OFS Credit Company Inc. 5.25% Series E Term Preferred Stock Due 2026 (OCCIN)

FairStock Score: 37/100 — MIXED

Key Financials

Strengths

• Attractive 5.3% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($8) with negative 218% margin of safety—limited downside protection
• Weak Piotroski F-Score of 0/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

OFS Credit Company Inc. 5.25% Series E Term Preferred Stock Due 2026 is a micro-cap financial services company. Revenue stands at $45 million. From a quality standpoint, OFS shows weak Piotroski F-Score of 0/9 signaling deteriorating fundamentals and negative ROE indicating losses. On valuation, the stock is commanding a steep 49.4x multiple, with trades far above its Graham Number ($8) with no margin of safety. The 5.3% dividend yield adds an income component for patient holders. Our composite FairStock Score of 37/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 49x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer