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OFS Capital Corp (OFS)



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Upturn Advisory Summary
08/14/2025: OFS (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $9
1 Year Target Price $9
0 | Strong Buy |
0 | Buy |
1 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -4.56% | Avg. Invested days 56 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 111.20M USD | Price to earnings Ratio 10.92 | 1Y Target Price 9 |
Price to earnings Ratio 10.92 | 1Y Target Price 9 | ||
Volume (30-day avg) 1 | Beta 1.4 | 52 Weeks Range 6.66 - 9.14 | Updated Date 08/15/2025 |
52 Weeks Range 6.66 - 9.14 | Updated Date 08/15/2025 | ||
Dividends yield (FY) 16.43% | Basic EPS (TTM) 0.76 |
Earnings Date
Report Date 2025-07-30 | When Before Market | Estimate 0.23 | Actual 0.25 |
Profitability
Profit Margin 23.64% | Operating Margin (TTM) 68.01% |
Management Effectiveness
Return on Assets (TTM) 4.68% | Return on Equity (TTM) 6.82% |
Valuation
Trailing PE 10.92 | Forward PE 9.2 | Enterprise Value 342899072 | Price to Sales(TTM) 2.57 |
Enterprise Value 342899072 | Price to Sales(TTM) 2.57 | ||
Enterprise Value to Revenue 24.51 | Enterprise Value to EBITDA - | Shares Outstanding 13398100 | Shares Floating - |
Shares Outstanding 13398100 | Shares Floating - | ||
Percent Insiders 22.58 | Percent Institutions 10.79 |
Upturn AI SWOT
OFS Capital Corp

Company Overview
History and Background
OFS Capital Corp. was founded in 2001 and is a specialty finance company that provides capital solutions to lower middle-market companies. The company has evolved over time by adapting its investment strategies to changing market conditions and expanding its range of services.
Core Business Areas
- Direct Lending: OFS Capital provides direct lending solutions, including senior secured loans, unitranche loans, and mezzanine debt, to support acquisitions, growth capital, and recapitalizations of lower middle-market companies.
- Structured Credit: The firm also engages in structured credit investments, which may include collateralized loan obligations (CLOs) and other debt securities.
- Equity Investments: OFS also takes equity positions in its portfolio companies in connection with its debt investments.
Leadership and Structure
OFS Capital Corp. is led by its senior management team, which is headed by its Chief Executive Officer. The company's organizational structure includes investment teams focused on direct lending and structured credit, along with support functions such as finance, operations, and compliance.
Top Products and Market Share
Key Offerings
- Senior Secured Loans: Senior secured loans are a primary offering. OFS lends to privately held companies. Competitors include other Business Development Companies (BDCs) and private credit funds. Market share data for specific loans is not readily available and varies significantly based on individual deals.
- Unitranche Loans: Unitranche loans, a blend of senior and subordinated debt, are another key product. Competitors are similar to those for senior secured loans. Market share data is not readily available.
- Mezzanine Debt: Mezzanine debt provides higher yield opportunities. Competitors are similar to those for senior secured loans and unitranche loans. Market share data is not readily available.
Market Dynamics
Industry Overview
The specialty finance industry is driven by the demand for capital from lower middle-market companies that may have limited access to traditional bank financing. The industry is competitive, with a wide range of participants, including BDCs, private credit funds, and other alternative lenders.
Positioning
OFS Capital Corp. positions itself as a provider of flexible capital solutions to lower middle-market companies. Its competitive advantages include its experienced investment team, its ability to provide customized financing solutions, and its established relationships with borrowers and intermediaries.
Total Addressable Market (TAM)
The TAM for private credit in the lower middle market is estimated to be in the hundreds of billions of dollars. OFS Capital Corp. is a smaller player in this market, positioned to capture a portion of this large market.
Upturn SWOT Analysis
Strengths
- Experienced Management Team
- Established Relationships with Borrowers
- Flexible Capital Solutions
- Disciplined Underwriting Process
Weaknesses
- Smaller Size Compared to Larger BDCs
- Sensitivity to Economic Downturns
- Dependence on Key Personnel
- Higher Cost of Capital than Larger BDCs
Opportunities
- Increasing Demand for Private Credit
- Expanding into New Verticals
- Strategic Acquisitions
- Increased Focus on ESG Investing
Threats
- Increased Competition
- Economic Recession
- Rising Interest Rates
- Regulatory Changes
Competitors and Market Share
Key Competitors
- Main Street Capital (MAIN)
- Ares Capital Corporation (ARCC)
- Prospect Capital Corporation (PSEC)
Competitive Landscape
OFS Capital Corp. faces competition from larger BDCs and private credit funds. Its advantages include its focus on the lower middle market and its flexible capital solutions. Its disadvantages include its smaller size and higher cost of capital.
Growth Trajectory and Initiatives
Historical Growth: Historical growth trends can be assessed by examining OFS Capital Corp.'s past financial performance. Check annual reports and investor presentations for detailed information.
Future Projections: Analyst estimates for future growth depend on various factors. Consult financial news and analyst reports for current projections.
Recent Initiatives: Recent initiatives may include new investment strategies, partnerships, or acquisitions. Refer to OFS Capital Corp.'s press releases and investor relations materials.
Summary
OFS Capital Corp. is a specialty finance company focused on providing capital to lower middle-market businesses. The firm has a well-rounded and experienced management team. The firm has a smaller market share and high sensitivity to economic downturns. The company should focus on the increasing demand for private credit and strategic acquisitions.
Peer Comparison
Sources and Disclaimers
Data Sources:
- OFS Capital Corp. Investor Relations
- SEC Filings (10-K, 10-Q)
- Financial News Outlets
- Market Research Reports
- Competitor Public Filings
Disclaimers:
The information provided is for informational purposes only and should not be considered investment advice. Market data and analyst estimates are subject to change. Consult with a qualified financial advisor before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About OFS Capital Corp
Exchange NASDAQ | Headquaters Chicago, IL, United States | ||
IPO Launch date 2012-11-08 | Chairman & CEO Mr. Bilal Rashid | ||
Sector Financial Services | Industry Asset Management | Full time employees 53 | Website https://www.ofscapital.com |
Full time employees 53 | Website https://www.ofscapital.com |
OFS Capital Corporation is a business development company specializing in direct and fund investments as well as add-on acquisitions. It provides flexible capital solutions primarily through debt capital and to a lesser extent, minority equity investments serving the needs of U.S.-based middle-market companies across a broad array of industries. It does not invest in operational turnarounds or start-up businesses. For direct, it specializes in debt and structured equity investments, recapitalizations and refinancing, management and leveraged buyouts, acquisition financings, ownership transition, shareholder liquidity events, growth capital, independent sponsor transactions, ESOPs, and minority investments in the lower middle market companies. It invests in the aerospace and defense, business services, consumer products and services, construction & building, durable goods, capital equipment, automotive, food and beverage, healthcare & pharmaceutical, specialty chemicals, transportation cargo and logistics, value added distribution, franchising, and industrial and niche manufacturing sectors. The firm invests in companies based in United States. It seeks to invest between $3 million and $35 million, revenues between $15 million and $300 million, annual EBITDA between $5 million and $50 million, and Enterprise value between $10 million and $500 million. The firm seeks to invest in companies with debt investment values between $5 million and $25 million. The fund uses senior secured, unitranche loans, first-lien, second lien, subordinated/ mezzanine loans, warrants, and preferred equity securities and common equity securities. It prefers to take a minority as well as majority stake in the investments made. It also co-invests with its partners for additional capital.

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