WHITEHORSE FINANCE INC (WHF) Stock Fundamental Analysis
NASDAQ:WHF - Nasdaq - US96524V1061 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to WHF. WHF was compared to 233 industry peers in the Capital Markets industry. Both the profitability and financial health of WHF have multiple concerns. WHF has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year WHF was profitable.
In the past year WHF had a positive cash flow from operations.
WHF had positive earnings in each of the past 5 years.
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
The Return On Assets of WHF (1.35%) is comparable to the rest of the industry.
With a Return On Equity value of 3.25%, WHF is not doing good in the industry: 66.95% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 4.09%, WHF is in line with its industry, outperforming 51.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WHF is below the industry average of 7.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.35% | ||
| ROE | 3.25% | ||
| ROIC | 4.09% |
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
With a Profit Margin value of 10.62%, WHF perfoms like the industry average, outperforming 44.21% of the companies in the same industry.
WHF's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 38.62%, WHF is doing good in the industry, outperforming 67.81% of the companies in the same industry.
WHF's Operating Margin has declined in the last couple of years.
WHF has a Gross Margin of 45.54%. This is comparable to the rest of the industry: WHF outperforms 43.35% of its industry peers.
WHF's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.62% | ||
| PM (TTM) | 10.62% | ||
| GM | 45.54% |
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
WHF has about the same amout of shares outstanding than it did 1 year ago.
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
WHF has an Altman-Z score of 0.46. This is a bad value and indicates that WHF is not financially healthy and even has some risk of bankruptcy.
WHF has a Altman-Z score of 0.46. This is in the lower half of the industry: WHF underperforms 66.95% of its industry peers.
The Debt to FCF ratio of WHF is 5.15, which is a neutral value as it means it would take WHF, 5.15 years of fcf income to pay off all of its debts.
WHF's Debt to FCF ratio of 5.15 is fine compared to the rest of the industry. WHF outperforms 66.95% of its industry peers.
A Debt/Equity ratio of 1.28 is on the high side and indicates that WHF has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.28, WHF is doing worse than 64.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 5.15 | ||
| Altman-Z | 0.46 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.55 indicates that WHF may have some problems paying its short term obligations.
The Current ratio of WHF (0.55) is worse than 73.39% of its industry peers.
WHF has a Quick Ratio of 0.55. 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 (0.55) is worse than 73.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
WHF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.16%.
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 -16.02% in the last year.
Measured over the past years, WHF shows a small growth in Revenue. The Revenue has been growing by 6.71% on average per year.
EPS 1Y (TTM)-22.16%
EPS 3Y4.48%
EPS 5Y1.13%
EPS Q2Q%-36.77%
Revenue 1Y (TTM)-16.02%
Revenue growth 3Y8.76%
Revenue growth 5Y6.71%
Sales Q2Q%-8.86%
3.2 Future
The Earnings Per Share is expected to decrease by -16.13% on average over the next years. This is quite bad
The Revenue is expected to decrease by -11.87% on average over the next years. This is quite bad
EPS Next Y-23.68%
EPS Next 2Y-16.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-19.11%
Revenue Next 2Y-11.87%
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
A Price/Earnings ratio of 6.18 indicates a rather cheap valuation of WHF.
WHF's Price/Earnings ratio is rather cheap when compared to the industry. WHF is cheaper than 91.42% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.18, WHF is valued rather cheaply.
A Price/Forward Earnings ratio of 7.87 indicates a rather cheap valuation of WHF.
Based on the Price/Forward Earnings ratio, WHF is valued cheaper than 88.41% of the companies in the same industry.
WHF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.18 | ||
| Fwd PE | 7.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WHF indicates a rather cheap valuation: WHF is cheaper than 86.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.95 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as WHF's earnings are expected to decrease with -16.13% in the coming years.
PEG (NY)N/A
PEG (5Y)5.46
EPS Next 2Y-16.13%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.80%, WHF is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.77, WHF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, WHF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.8% |
5.2 History
The dividend of WHF has a limited annual growth rate of 1.98%.
WHF has paid a dividend for at least 10 years, which is 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
453.63% of the earnings are spent on dividend by WHF. 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.
DP453.63%
EPS Next 2Y-16.13%
EPS Next 3YN/A
8.9
-0.01 (-0.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners16.12%
Inst Owner Change0%
Ins Owners4.29%
Ins Owner Change0%
Market Cap206.84M
Analysts48.33
Price Target10.46 (17.53%)
Short Float %1.54%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.8% |
Yearly Dividend1.79
Dividend Growth(5Y)1.98%
DP453.63%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.6%
Min EPS beat(2)-13.41%
Max EPS beat(2)-11.79%
EPS beat(4)0
Avg EPS beat(4)-10.09%
Min EPS beat(4)-13.41%
Max EPS beat(4)-4.29%
EPS beat(8)2
Avg EPS beat(8)-5.18%
EPS beat(12)5
Avg EPS beat(12)-2.32%
EPS beat(16)5
Avg EPS beat(16)-3.8%
Revenue beat(2)0
Avg Revenue beat(2)-8.55%
Min Revenue beat(2)-8.87%
Max Revenue beat(2)-8.23%
Revenue beat(4)0
Avg Revenue beat(4)-7.83%
Min Revenue beat(4)-11.74%
Max Revenue beat(4)-2.49%
Revenue beat(8)2
Avg Revenue beat(8)-5.92%
Revenue beat(12)5
Avg Revenue beat(12)-3.2%
Revenue beat(16)5
Avg Revenue beat(16)-3.33%
PT rev (1m)-8.89%
PT rev (3m)-8.89%
EPS NQ rev (1m)-0.66%
EPS NQ rev (3m)-11.1%
EPS NY rev (1m)-0.53%
EPS NY rev (3m)-7.78%
Revenue NQ rev (1m)-2.45%
Revenue NQ rev (3m)-6.67%
Revenue NY rev (1m)-2.76%
Revenue NY rev (3m)2.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.18 | ||
| Fwd PE | 7.87 | ||
| P/S | 2.4 | ||
| P/FCF | 2.95 | ||
| P/OCF | 2.95 | ||
| P/B | 0.73 | ||
| P/tB | 0.73 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.44
EY16.18%
EPS(NY)1.13
Fwd EY12.71%
FCF(TTM)3.02
FCFY33.92%
OCF(TTM)3.02
OCFY33.92%
SpS3.71
BVpS12.11
TBVpS12.11
PEG (NY)N/A
PEG (5Y)5.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.35% | ||
| ROE | 3.25% | ||
| ROCE | 5.17% | ||
| ROIC | 4.09% | ||
| ROICexc | 4.16% | ||
| ROICexgc | 4.16% | ||
| OM | 38.62% | ||
| PM (TTM) | 10.62% | ||
| GM | 45.54% | ||
| FCFM | 81.44% |
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-Score3
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 5.15 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.31 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 767.04% | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 0.46 |
F-Score3
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)-22.16%
EPS 3Y4.48%
EPS 5Y1.13%
EPS Q2Q%-36.77%
EPS Next Y-23.68%
EPS Next 2Y-16.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-16.02%
Revenue growth 3Y8.76%
Revenue growth 5Y6.71%
Sales Q2Q%-8.86%
Revenue Next Year-19.11%
Revenue Next 2Y-11.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-22.31%
EBIT growth 3Y8.96%
EBIT growth 5Y3.6%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-10.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-10.83%
OCF growth 3YN/A
OCF growth 5YN/A