Eagle Point Credit Company Inc. Common Stock (ECC)

FairStock Score: 61/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Eagle Point Credit not as an operating business but as a closed-end fund owning equity and junior debt tranches of U.S. CLOs, largely backed by below-investment-grade senior secured loans. That is a credit-sensitive asset class, and I see no true competitive moat; returns depend on manager skill and the credit cycle. At the close on 2026-10-13, the shares were $2.88, giving a market cap of $537.4M. FairStock calculations show a P/B of 0.64, so the market values the fund at a discount to book, and the 20.57% dividend yield is enormous. But trailing EPS is -$1.33, the P/E is -2.17, and ROE is -15.26%, so the income statement does not support a simple Graham bargain. The latest reported quarter, fiscal Q2 2026, showed revenue of $79.2M and net income of $76.1M, a 96.12% margin—a striking positive, but one quarter is not a trend. Financial health is weak: Piotroski 3/9 and Altman Z 0.29, though debt-to-equity is only 0.30 and ROCE is 6.34%. The 52-week range of $2.80-$6.45 leaves the price near the low, and beta of 0.36 offers lower volatility. FairStock scores it 61/100 and assigns no Lynch category because there are only zero years of filed results versus the three needed. The provided growth figures are 23.83% revenue and 23.45% profit, though the period is not specified. With negative trailing earnings and a very high payout, I would demand a wider margin of safety.

In plain English: Eagle Point Credit is a fund that invests in packages of loans made to lower-rated U.S. companies. Its latest quarter showed a large profit, but over the past year it lost money and its shares trade below the value of its assets. The price looks cheap compared with asset value, but the business looks weak and the very high dividend may be risky.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer