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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.04
FSC's Cash to Debt is ranked higher than
54% of the 124 Companies
in the Global Credit Services industry.

( Industry Median: 0.12 vs. FSC: 0.04 )
FSC' s 10-Year Cash to Debt Range
Min: 0.04   Max: No Debt
Current: 0.04

Equity to Asset 0.56
FSC's Equity to Asset is ranked higher than
91% of the 121 Companies
in the Global Credit Services industry.

( Industry Median: 0.25 vs. FSC: 0.56 )
FSC' s 10-Year Equity to Asset Range
Min: 0.56   Max: 0.99
Current: 0.56

0.56
0.99
Interest Coverage 3.43
FSC's Interest Coverage is ranked higher than
72% of the 110 Companies
in the Global Credit Services industry.

( Industry Median: 3.32 vs. FSC: 3.43 )
FSC' s 10-Year Interest Coverage Range
Min: 3.43   Max: 26.67
Current: 3.43

3.43
26.67
F-Score: 2
Z-Score: 0.90
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 61.10
FSC's Operating margin (%) is ranked higher than
93% of the 129 Companies
in the Global Credit Services industry.

( Industry Median: 25.26 vs. FSC: 61.10 )
FSC' s 10-Year Operating margin (%) Range
Min: 10.07   Max: 62.71
Current: 61.1

10.07
62.71
Net-margin (%) 54.12
FSC's Net-margin (%) is ranked higher than
96% of the 131 Companies
in the Global Credit Services industry.

( Industry Median: 16.25 vs. FSC: 54.12 )
FSC' s 10-Year Net-margin (%) Range
Min: 10.07   Max: 55.97
Current: 54.12

10.07
55.97
ROE (%) 7.44
FSC's ROE (%) is ranked higher than
64% of the 132 Companies
in the Global Credit Services industry.

( Industry Median: 11.35 vs. FSC: 7.44 )
FSC' s 10-Year ROE (%) Range
Min: 1.11   Max: 8.79
Current: 7.44

1.11
8.79
ROA (%) 4.91
FSC's ROA (%) is ranked higher than
84% of the 133 Companies
in the Global Credit Services industry.

( Industry Median: 2.80 vs. FSC: 4.91 )
FSC' s 10-Year ROA (%) Range
Min: 1.09   Max: 5.72
Current: 4.91

1.09
5.72
Revenue Growth (%) 1.70
FSC's Revenue Growth (%) is ranked higher than
60% of the 113 Companies
in the Global Credit Services industry.

( Industry Median: 5.80 vs. FSC: 1.70 )
FSC' s 10-Year Revenue Growth (%) Range
Min: -8.4   Max: 4.7
Current: 1.7

-8.4
4.7
EBITDA Growth (%) 0.70
FSC's EBITDA Growth (%) is ranked higher than
63% of the 97 Companies
in the Global Credit Services industry.

( Industry Median: 10.10 vs. FSC: 0.70 )
FSC' s 10-Year EBITDA Growth (%) Range
Min: -9   Max: 13.2
Current: 0.7

-9
13.2
EPS Growth (%) 20.60
FSC's EPS Growth (%) is ranked higher than
79% of the 94 Companies
in the Global Credit Services industry.

( Industry Median: 17.30 vs. FSC: 20.60 )
FSC' s 10-Year EPS Growth (%) Range
Min: 20.6   Max: 53.8
Current: 20.6

20.6
53.8
» FSC's 10-Y Financials

Financials


Revenue & Net Income
Equity & Asset
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

FSC Guru Trades in Q1 2013

Jeremy Grantham 44,954 sh (+22.16%)
David Einhorn 1,998,692 sh (unchged)
Whitney Tilson Sold Out
» More
Q2 2013

FSC Guru Trades in Q2 2013

David Einhorn 1,998,692 sh (unchged)
Jeremy Grantham 40,754 sh (-9.34%)
» More
Q3 2013

FSC Guru Trades in Q3 2013

George Soros 180,600 sh (New)
David Einhorn 1,998,692 sh (unchged)
Jeremy Grantham 32,854 sh (-19.38%)
» More
Q4 2013

