NasdaqGS:OFS

Stock Analysis Report

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Executive Summary

OFS Capital Corporation is a business development company specializing in direct and fund investments as well as add-on acquisitions. More Details

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

How has OFS Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OFS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: OFS's weekly volatility has decreased from 13% to 4% over the past year.


Market Performance


7 Day Return

6.9%

OFS

1.0%

US Capital Markets

-0.7%

US Market


1 Year Return

-18.4%

OFS

38.8%

US Capital Markets

36.6%

US Market

Return vs Industry: OFS underperformed the US Capital Markets industry which returned 38.8% over the past year.

Return vs Market: OFS underperformed the US Market which returned 36.6% over the past year.


Shareholder returns

OFSIndustryMarket
7 Day6.9%1.0%-0.7%
30 Day20.5%10.8%4.3%
90 Day16.8%17.0%8.1%
1 Year-4.6%-18.4%42.2%38.8%39.6%36.6%
3 Year6.8%-29.3%40.1%29.7%53.5%43.7%
5 Year33.0%-28.5%152.2%121.0%123.7%98.8%

Long-Term Price Volatility Vs. Market

How volatile is OFS Capital's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is OFS Capital undervalued compared to its fair value and its price relative to the market?

0.75x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: OFS ($8.34) is trading above our estimate of fair value ($3.3)

Significantly Below Fair Value: OFS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: OFS is unprofitable, so we can't compare its PE Ratio to the US Capital Markets industry average.

PE vs Market: OFS is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OFS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OFS is good value based on its PB Ratio (0.7x) compared to the US Capital Markets industry average (15x).

Future Growth

How is OFS Capital forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

196.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OFS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: OFS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: OFS's is expected to become profitable in the next 3 years.

Revenue vs Market: OFS's revenue is expected to decline over the next 3 years (-6.4% per year).

High Growth Revenue: OFS's revenue is forecast to decline over the next 3 years (-6.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if OFS's Return on Equity is forecast to be high in 3 years time

Past Performance

How has OFS Capital performed over the past 5 years?

-42.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OFS is currently unprofitable.

Growing Profit Margin: OFS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OFS is unprofitable, and losses have increased over the past 5 years at a rate of 42.6% per year.

Accelerating Growth: Unable to compare OFS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OFS is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (10.4%).


Return on Equity

High ROE: OFS has a negative Return on Equity (-4.69%), as it is currently unprofitable.

Financial Health

How is OFS Capital's financial position?


Financial Position Analysis

Short Term Liabilities: OFS's short term assets ($25.3M) exceed its short term liabilities ($6.7M).

Long Term Liabilities: OFS's short term assets ($25.3M) do not cover its long term liabilities ($325.0M).


Debt to Equity History and Analysis

Debt Level: OFS's debt to equity ratio (216.6%) is considered high.

Reducing Debt: OFS's debt to equity ratio has increased from 106.9% to 216.6% over the past 5 years.

Debt Coverage: OFS's debt is not well covered by operating cash flow (11.2%).

Interest Coverage: OFS is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Dividend

What is OFS Capital current dividend yield, its reliability and sustainability?

8.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OFS's dividend (8.63%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: OFS's dividend (8.63%) is in the top 25% of dividend payers in the US market (3.72%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, OFS has been paying a dividend for less than 10 years.

Growing Dividend: OFS has only been paying a dividend for 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: OFS is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Management

How experienced are the management team and are they aligned to shareholders interests?

5.7yrs

Average management tenure


CEO

Bilal Rashid (49 yo)

6.67yrs

Tenure

Mr. Bilal Rashid serves as President and Chief Executive Officer at OFS Credit Company, Inc., since 2017 and its Chairman since 2018. He serves as the Chief Executive Officer and President at OFS Capital M...


Leadership Team

NamePositionTenureCompensationOwnership
Bilal Rashid
Chairman & CEO6.67yrsno data0.15%
$ 166.8k
Jeffrey Cerny
CFO, Treasurer & Director5.75yrsno data0.22%
$ 250.2k
Jeffery Owen
Chief Accounting Officer5.17yrsno data0.11%
$ 120.9k
Stephen Altebrando
VP of Investor Relations6.17yrsno datano data
Mukya Sue Porter
Chief Compliance Officer4.17yrsno data0.0016%
$ 1.8k
Tod Reichert
Corporate Secretary4.17yrsno datano data
Richard Ressler
Chairman of the Boardno datano data0.090%
$ 100.7k

5.7yrs

Average Tenure

56.5yo

Average Age

Experienced Management: OFS's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bilal Rashid
Chairman & CEO6.67yrsno data0.15%
$ 166.8k
Jeffrey Cerny
CFO, Treasurer & Director5.75yrsno data0.22%
$ 250.2k
Romita Shetty
Director0.17yrno datano data
Elaine Healy
Independent Director10.17yrsUS$100.00k0.075%
$ 83.4k
Marc Abrams
Independent Director10.17yrsUS$100.00k0.024%
$ 26.6k

6.7yrs

Average Tenure

57yo

Average Age

Experienced Board: OFS's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

OFS Capital Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: OFS Capital Corporation
  • Ticker: OFS
  • Exchange: NasdaqGS
  • Founded: 2001
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$111.809m
  • Shares outstanding: 13.41m
  • Website: https://www.ofscapital.com

Number of Employees


Location

  • OFS Capital Corporation
  • 10 South Wacker Drive
  • Suite 2500
  • Chicago
  • Illinois
  • 60606
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OFSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 2012
9UDDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2012

Biography

OFS Capital Corporation is a business development company specializing in direct and fund investments as well as add-on acquisitions. It does not invest in operational turnarounds or start-up businesses. F...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/03 00:49
End of Day Share Price2021/03/02 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.