WhiteHorse (WHF) AI Stock Analysis

• Market Cap: $162.24M
• Dividend Yield: 21.24%
• Average Volume (3M): 191.06K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.31
• Revenue Growth: -55.82%
• EPS Growth: -4.97%
• Country: US
• Employees: 3
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.26
• Shares Outstanding: 23,243,088
• 10 Day Avg. Volume: 115,708
• 30 Day Avg. Volume: 191,062
• PEG Ratio: -0.45
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 13.16
• P/FCF Ratio: 2.86
• Enterprise Value/Market Cap: 2.70
• Enterprise Value/Revenue: 8.84
• Enterprise Value/Gross Profit: 27.67
• Enterprise Value/Ebitda: 41.38
• 1Y Price Target: $7.50
• Price Target Upside: 9.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.07
• Revenue Forecast (FY): $66.67M

• Rating: 61 Neutral
• Price Target: $7.50 ▲(9.17% Upside)

WHF’s score is supported primarily by strong cash flow generation and recent revenue momentum, but is held back by weaker technical trend signals and a negative earnings-call backdrop (lower NII, NAV decline, portfolio losses, and a distribution reset). Valuation is mixed: a moderate P/E and very high yield help, but sustainability concerns temper the benefit.

Positive Factors

Strong Cash Flow

Consistent positive cash flow indicates effective cash generation from operations, ensuring liquidity and operational efficiency, which supports long-term stability.

No Debt Burden

Having no debt enhances financial flexibility and reduces risk, allowing the company to better navigate economic fluctuations and invest in growth opportunities.

Strong Portfolio Structure

A high percentage of secured, senior loans in the portfolio reduces risk and enhances the likelihood of recovering investments, supporting long-term financial health.

Negative Factors

Revenue Fluctuations

Fluctuating revenue streams can lead to uncertainty in financial performance, impacting the company's ability to plan and invest for future growth.

Increase in Nonaccrual Investments

Rising nonaccrual investments indicate potential credit quality issues, which can affect income stability and asset valuations, posing long-term risks.

Decline in Net Asset Value

A declining NAV suggests asset devaluation, which can undermine investor confidence and impact the company's ability to raise capital or expand its portfolio.

WhiteHorse Business Overview & Revenue Model

Company Description

WhiteHorse Finance, Inc. is business development company, non-diversified, closed end management company specializing in originating senior secured loans, lower middle market, growth capital industries. It prefers to invest in United States. It typically invests between $5 million to $25 million in companies having enterprise value of between $50 million and $350 million.

How the Company Makes Money

WhiteHorse Finance makes money through the interest and fees generated from the loans it extends to small and middle-market businesses. The company earns interest income from its loan portfolio, which typically consists of senior secured loans that offer a favorable risk-return profile. Additionally, WHF may generate revenue through equity investments in certain portfolio companies, which can provide capital appreciation and dividend income. The company benefits from its strategic partnerships with other financial institutions and sponsors, which can enhance deal flow and investment opportunities. Furthermore, WhiteHorse Finance's focus on maintaining a diversified portfolio helps mitigate risk and stabilize earnings.

WhiteHorse Financial Statement Overview

Summary

WhiteHorse demonstrates a robust financial performance with strong cash flow generation and no debt burdens. However, fluctuations in revenue and asset values suggest volatility in business operations, which could pose challenges. The company's strength lies in its ability to manage costs and maintain profitability, supported by its strong cash position. Going forward, stabilizing revenue streams and asset growth will be key areas to address.

Income Statement

WhiteHorse has shown strong revenue growth over recent years with a significant increase in EBIT margins. The gross profit margin remains at 100% due to the nature of its asset management business. However, the recent dip in revenue in 2024 compared to 2023 may indicate a fluctuation in revenue streams. The net profit margin is robust, reflecting effective cost management despite revenue volatility.