FSC Guru Trades in Q4 2013

Paul Tudor Jones 80,496 sh (New)
Zeke Ashton 150,000 sh (New)
David Einhorn 1,998,692 sh (unchged)
George Soros Sold Out
Jeremy Grantham 30,554 sh (-7%)
» More
» Details

Insider Trades

Latest Guru Trades with FSC

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
George Soros 2013-12-31 Sold Out 0.02%$9.01 - $10.36 $ 9.39-5%0
George Soros 2013-09-30 New Buy0.02%$10.2 - $10.96 $ 9.39-11%180600
Ruane Cunniff 2011-06-30 Sold Out 0.03%$11.51 - $13.42 $ 9.39-25%0
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Top Ranked Articles about Fifth Street Finance Corporation

Weekly CEO Buys Highlight: BXP, FSC, MDU, RENT, KAMN
According to GuruFocus Insider Data , these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below: Read more...
Three CEOs Reporting $100 Thousand Insider Buys
This past week we saw CEOs from three different companies reporting insider buys with transaction amounts costing over $100,000. Fifth Street Finance (FSC) Read more...
CEO of Fifth Street Finance Corporation Leonard M. Tannenbaum Bought 20,000 Shares
Fifth Street Finance Corp. is a Delaware Corporation. Fifth Street Finance Corporation has a market cap of $1.23 billion; its shares were traded at around $10.04 with a P/E ratio of 10.10 and P/S ratio of 6.10. The dividend yield of Fifth Street Finance Corporation stocks is 11.50%. Fifth Street Finance Corporation had an annual average earnings growth of 36.7% over the past 5 years. Articles on GuruFocus.COM CEO of Fifth Street Finance Corporation (FSC) Leonard M Tannenbaum bought 20,000 shares on June 20, 2013 at an average price of $9.94. The total transaction amount was $198,800. Read more...
David Einhorn's Most Active Insider Stocks
As Peter Lynch has been quoted as saying many times: “Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.” So when insiders and gurus both buy into a company, it’s time to take notice. As a previous article written by GuruFocus discusses, insider buys of undervalued companies can sometimes lead to large gains, and value Gurus tend to buy stocks that are undervalued. So by finding the stocks that Gurus and insiders are buying, you increase your chance of finding a winner. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 9.70
FSC's P/E(ttm) is ranked higher than
77% of the 118 Companies
in the Global Credit Services industry.

( Industry Median: 12.40 vs. FSC: 9.70 )
FSC' s 10-Year P/E(ttm) Range
Min: 9.5   Max: 238.48
Current: 9.7

9.5
238.48
P/B 1.00
FSC's P/B is ranked higher than
80% of the 132 Companies
in the Global Credit Services industry.

( Industry Median: 1.40 vs. FSC: 1.00 )
FSC' s 10-Year P/B Range
Min: 0.43   Max: 1.34
Current: 1

0.43
1.34
P/S 5.90
FSC's P/S is ranked lower than
71% of the 126 Companies
in the Global Credit Services industry.

( Industry Median: 2.50 vs. FSC: 5.90 )
FSC' s 10-Year P/S Range
Min: 2.69   Max: 20.85
Current: 5.9

2.69
20.85
EV-to-EBIT 19.20
FSC's EV-to-EBIT is ranked higher than
55% of the 119 Companies
in the Global Credit Services industry.

( Industry Median: 16.90 vs. FSC: 19.20 )
FSC' s 10-Year EV-to-EBIT Range
Min: 10   Max: 75
Current: 19.2

10
75
PEG 1.30
FSC's PEG is ranked lower than
51% of the 80 Companies
in the Global Credit Services industry.

( Industry Median: 1.09 vs. FSC: 1.30 )
FSC' s 10-Year PEG Range
Min: 0   Max: 8.42
Current: 1.3

0
8.42
Shiller P/E 16.60
FSC's Shiller P/E is ranked higher than
62% of the 76 Companies
in the Global Credit Services industry.

( Industry Median: 18.31 vs. FSC: 16.60 )
FSC' s 10-Year Shiller P/E Range
Min: 16.14   Max: 17.05
Current: 16.6

16.14
17.05

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 11.20
FSC's Dividend Yield is ranked higher than
96% of the 96 Companies
in the Global Credit Services industry.

