WHF Stock Overview
WhiteHorse Finance, LLC is a non-diversified, closed-end management investment business development company specializing in originating senior secured loans to privately held small-cap companies across a broad range of industries.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$15.16|
|52 Week High||US$16.72|
|52 Week Low||US$13.30|
|1 Month Change||0.40%|
|3 Month Change||0.066%|
|1 Year Change||12.63%|
|3 Year Change||12.80%|
|5 Year Change||18.44%|
|Change since IPO||9.07%|
Recent News & Updates
WhiteHorse Finance: 9% Yield, Steady Dividends Since 2012, Selling Below NAV
WHF yields 9.20%. It has paid $.355/quarter since its 2012 IPO, plus special dividends. It's selling at just below NAV vs. BDC industry average premium of 7%. 99.6% of WHF's holdings are at floating rates, offering protection vs. higher interest rates. We compare WHF to BDC industry valuations, performance, profitability, and leverage.
WhiteHorse Finance: An Undercovered Strong BDC Performer With A 10.25% Yield
We have recently initiated coverage on WHF - an undercovered BDC with a 10.25% trailing twelve-month yield. WHF is one of the smaller BDCs with around $324m of net assets with a focus on the lower middle-market space. WHF has delivered sector-beating performance across various timeframes, continues to trade at a below-average valuation and has maintained a steady dividend since 2012. The company continues to lower its interest expense which will further add to its NII. A few things to watch out for is an above sector level of leverage and a relatively expensive fee structure.
WhiteHorse Finance EPS in-line, misses on Total investment income
WhiteHorse Finance (WHF): Q1 Core NII of $0.375, GAAP NII of $0.37 in-line.Total investment income of $17.97M (+23.7% Y/Y) misses by $0.3M.Press Release
|WHF||US Capital Markets||US Market|
Return vs Industry: WHF underperformed the US Capital Markets industry which returned 25.7% over the past year.
Return vs Market: WHF exceeded the US Market which returned 10.2% over the past year.
|WHF Average Weekly Movement||2.8%|
|Capital Markets Industry Average Movement||0.7%|
|Market Average Movement||6.6%|
|10% most volatile stocks in US Market||15.8%|
|10% least volatile stocks in US Market||2.4%|
Stable Share Price: WHF is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: WHF's weekly volatility (3%) has been stable over the past year.
About the Company
WhiteHorse Finance, LLC is a non-diversified, closed-end management investment business development company specializing in originating senior secured loans to privately held small-cap companies across a broad range of industries. It invests in United States. It typically invests between $5 million to $25 million in companies having enterprise value of between $50 million and $350 million.
WhiteHorse Finance Fundamentals Summary
|WHF fundamental statistics|
Is WHF overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|WHF income statement (TTM)|
|Cost of Revenue||US$0|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||1.52|
|Net Profit Margin||49.83%|
How did WHF perform over the long term?See historical performance and comparison
10.3%Current Dividend Yield
Is WhiteHorse Finance undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WHF ($15.16) is trading below our estimate of fair value ($22.34)
Significantly Below Fair Value: WHF is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: WHF is good value based on its PE Ratio (10x) compared to the US Capital Markets industry average (15.5x).
PE vs Market: WHF is good value based on its PE Ratio (10x) compared to the US market (17x).
Price to Earnings Growth Ratio
PEG Ratio: WHF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: WHF is good value based on its PB Ratio (1.1x) compared to the US Capital Markets industry average (42.2x).
How is WhiteHorse Finance forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WHF's earnings are forecast to decline over the next 3 years (-0.6% per year).
Earnings vs Market: WHF's earnings are forecast to decline over the next 3 years (-0.6% per year).
High Growth Earnings: WHF's earnings are forecast to decline over the next 3 years.
Revenue vs Market: WHF's revenue (6.9% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: WHF's revenue (6.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WHF's Return on Equity is forecast to be low in 3 years time (9.8%).
How has WhiteHorse Finance performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WHF has a large one-off gain of $7.0M impacting its September 30 2021 financial results.
Growing Profit Margin: WHF's current net profit margins (49.8%) are lower than last year (51.8%).
Past Earnings Growth Analysis
Earnings Trend: WHF's earnings have grown by 3.2% per year over the past 5 years.
Accelerating Growth: WHF's earnings growth over the past year (9%) exceeds its 5-year average (3.2% per year).
Earnings vs Industry: WHF earnings growth over the past year (9%) underperformed the Capital Markets industry 86.4%.
Return on Equity
High ROE: WHF's Return on Equity (10.9%) is considered low.
How is WhiteHorse Finance's financial position?
Financial Position Analysis
Short Term Liabilities: WHF's short term assets ($42.5M) exceed its short term liabilities ($25.6M).
Long Term Liabilities: WHF's short term assets ($42.5M) do not cover its long term liabilities ($380.3M).
Debt to Equity History and Analysis
Debt Level: WHF's net debt to equity ratio (114.3%) is considered high.
Reducing Debt: WHF's debt to equity ratio has increased from 69.1% to 117.3% over the past 5 years.
Debt Coverage: WHF's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: WHF's interest payments on its debt are not well covered by EBIT (3x coverage).
What is WhiteHorse Finance current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WHF's dividend (10.26%) is higher than the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: WHF's dividend (10.26%) is in the top 25% of dividend payers in the US market (3.48%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, WHF has been paying a dividend for less than 10 years.
Growing Dividend: WHF's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (83.4%), WHF's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WHF's dividends in 3 years are not forecast to be well covered by earnings (96.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Stuart Aronson (58 yo)
Mr. Stuart D. Aronson is Director at PI Financial Corporation. He serves as the Group Head of U.S. Direct Lending at H.I.G.WhiteHorse Capital, LLC since February 2016. In this position, he is responsible...
Experienced Management: WHF's management team is seasoned and experienced (6.3 years average tenure).
Experienced Board: WHF's board of directors are considered experienced (6.4 years average tenure).
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.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.7%.
WhiteHorse Finance, Inc.'s employee growth, exchange listings and data sources
- Name: WhiteHorse Finance, Inc.
- Ticker: WHF
- Exchange: NasdaqGS
- Founded: 2011
- Industry: Asset Management and Custody Banks
- Sector: Diversified Financials
- Implied Market Cap: US$350.933m
- Shares outstanding: 23.15m
- Website: https://www.whitehorsefinance.com
- WhiteHorse Finance, Inc.
- 1450 Brickell Avenue
- 31st floor
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/19 23:48|
|End of Day Share Price||2022/01/19 00:00|
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.