The ratio of debt to operating expenses for THL Credit Inc is higher than it is for about 97.99% of US stocks.
In terms of twelve month growth in earnings before interest and taxes, THL Credit Inc is reporting a growth rate of 3,930.51%; that's higher than 99.62% of US stocks.
THL Credit Inc's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is 82.02%, greater than the shareholder yield of 95.9% of stocks in our set.
Stocks that are quantitatively similar to TCRD, based on their financial statements, market capitalization, and price volatility, are OXSQ, BPY, SAR, NGD, and HRZN.
TCRD's SEC filings can be seen here. And to visit THL Credit Inc's official web site, go to www.thlcredit.com.
THL Credit is a direct lender to middle-market companies and invests in first lien and second lien loans, including through unitranche investments, as well as subordinated debt, which may include an associated equity component, such as warrants, preferred stock or similar securities. The Company also makes direct equity investments. The company was founded in 2004 and is based in Boston, Massachusetts.
TCRD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for THL Credit Inc. To summarize, we found that THL Credit Inc ranked in the 84th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 742.83%. The most interesting components of our discounted cash flow analysis for THL Credit Inc ended up being:
33% of the company's capital comes from equity, which is greater than only 16.37% of stocks in our cash flow based forecasting set.
THL Credit Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -6.74. This coverage rate is greater than that of only 8.3% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, THL Credit Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Financial Services), this tax rate is higher than only 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
FOCS, AFG, PSEC, GAIN, and FNF can be thought of as valuation peers to TCRD, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
On April 20, 2020 THL Credit, Inc. (TCRD) (the “Company") sent the following letter to its stockholders to provide notice of its $30 million stock issuance and a business and financial performance update. Given the uncertainty and volatility in the market, we wanted to take this opportunity to provide an update on TCRD. As you may recall, in December we announced the entry into a definitive agreement with respect to the acquisition of the advisor of THL Credit, Inc. (“TCRD”) by First Eagle Investment Management (“FEIM”).