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Eagle Point Income (EIC)
NYSE:EIC
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Eagle Point Income Co
(NYSE:EIC)
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Rating:58Neutral
Price Target:
$11.50
▲(11.54% Upside)
Action:ReiteratedDate:01/13/26
The score is primarily constrained by weak cash generation and higher leverage risk in the financials, reinforced by bearish technical signals (below key moving averages and negative MACD). These are partially offset by an attractive valuation (low P/E and high yield) and a neutral earnings-call backdrop with improving NAV and shareholder-friendly buybacks but a reduced distribution and realized losses.
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 Yield17.28%
Average Volume (3M)200.57K
Price to Earnings (P/E)7.6
Beta (1Y)0.23
Revenue Growth65.99%
EPS Growth-77.92%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management - Income
Share Statistics
EPS (TTM)-0.60
Shares Outstanding23,464,222
10 Day Avg. Volume136,348
30 Day Avg. Volume200,574
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 Cap10.00T>
Enterprise Value/Revenue6.74
Enterprise Value/Gross Profit7.00
Enterprise Value/Ebitda13.61
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
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:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 26, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: company performance was negatively impacted in 2025 by lower SOFR, loan spread compression and valuation markdowns that produced GAAP losses, NAV decline and a negative total return for shareholders. At the same time, management executed active measures — share repurchases at wide discounts, preferred redemptions, a new lower-cost revolver, redeployment into higher-yielding non-CLO credit, and cost-saving CLO resets/refinancings — that improve liquidity, lower financing costs and position the portfolio for recovery should market technicals normalize. Given the significant near-term performance headwinds offset by clear, constructive capital allocation and portfolio actions, the overall takeaway is balanced between material challenges and credible mitigation steps.Q4-2025 Updates
Positive Updates
Share Repurchases and NAV Accretion
Repurchased $19.0 million of common stock in Q4 at an average discount to NAV of 18.2%, resulting in NAV accretion of approximately $0.14 per share; Board increased repurchase authorization to $60 million to continue opportunistic buybacks.
Capital-Structure Optimization
Completed full redemption of 7.75% Series B term preferred stock, announced intent to fully redeem 8% Series C preferred, and entered a new 3-year revolving credit facility with a lower cost of capital to reduce financing costs.
Strong Recurring Cash Flows and Liquidity
Recurring cash flows for Q4 were $19 million ($0.79 per share), up from $17 million ($0.67) in the prior quarter — an ~18% quarter-over-quarter increase; company had $52 million of cash and undrawn revolver capacity as of Dec 31 and $85 million of cash plus revolver capacity (net of pending transactions) as of January month-end.
Deployment into Higher-Yielding Other Credit Assets
Deployed ~$45 million into new investments in Q4, including $26 million into other credit asset classes (infrastructure credit, ABS, portfolio debt, regulatory capital relief) with a weighted average effective yield of 21.6% to enhance portfolio yields and diversification.
CLO Liability Cost Savings from Resets/Refinancings
Participated in 10 resets and 6 refinancings across the CLO equity portfolio during 2025; those transactions extended reinvestment periods and produced average CLO debt cost savings of ~46 basis points for the affected CLOs.
Market Issuance and Potential Tailwinds
CLO market activity remained robust: full-year 2025 CLO new issuance $209 billion (new issue) and combined issuance including resets/refinancings reached $546 billion, which management expects could help rebalance supply/demand and be supportive for CLO equity over time.
Increase in Expected CLO Portfolio Yield
Weighted average expected yield on the CLO portfolio rose to 12.5% from 11.6% (reported increase), driven in part by redeployment into wider-yielding non-CLO assets.
Negative Updates
GAAP Net Loss and Valuation Pressure in Q4
Recorded a GAAP net loss of $15 million, or $0.60 per share, in Q4 (compared with GAAP net income of $0.43 per share in Q3); Q4 net loss comprised of $16 million of net unrealized investment losses and $8 million of net realized losses, reflecting valuation pressure across CLO equity positions.
NAV Decline
Net asset value decreased to $13.31 per share as of Dec 31 from $14.21 at the end of September — a decline of $0.90 per share, or approximately 6.3% quarter-over-quarter — driven primarily by loan spread compression and lower CLO equity valuations.
