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Eagle Point Credit Company Inc (ECC)
NYSE:ECC
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Eagle Point Credit Company
(NYSE:ECC)
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Rating:64Neutral
Price Target:
$5.50
▲(35.80% Upside)
Action:ReiteratedDate:01/13/26
Overall score is driven primarily by improving but still volatile financial performance (rebound in revenue/profitability tempered by lower ROE and weaker recent free-cash-flow momentum). Technicals are neutral-to-slightly improving in the short term but remain weaker over longer moving averages, while valuation is mixed with an extremely high yield offset by a high P/E. Earnings-call tone was balanced (active portfolio actions and strong coverage ratios, but declining cash flows/NAV and credit-market headwinds), and the recent preliminary update added pressure via realized losses and a lower NAV estimate.
Positive Factors
Asset coverage ratios
Coverage ratios well above statutory requirements provide a durable capital buffer against credit losses and reduce insolvency risk. This structural strength supports the company's ability to meet obligations, maintain distributions, and retain access to debt markets during credit cycles, enhancing long-term resilience.
High-yield deployment
Sourcing and deploying capital into CLO equity at a 16.9% effective yield shows persistent origination and selection capability. Higher-yield reinvestments improve long-run income generation and distribution sustainability, especially given a multi-year reinvestment runway, supporting recurring earnings over the coming 2–6 months.
Moderate leverage
A modest debt-to-equity ratio indicates limited financial leverage for a credit-focused BDC/CLO investor, lowering refinancing and interest risk. This balance-sheet conservatism preserves strategic optionality for opportunistic purchases or refinancings and reduces vulnerability to market shocks over the medium term.
Negative Factors
NAV erosion & realized losses
Quarterly realized losses and a lower estimated NAV materially shrink the company's equity base and long-term value per share. Persistent or recurring realized losses constrain reinvestment capacity, pressure distributions, and can force dilutive capital raises, impairing shareholder returns across multiple quarters.
Spread compression
A ~50bp decline in average spreads structurally reduces portfolio yields and recurring cash flows. Over several months this compresses margins on newly originated or reset CLO positions, lowering net investment income and making it harder to sustain distributions without capital or higher-risk deployment.
Cash-flow volatility
Significant FCF decline and historical volatility weaken the reliability of distributable cash. Reduced and unstable cash conversion increases dependence on capital markets and asset sales to fund dividends, raising execution and refinancing risk and undermining income stability over the medium term.
Eagle Point Credit Company (ECC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
N/A
Dividend Yield29.47%
Average Volume (3M)2.55M
Price to Earnings (P/E)25.1
Beta (1Y)0.43
Revenue Growth7.25%
EPS Growth-78.57%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.23
Shares Outstanding130,832,930
10 Day Avg. Volume3,457,623
30 Day Avg. Volume2,549,754
Financial Highlights & Ratios
PEG Ratio-0.20
Price to Book (P/B)0.89
Price to Sales (P/S)7.15
P/FCF Ratio8.01
Enterprise Value/Market Cap10.00T>
Enterprise Value/Revenue3.85
Enterprise Value/Gross Profit3.97
Enterprise Value/Ebitda14.02
Forecast
1Y Price Target
$5.00Price Target Upside23.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Eagle Point Credit Company Business Overview & Revenue Model
Company DescriptionEagle Point Credit Company Inc. is a closed ended fund launched and managed by Eagle Point Credit Management LLC. It invests in fixed income markets of the United States. The fund invests equity and junior debt tranches of collateralized loan obligations consisting primarily of below investment grade U.S. senior secured loans. Eagle Point Credit Company Inc. was formed on March 24, 2014 and is domiciled in the United States.
How the Company Makes MoneyEagle Point Credit Company generates revenue primarily through the interest income and fees associated with its investments in CLOs. The company's key revenue streams include the interest earned on the debt securities it holds and the cash distributions received from the CLO equity investments. Additionally, ECC may earn management fees and incentive fees based on the performance of its portfolio. Significant partnerships with CLO managers and market participants also contribute to its ability to source investments and optimize returns, enhancing overall profitability.
