Eagle Point Income Co (EIC) AI Stock Analysis

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Eagle Point Income Co

(NYSE:EIC)

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.

Eagle Point Income Co (EIC) vs. SPDR S&P 500 ETF (SPY)

Market Cap

N/A

Dividend Yield18.63%

Average Volume (3M)315.18K

Price to Earnings (P/E)4.6

Beta (1Y)0.17

Revenue Growth85.78%

EPS Growth-7.93%

CountryUS

EmployeesN/A

SectorFinancial

Sector Strength83

IndustryAsset Management - Income

Share Statistics

EPS (TTM)-0.46

Shares Outstanding25,409,702

10 Day Avg. Volume574,137

30 Day Avg. Volume315,179

Financial Highlights & Ratios

PEG Ratio1.60

Price to Book (P/B)0.86

Price to Sales (P/S)0.00

P/FCF Ratio-16.81

Enterprise Value/Market CapN/A

Enterprise Value/Revenue3.12

Enterprise Value/Gross Profit11.07

Enterprise Value/Ebitda4.92

Forecast

1Y Price Target

$17.00

Price Target Upside31.99% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

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:May 28, 2025

(Q1-2025)

% Change Since: -12.80%|

Next Earnings Date:Aug 19, 2025

Earnings Call Sentiment Negative

The earnings call reflects a company facing challenges due to lower short-term rates leading to decreased net investment income, reduced NAV, and a cut in dividend distributions. However, the company strategically raised capital and invested in discounted assets, maintaining liquidity for future opportunities. Despite these efforts, the negative aspects, predominantly driven by macroeconomic factors, outweigh the positive strategic moves.

Q1-2025 Updates

Positive Updates

Capital Raising Success

The company raised approximately $64 million of common stock and an additional $14 million from ATM issuance of preferred stock, leading to NAV accretion of $0.08 per share.

Opportunistic Investment Activity

Eagle Point Income Company capitalized on market volatility by deploying approximately $120 million into discounted CLO debt and equity, aiming for future value appreciation.

Ample Liquidity for Future Investments

The company reported having $33 million of cash and undrawn revolver capacity as of April 30th, positioning it well to continue deploying capital.

Negative Updates

Decline in Net Investment Income

Net investment income and realized gains decreased from $0.54 per share in Q4 2024 to $0.44 per share in Q1 2025, primarily due to lower short-term interest rates and spread compression.

Net Asset Value Decline

The company's NAV per share decreased by 5.5%, from $14.99 at the end of 2024 to $14.16 as of March 31, 2025.

Dividend Distribution Reduction

Monthly distributions were reduced from $0.20 per share to $0.13 per share for the third quarter, reflecting current earnings potential in a lower interest rate environment.

GAAP Net Loss

The company recorded a GAAP net loss of $10.6 million or $0.46 per share for the first quarter of 2025, driven by unrealized portfolio depreciation.

Company Guidance

During the first quarter of 2025, Eagle Point Income Company reported a net investment income and realized gains of $0.44 per share, comprised of $0.40 of net investment income and $0.04 of realized capital gains, a decrease from $0.54 per share in the fourth quarter of 2024. The decline was largely due to a decrease in the SOFR rate, impacting CLO debt positions, and spread compression in syndicated loans, affecting CLO equity earnings. The company declared three monthly distributions of $0.13 per share for the third quarter, down from previous distributions, reflecting the current interest rate environment. As of March 31, 2025, the company's NAV per share was $14.16, down from $14.99 at the end of 2024. The company raised approximately $64 million through its at-the-market program and an additional $14 million from the issuance of preferred stock. During the quarter, $120 million was deployed across CLO debt and equity purchases, capitalizing on market volatility. The asset coverage ratio for preferred stock was 345%, well above the required minimum, and the company had $33 million in cash and undrawn revolver capacity as of April 30th.

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

Positive

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%.

Balance Sheet

Positive

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.

Cash Flow

Neutral

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
45.68M	26.75M	19.04M	12.30M	-3.25M
	Gross Profit
43.00M	22.87M	15.96M	9.02M	-4.98M
	EBIT
41.55M	17.01M	-13.33M	6.94M	-4.46M
	EBITDA
49.15M	32.56M	-13.33M	8.85M	0.00
	Net Income Common Stockholders
41.55M	29.29M	-15.95M	8.01M	-5.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.10M	944.06K	37.06K	211.76K	36.70K
	Total Assets
455.54M	243.73M	148.57M	173.18M	118.70M
	Total Debt
0.00	14.49M	45.22M	19.46M	14.77M
	Net Debt
-8.10M	13.54M	45.18M	19.25M	14.73M
	Total Liabilities
138.55M	85.52M	46.63M	132.14M	15.58M
	Stockholders Equity
316.99M	158.21M	101.94M	173.18M	103.12M
Cash Flow		Free Cash Flow
-157.06M	-63.43M	9.61M	5.33M	8.13M
	Operating Cash Flow
-157.06M	-63.43M	9.61M	5.33M	8.13M
	Investing Cash Flow
0.00	0.00	-4.53M	-51.14M	-1.12M
	Financing Cash Flow
164.22M	64.34M	-5.26M	45.99M	-7.17M

Eagle Point Income Co Technical Analysis

Technical Analysis Sentiment

Negative

Last Price12.88

Price Trends

50DMA

13.96

Negative

100DMA

14.50

Negative

200DMA

14.46

Negative

Market Momentum

MACD

-0.28

Positive

RSI

32.75

Neutral

STOCH

9.45

Positive

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 12.88 is below the 20-day moving average (MA) of 13.89, below the 50-day MA of 13.96, and below the 200-day MA of 14.46, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 32.75 is Neutral, neither overbought nor oversold. The STOCH value of 9.45 is Positive, 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

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EIC	73 Outperform		4.58	17.49%	18.63%	85.78%	-7.93%
RAND	70 Outperform	$54.11M	4.76	13.04%	33.62%	134.64%	35.26%
Sector *	64 Neutral	$12.80B	9.71	7.59%	16985.66%	12.07%	-7.53%
PBHC	54 Neutral	$91.51M	31.55	2.30%	2.68%	11.12%	―
LRFC	52 Neutral	$47.54M	―	-8.58%	7.99%	678.57%	98.81%
RILY	48 Neutral	$89.97M	―	-34.32%	101.69%	-17.51%	-1376.05%
SSSS	45 Neutral	$148.61M	―	-9.96%	―	90.08%	-893.47%

* Financial Sector Average

Performance Comparison

EIC

Eagle Point Income Co

12.80

-0.94

-6.84%

SSSS

SuRo Capital

7.52

3.40

82.52%

PBHC

Pathfinder Bancorp

14.95

2.53

20.37%

RAND

Rand Capital

15.48

-1.46

-8.62%

LRFC

Logan Ridge Finance

17.52

-3.37

-16.13%

RILY

B Riley Financial

2.98

-20.19

-87.14%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.