Education
About Us
Working with TipRanks
Follow Us
Eagle Point Credit Company (ECC)
:ECC
Top Page
Eagle Point Credit Company
(NYSE:ECC)
Select Model
Select Model
Rating:63Neutral
Price Target:
$7.50
▲(15.03% Upside)
Eagle Point Credit Company's strong profitability and strategic partnerships are significant strengths, but challenges in cash flow management and high valuation metrics weigh on the overall score. The positive earnings call outlook provides some optimism, but the high P/E ratio and cash flow issues are notable risks.
Eagle Point Credit Company (ECC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
N/A
Dividend Yield26.69%
Average Volume (3M)1.52M
Price to Earnings (P/E)77.1
Beta (1Y)0.45
Revenue Growth9.99%
EPS Growth-94.73%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.22
Shares Outstanding120,183,480
10 Day Avg. Volume1,363,012
30 Day Avg. Volume1,515,146
Financial Highlights & Ratios
PEG Ratio-0.20
Price to Book (P/B)0.83
Price to Sales (P/S)5.89
P/FCF Ratio-2.06
Enterprise Value/Market CapN/A
Enterprise Value/Revenue7.32
Enterprise Value/Gross Profit8.84
Enterprise Value/Ebitda11.75
Forecast
1Y Price Target
$7.75Price Target Upside18.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 interest income from its investments in CLO debt securities and other credit-related assets. The company earns money by collecting interest payments on these securities, which are structured to provide a stable cash flow. Additionally, ECC may benefit from capital appreciation when the value of its investment portfolio increases over time. The company may also engage in arrangements with financial institutions, such as partnerships with asset managers or investment banks, enhancing its investment opportunities and potential revenue streams. Furthermore, management fees from its investment strategy contribute to its overall earnings, allowing ECC to capitalize on its asset management capabilities.
Eagle Point Credit Company Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong recurring cash flows, strategic partnerships, and successful capital deployment, all contributing to a positive outlook for the second half of 2025. However, challenges such as realized losses, loan spread compression, and a higher debt ratio were noted. The highlights and lowlights are relatively balanced, with a slight tilt towards positive future prospects.Q2-2025 Updates
Positive Updates
Increase in Net Asset Value (NAV)
The company's NAV as of June 30 was $7.31 per share, up 1.1% from $7.23 as of March 31.
Strong Recurring Cash Flows
Second quarter recurring cash flows were $85 million or $0.69 per share, exceeding quarterly aggregate common distributions and total expenses by $0.08 per share.
Successful Capital Deployment
The company deployed $86 million into new investments, capitalizing on market dislocation to acquire CLO equity positions at attractive discounted levels.
Strategic Partnerships
Entered into a second strategic CLO collateral manager partnership, potentially enhancing shareholder returns over time.
Positive Market Outlook
Despite volatility, strong performance expected in the second half of 2025 as CLO equity catches up to broader market recovery.
Negative Updates
Realized Losses from Investments
The company recorded realized losses of $0.07 per share, primarily due to the reclassification of unrealized losses from three CLO equity positions.
Losses from Forward Currency Contracts
The company recorded losses from forward currency contracts of $0.08 per share, though these were substantially offset by unrealized gains on non-U.S. dollar-denominated investments.
Loan Spread Compression
Recurring cash flows were slightly hurt by a few basis points of loan spread compression during the quarter.
NAV Decline in Broader Market
CLO equity has not yet fully participated in the broader market recovery, representing a potential tailwind but also a current challenge.
Higher Debt and Preferred Securities Ratio
Debt and preferred securities outstanding at quarter-end totaled 41% of the company's total assets, above the target range of 27.5% to 37.5%.
