WHITEHORSE FINANCE INC (WHF) Stock Fundamental Analysis
NASDAQ:WHF - Nasdaq - US96524V1061 - Common Stock - Currency: USD
WHF gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 232 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.
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
WHF has a Return On Assets of 1.35%. This is comparable to the rest of the industry: WHF outperforms 41.38% of its industry peers.
Looking at the Return On Equity, with a value of 3.25%, WHF is doing worse than 66.81% of the companies in the same industry.
With a Return On Invested Capital value of 4.09%, WHF perfoms like the industry average, outperforming 52.16% of the companies in the same industry.
WHF had an Average Return On Invested Capital over the past 3 years of 4.40%. This is below the industry average of 7.89%.
| 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
WHF has a Profit Margin of 10.62%. This is comparable to the rest of the industry: WHF outperforms 43.97% of its industry peers.
WHF's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 38.62%, WHF is in the better half of the industry, outperforming 68.10% of the companies in the same industry.
In the last couple of years the Operating Margin of WHF has declined.
With a Gross Margin value of 45.54%, WHF perfoms like the industry average, outperforming 43.97% of the companies in the same industry.
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
The number of shares outstanding for WHF remains at a similar level compared to 1 year ago.
Compared to 5 years ago, WHF has more shares outstanding
WHF has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.46, we must say that WHF is in the distress zone and has some risk of bankruptcy.
WHF has a worse Altman-Z score (0.46) than 65.52% of its industry peers.
WHF has a debt to FCF ratio of 5.15. This is a neutral value as WHF would need 5.15 years to pay back of all of its debts.
WHF has a better Debt to FCF ratio (5.15) than 65.95% of its industry peers.
WHF has a Debt/Equity ratio of 1.28. This is a high value indicating a heavy dependency on external financing.
WHF has a Debt to Equity ratio of 1.28. This is in the lower half of the industry: WHF underperforms 63.79% of its industry peers.
| 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.
WHF's Current ratio of 0.55 is on the low side compared to the rest of the industry. WHF is outperformed by 73.28% 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.
WHF's Quick ratio of 0.55 is on the low side compared to the rest of the industry. WHF is outperformed by 73.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The earnings per share for WHF have decreased strongly by -22.16% in the last year.
WHF shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.13% yearly.
The Revenue for WHF has decreased by -16.02% in the past year. This is quite bad
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 -15.63% on average over the next years. This is quite bad
Based on estimates for the next years, WHF will show a very negative growth in Revenue. The Revenue will decrease by -12.92% on average per year.
EPS Next Y-23.28%
EPS Next 2Y-15.63%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-22.62%
Revenue Next 2Y-12.92%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.24, which indicates a rather cheap valuation of WHF.
Based on the Price/Earnings ratio, WHF is valued cheaply inside the industry as 90.52% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of WHF to the average of the S&P500 Index (26.31), we can say WHF is valued rather cheaply.
A Price/Forward Earnings ratio of 7.85 indicates a rather cheap valuation of WHF.
Based on the Price/Forward Earnings ratio, WHF is valued cheaper than 86.21% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.06. WHF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.24 | ||
| Fwd PE | 7.85 |
4.2 Price Multiples
WHF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WHF is cheaper than 87.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.98 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as WHF's earnings are expected to decrease with -15.63% in the coming years.
PEG (NY)N/A
PEG (5Y)5.52
EPS Next 2Y-15.63%
EPS Next 3YN/A
5. Dividend
5.1 Amount
WHF has a Yearly Dividend Yield of 17.13%, which is a nice return.
Compared to an average industry Dividend Yield of 8.15, WHF pays a better dividend. On top of this WHF pays more dividend than 94.83% of the companies listed in the same industry.
WHF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.13% |
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 453.63% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of WHF has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP453.63%
EPS Next 2Y-15.63%
EPS Next 3YN/A
8.99
-0.06 (-0.66%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners16.75%
Inst Owner Change-2.82%
Ins Owners21.31%
Ins Owner Change0%
Market Cap208.93M
Analysts48.33
Price Target11.48 (27.7%)
Short Float %1.15%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.13% |
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)0%
PT rev (3m)-4.93%
EPS NQ rev (1m)-10.51%
EPS NQ rev (3m)-16.51%
EPS NY rev (1m)-7.29%
EPS NY rev (3m)-16.12%
Revenue NQ rev (1m)-1.89%
Revenue NQ rev (3m)-7.88%
Revenue NY rev (1m)-1.68%
Revenue NY rev (3m)-9.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.24 | ||
| Fwd PE | 7.85 | ||
| P/S | 2.43 | ||
| P/FCF | 2.98 | ||
| P/OCF | 2.98 | ||
| P/B | 0.74 | ||
| P/tB | 0.74 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.44
EY16.02%
EPS(NY)1.14
Fwd EY12.73%
FCF(TTM)3.02
FCFY33.58%
OCF(TTM)3.02
OCFY33.58%
SpS3.71
BVpS12.11
TBVpS12.11
PEG (NY)N/A
PEG (5Y)5.52
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-23.28%
EPS Next 2Y-15.63%
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-22.62%
Revenue Next 2Y-12.92%
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