OFS Credit Company, Inc. (OCCI) AI Stock Analysis

OFS Credit Company, Inc. operates as a non-diversified closed-end management company regulated under the Investment Company Act of 1940. The company's primary investment objective is to generate current income, supplemented by a secondary goal of achieving capital appreciation. It implements this strategy primarily by investing in collateralized loan obligation (CLO) equity and debt securities. These structured credit assets are typically backed by pools of corporate loans, providing returns through interest payments and capital gains. Management uses a disciplined approach to identify niche opportunities within the structured credit markets.

OCCI experienced volatile revenue over recent years, shifting from $23.0M in FY2021 to -$10.4M in FY2022 and $945,795 in FY2023. Revenue subsequently rebounded to $18.7M in FY2024 and expanded 117.0% to $40.5M in FY2025. Over the trailing twelve months, revenue reached $44.0M with an operating margin of 70.4% and a net profit margin of -79.3%, yielding an EPS of -$1.20. For the quarter ended July 31, 2026, revenue fell 10.2% year-over-year, while quarterly earnings grew 37.7%.

As of July 31, 2026, OFS Credit Company held $7.8M in cash and short-term investments against total debt of $88.5M, resulting in net debt of $80.7M. Shareholders' equity was $98.0M and total assets were $189.6M, representing a debt-to-equity ratio of 0.90. In FY2025, operating cash flow and free cash flow both stood at -$50.3M. Cash usage included $5 in capital expenditures, $803,801 for share buybacks, and $30.7M paid in dividends.

OCCI closed at $1.78 on October 16, 2026, giving it a market cap of $52.3M and an enterprise value of $138.2M. The stock trades at a price-to-sales ratio of 1.2x, below the 3.2x median of its US-listed Financial Services peers. Its price-to-book ratio is 0.6x and EV-to-revenue stands at 40.6x. Over the past year, the stock declined 52.7%, while the S&P 500 (SPY) returned 16.8%. Over five years, OCCI fell 61.9% compared to an 83.0% gain for the index.

OCCI pays a monthly dividend with an annual forward dividend of $0.60, representing a dividend yield of 33.71% and a payout ratio of 29.4%. The company has distributed dividends for 9 consecutive years, though its 5-year annualized dividend growth declined 9.3%. The most recent ex-dividend date occurred on October 15, 2026.

Wall Street coverage includes 1 Strong Buy rating, with 0 Buy, Hold, Sell, or Strong Sell ratings. The mean price target is $3.00, representing 68.5% upside over the last close of $1.78. For the fiscal year ending October 31, 2026, consensus estimates anticipate revenue of $37.3M and EPS of $0.92. For the following fiscal year, 1 analyst projects revenue will fall 11.3% to $33.1M with EPS of $0.85. The company recorded 0 EPS beats over the past 4 quarters.

This page is an AI-written research summary of OFS Credit Company, Inc. (OCCI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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