Balance Sheet

The balance sheet is solid with no total debt as of 2024, highlighting financial stability. The equity ratio is healthy, ensuring that a substantial part of assets is funded by equity rather than liabilities. However, there was a decrease in total assets over the years, and the return on equity has been fluctuating, indicating potential concerns about consistent profitability.

Cash Flow

Operating cash flow has been positive and consistent, supporting strong free cash flow figures. The company has managed to improve its operating cash flow to net income ratio, showcasing effective cash generation from operations. Despite considerable fluctuations in investing and financing cash flows, free cash flow growth remains positive, ensuring liquidity and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.65M	17.09M	55.60M	43.29M	51.95M	49.14M
Gross Profit	15.86M	17.09M	25.68M	21.35M	35.35M	36.02M
EBITDA	10.60M	11.97M	21.38M	16.71M	31.10M	32.43M
Net Income	9.86M	10.85M	20.41M	15.68M	30.09M	31.68M
Balance Sheet
Total Assets	626.00M	676.82M	730.75M	796.47M	851.02M	718.99M
Cash, Cash Equivalents and Short-Term Investments	45.65M	12.42M	10.75M	9.51M	12.19M	8.06M
Total Debt	0.00	353.12M	386.45M	440.43M	475.96M	384.88M
Total Liabilities	360.76M	390.69M	413.98M	464.09M	501.27M	406.09M
Stockholders Equity	265.25M	286.13M	316.77M	332.39M	349.75M	312.90M
Cash Flow
Free Cash Flow	92.32M	78.76M	90.37M	29.00M	30.34M	24.34M
Operating Cash Flow	92.32M	78.76M	90.37M	29.00M	30.34M	24.34M
Investing Cash Flow	5.07M	0.00	0.00	42.99M	-120.53M	-88.94M
Financing Cash Flow	-72.11M	-75.40M	-92.13M	-68.49M	97.01M	52.98M

WhiteHorse Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.87
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WHF, the sentiment is Positive. The current price of 6.87 is below the 20-day moving average (MA) of 6.97, below the 50-day MA of 6.99, and below the 200-day MA of 7.61, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 51.81 is Neutral, neither overbought nor oversold. The STOCH value of 33.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WHF.

WhiteHorse Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWKH	77 Outperform	$210.35M	9.39	8.45%	―	2.70%	100.41%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BCIC	66 Neutral	$158.02M	11.18	7.87%	16.60%	-5.23%	193.87%
WHF	61 Neutral	$162.24M	16.45	3.51%	21.24%	-55.82%	-4.97%
MRCC	55 Neutral	$142.78M	―	-2.25%	14.03%	-34.92%	-132.22%
GECC	45 Neutral	$98.83M	-13.17	-5.98%	22.43%	47.01%	-179.46%

WhiteHorse Corporate Events

WhiteHorse Announces Q3 Earnings and Stock Buyback

On November 10, 2025, WhiteHorse Finance, Inc. announced its third-quarter earnings results, revealing a decrease in total investment income and net investment income compared to the previous quarter. The company declared a quarterly distribution of $0.25 per share and initiated a stock repurchase program of up to $15 million. The company is focusing on repositioning its portfolio and addressing underperforming investments to enhance long-term shareholder value. Additionally, WhiteHorse Advisers agreed to reduce the incentive fee on net investment income for the next two fiscal quarters.

The most recent analyst rating on (WHF) stock is a Sell with a $6.50 price target. To see the full list of analyst forecasts on WhiteHorse stock, see the WHF Stock Forecast page.

WhiteHorse Announces Special Distribution for Shareholders

On October 15, 2025, WhiteHorse Finance, Inc. announced a special distribution of $0.035 per share, payable on December 10, 2025, to stockholders of record as of October 31, 2025. Additionally, the company will release its third quarter financial results for the period ended September 30, 2025, on November 10, 2025, with a conference call scheduled to discuss the results.

The most recent analyst rating on (WHF) stock is a Sell with a $6.50 price target. To see the full list of analyst forecasts on WhiteHorse stock, see the WHF Stock Forecast page.