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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:
$6.50
▲(19.93% Upside)
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
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 (ECC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
N/A
Dividend Yield29.47%
Average Volume (3M)1.45M
Price to Earnings (P/E)32.3
Beta (1Y)0.38
Revenue Growth7.25%
EPS Growth-78.57%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.24
Shares Outstanding130,832,930
10 Day Avg. Volume1,735,847
30 Day Avg. Volume1,446,491
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/Revenue4.64
Enterprise Value/Gross Profit4.79
Enterprise Value/Ebitda16.93
Forecast
1Y Price Target
$7.00Price Target Upside29.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
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:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted successful deployment into new investments and strong asset coverage ratios, but also noted challenges such as a decline in recurring cash flows, NAV, and increasing loan market default rates. The company demonstrated proactive management through market activity and capital raising, yet faces ongoing issues with loan spread compression and default rate increases.Q3-2025 Updates
Positive Updates
Deployment into New Investments
The company deployed almost $200 million into new investments with a weighted average effective yield of 16.9%, indicating active portfolio management and optimization.
Strong Asset Coverage Ratios
Asset coverage ratios for preferred stock and debt were 239% and 529% respectively, both above statutory requirements, showcasing financial stability.
CLO Market Activity
CLO market saw $53 billion of volume during the quarter, with reset and refinancing activity at $69 billion and $36 billion respectively, indicating a proactive approach in optimizing the portfolio.
New Capital Raising
Issued $26 million of common stock and $13 million of 7% series double a and b convertible perpetual preferred stock at a premium to NAV, providing a competitive cost of capital.
Negative Updates
Decrease in Recurring Cash Flows
Recurring cash flows decreased from $85 million or 69¢ per share in Q2 to $77 million or 59¢ per share, driven by loan repricings and market conditions.
Net Asset Value (NAV) Decline
NAV declined by 4.2% from $7.31 per share as of June 30 to $7 per share, partly due to realized losses from investment sales.
Spread Compression Concerns
Loan spread compression, with weighted average spread down about 50 basis points over the last year, continues to be a significant challenge.
Loan Market Default Rate Increase
Trailing twelve-month default rate rose to 1.5% from 1.1% in June, influenced by the First Brands default, although still below the long-term average.
Company Guidance
During Eagle Point Credit Company's third quarter 2025 earnings call, the company provided guidance highlighting significant portfolio management activities. They deployed nearly $200 million into new investments, achieving a weighted average effective yield of 16.9% on CLO equity investments. The company completed 16 refinancings and 11 resets to enhance the earning power of their portfolio, while recurring cash flows decreased to $77 million or 59¢ per share from $85 million or 69¢ per share in the previous quarter. The net asset value (NAV) dropped 4.2% to $7 per share, with a GAAP return on equity of 1.6%. The weighted average remaining reinvestment period was 3.4 years, above the market average. The company's asset coverage ratios were 239% for preferred stock and 529% for debt, both exceeding statutory requirements. Eagle Point declared monthly distributions of 14¢ per share for 2026, maintaining the $0.42 per share cash distribution from the third quarter. Despite market pressures, such as loan repricings and the First Brands default, the company remains optimistic about its portfolio's quality and future investment opportunities.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
5.42
Price Trends
5.68
Negative
5.81
Negative
6.11
Negative
Market Momentum
>-0.01
Positive
38.25
Neutral
41.64
Neutral
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 5.42 is below the 20-day moving average (MA) of 5.72, below the 50-day MA of 5.68, and below the 200-day MA of 6.11, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.25 is Neutral, neither overbought nor oversold. The STOCH value of 41.64 is Neutral, 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 | $389.69M | 6.19 | 17.44% | 6.55% | 6.38% | 25.69% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | ― | 32.32 | 1.99% | 29.47% | 7.25% | -78.57% | |
55 Neutral | $139.10M | -33.20 | -2.25% | 14.03% | -34.92% | -132.22% | |
54 Neutral | $380.68M | 11.63 | 6.83% | 16.61% | -3.09% | 200.66% | |
50 Neutral | $439.48M | -48.55 | -1.15% | 21.13% | -91.81% | 78.46% | |
45 Neutral | $98.13M | -12.70 | -5.98% | 22.43% | 47.01% | -179.46% |
* Financial Sector Average
ECC
Eagle Point Credit Company
5.42
-1.47
-21.36%
NEWT
Newtek Business
13.49
1.39
11.46%
PNNT
Pennantpark Investment
5.83
-0.34
-5.57%
TCPC
BlackRock TCP Capital
5.18
-2.58
-33.25%
MRCC
Monroe Capital
6.42
-1.11
-14.74%
GECC
Great Elm Capital
7.01
-2.17
-23.64%
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.