WhiteHorse Finance
🇺🇸 WHF · NYSE/NASDAQ · US96524V1061
Bank
USD 7.40 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
12.0
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: 7.40 ÷ 0.62 = 12.0
TTM period through: 2025-12-31
Forward P/E (estimated): 7.0
Based on analyst estimates
Reference: Provider P/E (Trailing): 11.9
Yield (Fwd)
17.30%
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): 19.76%
Net Debt/EBITDA (TTM)
7.9x
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: 2025-12-31
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)
206.9%
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): 189.8%
FCF Coverage (TTM): 0.53x
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 provides mid-market debt financing but exhibits deteriorating fundamentals that make its extraordinary 19.76% yield a severe value trap. With a confirmed upcoming 28.3% dividend reduction, declining long-term earnings, and inadequate cash flow coverage, the business model is struggling under portfolio markdowns. Not recommended for new positions, as the structural risks far outweigh the superficial yield.
Sector Context
WhiteHorse Finance operates in the banking sector, specifically functioning as a business development company that provides debt financing to mid-market enterprises. While the traditional banking sector can offer stable dividends, companies focused on higher-risk middle-market lending face significant cyclical credit exposure and NAV volatility, making them highly vulnerable during times of spread compression and economic uncertainty.
📊 Strategy Analysis
- • Trades at a steep discount to book value with a P/B of 0.66, reflecting the market's severe discounting of its asset quality.
- • The Debt/Equity ratio sits at 1.25, which is relatively constrained and demonstrates some deleveraging from historical levels.
⚠ What to Watch
- • Management has announced a severe 28.3% upcoming dividend reduction, confirming that the extraordinary 19.76% TTM yield is unsustainable and a clear value trap.
- • Long-term fundamental deterioration is evident with a 5-year EPS CAGR of -15.3% and contracting net margins.
- • The dividend distribution is severely uncovered by operations, suffering from a free cash flow coverage ratio of just 0.53 and a cash flow payout ratio of 189.84%.
- • Recent quarters feature significant net losses driven by realized and unrealized markdowns on specific portfolio investments, consistently eroding net asset value.
📊 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: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.