Eagle Point Credit Company Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 26, 2026
Earnings Call Sentiment Neutral
The call reflects a balanced view: the company experienced material near-term financial pain (NAV decline, GAAP losses, realized/unrealized losses and elevated leverage) driven by market-wide spread compression and CLO market pressures, but management highlighted solid recurring cash flow, active portfolio management (resets/refis), diversification into higher-yielding non-CLO credit assets with attractive realized IRRs, and purposeful capital structure actions (redeeming high-cost preferred, issuing lower-cost perpetuals, buyback authorization) to mitigate headwinds and position the firm for improved returns over time. Given the combination of significant financial challenges alongside credible mitigation strategies and stable operating cash generation, the sentiment is balanced.Q4-2025 Updates
Positive Updates
Strong recurring cash flow
Recurring cash flows increased to $80 million (≈$0.61/share) in 2025, up from $77 million ($0.59/share) in the prior quarter (≈+3.9% quarter-over-quarter in dollars; ≈+3.4% per-share). Management collected $57 million of recurring cash flows through January 31 and expects additional collections during the quarter.
Active CLO portfolio management
Completed 10 resets and 3 refinancings in Q4 and participated in 34 resets and 27 refinancings in 2025, generating an average CLO debt cost savings of 42 basis points across the portfolio. Weighted average remaining reinvestment period (WARP) was essentially stable (3.4 years → 3.3 years).
Diversification into higher-yielding non-CLO credit assets
Deployed $184 million of gross capital in Q4 at a weighted-average effective yield of 15.4%, of which $147 million was invested in non-CLO credit assets. The non-CLO portion of the portfolio was ~26% at year end. Of $97 million of investments that have gone full cycle and been realized, the gross IRR was approximately 18%.
Capital structure optimization and lower-cost financing
Redeemed the 8% Series F term preferred (paid in full Jan 31), repurchased $9 million of other $25 par securities at discounts, and issued approximately $155 million of 7% Series AA/BB convertible perpetual preferred stock through 2025 to reduce cost of capital and add financing flexibility.
Portfolio quality metrics above market averages
Portfolio had 4.1% CCC exposure vs market 4.3%, 3.6% of loans trading below 80 vs market 4.4%, and a weighted-average junior OC cushion of 4.5% vs market 3.9%, indicating relative credit quality and structural strength vs the broader CLO market.
Established strategic partnerships and JVs
Advanced initiatives with Muzinich (>$40 million committed and fully deployed to U.S. CLO collateral management platform) and backed a European CLO collateral management platform; launched a new JV to invest in regulatory capital relief transactions that will appear in Q1 financials.
Large market activity provides opportunities
2025 saw robust CLO market activity (combined issuance, resets and refinancings of $546 billion), and management signaled a robust pipeline of refinancings, resets and selective new-issue CLO equity opportunities where they have top-line revenue share.
Negative Updates
Material NAV decline
Net asset value declined to $5.70 per share as of December 31 from $7.00 per share on September 30, a drop of $1.30 or approximately -18.6%. Management's unaudited January NAV estimate was lower, between $5.44 and $5.54 per share.
Significant GAAP losses and negative returns
Company reported a GAAP net loss attributable to common stock of $110 million, or $0.84 per share, for Q4. For 2025 the GAAP return on common equity was negative 14.6%.
Realized and unrealized investment losses
Net investment income less realized losses for 2025 was negative $0.26 per share (NII $0.23/share offset by realized losses $0.49/share). Q4 realized losses totaled $64 million and net unrealized losses were $69 million, driving the GAAP loss.
Leverage above target range
Leverage ratio was 48% at quarter end, well above management's target operating range of 27.5%–37.5%. Estimated leverage as of January 31 was ~46%; management plans to reduce leverage over time.
Distribution reduction to preserve capital
Monthly common distributions were reduced materially: Q4 distributions had been $0.14/month (paid $0.42 in Q4), and management declared a new distribution of $0.06/month for 2026 (a ~57% cut in monthly payout), intended to retain capital for investments.
