# CQS New City High Yield Fund Ltd (NCYF.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Financial Services. Price 51p, market value 364 millionp.

## Valuation
- **P/E (trailing): 16.8×** (5-yr avg 3209.6×, 3-yr avg 3202.2×). CQS New City High Yield Fund Ltd trades at 16.8× trailing earnings, well below its own five-year average of 3209.6×: cheap by its own standards. The Financial Services median in the September 2026 study was 13.1×.
- **Price / sales: 5.5×**. Each dollar of revenue is priced at 5.5×.
- **Price / book: 1.1×**. The shares trade at 1.1× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 6.9×**. Enterprise value is 6.9× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 3.2%** (5-yr avg 0.0%). Free cash flow equals 3.2% of the market value, above its five-year average of 0.0%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 5.9%**. The inverse of the P/E: 5.9% of the price is earned each year.

## Profitability
- **Gross margin: 98.0%**. CQS New City High Yield Fund Ltd keeps 98.0% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 86.4%**. 86.4% of revenue is left after running the business, an exceptional level.
- **Net margin: 82.9%**. 82.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 5.8%**. 5.8% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 17.2%**. Return on all capital, debt included, is 17.2%: comfortably above what that capital costs.
- **Return on assets: 15.3%**. Each dollar of assets produces 15.3% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): -57.2%** (3-yr -6.8%/yr). Revenue fell 57.2% over the last year.
- **EPS growth (1 yr): -63.0%** (3-yr 51.2%/yr). Earnings per share fell 63.0%, slower than revenue, so margins compressed.

## Financial health
- **Piotroski F-score: 2/9**. 2 of 9 checks pass: weak or deteriorating financials.
- **Cash and short-term investments: 10 millionp**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend yield: 8.93%** (0p per share, trailing). CQS New City High Yield Fund Ltd yields 8.93%, high enough to check carefully: yields this high often precede a cut.
- **Payout ratio: 147%** (447% of free cash flow). The dividend exceeds earnings (147% payout), which is rarely sustainable outside REITs and one-off years.
- **Consecutive years of increases: 21**. 21 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 0.2%/yr** (1-yr 0.2%). The dividend has grown 0.2% a year over five years.
- **Shareholder yield: -9.0%**. Dividends plus net buybacks return -9.0% of the market value a year.

## Price and momentum
- **Total return (1 yr): -1.3%** (YTD -1.7%, 3-mo 0.6%). The shares are down 1.3% over twelve months including dividends.
- **From 52-week high: -4.6%** (7.1% above the low). Trading within 5% of its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 48**. An RSI of 48 is neutral.
- **Beta (1 yr): 0.09** (volatility 12%). Beta of 0.09 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=NCYF.L · Page: https://foliofundamentals.com/stocks/ncyf.l

Not investment advice.