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OFS

OFS CapitalNasdaqGS:OFS Stock Report

Last Price

US$10.82

Market Cap

US$145.2m

7D

-0.09%

1Y

55.7%

Updated

16 Jan, 2022

Data

Company Financials +
OFS fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance2/6
Financial Health0/6
Dividends3/6

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

Ares Capital

NasdaqGS:ARCC

US$9.9b

FS KKR Capital

NYSE:FSK

US$6.4b

Prospect Capital

NasdaqGS:PSEC

US$3.4b

Main Street Capital

NYSE:MAIN

US$3.1b

Price History & Performance

Summary of all time highs, changes and price drops for OFS Capital
Historical stock prices
Current Share PriceUS$10.82
52 Week HighUS$11.49
52 Week LowUS$6.68
Beta1.89
1 Month Change-3.48%
3 Month Change-0.64%
1 Year Change55.68%
3 Year Change-2.52%
5 Year Change-24.70%
Change since IPO-24.60%

Recent News & Updates

Feb 01

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.

Dec 01

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

Nov 06

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

OFSUS Capital MarketsUS Market
7D-0.09%-1.6%-0.5%
1Y55.7%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

Is OFS's price volatile compared to industry and market?
OFS volatility
OFS Average Weekly Movement2.2%
Capital Markets Industry Average Movement0.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
200150Bilal Rashidhttps://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

How do OFS Capital's earnings and revenue compare to its market cap?
OFS fundamental statistics
Market CapUS$145.19m
Earnings (TTM)US$51.22m
Revenue (TTM)US$43.63m

2.8x

P/E Ratio

3.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OFS income statement (TTM)
RevenueUS$43.63m
Cost of RevenueUS$0
Gross ProfitUS$43.63m
Expenses-US$7.58m
EarningsUS$51.22m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.82
Gross Margin100.00%
Net Profit Margin117.38%
Debt/Equity Ratio165.3%

How did OFS perform over the long term?

See historical performance and comparison

Dividends

8.4%

Current Dividend Yield

22%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/16 23:19
End of Day Share Price2022/01/14 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.