| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 0/6 |
| Past Performance | 2/6 |
| Financial Health | 0/6 |
| Dividends | 3/6 |
OFS Stock Overview
OFS Capital Corporation is a business development company specializing in direct and fund investments as well as add-on acquisitions.
OFS Capital Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$10.82 |
| 52 Week High | US$11.49 |
| 52 Week Low | US$6.68 |
| Beta | 1.89 |
| 1 Month Change | -3.48% |
| 3 Month Change | -0.64% |
| 1 Year Change | 55.68% |
| 3 Year Change | -2.52% |
| 5 Year Change | -24.70% |
| Change since IPO | -24.60% |
Recent News & Updates
OFS Capital provides Q4 prelims, Q/Q growth in NAV
OFS Capital ([[OFS]] +2.1%) estimates NAV/share to be between $11.75 and $11.85 as of Dec.31, 2020 vs. NAV/share of $11.18 as of Sep.30, 2020.Net investment income is seen between $0.21 and $0.23 per share vs. $0.20 per share for the quarter ended Sep.30, 2020.SBA debentures were permanently reduced by $23.5M during the quarter and further reduced by $9.8M on Jan.5, 2021.As of Dec.31, 2020, the company had $37.7M in cash and unused capacity under our credit facilities.
OFS Capital: 10% Yield, Trading Below Fair Value, With Insider Buying
Article Thesis OFS Capital (OFS) is a small BDC that is handling the current crisis well. Still, its shares are down 40% year to date, which is why its valuation is quite low, while its dividend yield is relatively high -- and has just been raised. Insiders have had a huge stake in the company in the past, and added to their positions in the recent past, which further aligns outside investors with insiders. Shares
OFS Capital NII in-line, misses on revenue
OFS Capital (OFS): Q3 GAAP NII of $0.20 in-line.Total investment income of $10.5M (-24.5% Y/Y) misses by $0.26M.Net Asset Value per share increased 11% Q/Q.At Sep. 30, 2020, 91% and 74% of loan portfolio and total portfolio, respectively, consisted of senior secured loans, based on fair value.Press Release
Shareholder Returns
| OFS | US Capital Markets | US Market | |
|---|---|---|---|
| 7D | -0.09% | -1.6% | -0.5% |
| 1Y | 55.7% | 30.2% | 13.7% |
Return vs Industry: OFS exceeded the US Capital Markets industry which returned 30.2% over the past year.
Return vs Market: OFS exceeded the US Market which returned 13.7% over the past year.
Price Volatility
| OFS volatility | |
|---|---|
| OFS Average Weekly Movement | 2.2% |
| Capital Markets Industry Average Movement | 0.7% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.9% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: OFS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: OFS's weekly volatility (2%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2001 | 50 | Bilal Rashid | https://www.ofscapital.com |
OFS Capital Corporation is a business development company specializing in direct and fund investments as well as add-on acquisitions. It provides flexible capital solutions primarily through debt capital and to a lesser extent, minority equity investments serving the needs of U.S.-based middle-market companies across a broad array of industries. It does not invest in operational turnarounds or start-up businesses.
OFS Capital Fundamentals Summary
| OFS fundamental statistics | |
|---|---|
| Market Cap | US$145.19m |
| Earnings (TTM) | US$51.22m |
| Revenue (TTM) | US$43.63m |
2.8x
P/E Ratio3.3x
P/S RatioIs OFS overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| OFS income statement (TTM) | |
|---|---|
| Revenue | US$43.63m |
| Cost of Revenue | US$0 |
| Gross Profit | US$43.63m |
| Expenses | -US$7.58m |
| Earnings | US$51.22m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 3.82 |
| Gross Margin | 100.00% |
| Net Profit Margin | 117.38% |
| Debt/Equity Ratio | 165.3% |
How did OFS perform over the long term?
See historical performance and comparisonDividends
8.4%
Current Dividend Yield22%
Payout RatioValuation
Is OFS Capital undervalued compared to its fair value and its price relative to the market?
2.83x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: OFS ($10.82) is trading above our estimate of fair value ($8.81)
Significantly Below Fair Value: OFS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: OFS is good value based on its PE Ratio (2.8x) compared to the US Capital Markets industry average (15.9x).
PE vs Market: OFS is good value based on its PE Ratio (2.8x) compared to the US market (17.4x).
Price to Earnings Growth Ratio
PEG Ratio: OFS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: OFS is good value based on its PB Ratio (0.8x) compared to the US Capital Markets industry average (42.4x).
Future Growth
How is OFS Capital forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
-81.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OFS's earnings are forecast to decline over the next 3 years (-81.9% per year).
Earnings vs Market: OFS's earnings are forecast to decline over the next 3 years (-81.9% per year).
High Growth Earnings: OFS's earnings are forecast to decline over the next 3 years.
Revenue vs Market: OFS's revenue is expected to decline over the next 3 years (-2.2% per year).
High Growth Revenue: OFS's revenue is forecast to decline over the next 3 years (-2.2% 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?
14.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OFS has a large one-off gain of $39.2M impacting its September 30 2021 financial results.
Growing Profit Margin: OFS became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: OFS's earnings have grown by 14.1% per year over the past 5 years.
Accelerating Growth: OFS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: OFS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (86.4%).
Return on Equity
High ROE: Whilst OFS's Return on Equity (26.96%) is high, this metric is skewed due to their high level of debt.
Financial Health
How is OFS Capital's financial position?
Financial Position Analysis
Short Term Liabilities: OFS's short term assets ($10.9M) do not cover its short term liabilities ($32.7M).
Long Term Liabilities: OFS's short term assets ($10.9M) do not cover its long term liabilities ($314.6M).
Debt to Equity History and Analysis
Debt Level: OFS's net debt to equity ratio (161.6%) is considered high.
Reducing Debt: OFS's debt to equity ratio has increased from 103.3% to 165.3% over the past 5 years.
Debt Coverage: OFS's debt is not well covered by operating cash flow (4.8%).
Interest Coverage: OFS's interest payments on its debt are not well covered by EBIT (1.7x coverage).
Balance Sheet
Dividend
What is OFS Capital current dividend yield, its reliability and sustainability?
8.41%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: OFS's dividend (8.41%) is higher than the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: OFS's dividend (8.41%) is in the top 25% of dividend payers in the US market (3.44%)
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 9 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (22%), OFS's dividend payments are well covered by earnings.
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?
6.5yrs
Average management tenure
CEO
Bilal Rashid (50 yo)
7.5yrs
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
Experienced Management: OFS's management team is seasoned and experienced (6.5 years average tenure).
Board Members
Experienced Board: OFS's board of directors are considered experienced (8.8 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
OFS Capital Corporation's 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
- Implied Market Cap: US$145.193m
- Shares outstanding: 13.42m
- Website: https://www.ofscapital.com
Number of Employees
Location
- OFS Capital Corporation
- 10 South Wacker Drive
- Suite 2500
- Chicago
- Illinois
- 60606
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/16 23:19 |
| End of Day Share Price | 2022/01/14 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.