NYSE:ECCB

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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

Rewards


Snowflake Analysis

Share Price & News

How has Eagle Point Credit's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ECCB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: ECCB's weekly volatility has decreased from 7% to 1% over the past year.


Market Performance


7 Day Return

0.6%

ECCB

1.5%

US Capital Markets

-0.4%

US Market


1 Year Return

-0.9%

ECCB

45.4%

US Capital Markets

36.2%

US Market

Return vs Industry: ECCB underperformed the US Capital Markets industry which returned 45.4% over the past year.

Return vs Market: ECCB underperformed the US Market which returned 36.2% over the past year.


Shareholder returns

ECCBIndustryMarket
7 Day0.6%1.5%-0.4%
30 Day2.6%3.3%-2.3%
90 Day2.9%14.5%5.0%
1 Year7.3%-0.9%49.0%45.4%39.1%36.2%
3 Year22.7%-1.6%35.9%25.9%48.4%39.0%
5 Yearn/a145.9%115.5%116.6%92.4%

Long-Term Price Volatility Vs. Market

How volatile is Eagle Point Credit's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

6.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: ECCB is good value based on its PE Ratio (6.1x) compared to the US Capital Markets industry average (23.4x).

PE vs Market: ECCB is good value based on its PE Ratio (6.1x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ECCB is good value based on its PB Ratio (1x) compared to the US Capital Markets industry average (19.8x).

Future Growth

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

-18.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ECCB's earnings are forecast to decline over the next 3 years (-18.5% per year).

Earnings vs Market: ECCB's earnings are forecast to decline over the next 3 years (-18.5% per year).

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

Revenue vs Market: ECCB's revenue (5.9% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: ECCB's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ECCB's Return on Equity is forecast to be high in 3 years time

Past Performance

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

-33.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ECCB has a large one-off gain of $24.9M impacting its December 31 2020 financial results.

Growing Profit Margin: ECCB became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ECCB has become profitable over the past 5 years, growing earnings by -33% per year.

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

Earnings vs Industry: ECCB has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (10.4%).


Return on Equity

High ROE: ECCB's Return on Equity (16.8%) is considered low.

Financial Health

How is Eagle Point Credit's financial position?


Financial Position Analysis

Short Term Liabilities: ECCB's short term assets ($29.1M) exceed its short term liabilities ($12.0M).

Long Term Liabilities: ECCB's short term assets ($29.1M) do not cover its long term liabilities ($139.0M).


Debt to Equity History and Analysis

Debt Level: ECCB's debt to equity ratio (38.4%) is considered satisfactory.

Reducing Debt: ECCB's debt to equity ratio has increased from 35.5% to 38.4% over the past 5 years.

Debt Coverage: ECCB's debt is not well covered by operating cash flow (0.9%).

Interest Coverage: ECCB's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet

Dividend

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

8.43%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: ECCB's dividend (8.43%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: ECCB's dividend (8.43%) is in the top 25% of dividend payers in the US market (3.64%)


Stability and Growth of Payments

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

Growing Dividend: ECCB has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.1%), ECCB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ECCB's dividends in 3 years are forecast to be covered by earnings (80.2% payout ratio).

Management

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

6.7yrs

Average management tenure


CEO

Thomas Majewski (45 yo)

6.83yrs

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

NamePositionTenureCompensationOwnership
Thomas Majewski
CEO & Interested Director6.83yrsno data0.19%
$ 706.2k
Kenneth Onorio
CFO & COO6.67yrsno data0.085%
$ 312.0k
Kyle McGrady
Director of Marketing and Investor Relationsno datano datano data
Nauman Malik
General Counsel & Chief Compliance Officerno datano data0.0046%
$ 17.1k
Courtney Fandrick
Secretary5.58yrsno data0.00022%
$ 810.7

6.7yrs

Average Tenure

42yo

Average Age

Experienced Management: ECCB's management team is seasoned and experienced (6.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Majewski
CEO & Interested Director6.83yrsno data0.19%
$ 706.2k
James Matthews
Chairperson of the Board6.83yrsno datano data
Jeffrey Weiss
Lead Independent Directorno dataUS$116.46k0.039%
$ 142.4k
Kevin McDonald
Independent Director6.83yrsUS$102.92k0.031%
$ 113.8k
Scott Appleby
Independent Director6.83yrsUS$108.33k0.048%
$ 176.7k
Paul Tramontano
Independent Director6.83yrsUS$102.92k0.084%
$ 309.0k

6.8yrs

Average Tenure

54yo

Average Age

Experienced Board: ECCB's board of directors are considered experienced (6.8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13%.


Top Shareholders

Company Information

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


Key Information

  • Name: Eagle Point Credit Company Inc.
  • Ticker: ECCB
  • Exchange: NYSE
  • Founded: 2014
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$368.522m
  • Shares outstanding: 32.35m
  • Website: https://www.eaglepointcreditcompany.com

Location

  • Eagle Point Credit Company Inc.
  • 20 Horseneck Lane
  • Greenwich
  • Connecticut
  • 6830
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ECCNYSE (New York Stock Exchange)YesCommon SharesUSUSDOct 2014
ECCBNYSE (New York Stock Exchange)PFD STK SER BUSUSDOct 2016

Biography

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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 00:25
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
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.