Revenue has experienced a sharp contraction to $507.6K in 2024Q4, while net margins remain highly erratic, swinging from -151.6% in 2021Q4 to 191.7% in 2024Q4.
| Sales/Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 3.7M | 5.19M | -5.9M | 3.5M | 5.95M | 3.73M | 3.72M | 4M | 3.73M | 4.23M | 4.48M | 4.59M | 4.69M |
| Gross Margin % | 100% | 100% | -319.37% | 100% | 145.64% | 77.65% | 79.85% | 93.02% | 92.6% | 93.44% | 100% | 100% | 100% |
| Gross Profit Growth % | -28.59% | 187.96% | -268.44% | -41.14% | 59.44% | 0.28% | -7.07% | 7.37% | -11.78% | -5.59% | -2.44% | -2.15% | - |
| Operating Expenses | 339.3K | 89K | 323.17K | 350.37K | 94.77K | 99.92K | 271.81K | 109.14K | 3.93M | -986.13K | 4.85M | 4.32M | 3.67M |
| OpEx % of Revenue | 9.16% | 1.72% | 17.5% | 10.01% | 2.32% | 2.08% | 5.83% | 2.54% | 97.53% | -21.8% | 108.33% | 94.07% | 78.31% |
| Selling, General & Admin | 339.3K | 87.04K | 92.5K | 350.37K | 92.5K | 97.51K | 269.08K | 106.05K | 359.37K | 352.04K | 355.8K | 347.55K | 348.17K |
| SG&A % of Revenue | 9.16% | 1.68% | 5.01% | 10.01% | 2.26% | 2.03% | 5.78% | 2.46% | 8.93% | 7.78% | 7.95% | 7.57% | 7.43% |
| Research & Development | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 3.36M | 5.1M | -5.99M | 3.15M | 5.85M | 3.38M | 3.2M | 4.19M | 231.34K | 5.21M | 4.12M | 4.24M | 4.34M |
| Operating Margin % | 90.84% | 98.28% | -324.51% | 89.99% | 143.32% | 70.26% | 68.75% | 97.46% | 5.75% | 115.24% | 92.05% | 92.43% | 92.57% |
| Operating Income Growth % | -34% | 185.08% | -290.18% | -46.17% | 73.4% | 5.39% | -23.63% | 1712.98% | -95.56% | 26.5% | -2.83% | -2.31% | - |
| EBITDA | 0 | 1.72M | -9.22M | 0 | 2.58M | 0 | 0 | 604.3K | -3.57M | 1.19M | 0 | 0 | 0 |
| EBITDA Margin % | - | 33.12% | -499.35% | - | 63.23% | - | - | 14.04% | -88.6% | 26.24% | - | - | - |
| EBITDA Growth % | -100% | 118.64% | - | -100% | - | - | -100% | 116.94% | -400.63% | - | - | - | - |
| D&A (Non-Cash Add-back) | -3.36M | -3.38M | -3.23M | -3.15M | -3.27M | -3.38M | -3.2M | -3.59M | -3.8M | -4.03M | -4.12M | -4.24M | -4.34M |
| EBIT | 3.36M | 5.1M | -5.99M | 3.15M | 5.85M | 4.7M | 4.39M | 4.19M | 231.34K | 5.21M | 9.33M | 265.72K | 8.35M |
| Net Interest Income | -6.99K | 3.69M | 3.55M | -367 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 3.7M | 3.55M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 6.99K | 1.8K | 44 | 367 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6.26K | 8.99K |
| Other Income/Expense | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 2.25M | 5.1M | -5.99M | -1.39M | 5.85M | 4.7M | 4.39M | 4.19M | 231.34K | 5.21M | 9.33M | 265.72K | 8.35M |
| Pretax Margin % | 60.71% | 98.28% | -324.51% | -39.73% | 143.32% | 97.92% | 94.17% | 97.46% | 5.75% | 115.24% | 208.33% | 5.79% | 178.12% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 1.18M | 0 | -3.57M | 0 | 5.21M | 0 | 4M |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 26.99% | 0% | -1542.1% | 0% | 55.82% | 0% | 47.92% |
| Net Income | 2.25M | 5.1M | -5.99M | -1.39M | 5.85M | 4.7M | 4.39M | 4.19M | 231.34K | 5.21M | 9.33M | 265.72K | 8.35M |
| Net Margin % | 60.71% | 98.28% | -324.51% | -39.73% | 143.32% | 97.92% | 94.17% | 97.46% | 5.75% | 115.24% | 208.33% | 5.79% | 178.12% |
| Net Income Growth % | -55.89% | 185.08% | -330.82% | -123.76% | 24.42% | 7.23% | 4.59% | 1713% | -95.56% | -44.11% | 3409.83% | -96.82% | - |
| Net Income (Continuing) | 2.25M | 5.1M | -5.99M | -1.39M | 5.85M | 4.7M | 4.39M | 4.19M | 231.34K | 5.21M | 9.33M | 265.72K | 8.35M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.35 | 0.80 | -0.94 | -0.20 | 0.92 | 0.74 | 0.69 | 0.66 | 0.04 | 0.83 | 1.49 | 0.04 | 1.33 |
| EPS Growth % | -56.25% | 185.11% | -370% | -121.74% | 24.32% | 7.25% | 4.55% | 1693.48% | -95.57% | -44.3% | 3414.15% | -96.81% | - |
| EPS (Basic) | 0.35 | 0.80 | -0.94 | -0.20 | 0.92 | 0.74 | 0.69 | 0.66 | 0.04 | 0.83 | 1.49 | 0.04 | 1.33 |
| Diluted Shares Outstanding | 6.41M | 6.36M | 6.36M | 6.36M | 6.36M | 6.35M | 6.36M | 6.35M | 6.29M | 6.28M | 6.28M | 6.27M | 6.27M |
