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Oxford Square Capital Corp (OXSQ)
NASDAQ:OXSQ

Oxford Square Capital (OXSQ) AI Stock Analysis

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Oxford Square Capital

(NASDAQ:OXSQ)

Rating:51Neutral
Price Target:
Oxford Square Capital's overall score reflects a company with mixed financial health. Strong cash flows and a stable equity base are offset by inconsistent revenue and net profitability, alongside high leverage. Technical analysis suggests a bearish trend, while valuation indicates a high dividend yield but an expensive earnings multiple. The earnings call highlights both market improvements and company-specific challenges. Effective management of debt and consistent revenue growth will be key to improving future performance.

Oxford Square Capital (OXSQ) vs. SPDR S&P 500 ETF (SPY)

Oxford Square Capital Business Overview & Revenue Model

Company DescriptionOxford Square Capital Corp (OXSQ) is a publicly traded business development company that primarily invests in debt and equity securities of technology-related and non-technology-related companies. The company focuses on generating current income and capital appreciation through a portfolio that includes senior and subordinated loans, as well as equity interests. OXSQ operates within the financial services sector, providing capital solutions to middle-market companies in the United States.
How the Company Makes MoneyOxford Square Capital Corp makes money by investing in debt and equity securities that provide income through interest payments and potential capital gains. A significant portion of its revenue is derived from interest income earned on loans made to middle-market companies. The company also generates income through dividends and realized capital gains from the sale of equity investments. OXSQ seeks to achieve its investment objectives by actively managing its portfolio to optimize returns while mitigating risks. The firm’s earnings can be influenced by factors such as interest rates, the performance of the underlying companies in its portfolio, and overall economic conditions.

Oxford Square Capital Earnings Call Summary

Earnings Call Date:Apr 25, 2025
(Q1-2025)
|
% Change Since: -4.22%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Negative
The call reflected a stable net investment income and successful capital raising through an aftermarket offering. However, it also highlighted significant investment losses, a decline in net asset value, and a weaker US loan market performance.
Q1-2025 Updates
Positive Updates
Consistent Net Investment Income
Net investment income was approximately $6.1 million or $0.09 per share, consistent with the prior quarter's $6 million or $0.09 per share.
Stable Total Investment Income
Total investment income for the first quarter was approximately $10.2 million, which was roughly the same as in the prior quarter.
Aftermarket Offering Success
Issued approximately 1.3 million shares of common stock, resulting in net proceeds of approximately $3.5 million.
Negative Updates
Decline in Net Asset Value
Net asset value per share decreased from $2.30 to $2.09 compared to the prior quarter.
Significant Investment Losses
Recorded combined net unrealized and realized losses on investments of approximately $14.2 million or $0.20 per share, compared to $2.7 million or $0.04 per share in the prior quarter.
US Loan Market Weakness
US loan prices decreased, with BB, B, and CCC rated loan prices declining 82, 134, and 211 basis points respectively. The distress ratio ended the quarter at 3.21%, up from 3.02% at the end of 2024.
Company Guidance
During the first quarter of 2025, Oxford Square Capital Corp. reported a net investment income of approximately $6.1 million or $0.09 per share, consistent with the prior quarter's $6 million or $0.09 per share. The net asset value per share decreased to $2.09 from $2.30 in the previous quarter. The company recorded total investment income of around $10.2 million, similar to the prior quarter, and distributed $0.105 per share to common stock shareholders. Notably, the quarter saw combined net unrealized and realized investment losses of about $14.2 million or $0.20 per share, a significant increase from the previous quarter's $2.7 million or $0.04 per share. Investment activities included approximately $16 million in purchases, $10.7 million in sales, and $8.7 million in repayments. Additionally, 1.3 million shares were issued through an aftermarket offering, generating net proceeds of $3.5 million. The US loan market experienced a decline, with the Morningstar LSTA US Leveraged Loan Index dropping from 97.33% to 96.31% of par, and a distress ratio increase to 3.21% from 3.02%. The quarter also recorded US leveraged loan primary market issuance of $141.1 billion, a 2% decrease from the same quarter in 2024.

