OFS Capital Corporation Common Stock (OFS)

FairStock Score: 53/100 — MIXED

Key Financials

AI Analysis

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

I see a $54.9 million market cap and a $4.10 close on 2026-10-13. The FairStock P/B is 0.49, so the market values this BDC at about half its book value. That is the kind of discount Graham would notice, but it is also a warning. The FairStock P/E is negative, reflecting trailing losses. In fiscal 2025, the year ended 2025-12-31, OFS reported a net loss of $33.1 million and diluted EPS of -$2.47, after fiscal 2024 net income of $28.4 million and EPS of $2.12. The latest filed quarter, fiscal Q2 2026 ended 2026-06-30, showed net income of $5.6 million and EPS of $0.42, a welcome reversal from fiscal Q1 2026, when it lost $11.6 million, or $0.86 per share. The business lends to U.S. middle-market companies. It has only 47 employees and no obvious wide moat; success depends on credit selection and access to capital. Debt-to-equity is 1.63, and the FairStock Altman Z-score is -0.09, so balance-sheet risk is real. The FairStock ROE is -17.15%, poor. Yet trailing free cash flow is $64.6 million, a 117.5% FCF yield on the market cap, and the FairStock Piotroski score is 7/9, suggesting some improvement. The 18.63% dividend yield looks tempting but is not supported by trailing earnings. This is a Lynch-style turnaround. At half of book, the price may be cheap if losses are truly past; if credit deteriorates, book value could shrink and the discount may be deserved.

In plain English: OFS Capital is a small lender that provides debt and some equity financing to middle-market U.S. companies. The business has been weak lately: it lost money in its latest full year, though it did report a profit in the most recent quarter. The stock looks inexpensive compared with the value of its assets on its books, but the company uses a lot of borrowed money and its high dividend looks larger than recent earnings can support.

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

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

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