Eagle Point Credit Company Inc. 6.50% Series C Term Preferred Stock due 2031 (ECCC)

FairStock Score: 56/100 — STEADY

Key Financials

AI Analysis

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

I look at ECCC first as a preferred claim on a closed-end fund that holds equity and junior debt tranches of CLOs backed mostly by below-investment-grade U.S. senior secured loans. That is a credit-sensitive, complex business, and I see no clear wide moat; the manager's skill and access to CLO markets matter. In the 2026 second quarter, the provided figures show revenue of $79.2 million and net income of $76.1 million, a 96.12% margin, while revenue growth was 23.83% and profit growth 23.45%. That is impressive momentum. But FairStock's calculations show return on equity of -15.26%, return on capital employed of 6.34%, a Piotroski F-Score of 3/9, and a debt-to-equity ratio of 0.30. Negative ROE and a weak F-score suggest the equity beneath the preferred is fragile, even if recent quarterly earnings look strong. On valuation, at the 2026-10-13 close of $24.18, the P/E is 13.29, P/B is 5.36, and the PEG is 0.57. The Graham Number is $16.02, producing a margin of safety of -50.94%, so the price is well above that Graham-style value. The 6.50% dividend yield and beta of 0.36 are attractive for income and low volatility, but the 52-week range of $23.02-$25.50 shows the preferred trades near the middle of its band. As a term preferred due 2031, the key is whether CLO cash flows cover the coupon; growth helps, but credit losses could quickly change the picture. The numbers are mixed: not a classic Graham bargain, but not a speculative blow-off either. I would want stronger coverage, better returns on equity, and a wider discount to value before getting excited.

In plain English: Eagle Point Credit Company is a fund that invests in riskier U.S. corporate loan pools, and this Series C preferred stock pays 6.50% and comes due in 2031. The latest figures show strong recent revenue and profit growth, but one important return measure is negative and the price is above an accounting-based value estimate. At $24.18, the price looks fair-to-expensive for the numbers shown, with little safety cushion.

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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