| Basic Shares Outstanding | 6.41M | 6.36M | 6.36M | 6.36M | 6.36M | 6.35M | 6.35M | 6.35M | 6.29M | 6.28M | 6.28M | 6.27M | 6.27M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - |
Interest rate reinvestment risk
As indicated by the most recent quarterly data, NXC experienced a significant revenue decline to $507.6K, representing a sharp contraction from historical levels of approximately $1.8M, which suggests that the fund's underlying interest-generating capacity is currently facing substantial headwinds from bond maturities and unfavorable reinvestment conditions.
The precipitous drop in revenue suggests that the fund is struggling to maintain its yield-generating base in the current interest rate environment. Investors should monitor whether this trend reflects a permanent reduction in the portfolio's coupon income or merely a temporary lag caused by the timing of bond calls.
Based on the reported financial statements, NXC's net margin has exhibited extreme volatility, swinging from 191.7% in 2024Q4 to -151.6% in 2021Q4, which highlights that the fund's bottom-line profitability is heavily influenced by non-operating items rather than core interest income collection efficiency.
The wide divergence between operating and net margins suggests that non-operating factors, potentially including unrealized valuation adjustments, are significantly distorting the fund's reported earnings. This lack of consistency makes it difficult to assess the true economic profitability of the fund's management strategy.
According to the income statement, NXC maintains a lean operating structure, yet the operating margin of 111.9% in the most recent quarter appears anomalous, suggesting that administrative cost efficiencies are being overshadowed by the volatility in the fund's core revenue generation and non-operating expense allocations.
The fund's inability to maintain stable operating margins despite its fixed-cost nature implies that the administrative expense ratio is highly sensitive to fluctuations in AUM. This warrants further investigation into whether the current fee structure remains appropriate given the recent decline in the fund's total revenue.
As reported in recent filings, NXC's EPS has fluctuated wildly, ranging from a high of $1.29 to a low of -$0.98, which indicates that the reported net income is an unreliable proxy for the fund's actual ability to sustain its tax-free distribution to shareholders.
The disconnect between EPS and core interest income suggests that investors should prioritize analyzing the Undistributed Net Investment Income (UNII) rather than headline earnings. Reliance on reported net income may lead to a misunderstanding of the fund's capacity to cover its dividend without resorting to a return of capital.
Based on the provided figures, the significant revenue contraction coupled with erratic net income suggests that the fund's current distribution policy may be unsustainable, raising the risk that future payouts could be funded by a return of capital rather than earned interest income.
Short-term observers might focus on the fund's lack of debt as a safety feature, but the underlying income statement suggests that the fund's core earnings power is deteriorating. This trend warrants caution, as a failure to align distributions with actual interest income could erode the fund's long-term NAV.
Quick answers to the most common questions about buying NXC stock.
Nuveen California Select Tax-Free Income Portfolio (NXC) is profitable, generating $2.2M in net income for the fiscal year ending 2024 with a net profit margin of 60.7%.
Nuveen California Select Tax-Free Income Portfolio (NXC) reported an operating income of $3.4M, resulting in an operating profit margin of 90.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Nuveen California Select Tax-Free Income Portfolio (NXC) generated $3.7M in gross profit for the year, representing a gross profit margin of 100.0%. This demonstrates the company's core pricing power and production efficiency.