PhenixFIN Corp (NASDAQ: PFX)

Sector: Financial Services Industry: Asset Management CIK: 0001490349
Market Cap 86.09 Mn
P/B 0.55
P/E -27.96
P/S 3.35
ROIC (Qtr) 5.68
Div Yield % 3.34
Rev 1y % (Qtr) 7.14
Total Debt (Qtr) 146.54 Mn
Debt/Equity (Qtr) 0.94
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About

PhenixFIN Corp, also known as PFX, is a business development company (BDC) that operates as an internally-managed non-diversified closed-end management investment company within the investment industry. The company's primary objective is to generate current income and capital appreciation through making loans, private equity, or other investments in privately-held companies. PhenixFIN's investment process begins with sourcing and origination, where senior investment professionals leverage their experience and relationships to identify potential...

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Investment thesis

Bull case

  • Cash reserves of 3.41M provide comfortable 19.07x coverage of tax obligations 178690, showing strong fiscal management.
  • Cash position of 3.41M fully covers payables of 2.35M by 1.45x, showing strong vendor relationship management.
  • Tangible assets of 307.38M provide robust 125.32x coverage of receivables 2.45M, showing strong asset quality.

Bear case

  • Operating cash flow of (3.10M) provides thin coverage of dividend payments of (2.89M) with a 1.07 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating cash flow of (3.10M) provides minimal -14.53x coverage of tax expenses of 213219, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating cash flow of (3.10M) barely covers operating expenses of 325226 with a -9.52 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Free cash flow of (3.10M) represents just -0.72x of debt issuance 4.33M, suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • R&D investment of 0 represents just 0x of SG&A expenses of 9.57M, indicating potential underinvestment in innovation relative to administrative overhead.

Peer comparison

Companies in the Asset Management
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BLK BlackRock, Inc. 199.59 Bn 85.40 21.98 15.04 Bn
2 BN BROOKFIELD Corp /ON/ 103.94 Bn 31.52 5.64 262.97 Bn
3 AMP Ameriprise Financial Inc 88.69 Bn 55.02 7.20 5.89 Bn
4 BX Blackstone Inc. 88.51 Bn 49.39 10.93 12.89 Bn
5 KKR KKR & Co. Inc. 55.86 Bn 28.33 13.23 53.12 Bn
6 STT State Street Corp 46.52 Bn 21.77 3.91 34.72 Bn
7 NTRS Northern Trust Corp 34.14 Bn 33.31 6.71 15.64 Bn
8 RJF Raymond James Financial Inc 32.89 Bn 37.63 4.14 5.10 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.74 0.94
EV to Cash from Ops. EV/CFO -73.23 41.10
EV to Debt EV to Debt 1.55 15.28
EV to EBIT EV/EBIT 31.07 23.47
EV to EBITDA EV/EBITDA 14.35 47.80
EV to Free Cash Flow [EV/FCF] EV/FCF -73.23 38.62
EV to Market Cap EV to Market Cap 2.63 7.81
EV to Revenue EV/Rev 8.82 27.38
Price to Book Value [P/B] P/B 0.55 2.34
Price to Earnings [P/E] P/E -27.96 11.81
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -1.07 4.66
Dividend Payout Ratio % Div Payout % (Qtr) -93.50 -5.56
Dividend per Basic Share Div per Share (Qtr) 1.43 1.73
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -92.44 49.83
Interest Coverage Int. cover (Qtr) 0.72 25.16
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -35.10
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -52.60 15.43
Dividend Growth (1y) % Div 1y % (Qtr) 9.16 1.65
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -68.11 -90.82
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 28.89 35.24
EBIT Growth (1y) % EBIT 1y % (Qtr) -68.64 -22.13
EBT Growth (1y) % EBT 1y % (Qtr) -118.30 -163.05
EPS Growth (1y) % EPS 1y % (Qtr) -118.77 -20.61
FCF Growth (1y) % FCF 1y % (Qtr) 94.56 220.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 13.36 -53.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.08 0.22
Cash Payout Ratio Cash Payout (Qtr) -0.93 0.36
Cash Ratio Cash Ratio 0.00 0.38
Current Ratio Current Ratio 0.00 0.86
Debt to Equity Ratio Debt/Equity (Qtr) 0.94 0.70
Interest Cover Ratio Int Coverage (Qtr) 0.72 25.16
Times Interest Earned Times Interest Earned (Qtr) 0.72 25.16
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 28.40 -114.76
EBIT Margin % EBIT Margin % (Qtr) 28.40 -127.24
EBT Margin % EBT Margin % (Qtr) -11.15 -150.97
Gross Margin % Gross Margin % (Qtr) 100.00 67.88
Net Profit Margin % Net Margin % (Qtr) -12.00 -148.68