Eagle Point Credit Company (ECC)
NYSE:ECC
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Eagle Point Credit Company
(NYSE:ECC)
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Rating:56Neutral
Price Target:
$4.00
▼(-1.23% Downside)
Action:Reiterated
Date:05/19/26
The score is held back primarily by the sharp TTM earnings deterioration (large net loss and revenue contraction) and the earnings-call negatives (big NAV drawdown and leverage above target). These are partially offset by positive cash generation, active liability/portfolio management actions, and modestly neutral technicals, but valuation signals (negative P/E and very high yield) indicate elevated risk rather than clear cheapness.
Positive Factors
Cash generation
Consistent positive operating and free cash flow (TTM ~$71.1M with FCF growth) provides durable funding for distributions, redeployments and debt reduction. Strong cash generation cushions NAV volatility and gives management flexibility to execute liability and opportunistic investment actions over multiple quarters.
Negative Factors
NAV volatility
A large NAV markdown (‑26.8%) highlights material mark‑to‑market sensitivity of CLO equity to loan and spread moves. Such volatility can erode the capital base, compress distributable base and take many quarters to reverse, complicating long‑term payout planning and investor confidence in a closed‑end vehicle.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent positive operating and free cash flow (TTM ~$71.1M with FCF growth) provides durable funding for distributions, redeployments and debt reduction. Strong cash generation cushions NAV volatility and gives management flexibility to execute liability and opportunistic investment actions over multiple quarters.
Read all positive factors
Eagle Point Credit Company (ECC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
N/A
Dividend Yield29.47%
Average Volume (3M)931.25K
Price to Earnings (P/E)―
Beta (1Y)0.51
Revenue Growth-22.57%
EPS Growth-228.35%
CountryUS
Employees3
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)-0.98
Shares Outstanding132,208,770
10 Day Avg. Volume725,960
30 Day Avg. Volume931,255
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.75
Price to Sales (P/S)6.35
P/FCF Ratio-34.43
Enterprise Value/Market Cap10.00T>
Enterprise Value/Revenue5.29
Enterprise Value/Gross Profit6.48
Enterprise Value/Ebitda-7.21
Forecast
1Y Price Target
$4.50Price Target Upside11.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.86
Revenue Forecast (FY)$177.85M
Eagle Point Credit Company Business Overview & Revenue Model
Company Description
Eagle 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 obli...
How the Company Makes Money
ECC makes money primarily through investment income and gains generated by its portfolio of CLO investments. The key economic engine is cash flows from CLO structures: CLO vehicles receive interest and principal payments from the underlying pool o...
Eagle Point Credit Company Earnings Call Summary
Earnings Call Date:May 19, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Negative
The call presented a mixed picture: significant near-term mark-to-market weakness drove a large NAV decline (‑26.8%), a $148M GAAP loss and elevated pro forma leverage (~47%), which are material negatives. Offsetting strengths include opportunistic high-yield deployments ($100M at 18.9%), active CLO liability and portfolio management (4 resets/3 refinancings with 43 bps debt cost savings and longer WARP of 3.4 years), a quick April NAV rebound (~+9% midpoint), diversification into complementary credit strategies, and insider buying. Management framed the quarter’s losses as largely short-term mark-to-market dislocations and emphasized attractive forward return potential and actions to reduce leverage, but the magnitude of the Q1 losses and current leverage leave meaningful near-term risks.Positive Updates
Opportunistic New Deployments at High Yield
Deployed $100 million of new investments during the quarter at a weighted average effective yield of 18.9%, taking advantage of dislocated prices and attractive relative value opportunities.
Negative Updates
Large NAV Decline
Net asset value fell to $4.17 per share as of March 31, a 26.8% decline from $5.70 per share at year-end, driven by mark-to-market weakness in CLO equity and loan prices during the quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Opportunistic New Deployments at High Yield
Deployed $100 million of new investments during the quarter at a weighted average effective yield of 18.9%, taking advantage of dislocated prices and attractive relative value opportunities.
