Eagle Point Credit Company Inc. (ECCU)
Valuation Overview•Is Eagle Point Credit Company Inc. Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Fragile underlying quality score of 40/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant growth concerns.
Wall Street sentiment is generally neutral. This outlook is strongly supported by highly attractive capital returns, anchored by a strong, well-covered dividend yield.
ECCU demonstrates adequate business quality with stable profitability. This is paired with a moderately leveraged but stable balance sheet.
The company maintains stable top-line performance paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (-94.0%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $31.4M | +0.1% | — | — | +10.6% | |
| EBITDA | -$136.2M | — | +5.0% | — | — | |
| Net Income | -$148.4M | -267.4% | -9.7% | — | -12.6% | |
| EPS (Diluted) | $-1.12 | -222.1% | — | — | +9.8% | |
| Free Cash Flow | $29.0M | -120.7% | +34.1% | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 80.4% | 77.7% | 88.4% | 75.3% |
| Operating Margin | -94.0% | 28.5% | 60.0% | 56.7% |
| Net Margin | -123.8% | 13.5% | 51.0% | 60.9% |
| FCF Margin | 51.5% | 44.5% | 51.2% | 72.3% |
Total return is +9.8% (1Y), lagging the benchmark by -11.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +3.5% | -3.8% | — |
| 1Y | +9.8% | -11.0% | +7.9% |
| 3YCAGR | +4.5% | -14.8% | +12.3% |
| 5YCAGR | +2.7% | -8.8% | +12.3% |
| 10YCAGR | +1.3% | -12.4% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Eagle Point Credit Company Inc. (ECCU) valuation, health, and returns.
Eagle Point Credit Company Inc. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Limited: Expensive versus peers compared to industry peers. overvalued (implying -17.2% downside from DCF intrinsic value of $20.69)
Eagle Point Credit Company Inc. has multiple valuation anchors: DCF Intrinsic Value: $20.69 | Peer Relative Fair Value: $4.05. A convergence of these signals offers higher conviction.
Eagle Point Credit Company Inc. displays fair financial health with a composite quality score of 40/100, supported by a Altman Z-Score of 2.0 (grey zone), Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of -5.9%.
Eagle Point Credit Company Inc. pays a 5.8% dividend yield, covered by a 0% payout ratio with 1 years of growth, supplemented by a 0.0% buyback yield.
Eagle Point Credit Company Inc.'s current growth trajectory is Stable. The company achieved +0.1% 1Y revenue growth and -222.1% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 0 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for Eagle Point Credit Company Inc. include: -70.6% 1-year max drawdown. Volatility risk is characterized by a beta of 0.47x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.