( Industry Median: 2.24 vs. FSC: 11.20 )
FSC' s 10-Year Dividend Yield Range
Min: 5.5   Max: 19.35
Current: 11.2

5.5
19.35
Dividend Payout 1.20
FSC's Dividend Payout is ranked lower than
68% of the 87 Companies
in the Global Credit Services industry.

( Industry Median: 0.31 vs. FSC: 1.20 )
FSC' s 10-Year Dividend Payout Range
Min: 0.95   Max: 2.75
Current: 1.2

0.95
2.75
Dividend growth (3y) 1.80
FSC's Dividend growth (3y) is ranked higher than
64% of the 72 Companies
in the Global Credit Services industry.

( Industry Median: 9.40 vs. FSC: 1.80 )
FSC' s 10-Year Dividend growth (3y) Range
Min: 0.6   Max: 28.2
Current: 1.8

0.6
28.2
Yield on cost (5-Year) 11.60
FSC's Yield on cost (5-Year) is ranked higher than
88% of the 98 Companies
in the Global Credit Services industry.

( Industry Median: 2.94 vs. FSC: 11.60 )
FSC' s 10-Year Yield on cost (5-Year) Range
Min: 5.7   Max: 20.04
Current: 11.6

5.7
20.04
Share Buyback Rate -37.50
FSC's Share Buyback Rate is ranked lower than
58% of the 98 Companies
in the Global Credit Services industry.

( Industry Median: -1.50 vs. FSC: -37.50 )
FSC' s 10-Year Share Buyback Rate Range
Min: -37.5   Max: -64.1
Current: -37.5

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.00
FSC's Price/Tangible Book is ranked higher than
78% of the 127 Companies
in the Global Credit Services industry.

( Industry Median: 1.70 vs. FSC: 1.00 )
FSC' s 10-Year Price/Tangible Book Range
Min: 0.63   Max: 1.25
Current: 1

0.63
1.25
Price/Median PS Value 0.90
FSC's Price/Median PS Value is ranked higher than
83% of the 119 Companies
in the Global Credit Services industry.

( Industry Median: 1.20 vs. FSC: 0.90 )
FSC' s 10-Year Price/Median PS Value Range
Min: 0.73   Max: 3.11
Current: 0.9

0.73
3.11
Price/Graham Number 0.70
FSC's Price/Graham Number is ranked higher than
75% of the 116 Companies
in the Global Credit Services industry.

( Industry Median: 0.90 vs. FSC: 0.70 )
FSC' s 10-Year Price/Graham Number Range
Min: 0.68   Max: 2.5
Current: 0.7

0.68
2.5
Earnings Yield (Greenblatt) 5.20
FSC's Earnings Yield (Greenblatt) is ranked higher than
57% of the 127 Companies
in the Global Credit Services industry.

( Industry Median: 5.50 vs. FSC: 5.20 )
FSC' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.3   Max: 10
Current: 5.2

1.3
10
Forward Rate of Return (Yacktman) -42.69
FSC's Forward Rate of Return (Yacktman) is ranked lower than
54% of the 102 Companies
in the Global Credit Services industry.

( Industry Median: 12.04 vs. FSC: -42.69 )
FSC' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -56.3   Max: -49.3
Current: -42.69

-56.3
-49.3

Business Description

Industry: Credit Services » Credit Services
Compare: » details
Traded in other countries:FFC.Germany
Fifth Street Finance Corp. is a Delaware Corporation. The Company is a specialty finance company that lends to and invests in small and mid-sized companies in connection with investments by private equity sponsors. The Company focusses its origination efforts on first lien loans. It is an externally managed, closed-end, non-diversified management investment company. It typically focuses on companies with a history of profitability on an operating cash flow basis. It also seeks to invest in companies that have proper incentives in place, including having significant equity interests, to motivate management to act in accordance with its interests. Its deal originating efforts are focused on building relationships with private equity sponsors that are focused on investing in the small and mid-sized companies that it targets. It makes its investment decisions only after consideration of a number of factors regarding the potential investment including, but not limited to: historical and projected financial performance; company and industry specific characteristics, such as strengths, weaknesses, opportunities and threats; composition and experience of the management team; and track record of the private equity sponsor the transaction.

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