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1. Company Snapshot

1.a. Company Description

OFS Credit Company, Inc.is a fund of OFS Advisor.

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1.b. Last Insights on OCCI

OFS Credit Company's recent performance has been negatively impacted by persistent NAV declines and poor earnings, signaling increasing risk in the high-rate environment. The fund's heavy exposure to below-investment-grade CLOs and reliance on costly preferred stock financing heighten vulnerability to defaults and losses. Weakening dividend coverage and a likely dividend cut if earnings don't improve, have raised concerns. A recent rating downgrade citing these risks has added to the challenges. Furthermore, a DOJ investigation has contributed to the negative sentiment.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Trying To Give A Credit Rating For OFS Credit Company

Nov -22

Source: seekingalpha.com

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OFS Credit Company Executes Master Repurchase Agreement

Nov -04

Source: businesswire.com

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Critical Contrast: Apollo Global Management (NYSE:APO) vs. OFS Credit (NASDAQ:OCCI)

Nov -01

Source: defenseworld.net

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OFS Credit: I Would Only Consider Short-Term Preferreds

Oct -23

Source: seekingalpha.com

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OFS Credit: Dividend Is No Longer Supported By Earnings

Oct -09

Source: seekingalpha.com

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CLO Equity Funds Have Been Beaten Down; That Is The Least Of My Worries

Aug -10

Source: seekingalpha.com

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OCCI: The Double-Digit Yield May Not Be Worth The Risk (Rating Downgrade)

Jul -26

Source: seekingalpha.com

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It's Raining CLO Equity CEFs And Why We Got Longer

May -08

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.50%)

6. Segments

Investment and Related Activities

Expected Growth: 10.5%

Growing demand for financing solutions in underserved markets, increasing adoption of alternative lending platforms, and rising income from interest and fees drive growth for OFS Credit Company, Inc.

7. Detailed Products

Loan Financing

OFS Credit Company, Inc. provides loan financing services to individuals and businesses, offering flexible repayment terms and competitive interest rates.

Investment Management

OFS Credit Company, Inc. offers investment management services, providing clients with diversified investment portfolios and strategic asset allocation.

Wealth Management

OFS Credit Company, Inc. provides comprehensive wealth management services, including financial planning, investment advice, and estate planning.

Business Financing

OFS Credit Company, Inc. offers business financing solutions, including lines of credit, term loans, and invoice financing.

Real Estate Financing

OFS Credit Company, Inc. provides real estate financing solutions, including construction loans, bridge loans, and permanent financing.

8. OFS Credit Company, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for OFS Credit Company, Inc. is medium because while there are some alternative investment options available, they may not offer the same level of returns or flexibility as OFS Credit Company, Inc.

Bargaining Power Of Customers

The bargaining power of customers for OFS Credit Company, Inc. is low because individual investors have limited negotiating power and may not be able to significantly influence the company's investment strategies.

Bargaining Power Of Suppliers

The bargaining power of suppliers for OFS Credit Company, Inc. is medium because while the company relies on a network of suppliers for its investment operations, it also has some flexibility to switch suppliers if needed.

Threat Of New Entrants

The threat of new entrants for OFS Credit Company, Inc. is high because the investment industry is highly competitive and new companies can easily enter the market, potentially disrupting the company's operations.

Intensity Of Rivalry

The intensity of rivalry for OFS Credit Company, Inc. is high because the investment industry is highly competitive, and companies must constantly innovate and adapt to changing market conditions to remain competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 34.31%
Debt Cost 6.04%
Equity Weight 65.69%
Equity Cost 10.73%
WACC 9.12%
Leverage 52.22%

11. Quality Control: OFS Credit Company, Inc. passed 3 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
OFS Capital

A-Score: 6.8/10

Value: 6.8

Growth: 6.8

Quality: 5.8

Yield: 10.0

Momentum: 4.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Monroe Capital

A-Score: 6.8/10

Value: 6.1

Growth: 5.7

Quality: 7.1

Yield: 10.0

Momentum: 3.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
SuRo Capital

A-Score: 6.3/10

Value: 7.5

Growth: 1.0

Quality: 9.3

Yield: 7.0

Momentum: 9.5

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
OFS Credit

A-Score: 6.2/10

Value: 4.8

Growth: 5.8

Quality: 7.2

Yield: 10.0

Momentum: 1.5

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
BNY Mellon Strategic Municipals

A-Score: 6.1/10

Value: 5.4

Growth: 4.1

Quality: 5.5

Yield: 7.0

Momentum: 4.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Logan Ridge Finance

A-Score: 5.3/10

Value: 6.5

Growth: 5.8

Quality: 2.4

Yield: 6.0

Momentum: 1.5

Volatility: 9.7

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

5.03$

Current Price

5.03$

Potential

-0.00%

Expected Cash-Flows