Oxford Lane Capital Corp. Preferred Stock Shares 6.00% Series 2029 (OXLCO)

FairStock Score: 48/100 — MIXED

Key Financials

Strengths

• Generates $172 million in annual free cash flow (39.4% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.38, providing financial flexibility
• Healthy net profit margin of 15.4% showing consistent profitability
• Attractive 6.4% dividend yield providing steady income returns

Concerns

• Weak Piotroski F-Score of 0/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of -0.1 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Oxford Lane Capital Corp. Preferred Stock Shares 6.00% Series 2029 is a micro-cap financial services company valued at $437 million. The business generates $488 million in annual revenue with a 15.4% net margin and $172 million in free cash flow. From a quality standpoint, Oxford shows weak Piotroski F-Score of 0/9 signaling deteriorating fundamentals and distressed Altman Z-Score of -0.1 warrants caution. On valuation, the stock is trading at a premium 27.1x earnings, with trades above its Graham Number with a negative 22% margin. The 6.4% dividend yield adds an income component for patient holders. Our composite FairStock Score of 48/100 reflects mixed 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. With $172 million in annual free cash flow (39.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. 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