Q: What do you think of Timber Creek Financial?
5i Research Answer:
TF is a small ($600M) non-bank lender focusing on short term customized solution for real estate investors. The stock is cheap at 10X earnings and trades largely for its 9.50% yield. The dividend has not been raised since 2017 but it did pay a small special dividend last year. We would consider it 'OK' for higher risk income but there is size risk, rate risk and economic sensitivity here. There is very little growth here. EPS this year will be about the same level as eight and nine years ago.