WhiteHorse Finance
🇺🇸 WHF · NYSE/NASDAQ · US96524V1061
Bank
USD 7.29 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
10.5
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 7.29 ÷ 0.69 = 10.5
TTM period through: 2026-03-31
Forward P/E (estimated): 7.5
Based on analyst estimates
Reference: Provider P/E (Trailing): 17.8
Yield (Fwd)
17.56%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 13.67%
Div. Growth (5Y CAGR)
0.4%
Net Debt/EBITDA (TTM)
18.4x
Latest quarter: 63.8x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 63.8x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
184.7%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 255.3%
Cash Flow Payout (TTM): 34.2%
FCF Coverage (TTM): 4.02x
ROE
5.2%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
6.5x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
WhiteHorse Finance operates as a Business Development Company providing mid-market debt financing. The stock exhibits structurally declining fundamentals that make its optically high yield a severe value trap, highlighted by a confirmed upcoming 19% dividend cut and ongoing portfolio credit losses. This is not recommended for new positions, as the risks of permanent capital destruction far outweigh the apparent discount to NAV.
Sector Context
WhiteHorse Finance operates as a Business Development Company (BDC), providing debt financing to mid-market companies. In the BDC sector, persistent Net Asset Value (NAV) declines and realized credit losses are severe red flags for structural deterioration, often making optically high dividend yields unsustainable.
📊 Strategy Analysis
- • The discount to NAV (-35.4%) is justified by continued credit deterioration and recent net losses driven by realized and unrealized portfolio markdowns.
- • Long-term earnings power is deteriorating, evidenced by a 5-year EPS CAGR of -15.3% and a contracting net margin profile.
- • The optical double-digit yield is a value trap, confirmed by the upcoming 19% dividend reduction and a history of previous cuts.
⚠ What to Watch
- • A confirmed upcoming 19.0% dividend reduction indicates the current payout is entirely unsustainable.
- • Recurring realized and unrealized portfolio markdowns signal permanent capital destruction rather than cyclical fluctuations.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-05-16
Disclaimer: This information is for educational purposes only. Not financial advice.