Eagle Point Credit Company (ECC) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 27.55%
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): 36.8
• Beta (1Y): 0.27
• Revenue Growth: 7.25%
• EPS Growth: -78.57%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.24
• Shares Outstanding: 130,832,930
• 10 Day Avg. Volume: 2,024,016
• 30 Day Avg. Volume: 1,752,326
• PEG Ratio: -0.20
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 7.61
• P/FCF Ratio: 8.52
• Enterprise Value/Market Cap: 10.00T>
• Enterprise Value/Revenue: 6.23
• Enterprise Value/Gross Profit: 6.43
• Enterprise Value/Ebitda: 22.73
• 1Y Price Target: $7.00
• Price Target Upside: 13.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.95
• Revenue Forecast (FY): $205.10M

• Rating: 58 Neutral
• Price Target: $6.00 ▼(-2.76% Downside)

Eagle Point Credit Company's strong profitability and high dividend yield are offset by challenges in revenue growth, negative cash flow, and a high P/E ratio. The technical indicators suggest bearish momentum, while the earnings call reflects mixed sentiment with both positive management actions and ongoing market challenges.

Positive Factors

Portfolio Optimization

Active portfolio management with significant new investments enhances long-term earnings potential and market positioning.

Strong Asset Coverage Ratios

High asset coverage ratios indicate financial stability and capacity to withstand market fluctuations, supporting long-term resilience.

No Debt

A debt-free balance sheet minimizes financial risk, providing flexibility for future investments and strategic initiatives.

Negative Factors

Decrease in Recurring Cash Flows

Declining cash flows may indicate operational challenges, potentially impacting the company's ability to sustain distributions and growth.

Net Asset Value (NAV) Decline

A declining NAV reflects potential asset devaluation, which could affect investor confidence and the company's market valuation.

Loan Spread Compression

Spread compression reduces income from investments, challenging revenue growth and profitability in a competitive market environment.

Eagle Point Credit Company Business Overview & Revenue Model

Company Description

Eagle Point Credit Company (ECC) is a closed-end investment company that primarily invests in the credit sector, focusing on collateralized loan obligations (CLOs). The company aims to generate income for its shareholders by acquiring and managing a diversified portfolio of CLO equity and debt securities. ECC operates within the financial services industry, leveraging its expertise in credit markets to provide attractive risk-adjusted returns to its investors.

How the Company Makes Money

Eagle 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 Financial Statement Overview

Summary

Eagle Point Credit Company shows strong profitability with a high net profit margin and no debt, indicating financial stability. However, challenges such as decreased revenue and negative cash flow pose risks to sustained growth.

Income Statement

Eagle Point Credit Company has shown significant improvement in its income statement over the years. The company's gross profit margin in the latest year is 100%, and the net profit margin is approximately 87.6%, indicating strong profitability. However, the revenue has decreased year-over-year compared to 2023, which was higher. The EBIT and EBITDA margins are not calculable for the latest year, which poses a challenge in assessing operational efficiency comprehensively.

Balance Sheet

The balance sheet reflects a solid equity base with a high equity ratio of about 62.2%, indicating financial stability. The company has no debt, which reduces financial risk. However, the return on equity has decreased due to lower net income, presenting a potential area of concern for investors seeking high returns.

Cash Flow

The cash flow statement shows challenges with negative operating cash flow, which could indicate operational inefficiencies. The free cash flow is also negative, signaling potential cash flow issues. Despite these, the company has managed to increase its financing cash flow significantly, which may support future liquidity needs.

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

• Technical Analysis Sentiment: Positive
• Last Price: 6.17
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ECC, the sentiment is Positive. The current price of 6.17 is above the 20-day moving average (MA) of 5.92, above the 50-day MA of 6.11, and below the 200-day MA of 6.62, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 58.38 is Neutral, neither overbought nor oversold. The STOCH value of 88.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ECC.

Eagle Point Credit Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEWT	68 Neutral	$303.32M	4.73	17.74%	7.24%	6.38%	25.69%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ECC	58 Neutral	―	36.79	1.99%	27.55%	7.25%	-78.57%
TCPC	58 Neutral	$501.41M	―	-1.15%	22.98%	-91.81%	78.46%
MRCC	54 Neutral	$137.58M	―	-2.25%	15.75%	-34.92%	-132.22%
PNNT	48 Neutral	$395.69M	12.09	6.83%	15.84%	-3.09%	200.66%
GECC	48 Neutral	$107.51M	―	-5.98%	19.56%	47.01%	-179.46%

Eagle Point Credit Company Corporate Events

Eagle Point Credit Reports September 2025 NAV Estimate

Eagle Point Credit Company reported an unaudited estimate of its net asset value per share of common stock to be between $6.95 and $7.05 as of September 30, 2025. For the same quarter, the company estimated its net investment income to range between $0.22 and $0.26 per share, with realized losses ranging from ($0.10) to ($0.06) per share, and a foreign currency hedging loss of ($0.01) per share.

The most recent analyst rating on (ECC) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Eagle Point Credit Company stock, see the ECC Stock Forecast page.

Eagle Point Credit Announces August 2025 NAV Estimate

Eagle Point Credit Company announced that the unaudited estimate of the net asset value per share of its common stock as of August 31, 2025, was between $7.06 and $7.16. This announcement provides stakeholders with an insight into the company’s financial standing during that period, potentially impacting investor confidence and market perception.

The most recent analyst rating on (ECC) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Eagle Point Credit Company stock, see the ECC Stock Forecast page.

Eagle Point Credit Highlights Balanced Earnings Call

The recent earnings call of Eagle Point Credit Company conveyed a balanced sentiment, highlighting both strengths and challenges. The company reported strong recurring cash flows and strategic partnerships, which were offset by realized losses and the impact of spread compression on cash flows.