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ECC

Eagle Point CreditNYSE:ECC Stock Report

Last Price

US$14.01

Market Cap

US$494.4m

7D

-0.8%

1Y

26.6%

Updated

16 Jan, 2022

Data

Company Financials +
ECC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance3/6
Financial Health2/6
Dividends3/6

ECC Stock Overview

Eagle Point Credit Company Inc. is a closed ended fund launched and managed by Eagle Point Credit Management LLC.

Price History & Performance

Summary of all time highs, changes and price drops for Eagle Point Credit
Historical stock prices
Current Share PriceUS$14.01
52 Week HighUS$15.54
52 Week LowUS$10.57
Beta1.11
1 Month Change-1.20%
3 Month Change-0.21%
1 Year Change26.56%
3 Year Change-7.34%
5 Year Change-18.50%
Change since IPO-26.65%

Recent News & Updates

Oct 07

Eagle Point Credit Company: The Top Of The Risk Pyramid

ECC is a closed end fund that invests in equity tranches of CLOs to generate high current yield and total return. The fund has a current yield of >10% which could further increase should the United States economy continue to recover at a record pace. The fund invests in high-risk debt instruments, but management has successfully generated attractive long-term returns. ECC still stands to benefit from a continued economic recovery but remains exposed to near-term risk factors.

Jun 21

Eagle Point raises additional $3.4M as underwriters buy shares in preferred stock offering

Eagle Point Credit (ECC) raised an additional ~$3.4M in net proceeds after the underwriters of its previously announced Series C Term preferred stock offering fully exercised their option to buy 140K shares.The company previously closed its offering of 1.06M shares of its 6.50% Series C Term preferred stock due 2031 at $25 per share.Preferred Stock is rated ‘BBB’ by Egan-Jones Ratings company. Source: Press Release

Jan 05

Why I Have Been Buying Eagle Point Credit Company

Author's note: This article was released to CEF/ETF Income Laboratory members on December 22, 2020, with certain numbers updated. It is a modified excerpt of our weekly "Flash Memo" series where I highlight the picks that I am buying from our portfolios each week. Weekly Flash Memo: What I'm Buying From Our Portfolios This Week I bought some Eagle Point Credit Company (ECC), a holding of our Income Generator portfolio, last week due to its

Shareholder Returns

ECCUS Capital MarketsUS Market
7D-0.8%-1.6%-0.5%
1Y26.6%30.2%13.7%

Return vs Industry: ECC underperformed the US Capital Markets industry which returned 30.2% over the past year.

Return vs Market: ECC exceeded the US Market which returned 13.7% over the past year.

Price Volatility

Is ECC's price volatile compared to industry and market?
ECC volatility
ECC Average Weekly Movement2.5%
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: ECC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: ECC's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2014n/aThomas Majewskihttps://www.eaglepointcreditcompany.com

Eagle Point Credit Company Inc. is a closed ended fund launched and managed by Eagle Point Credit Management LLC. It invests in fixed income markets of the United States. The fund invests equity and junior debt tranches of collateralized loan obligations consisting primarily of below investment grade U.S. senior secured loans.

Eagle Point Credit Fundamentals Summary

How do Eagle Point Credit's earnings and revenue compare to its market cap?
ECC fundamental statistics
Market CapUS$494.44m
Earnings (TTM)US$219.62m
Revenue (TTM)US$75.90m

2.3x

P/E Ratio

6.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ECC income statement (TTM)
RevenueUS$75.90m
Cost of RevenueUS$0
Gross ProfitUS$75.90m
Expenses-US$143.72m
EarningsUS$219.62m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)6.22
Gross Margin100.00%
Net Profit Margin289.37%
Debt/Equity Ratio47.8%

How did ECC perform over the long term?

See historical performance and comparison

Dividends

10.3%

Current Dividend Yield

16%

Payout Ratio

Does ECC pay a reliable dividends?

See ECC dividend history and benchmarks
When do you need to buy ECC by to receive an upcoming dividend?
Eagle Point Credit dividend dates
Ex Dividend DateFeb 07 2022
Dividend Pay DateFeb 28 2022
Days until Ex dividend20 days
Days until Dividend pay date41 days

Does ECC pay a reliable dividends?

See ECC dividend history and benchmarks

Valuation

Is Eagle Point Credit undervalued compared to its fair value and its price relative to the market?

2.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ECC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ECC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ECC is good value based on its PE Ratio (2.3x) compared to the US Capital Markets industry average (15.9x).

PE vs Market: ECC is good value based on its PE Ratio (2.3x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: ECC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ECC is good value based on its PB Ratio (1x) compared to the US Capital Markets industry average (42.4x).

Future Growth

How is Eagle Point Credit forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-58.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ECC's earnings are forecast to decline over the next 3 years (-58.4% per year).

Earnings vs Market: ECC's earnings are forecast to decline over the next 3 years (-58.4% per year).

High Growth Earnings: ECC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ECC's revenue (15.7% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: ECC's revenue (15.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ECC's Return on Equity is forecast to be low in 3 years time (10.9%).

Past Performance

How has Eagle Point Credit performed over the past 5 years?

7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ECC has a high level of non-cash earnings.

Growing Profit Margin: ECC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ECC's earnings have grown by 7.4% per year over the past 5 years.

Accelerating Growth: ECC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ECC 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: ECC's Return on Equity (44.5%) is considered outstanding.

Financial Health

How is Eagle Point Credit's financial position?


Financial Position Analysis

Short Term Liabilities: ECC's short term assets ($52.4M) exceed its short term liabilities ($31.8M).

Long Term Liabilities: ECC's short term assets ($52.4M) do not cover its long term liabilities ($235.8M).


Debt to Equity History and Analysis

Debt Level: ECC's net debt to equity ratio (46.3%) is considered high.

Reducing Debt: ECC's debt to equity ratio has increased from 39.9% to 47.8% over the past 5 years.

Debt Coverage: ECC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: ECC's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet

Dividend

What is Eagle Point Credit current dividend yield, its reliability and sustainability?

10.28%

Current Dividend Yield


Upcoming Dividend Payment

TodayJan 17 2022Ex Dividend DateFeb 07 2022Dividend Pay DateFeb 28 202221 days from Ex DividendBuy in the next 20 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: ECC's dividend (10.28%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: ECC's dividend (10.28%) is in the top 25% of dividend payers in the US market (3.44%)


Stability and Growth of Payments

Stable Dividend: ECC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ECC has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.4%), ECC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ECC's dividends in 3 years are not forecast to be well covered by earnings (95.9% payout ratio).

Management

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

7.5yrs

Average management tenure


CEO

Thomas Majewski (46 yo)

7.67yrs

Tenure

Mr. Thomas Philip Majewski is a Managing Partner Eagle Point Credit Management LLC since September 2012. He serves as Managing Partner at Eagle Point Income Management LLC since September 2018. He is the C...


Leadership Team

Experienced Management: ECC's management team is seasoned and experienced (7.5 years average tenure).


Board Members

Experienced Board: ECC's board of directors are considered experienced (7.7 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.1%.


Top Shareholders

Company Information

Eagle Point Credit Company Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Eagle Point Credit Company Inc.
  • Ticker: ECC
  • Exchange: NYSE
  • Founded: 2014
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Implied Market Cap: US$494.443m
  • Shares outstanding: 35.29m
  • Website: https://www.eaglepointcreditcompany.com

Location

  • Eagle Point Credit Company Inc.
  • 20 Horseneck Lane
  • Greenwich
  • Connecticut
  • 6830
  • 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 23:09
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.