OFS Credit Company (OCCI) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 27.44%
• Average Volume (3M): 272.07K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.67
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.31
• Shares Outstanding: 27,716,011
• 10 Day Avg. Volume: 212,205
• 30 Day Avg. Volume: 272,067
• PEG Ratio: -0.01
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 6.32
• P/FCF Ratio: -3.86
• Enterprise Value/Market Cap: 10.00T>
• Enterprise Value/Revenue: 6.62
• Enterprise Value/Gross Profit: 6.62
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ―

OFS Credit Company (OCCI) shows strong financial recovery with high gross profit margins and a solid equity position. However, cash flow challenges and profit volatility remain concerns. While technical indicators are neutral, the stock's attractive valuation with a low P/E ratio and high dividend yield presents significant value, particularly for income investors. The overall score reflects these mixed factors, with financial performance and valuation being primary drivers.

Positive Factors

Strong Gross Profit Margins

High gross profit margins indicate efficient cost management and a strong ability to generate profit from revenue, supporting long-term profitability.

Improved Equity Position

A strong equity position enhances financial stability and provides a buffer against potential losses, supporting sustainable growth.

Balanced Capital Structure

A moderate debt-to-equity ratio reflects a balanced capital structure, reducing financial risk and supporting long-term operational flexibility.

Negative Factors

Cash Flow Challenges

Negative free cash flow indicates potential liquidity issues, which can strain operations and limit the ability to invest in growth opportunities.

Profit Volatility

Volatility in profitability can lead to unpredictable financial performance, impacting investor confidence and long-term planning.

Decreased Net Profit Margin

A declining net profit margin suggests rising costs or inefficiencies, which can erode profitability and affect future earnings potential.

OFS Credit Company Business Overview & Revenue Model

Company Description

OFS Credit Company, Inc. (OCCI) is a specialty finance company focused on generating current income and capital appreciation through investment in collateralized loan obligations (CLOs). Operating within the financial sector, OCCI primarily invests in equity and junior debt tranches of CLOs, which are securities backed by a diversified pool of senior secured loans to companies. By leveraging the expertise of its external manager, OFS Capital Management, LLC, OCCI aims to provide shareholders with attractive risk-adjusted returns.

How the Company Makes Money

OFS Credit Company makes money by investing in various tranches of CLOs, particularly focusing on the equity and junior debt tranches, which tend to offer higher yields compared to senior tranches due to their subordinate position in the capital structure. Revenue is primarily generated through interest income from these investments, as well as potential capital gains achieved when selling these securities at a higher price than their purchase cost. Additionally, the company may benefit from management fees and incentive fees earned by its external manager, OFS Capital Management, LLC, which is affiliated with the company. These revenue streams are influenced by the performance of the underlying loan portfolios in the CLOs, market conditions, and the company's ability to effectively manage its investment portfolio.

OFS Credit Company Financial Statement Overview

Summary

OFS Credit Company demonstrates a substantial recovery in revenue and profitability, with strong gross profit margins and improved equity position. However, the company faces challenges in cash flow management and profit volatility, which could impact future stability. Continued focus on expense control and cash flow improvement is essential for sustained growth.

Income Statement

The income statement shows a strong recovery in revenue with a notable increase from negative figures in 2022 to $34M in TTM 2025. The gross profit margin is high at 93.7% for TTM 2025, indicating efficient cost management. However, net profit margin decreased to 34.8% from 80.4% in 2024, suggesting rising costs or other expenses. Revenue growth is robust, but EBIT and EBITDA figures indicate volatility in profitability over the years.

Balance Sheet

The balance sheet exhibits a favorable equity position with a steady increase in stockholders' equity reaching $164M in TTM 2025. The debt-to-equity ratio remains moderate at 0.54, reflecting a balanced capital structure. The equity ratio improved to 63.9% in TTM 2025, indicating strong financial stability. However, fluctuations in total debt and liabilities pose potential risks to financial stability.

Cash Flow

Cash flow analysis shows challenges with negative free cash flow in recent periods, indicating potential liquidity issues. Operating cash flow and free cash flow to net income ratios are unavailable, limiting the assessment of cash generation efficiency. The company needs to address cash flow management to ensure sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.77M	18.69M	30.70M	26.22M	22.97M	-1.64M
Gross Profit	40.77M	18.69M	30.70M	18.88M	18.10M	-4.81M
EBITDA	0.00	12.16M	-152.47K	-13.59M	20.31M	-2.04M
Net Income	4.45M	15.02M	-1.89M	-13.59M	20.31M	-3.68M
Balance Sheet
Total Assets	287.40M	240.77M	185.93M	159.03M	165.21M	63.59M
Cash, Cash Equivalents and Short-Term Investments	7.33M	24.70M	16.78M	12.54M	15.00M	6.45M
Total Debt	113.71M	0.00	62.77M	0.00	0.00	0.00
Total Liabilities	117.37M	92.17M	65.74M	64.82M	57.11M	22.12M
Stockholders Equity	170.03M	148.61M	120.19M	94.21M	108.10M	41.48M
Cash Flow
Free Cash Flow	0.00	-30.55M	-23.68M	-14.60M	-65.72M	3.46M
Operating Cash Flow	0.00	-30.55M	-23.68M	-14.60M	-65.72M	3.46M
Investing Cash Flow	0.00	0.00	-49.78M	-31.47M	-86.58M	-5.18M
Financing Cash Flow	0.00	38.47M	27.92M	12.14M	74.27M	-942.65K

OFS Credit Company Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OCCI, the sentiment is Neutral. The current price of 4.84 is above the 20-day moving average (MA) of 4.81, below the 50-day MA of 4.94, and below the 200-day MA of 5.52, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 56.82 is Neutral, neither overbought nor oversold. The STOCH value of 92.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OCCI.

OFS Credit Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OFS	70 Outperform	$70.74M	21.90	2.25%	25.76%	-14.76%	―
GLAD	70 Neutral	$478.97M	8.40	11.86%	10.78%	41.12%	-40.68%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
OCCI	64 Neutral	―	20.16	3.06%	27.44%	―	―
MRCC	63 Neutral	$144.84M	―	-2.25%	14.96%	-34.92%	-132.22%
TCPC	58 Neutral	$517.53M	―	-1.15%	21.48%	-91.81%	78.46%
PNNT	54 Neutral	$381.33M	11.65	6.83%	16.44%	-3.09%	200.66%