Market headwinds: spread compression and negative CLO returns
The market experienced significant loan spread compression that outpaced CLO liability tightening, hurting CLO equity returns. Nomura estimated a median CLO return of -15% for 2025; ECC’s performance (-14.6% ROE) was modestly better but still negative.
Earnings deterioration vs prior periods
Q4 GAAP EPS of -$0.84 compares with GAAP net income of $0.12 per share in the prior quarter and $0.41 per share in 2024, indicating a sharp quarter-over-quarter and year-over-year deterioration in reported earnings.
Company Guidance
The company guided that it is lowering the common monthly distribution to $0.06 (=$0.18/quarter) for 2026 to retain capital for new investments (after paying $1.68 per share in total cash distributions in 2025 and $0.42 in Q4), and expects to deploy capital into both CLO equity and other credit opportunities; key metrics reported include 2025 GAAP return on common equity of -14.6%, NAV $5.70 as of 12/31 (from $7.00 on 9/30) with a Jan unaudited NAV estimate of $5.44–$5.54, NII less realized losses of -$0.26/share for 2025 (NII $0.23, realized losses $0.49), recurring cash flows of $80M ($0.61/share, up from $77M/$0.59), a Q4 GAAP net loss to common of $110M ($0.84/share), Q4 gross deployments of $184M at a 15.4% weighted effective yield (including $147M into non‑CLO credit), non‑CLOs ≈26% of the portfolio, 34 resets and 27 refinancings in 2025 (10 resets/3 refis in Q4) generating ~42 bps average CLO debt cost savings, WARP ~3.3 years, CCC exposure 4.1% (vs market 4.3%), loans trading <80 at 3.6% (vs market 4.4%), weighted junior OC cushion 4.5% (vs market 3.9%), portfolio exposure to defaulted loans 24 bps, trailing 12‑month default rate 1.2%, CLO issuance metrics (Q4 $55B; 2025 new issuance $209B; combined issuance including resets/refis $546B), collected $57M of recurring cash flows through Jan 31, and a Q4 leverage ratio of 48% (target range 27.5%–37.5%; 46% as of Jan 31 after the Series F redemption); management said all financing is fixed‑rate with no maturities prior to April 2028 and it will aim to bring leverage back to target over time.Eagle Point Credit Company Financial Statement Overview
Summary
Financials reflect a recovery with sharply higher TTM revenue and positive profitability, supported by moderate leverage. Offsetting this, profitability/ROE has stepped down versus 2023–2024, and cash flows have been volatile with TTM free cash flow down meaningfully versus the prior period.Income Statement
TTM (Trailing-Twelve-Months) shows a sharp rebound in revenue (+222% growth) and solid profitability (about 16% net margin), but earnings power is notably below the prior annual peak (2024 net margin was exceptionally high). Results have also been volatile over the cycle, including a loss year in 2022, which lowers confidence in stability despite the recent recovery.68
Positive
Balance Sheet
Leverage looks moderate for the business, with TTM debt-to-equity around 0.35 and equity representing a large portion of the capital base. However, returns on equity have stepped down meaningfully in TTM (~3%) versus 2023–2024 levels, indicating weaker profitability on the balance sheet even though headline leverage remains contained.74
Positive
Cash Flow
TTM operating cash flow and free cash flow are positive and roughly match net income (strong cash conversion), and operating cash flow covers net income by nearly 1.9x. The main concern is momentum: TTM free cash flow fell ~40% versus the prior period, and earlier years show cash-flow volatility (including negative operating cash flow in 2022), which reduces the quality/stability score despite current positivity.62
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 224.75M | 115.95M | 136.32M | -78.60M | 155.31M | 74.56M |
