Oxford Square Capital Corp. 5.50% Notes due 2028 (OXSQG) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Oxford Square Capital Corp. 5.50% Notes due 2028 (OXSQG) Financial Services Profile

Oxford Square Capital Corp. 5.50% Notes due 2028 (OXSQG) is a business development company specializing in providing capital to technology firms with revenues under $200 million, offering investors a high dividend yield within the asset management sector, but carries a negative profit margin.

What Is the Investment Thesis for OXSQG?

Investing in Oxford Square Capital Corp. 5.50% Notes due 2028 (OXSQG) presents a high-yield opportunity with a dividend yield of 24.63%. However, potential investors must carefully consider the company's negative profit margin of -155.4%. OXSQG's focus on providing capital to technology-related companies with revenues under $200 million offers exposure to a potentially high-growth sector. The company's beta of 0.55 suggests lower volatility compared to the broader market. A key value driver is OXSQG's ability to identify and support promising technology ventures, leading to capital appreciation and income generation. Upcoming catalysts include potential improvements in operational efficiency and strategic partnerships that could enhance profitability. Potential risks include adverse changes in interest rates and increased competition in the business development company landscape.

Based on FMP financials and quantitative analysis

OXSQG Key Highlights

Market capitalization of $162M indicates OXSQG's size and significance within the asset management industry.

• Negative P/E ratio of -7.05 reflects current losses, requiring careful evaluation of future profitability prospects.
• High dividend yield of 24.63% offers substantial income potential, but sustainability depends on improved financial performance.
• Gross margin of 36.6% suggests potential for profitability if operating expenses are managed effectively.
• Beta of 0.55 indicates lower volatility compared to the market, potentially providing stability during market downturns.

Who Are OXSQG's Competitors?

OXSQG is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are OXSQG's Key Strengths?

Specialized focus on technology-related companies.

• High dividend yield of 24.63%.
• Experienced management team.
• Established relationships with portfolio companies.

What Are OXSQG's Weaknesses?

Negative profit margin of -155.4%.

• Reliance on technology sector performance.
• Limited diversification in investment portfolio.
• High level of competition in the asset management industry.

What Could Drive OXSQG Stock Higher?

Potential improvements in operational efficiency leading to increased profitability.

• Strategic partnerships enhancing access to promising technology ventures.
• Positive developments in the technology sector driving capital appreciation.
• Favorable changes in interest rate environment reducing borrowing costs.

What Are the Key Risks for OXSQG?

Financial-distress signal — its Altman Z-Score of -0.35 sits in the distress zone (elevated bankruptcy risk).

• Negative return on equity (-26.0%) — the business is not currently generating profit on shareholder capital.
• Weak fundamentals — a Piotroski F-Score of 2/9 flags soft profitability, leverage or efficiency.
• Adverse changes in interest rates increasing borrowing costs.
• Intense competition in the asset management industry.
• Economic downturn affecting technology sector performance.
• Regulatory changes impacting business development companies.
• Negative profit margin impacting financial stability.

What Are the Growth Opportunities for OXSQG?

• Expansion into New Technology Sub-Sectors: Oxford Square Capital can explore opportunities to invest in emerging technology sub-sectors such as artificial intelligence, blockchain, and cybersecurity. These areas are experiencing rapid growth and offer significant potential for capital appreciation. The global AI market, for instance, is projected to reach $190.61 billion in 2025, presenting a substantial opportunity for OXSQG to deploy capital and generate returns.
• Strategic Partnerships with Venture Capital Firms: Collaborating with established venture capital firms can provide Oxford Square Capital with access to a broader pipeline of promising technology startups. These partnerships can also facilitate knowledge sharing and co-investment opportunities, enhancing OXSQG's ability to identify and support high-growth ventures. Such alliances could be formalized within the next 12-18 months.
• Geographic Expansion into Emerging Markets: Expanding its investment activities into emerging markets, such as Southeast Asia and Latin America, can provide Oxford Square Capital with access to new sources of growth and diversification. These regions are experiencing rapid technological advancements and offer attractive investment opportunities. This expansion could be phased in over the next 3-5 years.
• Development of Value-Added Services for Portfolio Companies: Offering value-added services, such as strategic consulting, operational support, and access to industry networks, can strengthen Oxford Square Capital's relationships with its portfolio companies and enhance their chances of success. These services can also generate additional revenue streams for OXSQG. These services could be rolled out within the next year.
• Increased Focus on Sustainable and Impact Investing: Aligning its investment strategy with sustainable and impact investing principles can attract a growing pool of socially responsible investors and enhance Oxford Square Capital's reputation. This involves investing in technology companies that are addressing pressing social and environmental challenges. This shift could be implemented over the next 2-3 years.