Read all positive updates
Company Guidance
Management's guidance emphasized sustaining the current distribution and restoring balance-sheet metrics while selectively deploying into high‑value credit opportunities: they declared three monthly $0.06 distributions (=$0.18/quarter, annualized ≈17% on Q1 NAV), said the payout is aligned with near‑term earnings (Q1 recurring cash flow $62M / $0.47 per share; NII less realized losses $19M / $0.14 per share), and reiterated a plan to reduce leverage from a pro‑forma April 30 level of 47% toward a target range of 27.5%–37.5%; capital deployment in Q1 totaled $100M at a weighted‑average effective yield of 18.9% (purchase mix ~75% non‑CLO / 25% CLO), the firm completed 4 CLO resets and 3 refinancings (saving 43 bps of CLO debt cost), extended weighted average remaining reinvestment period (WARP) to 3.4 years (vs. market 2.8 and year‑end 3.3), highlighted portfolio mix (CLO equity 67% / other credit 31% / cash balance) and key marks (Mar‑31 NAV $4.17, down 26.8% from $5.70; April NAV $4.49–$4.59, ~+9% midpoint; GAAP Q1 net loss $148M / $1.12 per share), and noted structural credit metrics and market context (Q1 new CLO issuance $47B, resets $32B, refinancings $24B; S&P/UBS Leveraged Loan Index −50 bps Q1 then +1.2% in April; trailing‑12m default 1.4% vs long‑term 2.5%; ECC look‑through default 32 bps).Eagle Point Credit Company Financial Statement Overview
Summary
Income Statement
41
Neutral
Balance Sheet
63
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 116.08M | 115.95M | 136.32M | -78.60M | 155.31M |
| Gross Profit | 68.57M | 97.61M | 122.69M | -92.73M | 140.84M |
| EBITDA | -87.39M | 85.49M | 118.75M | -101.81M | 131.86M |
| Net Income | -134.44M | 80.31M | 118.75M | -101.81M | 131.86M |
Balance Sheet | |||||
| Total Assets | 1.39B | 1.51B | 954.49M | 760.15M | 768.04M |
| Cash, Cash Equivalents and Short-Term Investments | 47.41M | 42.22M | 46.45M | 56.83M | 13.92M |
| Total Debt | 276.27M | 271.96M | 157.71M | 150.77M | 140.69M |
| Total Liabilities | 643.95M | 568.58M | 218.72M | 260.89M | 241.85M |
| Stockholders Equity | 983.89M | 936.87M | 735.78M | 499.27M | 526.19M |
Cash Flow | |||||
| Free Cash Flow | -21.42M | 103.55M | 85.21M | -74.97M | 42.64M |
| Operating Cash Flow | -21.42M | 103.55M | 85.21M | -74.97M | 42.64M |
| Investing Cash Flow | -129.31M | -532.55M | -166.78M | 0.00 | -157.48M |
| Financing Cash Flow | 26.60M | 424.38M | 71.33M | 117.87M | 124.06M |
Eagle Point Credit Company Technical Analysis
Positive
4.05
Price Trends
3.94
Positive
4.17
Negative
4.79
Negative
Market Momentum
0.04
Positive
56.68
Neutral
71.43
Neutral
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 4.05 is below the 20-day moving average (MA) of 4.12, above the 50-day MA of 3.94, and below the 200-day MA of 4.79, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 56.68 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 is Neutral, 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $400.56M | 6.58 | 17.20% | 6.55% | 20.30% | 19.12% | |
60 Neutral | $84.88M | -2.76 | -26.36% | 22.43% | 2.83% | -679.99% | |
56 Neutral | ― | -4.40 | -11.73% | 29.47% | -22.57% | -228.35% | |
54 Neutral | $323.03M | ― | -19.08% | 21.13% | -153.69% | -168.78% | |
50 Neutral | $255.31M | 18.11 | 0.01% | 16.61% | 122.81% | 43.00% |
* Financial Sector Average
ECC
Eagle Point Credit Company
4.14
-1.91
-31.62%
NEWT
Newtek Business
13.63
3.62
36.16%
PNNT
Pennantpark Investment
3.94
-1.74
-30.66%
TCPC
BlackRock TCP Capital
3.95
-2.63
-40.00%
GECC
Great Elm Capital
6.50
-2.39
-26.93%
Eagle Point Credit Company Corporate Events
Business Operations and StrategyShareholder Meetings
Eagle Point Credit to Convert into Statutory Trust
Neutral
May 12, 2026
Eagle Point Credit Company Inc. plans to convert from a Delaware corporation to a Delaware statutory trust effective May 22, 2026, following stockholder approval at a special meeting on March 12, 2026, and board approval under Delaware law. In con...
Financial Disclosures
Eagle Point Credit Issues April 2026 NAV Estimate
Neutral
May 8, 2026
Eagle Point Credit Company reported that management’s unaudited estimate of the net asset value per share of its common stock as of April 30, 2026, was in the range of $4.49 to $4.59. This estimated valuation range provides investors with an...
Financial Disclosures
Eagle Point Credit Issues Preliminary Q1 2026 NAV Update
Negative
Apr 14, 2026
Eagle Point Credit Company reported that management’s unaudited estimate of net asset value per share of its common stock as of March 31, 2026, was in a range of $4.12 to $4.22, reflecting the company’s latest view of its underlying po...
Business Operations and StrategyPrivate Placements and Financing
Eagle Point Credit Plans Full Redemption of Outstanding Notes
Neutral
Apr 7, 2026
On April 6, 2026, Eagle Point Credit Company Inc. announced it had elected to redeem in full all of its outstanding 6.6875% notes due 2028 and 6.75% notes due 2031, instructing its redemption agent to notify noteholders. The company expects the re...
Financial Disclosures
Eagle Point Credit Issues February 2026 NAV Per-Share Estimate
Neutral
Mar 12, 2026
Eagle Point Credit Company reported that, as of February 28, 2026, management’s unaudited estimate of the net asset value per share of its common stock ranged between $4.31 and $4.41. The disclosed NAV range offers investors an updated view ...
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.