| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 1/6 |
| Past Performance | 3/6 |
| Financial Health | 2/6 |
| Dividends | 3/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | US$14.01 |
| 52 Week High | US$15.54 |
| 52 Week Low | US$10.57 |
| Beta | 1.11 |
| 1 Month Change | -1.20% |
| 3 Month Change | -0.21% |
| 1 Year Change | 26.56% |
| 3 Year Change | -7.34% |
| 5 Year Change | -18.50% |
| Change since IPO | -26.65% |
Recent News & Updates
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.
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
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
| ECC | US Capital Markets | US Market | |
|---|---|---|---|
| 7D | -0.8% | -1.6% | -0.5% |
| 1Y | 26.6% | 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
| ECC volatility | |
|---|---|
| ECC Average Weekly Movement | 2.5% |
| 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: 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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2014 | n/a | Thomas Majewski | https://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
| ECC fundamental statistics | |
|---|---|
| Market Cap | US$494.44m |
| Earnings (TTM) | US$219.62m |
| Revenue (TTM) | US$75.90m |
2.3x
P/E Ratio6.5x
P/S RatioIs ECC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ECC income statement (TTM) | |
|---|---|
| Revenue | US$75.90m |
| Cost of Revenue | US$0 |
| Gross Profit | US$75.90m |
| Expenses | -US$143.72m |
| Earnings | US$219.62m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 6.22 |
| Gross Margin | 100.00% |
| Net Profit Margin | 289.37% |
| Debt/Equity Ratio | 47.8% |
How did ECC perform over the long term?
See historical performance and comparisonDividends
10.3%
Current Dividend Yield16%
Payout RatioDoes ECC pay a reliable dividends?
See ECC dividend history and benchmarks| Eagle Point Credit dividend dates | |
|---|---|
| Ex Dividend Date | Feb 07 2022 |
| Dividend Pay Date | Feb 28 2022 |
| Days until Ex dividend | 20 days |
| Days until Dividend pay date | 41 days |
Does ECC pay a reliable dividends?
See ECC dividend history and benchmarksValuation
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
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/16 23:09 |
| 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.