OFS Credit Company (OCCI) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 28.99%
• Average Volume (3M): 510.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): -0.32
• Shares Outstanding: 28,025,822
• 10 Day Avg. Volume: 735,621
• 30 Day Avg. Volume: 510,826
• PEG Ratio: 0.09
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 3.04
• P/FCF Ratio: 3.57
• Enterprise Value/Market Cap: 10.00T>
• Enterprise Value/Revenue: 4.27
• Enterprise Value/Gross Profit: 6.44
• Enterprise Value/Ebitda: -26.70
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.5
• Revenue Forecast (FY): $61.17M

• Rating: 48 Neutral
• Price Target: $3.00 ▼(-38.02% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is primarily weighed down by weak financial performance (declining revenue, negative profitability, and pressured cash metrics) and bearish technicals (price below all key moving averages with negative momentum). A very high dividend yield helps valuation somewhat, but losses (negative P/E) limit the benefit.

Positive Factors

Manageable leverage

A debt-to-equity ratio of ~0.74 indicates moderate leverage, giving the firm financial flexibility to support lending operations and absorb shocks without excessive solvency strain. Sustained moderate leverage supports durable capacity to originate and hold loans over cycles.

Positive operating cash flow

Positive operating cash flow shows the core lending business generates cash from operations, enabling interest coverage and day-to-day funding of originations. Over 2–6 months this supports stability and the ability to maintain lending activity even as profitability metrics lag.

Niche asset-based lending focus

A focused business model serving underserved small‑to‑medium businesses creates structural demand and pricing power versus commoditized retail lenders. This niche positioning can sustain higher yields and client stickiness, providing a durable revenue base if underwriting remains disciplined.

Negative Factors

Steep revenue decline

A 54.6% revenue decline materially reduces the earnings base and undermines scale economics. Sustained top‑line contraction over months pressures underwriting throughput, fee income and cross‑sell opportunities, making it harder to restore margin and cover fixed costs without strategic action.

Negative profitability and margins

Negative net income and deteriorating EBIT/EBITDA margins indicate operational inefficiency and that core lending yields and fee income don't cover operating costs. Prolonged unprofitability erodes capital, constrains reinvestment, and threatens dividend and growth plans absent margin recovery.

Negative free cash flow growth

Negative free cash flow growth, despite positive operating cash, points to increasing cash demands (capex, financing, or underwriting) or shrinking net receipts. Over several months this can pressure liquidity, force reliance on external funding, and limit the firm's ability to expand loan origination.

OFS Credit Company Business Overview & Revenue Model

Company Description

OFS Credit Company, Inc. is a fund of OFS Advisor.

How the Company Makes Money

OFS Credit Company generates revenue through interest income from the loans and credit facilities it provides to its clients. The primary revenue stream comes from the interest charged on the loans, which is typically higher than traditional banking rates due to the higher risk associated with lending to underserved markets. Additionally, OCCI may charge origination fees, late fees, and other service charges that contribute to its overall earnings. The company also engages in partnerships with financial institutions and business development organizations to expand its reach and enhance its service offerings, thereby increasing its customer base and potential revenue. Furthermore, OCCI may generate income through the sale of financial products and services, including insurance and investment offerings related to its credit solutions.

OFS Credit Company Financial Statement Overview

Summary

Weak profitability and operating efficiency: revenue fell 54.6% and net income is negative with deteriorating EBIT/EBITDA margins. Balance sheet leverage looks manageable (debt-to-equity 0.74), but negative ROE signals poor returns. Operating cash flow is positive, yet negative free cash flow growth suggests rising strain.

Income Statement

The income statement shows significant volatility with a recent decline in revenue by 54.6% and a negative net income, indicating profitability challenges. Margins have deteriorated, with negative EBIT and EBITDA margins, reflecting operational inefficiencies.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 0.74, suggesting manageable leverage. However, the return on equity is negative, indicating inefficiencies in generating returns on shareholder investments.

Cash Flow

Cash flow analysis reveals a positive operating cash flow, but the free cash flow growth rate is negative, indicating potential liquidity issues. The operating cash flow to net income ratio is favorable, suggesting effective cash generation relative to net income.

Breakdown	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	40.54M	18.69M	30.70M	26.22M	22.97M
Gross Profit	28.70M	18.69M	30.70M	18.88M	18.10M
EBITDA	-2.22M	12.16M	-152.47K	-13.59M	20.31M
Net Income	-9.91M	15.02M	-1.89M	-13.59M	20.31M
Balance Sheet
Total Assets	270.82M	240.77M	185.93M	159.03M	165.21M
Cash, Cash Equivalents and Short-Term Investments	13.51M	24.70M	16.78M	12.54M	15.00M
Total Debt	113.91M	0.00	62.77M	0.00	0.00
Total Liabilities	117.80M	92.17M	65.74M	64.82M	57.11M
Stockholders Equity	153.02M	148.61M	120.19M	94.21M	108.10M
Cash Flow
Free Cash Flow	34.53M	-30.55M	-23.68M	-14.60M	-65.72M
Operating Cash Flow	34.53M	-30.55M	-23.68M	-14.60M	-65.72M
Investing Cash Flow	-84.86M	0.00	-49.78M	-31.47M	-86.58M
Financing Cash Flow	39.13M	38.47M	27.92M	12.14M	74.27M

OFS Credit Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OCCI, the sentiment is Negative. The current price of 4.84 is above the 20-day moving average (MA) of 3.72, above the 50-day MA of 4.28, and above the 200-day MA of 4.73, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 17.91 is Positive, neither overbought nor oversold. The STOCH value of 12.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OCCI.

OFS Credit Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GLAD	59 Neutral	$411.19M	12.07	7.40%	9.31%	41.12%	-40.68%
PNNT	59 Neutral	$325.17M	12.70	5.38%	16.61%	-3.09%	200.66%
MRCC	55 Neutral	$127.18M	-30.35	-2.25%	14.03%	-34.92%	-132.22%
OFS	54 Neutral	$56.27M	17.42	2.25%	25.87%	-14.76%	―
TCPC	53 Neutral	$347.00M	-38.33	-1.15%	21.13%	-91.81%	78.46%
OCCI	48 Neutral	―	―	-6.57%	28.99%	―	―