OFS Capital Corporation (OFS) AI Stock Analysis

OFS Capital Corporation is a business development company that provides flexible capital solutions to U.S. middle-market companies, excluding operational turnarounds and startup ventures. It primarily engages in debt capital investments alongside selective minority equity investments. The firm targets businesses with annual revenues from $15 million to $300 million and EBITDA between $5 million and $50 million, deploying between $5 million and $35 million per transaction. Portfolio investments span sectors including aerospace and defense, business services, consumer products, healthcare, transportation logistics, and manufacturing through senior secured loans, unitranche loans, mezzanine debt, and equity instruments.

OFS has experienced significant volatility in its top and bottom line performance. Revenue fluctuated from $85.7M in FY2021 down to $12.7M in FY2022, rebounded to $49.5M in FY2024, and then fell to -$11.8M in FY2025. Net income dropped to -$33.1M in FY2025 following a profit of $28.4M in FY2024. For the trailing twelve months ended June 30, 2026, revenue stood at $35.7M with a profit margin of -62.2% and an EPS of -$1.65. In the latest quarter, quarterly revenue fell 34.7% year-over-year, while quarterly earnings dropped 6.3%.

As of June 30, 2026, OFS held $4.0M in cash and short-term investments against $183.5M in total debt, resulting in net debt of $179.5M. Shareholders' equity was $112.6M, yielding a debt-to-equity ratio of 1.63 and a current ratio of 0.70. Operating cash flow reached $43.6M in FY2025, which matched free cash flow. In FY2025, the company paid $15.9M in dividends, while its share count declined 0.2% over a 5-year period.

At a share price of $3.93, OFS has a market cap of $52.7M and an enterprise value of $232.2M. The stock trades at a forward P/E of 9.2x, below the 10.8x median of its US-listed Financial Services peers. Its price-to-sales ratio is 1.5x compared to the peer median of 3.2x, while its price-to-book ratio is 0.4x. Over the past year, OFS shares fell 32.3%, significantly trailing the S&P 500 return of 16.8%. Over five years, the stock returned -29.1% versus an 83.0% gain for the benchmark.

OFS pays a quarterly dividend with an annualized forward payout of $0.68 per share, translating to a dividend yield of 17.30%. The company has paid dividends for 14 consecutive years and delivered a 5-year annualized dividend growth rate of 6.7%. Its payout ratio is 100.0%, and the last ex-dividend date was September 18, 2026.

Wall Street coverage includes 1 analyst with a Hold rating, and zero Buy or Sell ratings. The mean price target is $5.00, representing 27.2% upside from the last close of $3.93. For the fiscal year ending December 31, 2026, analysts estimate revenue of $30.0M and EPS of $0.48, representing a 47.8% EPS decline. OFS posted 0 earnings beats over the last 4 quarters, and the next earnings date is October 29, 2026.

This page is an AI-written research summary of OFS Capital Corporation (OFS). 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.

Related: OFS income statement, OFS balance sheet, OFS key metrics, OFS analyst forecast, OFS chart. See the OFS stock overview for the latest quote and news.