What Are OXSQG's Competitive Advantages?

• Specialized focus on technology-related companies.
• Expertise in providing tailored financing solutions.
• Long-term relationships with portfolio companies.
• Strategic guidance and operational support.

What Does OXSQG Do?

Oxford Square Capital Corp. focuses on providing capital to technology-related companies. The company targets firms with annual revenues of less than $200 million and/or a market capitalization or enterprise value of less than $300 million. As a business development company, Oxford Square Capital plays a crucial role in supporting the growth of emerging technology businesses by offering tailored financing solutions. The company's investment strategy involves identifying and partnering with promising technology ventures that require capital to scale their operations, develop new products, or expand into new markets. Oxford Square Capital's approach is centered on building long-term relationships with its portfolio companies, providing not only financial support but also strategic guidance and operational expertise. This hands-on approach enables Oxford Square Capital to actively contribute to the success of its investee companies, while also generating attractive returns for its investors. The company's focus on the technology sector reflects its belief in the transformative potential of technology and its commitment to supporting innovation and entrepreneurship. Oxford Square Capital's investment portfolio spans a diverse range of technology sub-sectors, including software, hardware, internet, and digital media. By diversifying its investments across different technology segments, Oxford Square Capital aims to mitigate risk and capitalize on the growth opportunities presented by the rapidly evolving technology landscape.

What Products and Services Does OXSQG Offer?

• Provides capital to technology-related companies.
• Invests in companies with annual revenues less than $200 million.
• Targets companies with market capitalization or enterprise value less than $300 million.
• Offers tailored financing solutions to emerging technology businesses.
• Builds long-term relationships with its portfolio companies.
• Provides strategic guidance and operational expertise to investee companies.

How Does OXSQG Make Money?

• Generates revenue through interest income from loans and debt securities.
• Realizes capital gains from the sale of equity investments.
• Provides financing to technology-related companies.
• Actively manages its investment portfolio to maximize returns.

What Industry Does OXSQG Operate In?

Oxford Square Capital Corp. operates within the asset management industry, which is characterized by intense competition and evolving regulatory landscapes. The industry is influenced by macroeconomic factors, interest rate movements, and investor sentiment. Companies in this sector face the challenge of generating consistent returns while managing risk effectively. The market is seeing a trend towards specialized investment strategies, with firms focusing on niche sectors or asset classes to differentiate themselves. Oxford Square Capital's focus on technology-related companies positions it within a specific segment of the asset management industry, catering to the demand for capital among emerging technology ventures.

Who Are OXSQG's Key Customers?

• Technology companies seeking capital for growth and expansion.
• Emerging technology ventures requiring financing to scale operations.
• Companies needing capital for product development and market entry.

Company Profile

Oxford Square Capital Corp. 5.50% Notes due 2028 operates in the Asset Management industry within the Financial Services sector. It is headquartered in Greenwich, US. The company is led by CEO Jonathan H. Cohen. OXSQG has traded publicly since 2021.

How Oxford Square Capital Corp. 5.50% Notes due 2028 Is Valued

Oxford Square Capital Corp. 5.50% Notes due 2028 carries a market capitalization of $162M, placing it in the micro-cap category. Relative to its peer group, OXSQG's quantitative score of 37/100 is below the peer average of 49/100.

Return on equity for Oxford Square Capital Corp. 5.50% Notes due 2028 stands at -26.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -12.6%, showing how much profit it generates from its asset base. Its free cash flow yield is -30.3%, a gauge of the cash the business throws off relative to its market value. Its earnings yield is -26.3%, the inverse of the P/E and a quick read on earnings relative to price.

Oxford Square Capital Corp. 5.50% Notes due 2028's Piotroski F-Score is 2/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of -0.35 places it in the distress zone, a signal of elevated financial risk.

Wall Street analysts project Oxford Square Capital Corp. 5.50% Notes due 2028 revenue of about $41.0M for fiscal 2026, with EPS near $0.28.

OXSQG Financials

OXSQG Latest News

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OXSQG Analyst Consensus

OXSQG MoonshotScore

OXSQG Financial Services Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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