ECC Capital Corp

ECC Capital Corp has a highly leveraged capital structure, with a debt-to-equity ratio of 18.56, indicating a significant reliance on debt financing. The company's liquidity position is rated as medium, with only $16.53 million in cash and equivalents, which is far below the $2.15 billion in total liabilities. This imbalance suggests a potential liquidity risk, especially given the negative net cash position after subtracting total debt.

In terms of profitability, the company reported a net loss of $7.01 million and an operating loss of $17.95 million in the latest period. The return on equity is negative at -6.2%, which is significantly below the industry median for investment management firms. This underperformance highlights a lack of effective capital utilization and poor returns for shareholders.

The company's revenue is not segmented by product or geography in the available data, making it difficult to assess the concentration of risk in specific markets or business lines. However, the negative net income and operating income suggest that the company is struggling to generate consistent earnings from its core operations.

Looking ahead, the company's growth trajectory is uncertain. The latest actual revenue was $30.65 million, but there is no indication of a clear growth path or improvement in profitability. The operating cash flow of $111.25 million is a positive sign, but it is not sufficient to offset the net loss and the high debt burden.

The risk assessment indicates a medium liquidity risk and a low dilution risk. The key flag of negative net cash after subtracting total debt underscores the company's financial instability. The dilution potential is low, but the company's high debt-to-equity ratio and negative net income suggest that it may need to raise additional capital in the future, which could lead to further dilution.

Recent events, such as the latest actual EPS of -$1.35 and the reported financial losses, indicate ongoing challenges in the company's operations. There are no recent filings or transcripts provided that offer additional insight into the company's strategic direction or operational improvements.

Net income surged 116.3% year-over-year to $1.18 million, demonstrating significant recent profitability improvement.

Total assets grew 17.1% year-over-year, indicating successful balance sheet expansion despite revenue declines.

The company faces only low dilution and credit risk levels according to current risk assessments.

Debt-to-equity ratio stands at 18.56, vastly exceeding the cohort median of 0.03.

Return on equity is negative 6.2%, placing the firm in the bottom quartile of peers.

Equity trend shows a negative balance of $256.8 million, reflecting substantial accumulated losses.

Cash conversion is -158.74, ranking in the bottom quartile compared to the cohort median.

Operating income −311,7% YoY; Net income −252,8% YoY.

• ▍Operating income −311,7% YoY
• ▍Net income −252,8% YoY

Operating income +15,5% YoY; Net income +25,2% YoY.

• ▍Operating income +15,5% YoY
• ▍Net income +25,2% YoY

Operating income −194,2% YoY; Net income −653,6% YoY.

• ▍Operating income −194,2% YoY
• ▍Net income −653,6% YoY

Operating income -$17.0M.

• ▍Operating income -$17.0M

Operating income -$53.2M.

• ▍Operating income -$53.2M

Operating income -$17.9M.

• ▍Operating income -$17.9M

Revenue $8.4M, −6,6% YoY; Net income +8 682,7% YoY.

• ▍Revenue $8.4M, −6,6% YoY
• ▍Net income +8 682,7% YoY
• ▍Net margin 1228.1%

Revenue $10.6M, −10,5% YoY; Net income +8 236,0% YoY.

• ▍Revenue $10.6M, −10,5% YoY
• ▍Net income +8 236,0% YoY
• ▍Net margin 120.8%

Revenue $11.8M, −17,6% YoY; Operating income +105,7% YoY.

• ▍Revenue $11.8M, −17,6% YoY
• ▍Operating income +105,7% YoY
• ▍Net income +102,1% YoY
• ▍Free cash flow +107,4% YoY
• ▍Net margin 1.3%