Oxford Lane Capital Corp. 6.25% Series 2027 Term Preferred Shares (OXLCP)

FairStock Score: 48/100 — MIXED

Key Financials

AI Analysis

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

Viewed as a preferred security, not common equity, OXLCP is a fixed-income instrument: a 6.25% coupon on $25 par, due 2027, priced at $25.01 on 2026-10-13. That is essentially par, so the buyer is collecting the coupon, not buying a bargain. Graham would flinch at the valuation signals: FairStock's Graham Number is $14.38, leaving a margin of safety of -73.92%; at the 2026-10-13 close, FairStock's P/B is 2.37 and P/E is 28.75. FairStock's return metrics are not reassuring: ROE is -39.17%, ROCE is 8.98%, Piotroski F-Score is 0/9, and FairStock Score is 48/100. No Lynch category can be assigned because there are only 0 years of filed results, needing 3. Beta of 0.64 offers some offset, and the 52-week range of $24.28-$25.09 shows price stability. But a preferred share's safety comes from asset coverage and cash flow, not from a low beta. Oxford Lane invests in securitization vehicles holding below-investment-grade or unrated senior secured loans. That is a credit-sensitive, leveraged business; D/E is 0.75. With a 6.25% coupon on $25 par, preferred dividend coverage deserves close attention. There is no revenue or profit growth data, and the Lynch rule says none. My conclusion: this is a coupon-clipping credit instrument trading at full price. If credit markets remain calm through 2027, the 6.25% yield may be earned. If defaults rise or asset values fall, the preferred's dividends and par value are exposed. I see no margin of safety at $25.01.

In plain English: Oxford Lane Capital Corp. 6.25% Series 2027 Term Preferred Shares are an income investment tied to a fund that invests in risky loans through packaged debt pools. The fund's reported numbers look weak, with deeply negative profits on equity and a very low financial-health score. At about $25, the shares trade near their 52-week high and look expensive compared with the value suggested by the fund's earnings and book value.

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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