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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. ECC's 2025 Performance: Navigating Challenges and Opportunities

Eagle Point Credit Company Inc. (ECC) reported its fourth quarter and full year 2025 financial results, with a GAAP return on common equity of negative 14.6%, slightly better than the median CLO return of negative 15% estimated by Nomura Research. The company's net investment income (NII) less realized losses was negative $0.26 per share in 2025, comprised of NII of $0.23 per share and realized losses of $0.49 per share. The actual EPS came out at $0.23, relative to estimates at $0.216. Recurring cash flows from ECC's portfolio increased to $80 million, or $0.61 per share, in 2025.

Publication Date: Feb -19

📋 Highlights
  • GAAP Return on Equity vs. CLO Median:: ECC's -14.6% 2025 return was marginally better than the estimated -15% median CLO return, per Nomura Research.
  • NAV Decline:: Net asset value fell to $5.70/share by year-end 2025 from $7.00/share in September, driven by realized losses and market conditions.
  • Net Investment Income Deficit:: ECC reported net investment income minus realized losses of -$0.26/share in 2025, with realized losses ($0.49/share) exceeding NII ($0.23/share).
  • CLO Cost Savings:: 42 bps of average debt cost savings achieved through 34 resets and 27 refinancings in 2025, enhancing portfolio efficiency.
  • Private Credit Strategy:: $97 million in non-CLO investments generated ~18% gross IRR, with plans to increase allocation to credit asset classes beyond CLO equity (currently 26% of portfolio).

Investment Performance and Portfolio Composition

ECC invested $184 million in gross capital in the fourth quarter at a weighted average effective yield of 15.4%, with $147 million deployed in new investments in other credit assets. The non-CLO portion of ECC's portfolio was approximately 26% of its total investment portfolio at year-end. The company has been making private credit investments beyond CLOs since 2022, with a gross IRR of approximately 18% on $97 million of investments that have gone full cycle. As of September 30, the company's schedule of investments showed asset-backed securities, including Carvana and Chase autos, PenFed autos, at 8.4% of the portfolio.

Leverage and Capital Management

ECC's leverage ratio was 48% at the end of the fourth quarter, above its target range of 27.5% to 37.5%. The company plans to bring its leverage ratio back to its target range over time. ECC's management estimated its NAV as of January 31 to be between $5.44 and $5.54 per share. The company's board authorized a $100 million common stock repurchase program and declared three monthly distributions of $0.06 per share for 2026.

Valuation and Dividend Yield

With a P/B Ratio of 0.45 and a Dividend Yield of 39.9%, ECC's stock appears to be undervalued relative to its book value, and its dividend yield is attractive. Analysts estimate next year's revenue growth at 16.7%, which could potentially drive the stock price higher. The company's decision to use the stock repurchase program will depend on a collage of factors, including share price, leverage ratios, and relative investment opportunities.

Outlook and Strategy

ECC's CEO, Thomas Majewski, believes that captive funds, which now account for over 75% of newly created CLOs, are driving the trend towards areas with top-line revenue shares in CLO collateral managers and increasing allocation to credit asset classes beyond CLO equity. The company has a robust calendar of investments slated and sees paths for gains in private credit investments outside of CLOs. Majewski notes that ECC's CLO portfolio has a weighted average remaining reinvestment period, which allows the company to capitalize on cheap loans.

3. NewsRoom

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VVR: Avoid This Floating-Rate Fund For The Time Being

18:51

Source: seekingalpha.com

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Contrasting ONEX (OTCMKTS:ONEXF) and Eagle Point Credit (NYSE:ECC)

Feb -20

Source: defenseworld.net

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Eagle Point Credit Q4 Earnings Call Highlights

Feb -19

Source: defenseworld.net

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Eagle Point Credit: Buy Low, Sell Lower (Rating Downgrade)

Feb -18

Source: seekingalpha.com

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Eagle Point Credit Q4 Earnings: Trouble In Paradise For CLO Equity

Feb -18

Source: seekingalpha.com

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ECC And OXLC: Highway To The Danger Zone

Feb -17

Source: seekingalpha.com

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Eagle Point Credit Company Inc (ECC) Q4 2025 Earnings Call Transcript

Feb -17

Source: seekingalpha.com

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Eagle Point Credit Company Inc. Announces Fourth Quarter and Full Year 2025 Financial Results, Common Stock Repurchase Program and Second Quarter 2026 Common and Preferred Distributions

Feb -17

Source: businesswire.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
Tortoise Energy Infrastructure

A-Score: 7.4/10

Value: 4.6

Growth: 6.6

Quality: 7.6

Yield: 10.0

Momentum: 6.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
SLR Investment

A-Score: 7.3/10

Value: 6.4

Growth: 6.6

Quality: 6.3

Yield: 10.0

Momentum: 4.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
PennantPark Floating Rate Capital

A-Score: 7.2/10

Value: 7.1

Growth: 4.9

Quality: 8.1

Yield: 10.0

Momentum: 3.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
MidCap Financial

A-Score: 6.5/10

Value: 5.1

Growth: 5.4

Quality: 5.4

Yield: 10.0

Momentum: 3.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
WhiteHorse Finance

A-Score: 6.3/10

Value: 8.3

Growth: 3.6

Quality: 6.4

Yield: 10.0

Momentum: 1.5

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Eagle Point Credit Company

A-Score: 5.7/10

Value: 5.4

Growth: 4.2

Quality: 6.8

Yield: 10.0

Momentum: 0.5

Volatility: 7.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.98$

Current Price

3.98$

Potential

-0.00%

Expected Cash-Flows