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1. Company Snapshot

1.a. Company Description

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 Company Inc.was formed on March 24, 2014 and is domiciled in the United States.

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1.b. Last Insights on ECC

Eagle Point Credit Company Inc.'s recent performance was negatively driven by weak Q4 earnings, missing estimates by $0.02 per share. The company's net investment income was affected by its high exposure to risky CLO equity, with 78.8% of its portfolio invested in this asset class. Additionally, the company's net asset value (NAV) declined for the fourth consecutive quarter, reflecting ongoing rate-related challenges. This weakness was further exacerbated by the company's inability to offset interest rate headwinds with its floating rate structures.

1.c. Company Highlights

2. Eagle Point Credit Company Delivers Strong Quarterly Performance

Eagle Point Credit Company reported net investment income less realized losses from investments of $0.16 per share for the quarter, with recurring cash flows coming in at $77 million or 59¢ per share. The actual EPS of $0.24 matched the estimated EPS of $0.24. The company's CLO equity investments had a strong performance, with 16 refinancings and 11 resets completed during the quarter, strengthening the portfolio's earning power.

Publication Date: Nov -25

📋 Highlights
  • Capital Deployment:: Deployed $200M into new investments with a 16.9% weighted average effective yield.
  • Cash Flow Decline:: Recurring cash flows fell to $77M (59¢/share) from $85M (69¢/share) QoQ, a 9.4% drop.
  • CLO Portfolio Management:: Completed 16 refinancings and 11 resets, enhancing CLO equity earning power.
  • Reinvestment Period:: Weighted average remaining at 3.4 years, 26% above market average of 2.7 years.
  • Capital Raise:: Issued $26M in common stock at a premium to NAV via at-the-market program.

Portfolio Metrics and Performance

The company's portfolio metrics continue to stand out versus the market, with triple C rated exposures within the CLO equity portfolio standing at 4.6%, lower than the broader market average of 4.8%. The weighted average remaining reinvestment period ended the quarter at 3.4 years, roughly 26% above the market average of 2.7 years. The S&P UBS Leveraged Loan Index returned 1.6% for the third quarter, and the Fed's recent rate cuts have had limited direct impact on CLO equity.

Capital Deployment and Financing

The company deployed nearly $200 million in gross capital into new investments during the quarter, with a weighted average effective yield of 16.9%. Eagle Point Credit Company utilized its at-the-market program, issuing $26 million of common stock at a premium to NAV, and also issued approximately $13 million of its 7% series double A and B convertible perpetual preferred stock.

Valuation and Dividend Yield

With a P/B Ratio of 0.63 and a Dividend Yield of 28.57%, the company's valuation appears attractive. The high dividend yield suggests that the market is pricing in a certain level of risk, but the company's strong portfolio metrics and performance may mitigate this risk. As the company continues to optimize its portfolio and increase earnings, the dividend yield may remain an attractive feature for income-seeking investors.

Outlook and Growth Prospects

Analysts estimate next year's revenue growth at 6.8%, and the company's strong pipeline of investment opportunities positions it for potential long-term growth. With a ROIC of 12.6% and a ROE of 2.99%, the company is generating returns on its investments, and its net debt to EBITDA ratio of 1.72 suggests a manageable level of debt.

3. NewsRoom

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Eagle Point Credit Management Hires Greg Lindsey as Managing Director, Client and Partner Solutions

Dec -03

Source: businesswire.com

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ECC.PR.D: Not A Bond And Suitable For Investors With A High Tolerance For Volatility

Nov -27

Source: seekingalpha.com

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Critical Comparison: Eagle Point Credit (NYSE:ECC) & Sprott (NYSE:SII)

Nov -26

Source: defenseworld.net

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High Cash Flow Vs. Steady Growth: Buy This 50/50 Mix For Maximum Income

Nov -22

Source: seekingalpha.com

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Want $4,000 per Year in Monthly Passive Income? Invest Just $2,500 in These Dividend Stocks

Nov -19

Source: 247wallst.com

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3 Closed-End Fund Buys In October 2025

Nov -14

Source: seekingalpha.com

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Eagle Point Credit Co LLC (ECC) Q3 2025 Earnings Call Transcript

Nov -13

Source: seekingalpha.com

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Eagle Point (ECC) Q3 Earnings Meet Estimates

Nov -13

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.50%)

6. Segments

Investment and Related Activities

Expected Growth: 8.5%

Growing demand for diversified investment portfolios, increasing popularity of CLO equity and debt, and rising investor appetite for credit instruments drive Eagle Point Credit Company's growth.

7. Detailed Products

CLOs (Collateralized Loan Obligations)

Eagle Point Credit Company Inc. offers CLOs, which are securities backed by a pool of loans, providing investors with diversified exposure to the loan market.

CDOs (Collateralized Debt Obligations)

The company provides CDOs, which are securities backed by a pool of debt obligations, offering investors a way to gain exposure to a diversified portfolio of debt instruments.

Loan Investment Management

Eagle Point Credit Company Inc. offers loan investment management services, providing investors with access to a diversified portfolio of loans, actively managed to optimize returns.

Structured Credit Solutions

The company provides structured credit solutions, offering customized credit investments tailored to meet the specific needs of investors, including bespoke CLOs and CDOs.

8. Eagle Point Credit Company Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Eagle Point Credit Company Inc. is medium because while there are some alternatives to credit services, they are not highly attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for Eagle Point Credit Company Inc. is low because customers have limited options and the company has a strong brand presence.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Eagle Point Credit Company Inc. is medium because while suppliers have some negotiating power, the company has a diversified supply chain.

Threat Of New Entrants

The threat of new entrants for Eagle Point Credit Company Inc. is high because the credit services industry is attractive and has relatively low barriers to entry.

Intensity Of Rivalry

The intensity of rivalry for Eagle Point Credit Company Inc. is high because the credit services industry is highly competitive and companies are constantly competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 17.65%
Debt Cost 7.76%
Equity Weight 82.35%
Equity Cost 7.76%
WACC 7.76%
Leverage 21.43%

11. Quality Control: Eagle Point Credit Company Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
SLR Investment

A-Score: 7.7/10

Value: 6.9

Growth: 6.6

Quality: 7.8

Yield: 10.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Tortoise Energy Infrastructure

A-Score: 7.6/10

Value: 4.3

Growth: 6.6

Quality: 9.0

Yield: 10.0

Momentum: 6.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
MidCap Financial

A-Score: 7.1/10

Value: 6.7

Growth: 5.8

Quality: 7.8

Yield: 10.0

Momentum: 3.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
PennantPark Floating Rate Capital

A-Score: 7.0/10

Value: 7.5

Growth: 4.4

Quality: 8.3

Yield: 10.0

Momentum: 1.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
WhiteHorse Finance

A-Score: 5.6/10

Value: 5.9

Growth: 3.6

Quality: 5.2

Yield: 10.0

Momentum: 0.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Eagle Point Credit Company

A-Score: 5.5/10

Value: 4.2

Growth: 3.8

Quality: 6.9

Yield: 10.0

Momentum: 0.5

Volatility: 7.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.31$

Current Price

6.31$

Potential

-0.00%

Expected Cash-Flows