Full-Year Total Return and ROE Were Negative
For fiscal 2025, GAAP return on equity was negative 0.7% and total return on common stock was negative 15.2% (assuming reinvestment of distributions), signaling a weak performance year driven by market technicals and spread compression.
Earnings Pressure from Lower Rates and Spread Compression
Q4 net investment income less realized losses was only $0.03 per share (comprised of $0.35 NII offset by $0.32 realized losses); NII declined from $0.39 in the prior quarter due to lower SOFR (floating-rate CLO debt coupons) and continued tightening (spread compression) in broadly syndicated loan spreads reducing CLO equity earnings.
Distribution Reduction
Monthly common distribution level declared for Q2 2026 is $0.11 per share (in line with Q1 2026), down from $0.13 per month paid in Q4 2025 — a reduction of $0.02 per month (~15.4% decrease), reflecting lower near-term earnings power in a lower interest-rate environment.
Material Realized and Unrealized Losses
During Q4, realized losses totaled $8 million and unrealized losses $16 million; realized losses per share in the quarter effectively offset a large portion of investment income and were largely driven by portfolio repositioning (exiting underperforming collateral managers).
Elevated Refinancings/Paydowns Altering Income Profile
Elevated level of CLO refinancing, resets and calls in 2025 led to paydowns of $147 million in the CLO debt portfolio (purchased at discounts and repaid at par), which generated some realized capital gains ($0.12 per share) but reduced ongoing CLO debt income and contributed to portfolio turnover and earnings variability.
Company Guidance
Management guided a steady monthly common distribution of $0.11 per share (Q1 and declared for Q2 2026) as aligned with near‑term earning power in a lower‑rate environment, noting Q4 recurring cash flows of $19 million ($0.79/share), up ~18% from Q3’s $17 million ($0.67/share) and exceeding regular common distributions and expenses by about $0.15/share. They reiterated a target leverage range of 25%–35% (preferred securities were 31% of assets less current liabilities at year‑end), plan to opportunistically repurchase shares under the expanded $60 million authorization (Q4 repurchases $19 million at an 18.2% average discount to NAV, accreting NAV by ≈$0.14/share), and are reducing expensive funding (redeemed 7.75% Series B, intend to redeem 8% Series C) using cash, a new 3‑year revolver and CLO paydowns. Management expects CLO junior debt earnings to move with benchmark rates, highlighted a CLO portfolio weighted expected yield of 12.5% (up from 11.6%), pointed to industry tailwinds (2025 new‑issue CLOs $209B, total issuance including resets/refis $546B, Q4 resets $54B/refis $20B) and healthy loan fundamentals (S&P/UBS leveraged loan index +1.2% Q4, +5.9% in 2025; trailing 12‑month loan default rate 1.2% vs long‑term 2.6%), and said ongoing resets/refis (the firm did 10 resets and 6 refinancings, realizing ~46 bps average debt cost savings) should help lower liability costs and support CLO equity cash flows over time.Eagle Point Income Co Financial Statement Overview
Summary
Profitability is currently strong, but overall quality is held back by persistently negative and volatile operating/free cash flow and a notable recent step-up in leverage, which increases balance-sheet risk.Income Statement
Profitability is strong in the latest TTM (Trailing-Twelve-Months), with high gross and operating profitability and a healthy net profit margin. Revenue is still growing, though at a much slower pace than earlier periods and growth appears more modest and less consistent over time. History shows earnings volatility (including a loss in 2022 and unusual margin behavior in 2020), which keeps the score below top-tier despite the current strength.72
Positive
Balance Sheet
The balance sheet shows a meaningful equity base and a positive return on equity in the latest TTM (Trailing-Twelve-Months), but leverage has risen sharply versus prior years. Debt relative to equity moved from very low levels in 2024 to a much more leveraged posture in the latest period, reducing financial flexibility. Overall, it is not overextended, but the direction of leverage is a clear risk factor.58
