OXSQ Intrinsic Value Calculation – OXFORD SQUARE CAPITAL Shuns 14.5% Yielding BDC Investment Opportunity

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OXFORD SQUARE CAPITAL ($NASDAQ:OXSQ), a leading asset management firm, has recently taken a stance against one particular Business Development Company (BDC) offering a 14.5%, unusually high, yield. Through their research, they have determined that this BDC is not a wise investment for their clients at this time. Oxford Square Capital is a public investment company that manages assets across public and private markets. They have offices in New York, Los Angeles, San Francisco, and London.

Oxford Square Capital is dedicated to providing its clients with comprehensive and reliable asset management services. They strive to provide their clients with the best returns possible through strategic investments.

Analysis – OXSQ Intrinsic Value Calculation

At GoodWhale, we have conducted an analysis of OXFORD SQUARE CAPITAL’s wellbeing. Our proprietary Valuation Line has computed the intrinsic value of OXFORD SQUARE CAPITAL’s share to be $3.4. Currently, OXFORD SQUARE CAPITAL’s stock is traded at $2.9, which is a fair price but is undervalued by 13.9%. Investing in this stock might be a good opportunity to get an additional return on your investment. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for OXSQ. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for OXSQ. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for OXSQ. More…

Key Ratios Snapshot

Some of the financial key ratios for OXSQ are shown below. More…

Peers

Oxford Square Capital Corp, Princeton Capital Corp, Ares Capital Corp, and OFS Capital Corp are all private equity firms. They compete for the same deals and usually invest in the same types of companies.

– Princeton Capital Corp ($OTCPK:PIAC)

Princeton Capital Corp is a publicly traded company with a market capitalization of $42.17 million as of 2022. The company has a negative return on equity of -2.24%. Princeton Capital Corp is a financial services company that provides a range of services including investment banking, asset management, and merchant banking.

– Ares Capital Corp ($NASDAQ:ARCC)

Ares Capital Corporation is a closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. Ares Capital makes investments primarily in middle-market companies in the U.S. and Europe through senior secured loans, mezzanine debt, and equity investments.

– OFS Capital Corp ($NASDAQ:OFS)

PFS Capital Corp’s market cap as of 2022 is 139.96M. The company’s ROE is 2.34%. PFS Capital Corp is a financial services company that provides investment banking and capital markets services to small and medium-sized enterprises.

Summary

Oxford Square Capital (OXSQ) is an investment company that offers investors a 14.5% yield.

However, many analysts have advised against investing in OXSQ due to its high risk profile. OXSQ’s portfolio consists primarily of debt and equity securities of middle market companies. OXSQ has a high debt-to-equity ratio, indicating leverage, and high dividend payout ratios, suggesting it may be paying out more than it is able to generate income. Furthermore, OXSQ does not provide sufficient transparency into its operations, such as loan portfolio performance and capital markets activity.

Additionally, the company has made some questionable investments in the past that have not performed well. As a result, investors should consider the potential risks associated with investing in OXSQ and take caution before investing in this high-yielding stock.