Oxford Square Capital Financial Statement Overview

Summary
Oxford Square Capital's financials present a mixed picture. Income statement shows revenue and profitability volatility with recent losses. The balance sheet indicates stable equity but high leverage risks. Cash flow generation is erratic, though recent data shows improvement. Overall, profitability challenges and leverage warrant caution.
Income Statement
45
Neutral
Oxford Square Capital's income statement reveals significant volatility. The TTM data showcases a negative net income, indicating losses, while historical data shows fluctuating revenue growth and profit margins. The gross profit margin remains high, but the net profit margin is negative due to recent losses. Consistent profitability challenges and revenue instability dampen the overall score.
Balance Sheet
55
Neutral
The balance sheet indicates a stable equity base with a high equity ratio over time. However, the debt-to-equity ratio is relatively high, which suggests potential leverage risks. The return on equity is inconsistent, reflecting past profitability issues. Overall, the company's balance sheet shows mixed stability with caution warranted regarding leverage.
Cash Flow
50
Neutral
The cash flow statement shows erratic free cash flow growth, with significant fluctuations in operating cash flow. The TTM data, however, demonstrates exceptionally high operating cash flow, positively impacting the cash flow position. Despite this, the inconsistency across periods suggests volatility. The free cash flow to net income ratio indicates challenges in translating earnings into cash.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue24.10M-53.55M51.82M43.12M37.18M35.94M
Gross Profit23.04M9.96M51.82M43.12M37.18M35.94M
EBITDA11.67M13.73M41.89M33.04M26.60M27.59M
Net Income-473.45K5.88M17.24M-85.55M39.58M1.71M
Balance Sheet
Total Assets385.27M299.73M277.67M327.99M433.51M357.66M
Cash, Cash Equivalents and Short-Term Investments14.41M34.93M5.74M9.02M9.02M59.14M
Total Debt134.38M123.60M122.98M186.32M185.38M106.86M
Total Liabilities137.27M139.07M126.36M189.32M188.91M132.23M
Stockholders Equity248.00M160.67M151.31M138.67M244.60M225.43M
Cash Flow
Free Cash Flow11.40M25.71M65.69M20.37M-107.43M95.05M
Operating Cash Flow11.40M25.71M65.69M20.37M-107.43M95.05M
Investing Cash Flow0.000.000.000.000.000.00
Financing Cash Flow4.94M3.48M-68.97M-20.37M57.31M-52.37M

Oxford Square Capital Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.27
Price Trends
50DMA
2.31
Negative
100DMA
2.41
Negative
200DMA
2.45
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
51.09
Neutral
STOCH
76.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OXSQ, the sentiment is Neutral. The current price of 2.27 is above the 20-day moving average (MA) of 2.24, below the 50-day MA of 2.31, and below the 200-day MA of 2.45, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 76.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OXSQ.

Oxford Square Capital Risk Analysis

Oxford Square Capital disclosed 75 risk factors in its most recent earnings report. Oxford Square Capital reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Oxford Square Capital Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
OFOFS
70
Outperform
$116.43M3.8519.56%15.74%-49.04%
69
Neutral
$136.93M19.453.63%15.82%127.09%2519.30%
67
Neutral
$16.81B11.859.77%3.76%12.07%-8.35%
WHWHF
67
Neutral
$210.12M22.973.07%16.79%-27.52%-46.85%
51
Neutral
$162.73M584.62-0.32%18.42%-338.17%-97.99%
48
Neutral
$125.14M26.263.56%13.65%32.38%-90.38%
45
Neutral
$189.59M-9.96%90.08%-893.47%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OXSQ
Oxford Square Capital
2.27
-0.29
-11.33%
SSSS
SuRo Capital
8.40
4.40
110.00%
WHF
WhiteHorse
8.85
-1.60
-15.31%
OFS
OFS Capital
8.46
0.83
10.88%
MRCC
Monroe Capital
6.33
-0.23
-3.51%
GECC
Great Elm Capital
10.94
2.25
25.89%

Oxford Square Capital Corporate Events

DividendsFinancial Disclosures
Oxford Square Capital Reports Q1 2025 Financial Results
Negative
Apr 25, 2025

On April 25, 2025, Oxford Square Capital Corp. announced its financial results for the quarter ended March 31, 2025, and declared distributions for the months ending July, August, and September 2025. The company’s net asset value per share decreased from $2.30 at the end of 2024 to $2.09 by March 31, 2025. Net investment income for the quarter was $6.1 million, with total investment income remaining stable at $10.2 million. The company faced net realized losses of $12.2 million and net unrealized depreciation of $2.1 million, resulting in a net decrease in net assets from operations of $8.1 million. Despite these challenges, Oxford Square Capital continued its investment activities, including purchases, sales, and repayments, and issued 1.3 million shares of common stock, generating net proceeds of $3.5 million.

Spark’s Take on OXSQ Stock

According to Spark, TipRanks’ AI Analyst, OXSQ is a Neutral.

Oxford Square Capital’s overall score reflects a company with mixed financial health. Strong cash flows and a stable equity base are offset by inconsistent revenue and net profitability, alongside high leverage. Technical analysis suggests a bearish trend, while valuation indicates a high dividend yield but expensive earnings multiple. The earnings call highlights both market improvements and company-specific challenges. Effective management of debt and consistent revenue growth will be key to improving future performance.

To see Spark’s full report on OXSQ stock, click here.

DividendsBusiness Operations and StrategyFinancial Disclosures
Oxford Square Capital Announces Q4 2024 Financial Results
Neutral
Feb 28, 2025

On February 28, 2025, Oxford Square Capital Corp. announced its financial results for the quarter ending December 31, 2024, and declared distributions for April, May, and June 2025. The company reported a slight decrease in net asset value per share from $2.35 to $2.30 and a net investment income of $6.0 million for the quarter. Despite facing net realized losses of $44.8 million, the company saw net unrealized appreciation of $42.1 million. The board declared a distribution of $0.035 per share for each of the upcoming months. The announcement reflects the company’s ongoing strategy to manage its investment portfolio and maintain shareholder distributions.

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: May 03, 2025