Neutral
Cash Flow
Cash generation is the key weakness: operating cash flow and free cash flow are negative in the latest TTM (Trailing-Twelve-Months), and free cash flow growth deteriorated materially. Prior years also show large negative operating and free cash flow (notably 2023–2024), indicating uneven cash conversion and potential reliance on portfolio activity or financing to support operations. This persistent volatility in cash flow meaningfully pressures overall quality.34
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 61.33M | 45.68M | 26.75M | 19.04M | 12.30M | -3.25M |
| Gross Profit | 59.03M | 43.00M | 22.87M | 15.96M | 9.02M | -4.98M |
| EBITDA | 30.37M | 41.55M | 48.11M | -13.33M | 8.85M | 0.00 |
| Net Income | 28.44M | 41.55M | 29.29M | -15.95M | 8.01M | -5.05M |
Balance Sheet | ||||||
| Total Assets | 563.41M | 455.54M | 243.73M | 148.57M | 173.18M | 118.70M |
| Cash, Cash Equivalents and Short-Term Investments | 41.27M | 8.10M | 944.06K | 37.06K | 211.76K | 36.70K |
| Total Debt | 191.92M | 1.96M | 14.49M | 9.02M | 19.46M | 14.77M |
| Total Liabilities | 207.91M | 138.55M | 85.52M | 46.63M | 57.83M | 15.58M |
| Stockholders Equity | 355.50M | 316.99M | 158.21M | 101.94M | 115.35M | 103.12M |
Cash Flow | ||||||
| Free Cash Flow | -3.69M | -157.06M | -63.43M | 9.61M | 5.33M | 8.13M |
| Operating Cash Flow | -3.69M | -157.06M | -63.43M | 9.61M | 5.33M | 8.13M |
| Investing Cash Flow | -73.51M | 0.00 | 0.00 | -4.53M | -51.14M | -1.12M |
| Financing Cash Flow | 115.23M | 164.22M | 64.34M | -5.26M | 45.99M | -7.17M |
Eagle Point Income Co Technical Analysis
Negative
10.31
Price Trends
10.75
Negative
11.18
Negative
11.80
Negative
Market Momentum
-0.25
Positive
32.81
Neutral
23.30
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 10.31 is below the 20-day moving average (MA) of 10.33, below the 50-day MA of 10.75, and below the 200-day MA of 11.80, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 32.81 is Neutral, neither overbought nor oversold. The STOCH value of 23.30 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $2.44B | 21.99 | 6.39% | 1.69% | -5.72% | -3.86% | |
68 Neutral | $1.29B | -32.37 | -4.51% | ― | 10.85% | 77.59% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $513.11M | 13.73 | 9.18% | 2.78% | 41.95% | -4.72% | |
59 Neutral | $644.58M | 8.87 | -4.98% | 3.89% | -28.00% | -174.60% | |
58 Neutral | ― | 7.61 | 9.00% | 17.28% | 65.99% | -77.92% | |
55 Neutral | ― | 10.06 | 7.18% | 13.35% | -12.06% | -31.14% |
* Financial Sector Average
EIC
Eagle Point Income Co
10.01
-3.71
-27.03%
ACNB
ACNB
51.55
12.01
30.37%
MFIC
MidCap Financial Investment Corporation
10.53
-1.62
-13.33%
ECPG
Encore Capital
63.94
24.99
64.16%
FISI
Financial Institutions
32.90
6.39
24.10%
FBNC
First Bancorp
60.18
19.52
48.01%
Eagle Point Income Co Corporate Events
Financial Disclosures
Eagle Point Income Issues Preliminary Fourth-Quarter 2025 Results
Negative
Jan 12, 2026
For the quarter ended December 31, 2025, Eagle Point Income Co. reported management’s unaudited estimate of net asset value per common share in a range of $13.25 to $13.35, reflecting the underlying value of its income-focused investment portfolio. Over the same period, the company estimated net investment income of $0.32 to $0.36 per share and realized losses of $0.30 to $0.34 per share, indicating that while the portfolio continued to generate income, market or portfolio-related factors led to realized capital losses that partially offset those earnings for shareholders.
The most recent analyst rating on (EIC) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Eagle Point Income Co stock, see the EIC Stock Forecast page.
Financial Disclosures
Eagle Point Income Co Announces November NAV Estimate
Neutral
Dec 10, 2025
Eagle Point Income Co announced an unaudited estimate of its net asset value per share of common stock as of November 30, 2025, which ranged between $13.34 and $13.44.
The most recent analyst rating on (EIC) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Eagle Point Income Co stock, see the EIC 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.