OFS Credit Company Inc. 6.125% Series C Term Preferred Stock (OCCIO)

FairStock Score: 37/100 — MIXED

Key Financials

AI Analysis

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

Looking at OFS Credit Company's 6.125% Series C Term Preferred, I remind myself that a preferred is a promise to pay, not an ownership claim on a wonderful business. The underlying fund is advised by OFS Advisor, but the data I have is thin: FairStock's Lynch category is none because there are only zero years of filed results, not the three needed. That alone demands caution. The business quality is not evident. FairStock calculates ROE of -24.34%, ROCE of 7.76%, and a debt-to-equity ratio of 0.90. Piotroski is 0/9, which is a poor sign of financial momentum. The preferred yields 6.11%, and beta is 0.70, so it may be less volatile than equities, but yield without coverage is not safety. Valuation is stretched on asset and earnings measures: at the 2026-05-13 close of $24.98, P/B is 5.73, P/E is 49.96, and the Graham Number is $7.84. The margin of safety is negative 218.62%, meaning the price is far above that conservative value estimate. The 52-week range is $24.50 to $25.80, so the issue is near the lower end but not distressed. FairStock Score is 37/100. Growth is not measurable from the data—revenue and profit growth are N/A. I would want to see consistent filed results, asset coverage, and whether the fund can cover its preferred dividend before treating this as a prudent income holding. As Graham said, margin of safety is the central concept; here the numbers show the opposite.

In plain English: It is a preferred stock from an asset management fund. The fund's numbers look weak: it has been losing money, has little filed history, and the price is high compared with its accounting value. The stock pays a 6.11% yield and trades near the low end of its 52-week range.

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Data as of 2026-05-13 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