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Eagle Point Income (EIC)
:EIC
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Eagle Point Income Co
(NYSE:EIC)
Select Model
Select Model
Rating:73Outperform
Price Target:―
Eagle Point Income Co demonstrates strong financial health with robust revenue growth and profitability, supported by a solid balance sheet. However, cash flow challenges present a risk. The technical analysis indicates bearish trends, while valuation metrics suggest the stock is undervalued. The earnings call reflected strong performance but noted potential future income challenges due to interest rates. Overall, the stock scores well due to its financial strength and attractive valuation, tempered by liquidity concerns and bearish technical indicators.
Positive Factors
Revenue Growth
The significant revenue growth of approximately 70.7% indicates strong market demand and effective portfolio management, enhancing long-term financial stability.
Balance Sheet Health
A debt-free balance sheet enhances financial flexibility and reduces risk, supporting sustainable growth and resilience against economic downturns.
Return on Equity
High return on equity reflects efficient use of shareholder funds, indicating strong management performance and potential for attractive shareholder returns.
Negative Factors
Cash Flow Challenges
Negative free cash flow suggests potential liquidity issues, which could limit the company's ability to invest in growth opportunities or weather financial downturns.
Interest Rate Impact
Decreasing interest rates may compress yields on investments, potentially reducing future income and affecting profitability.
Effective Yield Compression
Yield compression due to tight loan spreads can reduce investment returns, impacting long-term income generation and financial performance.
Eagle Point Income Co (EIC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
N/A
Dividend Yield17.67%
Average Volume (3M)182.70K
Price to Earnings (P/E)12.6
Beta (1Y)0.21
Revenue Growth65.99%
EPS Growth-77.92%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management - Income
Share Statistics
EPS (TTM)0.43
Shares Outstanding25,015,907
10 Day Avg. Volume266,571
30 Day Avg. Volume182,698
Financial Highlights & Ratios
PEG Ratio-0.63
Price to Book (P/B)0.72
Price to Sales (P/S)5.03
P/FCF Ratio-1.46
Enterprise Value/Market CapN/A
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price Target
$13.50Price Target Upside16.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Eagle Point Income Co Business Overview & Revenue Model
Company DescriptionEagle Point Income Company manages capital on behalf of institutional, high-net-worth, and retail investors through private funds, separately managed accounts, and publicly-listed closed-end vehicles. They provide CLO securities and related investments. The investment objective is to generate high current income, with a secondary objective to generate capital appreciation.
How the Company Makes MoneyEagle Point Income Co makes money through its investments in CLOs and other income-generating securities. The company's primary source of revenue is the interest income earned from these investments. CLOs are structured finance securities backed by a pool of loans, typically corporate loans, and EIC earns returns through the interest payments made on these underlying loans. Additionally, the company may also benefit from capital gains by actively managing its portfolio to take advantage of market opportunities. EIC's revenues are influenced by factors such as interest rate movements, credit market conditions, and the performance of the underlying loan assets. The company may also engage in partnerships and leverage financial instruments to optimize its income-generating potential.
Eagle Point Income Co Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
The call reflected a balance between positive portfolio performance and strategic investments, with challenges from distribution reductions and increased default rates. The sentiment is neutral as the highlights are balanced by the lowlights.Q3-2025 Updates
Positive Updates
NAV and Distribution Coverage Increase
Net Asset Value (NAV) rose to $14.21 per share from $14.08, and the distribution was covered by net interest income and recurring cash flows.
Successful Investment Deployment
The company deployed $60 million into new investments with a weighted average effective yield of 16.6%.
Share Repurchase Program Expansion
The board increased the common share repurchase authorization to $60 million, resulting in NAV accretion of 7¢ per share.
CLO Market Performance
S&P UBS Leveraged Loan Index returned 1.6% for the quarter. CLO new issuance volume was $53 billion, indicating an active market.
Negative Updates
Distribution Reduction
Monthly distributions were reduced from $0.13 to $0.11 per share due to Fed rate cuts impacting CLO debt earnings.
Increase in Default Rate
The trailing twelve-month default rate increased to 1.5% from 1.1%, though still below the long-term average of 2.6%.
Realized Capital Losses
The company realized capital losses of 13¢ per share, affecting overall net investment income.
Company Guidance
During the Eagle Point Income Company third-quarter 2025 financial results call, several key metrics and guidance points were shared by the management team. The company reported a net investment income, less realized losses, of $0.26 per share, comprised of $0.39 per share in net investment income offset by $0.13 per share in realized capital losses. Recurring cash flows amounted to $17 million or $0.67 per share, aligning with the previous quarter's figures. The net asset value (NAV) increased to $14.21 per share from $14.08 at the end of June, reflecting strong portfolio performance and disciplined capital management. The company deployed $60 million into new investments, achieving a weighted average effective yield of 16.6% on new CLO equity. They also completed three resets and four refinancings, optimizing debt costs and extending reinvestment periods. The GAAP return on equity for the quarter was 3%. The company announced the redemption of its 7.75% Series B term preferred stock, leveraging recent Fed rate cuts to optimize its capital structure. It also repurchased $21 million of common stock at an 8.3% average discount to NAV, resulting in $0.07 per share of NAV accretion. The board increased the share repurchase authorization to $60 million. Amidst Fed rate cuts, the company adjusted its monthly distribution to $0.11 per share, down from $0.13, reflecting the current interest rate environment and its effect on earnings potential. The company remains focused on actively managing its portfolio to deliver attractive returns and long-term value to shareholders.Eagle Point Income Co Financial Statement Overview
Summary
Eagle Point Income Co has shown strong revenue growth and profitability, with a robust balance sheet indicating no debt and high return on equity. However, cash flow challenges are evident, with negative free cash flow suggesting potential liquidity concerns.Income Statement
Eagle Point Income Co has demonstrated strong revenue growth from $26.75M in 2023 to $45.68M in 2024, marking a growth rate of approximately 70.7%. The gross profit margin consistently improved, reaching 100% in 2024, indicating efficient cost management. However, the absence of EBIT and EBITDA in 2024 suggests potential operational challenges, despite reporting a high net profit margin of 90.98%.75
Positive
Balance Sheet
The company's balance sheet is robust with no debt reported in 2024, improving from a debt position of $14.49M in 2023, indicating strong financial health. The equity ratio is healthy at approximately 69.6%, suggesting a stable financial structure. The return on equity is exceptionally high at 13.1%, reflecting efficient utilization of shareholder funds.80
Positive
Cash Flow
Eagle Point Income Co's cash flow analysis reveals a negative free cash flow of -$157.06M in 2024, indicating potential liquidity issues. The operating cash flow to net income ratio is negative, highlighting a disconnect between earnings and cash generation. Despite this, financing activities have generated positive cash flow, suggesting reliance on external funding.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 58.96M | 45.68M | 26.75M | 19.04M | 12.30M | -3.25M |
| Gross Profit | 53.84M | 43.00M | 22.87M | 15.96M | 9.02M | -4.98M |
| EBITDA | 33.46M | 41.55M | 48.11M | -13.33M | 8.85M | 0.00 |
| Net Income | 18.45M | 41.55M | 29.29M | -15.95M | 8.01M | -5.05M |
Balance Sheet | ||||||
| Total Assets | 542.28M | 455.54M | 243.73M | 148.57M | 173.18M | 118.70M |
| Cash, Cash Equivalents and Short-Term Investments | 6.26M | 8.10M | 944.06K | 37.06K | 211.76K | 36.70K |
| Total Debt | 8.49M | 1.96M | 14.49M | 9.02M | 19.46M | 14.77M |
| Total Liabilities | 169.02M | 138.55M | 85.52M | 46.63M | 57.83M | 15.58M |
| Stockholders Equity | 373.27M | 316.99M | 158.21M | 101.94M | 115.35M | 103.12M |
Cash Flow | ||||||
| Free Cash Flow | -33.73M | -157.06M | -63.43M | 9.61M | 5.33M | 8.13M |
| Operating Cash Flow | -33.73M | -157.06M | -63.43M | 9.61M | 5.33M | 8.13M |
| Investing Cash Flow | -135.91M | 0.00 | 0.00 | -4.53M | -51.14M | -1.12M |
| Financing Cash Flow | 165.30M | 164.22M | 64.34M | -5.26M | 45.99M | -7.17M |
Eagle Point Income Co Technical Analysis
Negative
11.60
Price Trends
12.29
Negative
12.54
Negative
12.90
Negative
Market Momentum
-0.26
Negative
40.19
Neutral
64.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EIC, the sentiment is Negative. The current price of 11.6 is below the 20-day moving average (MA) of 11.83, below the 50-day MA of 12.29, and below the 200-day MA of 12.90, indicating a bearish trend. The MACD of -0.26 indicates Negative momentum. The RSI at 40.19 is Neutral, neither overbought nor oversold. The STOCH value of 64.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EIC.
Eagle Point Income Co Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $479.73M | 14.00 | 9.18% | 2.88% | 41.95% | -4.72% | |
73 Outperform | ― | 12.63 | 6.02% | 17.67% | 65.99% | -77.92% | |
70 Outperform | $2.12B | 21.37 | 6.39% | 1.75% | -5.72% | -3.86% | |
69 Neutral | ― | 11.33 | 7.18% | 12.64% | -12.06% | -31.14% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $578.95M | -11.89 | -4.98% | 4.21% | -28.00% | -174.60% | |
57 Neutral | $945.78M | -10.97 | -4.51% | ― | 10.85% | 77.59% |
* Financial Sector Average
EIC
Eagle Point Income Co
11.60
-1.86
-13.82%
ACNB
ACNB
48.40
2.99
6.58%
MFIC
MidCap Financial Investment Corporation
12.20
-0.43
-3.40%
ECPG
Encore Capital
51.89
2.65
5.38%
FISI
Financial Institutions
30.60
4.76
18.42%
FBNC
First Bancorp
51.01
4.65
10.03%
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.