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WHF

WhiteHorse FinanceNasdaqGS:WHF Stock Report

Last Price

US$15.16

Market Cap

US$350.9m

7D

-2.1%

1Y

12.6%

Updated

19 Jan, 2022

Data

Company Financials +
WHF fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance2/6
Financial Health1/6
Dividends3/6

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

Summary of all time highs, changes and price drops for WhiteHorse Finance
Historical stock prices
Current Share PriceUS$15.16
52 Week HighUS$16.72
52 Week LowUS$13.30
Beta1.47
1 Month Change0.40%
3 Month Change0.066%
1 Year Change12.63%
3 Year Change12.80%
5 Year Change18.44%
Change since IPO9.07%

Recent News & Updates

Jan 07

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.

Dec 14

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.

May 10

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

Shareholder Returns

WHFUS Capital MarketsUS Market
7D-2.1%-5.0%-3.5%
1Y12.6%25.7%10.2%

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.

Price Volatility

Is WHF's price volatile compared to industry and market?
WHF volatility
WHF Average Weekly Movement2.8%
Capital Markets Industry Average Movement0.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
2011n/aStuart Aronsonhttps://www.whitehorsefinance.com

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

How do WhiteHorse Finance's earnings and revenue compare to its market cap?
WHF fundamental statistics
Market CapUS$350.93m
Earnings (TTM)US$35.15m
Revenue (TTM)US$70.54m

10.0x

P/E Ratio

5.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WHF income statement (TTM)
RevenueUS$70.54m
Cost of RevenueUS$0
Gross ProfitUS$70.54m
ExpensesUS$35.39m
EarningsUS$35.15m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.52
Gross Margin100.00%
Net Profit Margin49.83%
Debt/Equity Ratio117.3%

How did WHF perform over the long term?

See historical performance and comparison

Dividends

10.3%

Current Dividend Yield

83%

Payout Ratio

Valuation

Is WhiteHorse Finance undervalued compared to its fair value and its price relative to the market?

32.1%

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).

Future Growth

How is WhiteHorse Finance forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-0.6%

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%).

Past Performance

How has WhiteHorse Finance performed over the past 5 years?

3.2%

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.

Financial Health

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).


Balance Sheet

Dividend

What is WhiteHorse Finance current dividend yield, its reliability and sustainability?

10.26%

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).

Management

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

6.3yrs

Average management tenure


CEO

Stuart Aronson (58 yo)

5.67yrs

Tenure

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...


Leadership Team

Experienced Management: WHF's management team is seasoned and experienced (6.3 years average tenure).


Board Members

Experienced Board: WHF's board of directors are considered experienced (6.4 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 been diluted in the past year, with total shares outstanding growing by 12.7%.


Top Shareholders

Company Information

WhiteHorse Finance, Inc.'s employee growth, exchange listings and data sources


Key Information

  • 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

Location

  • WhiteHorse Finance, Inc.
  • 1450 Brickell Avenue
  • 31st floor
  • Miami
  • Florida
  • 33131
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:48
End of Day Share Price2022/01/19 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.