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 Yield16.46%

Average Volume (3M)332.06K

Price to Earnings (P/E)14.7

Beta (1Y)0.17

Revenue Growth65.99%

EPS Growth-77.92%

CountryUS

EmployeesN/A

SectorFinancial

Sector Strength73

IndustryAsset Management - Income

Share Statistics

EPS (TTM)0.49

Shares Outstanding25,409,702

10 Day Avg. Volume179,335

30 Day Avg. Volume332,057

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/Revenue8.72

Enterprise Value/Gross Profit9.71

Enterprise Value/Ebitda15.63

Forecast

1Y Price Target

$14.25

Price Target Upside3.79% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Eagle Point Income Co Business Overview & Revenue Model

Company DescriptionEagle Point Income Co (EIC) is a specialty finance company that primarily focuses on investing in income-oriented securities, with a particular emphasis on collateralized loan obligations (CLOs). The company operates within the financial services sector, offering investors exposure to high-yield, floating-rate credit assets. EIC aims to generate current income and capital appreciation through its strategic investment approach.

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:Aug 11, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 18, 2025

Earnings Call Sentiment Positive

The earnings call reflects a positive sentiment with several achievements, such as strong cash flow, opportunistic investments, and a successful stock repurchase program. However, challenges like lower cash flows compared to distributions, slight NAV decrease, and market volatility impact were also highlighted.

Q2-2025 Updates

Positive Updates

Solid Performance in Second Quarter

The portfolio delivered strong cash flow from investments and investment income, generating net investment income and realized gains of $0.39 per share. The company achieved a non-annualized GAAP return of 3.5%.

Opportunistic Investments

Eagle Point Income Company deployed $40 million into attractive investments, particularly in discounted CLO debt and equity, capitalizing on market-wide price dislocation.

Successful Stock Repurchase Program

The company announced a $50 million share repurchase program, repurchasing $6.5 million of common stock at an average discount to NAV of 6.4%, resulting in NAV accretion of $0.02 per share.

Strong Liquidity Position

As of June 30, the company had over $20 million of cash and undrawn revolver capacity available for investment and common stock repurchases.

Improved Market Conditions

The S&P UBS Leveraged Loan Index had a total return of 2.3% during the second quarter, with continued strong performance through July.

Negative Updates

Lower Cash Flow than Distributions

Recurring cash flows were less than regular common distributions and total expenses due to lower SOFR rates and spread compression on CLO debt.

NAV Slightly Decreased

The company's NAV decreased from $14.16 per share as of March 31 to $14.08 per share as of June 30.

Market Volatility Impact

Market volatility in April created short-term pressure on NAV and impacted CLO prices broadly.

Default Exposure in Portfolio

The trailing 12-month default rate increased to 1.1%, with a notable default by Altice impacting approximately 38 basis points of the CLO market.

Company Guidance

During the second quarter of 2025, Eagle Point Income Company reported net investment income and realized gains of $0.39 per share, with $0.37 from net investment income and $0.02 from realized capital gains. Recurring cash flows totaled $18 million, or $0.67 per share, compared to $16 million, or $0.71 per share, in the first quarter. The company's net asset value (NAV) stood at $14.08 per share as of June 30, slightly lower than the March 31 NAV of $14.16 per share. The company opportunistically invested $40 million in discounted CLO debt and equity, contributing to a non-annualized GAAP return of 3.5% for the quarter. They also initiated a $50 million share repurchase program, buying back $6.5 million worth of stock at an average discount to NAV of 6.4%, leading to a $0.02 per share NAV accretion. The company's leverage ratio was within the target range, and its asset coverage ratios for preferred stock and debt were well above statutory requirements.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	59.98M	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	32.56M	-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	136.55M	14.49M	45.22M	19.46M	14.77M
Total Liabilities	169.02M	138.55M	85.52M	46.63M	132.14M	15.58M
Stockholders Equity	373.27M	316.99M	158.21M	101.94M	173.18M	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

Technical Analysis Sentiment

Positive

Last Price13.73

Price Trends

50DMA

13.12

Positive

100DMA

13.19

Positive

200DMA

13.74

Positive

Market Momentum

MACD

0.20

Negative

RSI

71.86

Negative

STOCH

97.45

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EIC, the sentiment is Positive. The current price of 13.73 is above the 20-day moving average (MA) of 12.96, above the 50-day MA of 13.12, and below the 200-day MA of 13.74, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 71.86 is Negative, neither overbought nor oversold. The STOCH value of 97.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EIC.

Eagle Point Income Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EIC	73 Outperform		14.66	6.02%	16.46%	65.99%	-77.92%
RAND	70 Outperform	$54.11M	5.75	-11.50%	31.87%	80.67%	-157.99%
Sector *	68 Neutral	$17.84B	12.03	10.32%	3.73%	9.70%	0.76%
PBHC	59 Neutral	$91.29M	158.63	2.33%	2.68%	8.19%	―
LRFC	52 Neutral		―		―	678.57%	98.81%
RILY	48 Neutral	$153.71M	―	-34.32%	19.84%	-38.09%	-825.77%
SSSS	45 Neutral	$207.83M	4.53	29.40%	2.86%	168.31%	―

* Financial Sector Average

Performance Comparison

EIC

Eagle Point Income Co

13.85

0.60

4.53%

SSSS

SuRo Capital

8.73

4.87

126.17%

PBHC

Pathfinder Bancorp

14.92

-0.31

-2.04%

RAND

Rand Capital

16.00

-2.16

-11.89%

LRFC

Logan Ridge Finance

19.08

-1.04

-5.17%

RILY

B Riley Financial

5.61

0.13

2.37%

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.Date of analysis: Apr 21, 2025