc(5y)3.79%
ROCE(3y)5.57%
ROCE(5y)4.73%
ROICexcg growth 3Y18.87%
ROICexcg growth 5Y2.95%
ROICexc growth 3Y18.87%
ROICexc growth 5Y2.95%
OM growth 3Y0.18%
OM growth 5Y-2.92%
PM growth 3Y-34.56%
PM growth 5Y-23.96%
GM growth 3Y-0.25%
GM growth 5Y-2.13%
F-Score5
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 4.48 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.41 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 725.81% | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 0.51 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)542.55%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-22.37%
EPS 3Y4.48%
EPS 5Y1.13%
EPS Q2Q%-37.63%
EPS Next Y-17.25%
EPS Next 2Y-9.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-10.11%
Revenue growth 3Y8.76%
Revenue growth 5Y6.71%
Sales Q2Q%-8.87%
Revenue Next Year-15.2%
Revenue Next 2Y-9.05%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-12.8%
EBIT growth 3Y8.96%
EBIT growth 5Y3.6%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-12.85%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.85%
OCF growth 3YN/A
OCF growth 5YN/A