Company Guidance
During Eagle Point Credit Company's second quarter 2025 earnings call, the company provided guidance reflecting a stable and promising outlook. The net asset value (NAV) increased to $7.31 per share, up 1.1% from the previous quarter, alongside a non-annualized GAAP total return on equity of 6.3%. The company generated net investment income of $0.23 per share, offset by $0.07 in realized losses. Recurring cash flows reached $85 million, or $0.69 per share, surpassing common distributions and expenses by $0.08 per share. Eagle Point actively managed its portfolio, deploying $86 million into new investments and capitalizing on market dislocation to acquire CLO equity positions at discounts. The portfolio's weighted average reinvestment period stood at 3.3 years, significantly above the market average. The company issued $41 million in common stock and $38 million in preferred stock, enhancing NAV and leveraging a strong financing position. The strategic CLO collateral manager partnerships are anticipated to boost shareholder returns, with one partnership now valued over $2 million. Cash distributions of $0.42 per share were made to common stockholders, with future monthly distributions of $0.14 per share declared for the fourth quarter. Overall, Eagle Point Credit Company remains optimistic about its portfolio's earning power and market opportunities for the remainder of 2025.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 in revenue growth and negative cash flow pose risks.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.68
Positive
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.75
Positive
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.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 199.68M | 149.93M | 122.65M | 119.85M | 91.88M | 26.53M |
| Gross Profit | 165.39M | 100.23M | 88.09M | 92.71M | 88.51M | 11.51M |
| EBITDA | 124.42M | 103.83M | 132.38M | -86.17M | 147.09M | 70.50M |
| Net Income | 13.29M | 85.49M | 116.89M | -103.64M | 131.86M | 60.89M |
Balance Sheet | ||||||
| Total Assets | 1.52B | 1.51B | 954.49M | 760.15M | 768.04M | 512.59M |
| Cash, Cash Equivalents and Short-Term Investments | 79.89M | 42.22M | 46.45M | 56.83M | 13.92M | 4.76M |
| Total Debt | 274.42M | 383.72M | 204.65M | 195.35M | 213.83M | 138.97M |
| Total Liabilities | 407.15M | 443.61M | 218.72M | 260.89M | 241.85M | 150.93M |
| Stockholders Equity | 1.11B | 1.06B | 735.78M | 525.41M | 526.19M | 361.66M |
Cash Flow | ||||||
| Free Cash Flow | 23.60M | -429.00M | -81.57M | -74.97M | -114.71M | 1.22M |
| Operating Cash Flow | 23.60M | -429.00M | -81.57M | -74.97M | -114.71M | 1.22M |
| Investing Cash Flow | -411.25M | -532.55M | -166.78M | -132.01M | -157.48M | 22.72K |
| Financing Cash Flow | 301.38M | 424.38M | 71.33M | 117.87M | 123.94M | -29.46M |
Eagle Point Credit Company Technical Analysis
Negative
6.52
Price Trends
6.82
Negative
7.00
Negative
7.19
Negative
Market Momentum
-0.10
Positive
35.20
Neutral
7.90
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 6.52 is below the 20-day moving average (MA) of 7.02, below the 50-day MA of 6.82, and below the 200-day MA of 7.19, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 35.20 is Neutral, neither overbought nor oversold. The STOCH value of 7.90 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
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | 669.76M | 21.92 | 6.09% | 5.76% | 53.35% | -24.09% | |
75 Outperform | 252.51M | 10.66 | ― | 11.48% | ― | ― | |
63 Neutral | ― | 77.08 | 0.91% | 26.69% | 9.99% | -94.73% | |
58 Neutral | 311.91M | 5.98 | 17.16% | 6.41% | 18.36% | 17.28% | |
48 Neutral | 130.84M | 7.30 | ― | 13.35% | 52.57% | 13.36% | |
45 Neutral | 211.17M | 4.61 | ― | 2.83% | 168.31% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
ECC
Eagle Point Credit Company
6.52
-1.35
-17.15%
NEWT
Newtek Business
11.85
0.41
3.58%
SSSS
SuRo Capital
8.84
5.00
130.21%
GECC
Great Elm Capital
11.31
2.55
29.11%
VINP
Vinci Partners Investments
10.59
1.29
13.87%
LIEN
Chicago Atlantic BDC
11.06
1.19
12.06%
Eagle Point Credit Company Corporate Events
Financial Disclosures
Eagle Point Credit Announces August 2025 NAV Estimate
Neutral
Sep 9, 2025
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.
Financial Disclosures
Eagle Point Credit Updates July 2025 NAV Estimate
Neutral
Aug 11, 2025
Eagle Point Credit Company announced that the unaudited estimate of the net asset value per share of its common stock as of July 31, 2025, ranged between $7.44 and $7.54.
Financial Disclosures
Eagle Point Credit Reports Q2 2025 Financial Estimates
Neutral
Jul 10, 2025
Eagle Point Credit Company reported its unaudited financial estimates for the quarter ended June 30, 2025. The net asset value per share was estimated between $7.27 and $7.37, with net investment income ranging from $0.21 to $0.25 per share. Realized losses, including those from foreign currency hedging, were estimated between ($0.09) and ($0.05) per share.
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.