WhiteHorse Finance Inc. Common Stock (WHF)

FairStock Score: 82/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

I look at WhiteHorse Finance as a lender to lower middle market businesses, largely through senior secured loans. It is a closed-end BDC, so its value depends on credit selection, loan spreads, and the cost of leverage. As of the 2026-10-13 close, FairStock calculates a price of $7.37, P/B of 0.63, a Graham Number of $14.37, and a margin of safety of 48.71%. The Lynch category is ASSET PLAY because it trades at 0.63 times book value. That is a classic Graham setup: you are buying assets at a discount, but only if those assets are worth what the books say. The filed earnings are lumpy. In fiscal Q2 2026, the quarter ended 2026-06-30, net income was $10.4M and diluted EPS was $0.48. But in fiscal Q1 2026, ended 2026-03-31, net income was -$687,000 and EPS -$0.03; fiscal Q3 2025, ended 2025-09-30, had -$556,000 and -$0.02. Full-year fiscal 2025 net income was $14.3M, or $0.62 per diluted share, below fiscal 2023's $20.4M and $0.88. FairStock's Piotroski F-Score is 4/9 and Altman Z-Score is 0.13, so financial health is not comforting. Debt-to-equity is 1.28. The 13.51% dividend yield and 49.2% FCF yield are attractive, but for a BDC cash flow and dividends must be covered by sustainable net investment income. My conclusion: statistically cheap, with a margin of safety, but not a high-quality compounder until earnings consistency and credit quality improve. I would want evidence that book value is real and that the recent quarter is repeatable.

In plain English: WhiteHorse Finance lends money to smaller companies, mostly through secured loans. Its profits have been uneven: a strong recent quarter but also losses in some earlier periods, and it uses debt to fund its lending. The stock price looks low compared with the company's stated asset value, but the business itself does not look clearly strong, so it is a mixed picture rather than an obvious bargain.

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