Oxford Lane Capital Corp. 7.125% Series 2029 Term Preferred Stock (OXLCN)

FairStock Score: 48/100 — MIXED

Key Financials

AI Analysis

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

As a value investor, I begin with the business: Oxford Lane Capital is a closed-end fund investing in fixed-income securities, mainly securitization vehicles that hold below-investment-grade or unrated senior secured loans. That is a credit-sensitive niche, and I see no durable competitive moat; results depend on spreads, defaults, and financing costs rather than brand or switching costs. The financial data are not reassuring. FairStock calculations as of the 2026-10-13 close show a P/E of 28.04, P/B of 2.31, ROE of -39.17%, ROCE of 8.98%, D/E of 0.75, and a Piotroski F-Score of 0/9. A negative ROE and a zero Piotroski score point to weak profitability and weak financial momentum. The Graham Number is $14.38, so at the $24.40 price the margin of safety is -69.65%, meaning the price is far above that calculated value. The FairStock Score is 48/100. On the positive side, the preferred has a 7.28% dividend yield and a beta of 0.64, which may appeal to income-oriented investors. Its 52-week range is $23.93 to $25.10, and the price is near the upper end. But the Lynch category is none because there are only 0 years of filed results, needing 3; revenue and profit growth are not available in the data. Without a long record of covered distributions or stable credit performance, I cannot call this a high-quality compounder. It may be an income instrument, but the margin of safety is absent.

In plain English: Oxford Lane Capital is a fund that invests in risky loans through securitization vehicles. The business looks weak: it has been losing money relative to its equity, has a very low financial-strength score, and lacks a multi-year record to judge growth. At $24.40, the price looks expensive compared with the calculated value measures, even though the dividend yield is high.

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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