| Gross Profit | 217.84M | 97.61M | 122.69M | -92.73M | 140.84M | 64.06M |
| EBITDA | 61.64M | 85.49M | 118.75M | -101.81M | 131.86M | 60.89M |
| Net Income | 34.43M | 80.31M | 118.75M | -101.81M | 131.86M | 60.89M |
Balance Sheet | ||||||
| Total Assets | 1.54B | 1.51B | 954.49M | 760.15M | 768.04M | 512.59M |
| Cash, Cash Equivalents and Short-Term Investments | 56.76M | 42.22M | 46.45M | 56.83M | 13.92M | 4.76M |
| Total Debt | 391.39M | 271.96M | 157.71M | 150.77M | 140.69M | 92.80M |
| Total Liabilities | 425.85M | 568.58M | 218.72M | 260.89M | 241.85M | 150.93M |
| Stockholders Equity | 1.12B | 936.87M | 735.78M | 499.27M | 526.19M | 361.66M |
Cash Flow | ||||||
| Free Cash Flow | 65.30M | 103.55M | 85.21M | -74.97M | 42.64M | 1.22M |
| Operating Cash Flow | 65.30M | 103.55M | 85.21M | -74.97M | 42.64M | 1.22M |
| Investing Cash Flow | -250.17M | -532.55M | -166.78M | 0.00 | -157.48M | 22.72K |
| Financing Cash Flow | 218.51M | 424.38M | 71.33M | 117.87M | 124.06M | -29.46M |
Eagle Point Credit Company Technical Analysis
Negative
4.05
Price Trends
5.25
Negative
5.45
Negative
5.83
Negative
Market Momentum
-0.34
Positive
24.84
Positive
15.37
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ECC, the sentiment is Negative. The current price of 4.05 is below the 20-day moving average (MA) of 4.91, below the 50-day MA of 5.25, and below the 200-day MA of 5.83, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 24.84 is Positive, neither overbought nor oversold. The STOCH value of 15.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ECC.
Eagle Point Credit Company Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $377.56M | 6.00 | 17.44% | 6.55% | 6.38% | 25.69% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | ― | 25.10 | 1.99% | 29.47% | 7.25% | -78.57% | |
59 Neutral | $336.27M | 13.14 | 5.38% | 16.61% | -3.09% | 200.66% | |
55 Neutral | $135.85M | -31.90 | -2.25% | 14.03% | -34.92% | -132.22% | |
50 Neutral | $406.39M | -44.24 | -1.15% | 21.13% | -91.81% | 78.46% | |
45 Neutral | $95.05M | -11.94 | -5.98% | 22.43% | 47.01% | -179.46% |
* Financial Sector Average
ECC
Eagle Point Credit Company
4.05
-2.76
-40.54%
NEWT
Newtek Business
12.97
1.33
11.38%
PNNT
Pennantpark Investment
4.98
-1.17
-19.09%
TCPC
BlackRock TCP Capital
4.61
-3.38
-42.30%
MRCC
Monroe Capital
6.20
-1.44
-18.85%
GECC
Great Elm Capital
6.49
-3.10
-32.33%
Eagle Point Credit Company Corporate Events
Financial Disclosures
Eagle Point Credit Issues Preliminary Fourth-Quarter 2025 Results
Negative
Jan 12, 2026
Eagle Point Credit Company reported that, as of December 31, 2025, management’s unaudited estimate of net asset value per common share ranged between $5.65 and $5.75. For the quarter ended December 31, 2025, management estimated unaudited net investment income of $0.22 to $0.26 per share, realized losses of approximately $0.47 to $0.51 per share, and a small range of realized gains or losses from foreign currency hedging between a loss of $0.02 and a gain of $0.02 per share, indicating solid income generation but pressure on overall performance from realized losses.
The most recent analyst rating on (ECC) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Eagle Point Credit Company stock, see the ECC Stock Forecast page.
Financial Disclosures
Eagle Point Credit Estimates November 2025 NAV
Neutral
Dec 9, 2025
On November 30, 2025, Eagle Point Credit Company estimated its net asset value per share of common stock to be between $5.98 and $6.08. This estimation provides insights into the company’s financial standing and could influence investor perceptions and decisions.
The most recent analyst rating on (ECC) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Eagle Point Credit Company stock, see the ECC Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.