PROSPECT CAPITAL CORP (PSEC) Stock Fundamental Analysis
NASDAQ:PSEC - Nasdaq - US74348T1025 - Common Stock - Currency: USD
PSEC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 227 industry peers in the Capital Markets industry. While PSEC is still in line with the averages on profitability rating, there are concerns on its financial health. PSEC has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
PSEC had positive earnings in the past year.
PSEC had a positive operating cash flow in the past year.
In multiple years PSEC reported negative net income over the last 5 years.
In multiple years PSEC reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of PSEC (-1.26%) is worse than 79.74% of its industry peers.
With a Return On Equity value of -1.80%, PSEC is not doing good in the industry: 78.41% of the companies in the same industry are doing better.
The Return On Invested Capital of PSEC (4.14%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for PSEC is below the industry average of 7.09%.
The last Return On Invested Capital (4.14%) for PSEC is above the 3 year average (4.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.26% | ||
| ROE | -1.8% | ||
| ROIC | 4.14% |
ROA(3y)2.32%
ROA(5y)4.38%
ROE(3y)3.67%
ROE(5y)6.97%
ROIC(3y)4.06%
ROIC(5y)3.98%
1.3 Margins
In the last couple of years the Profit Margin of PSEC has declined.
PSEC has a better Operating Margin (46.92%) than 83.26% of its industry peers.
In the last couple of years the Operating Margin of PSEC has grown nicely.
PSEC has a Gross Margin of 52.94%. This is in the better half of the industry: PSEC outperforms 62.56% of its industry peers.
PSEC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.92% | ||
| PM (TTM) | N/A | ||
| GM | 52.94% |
OM growth 3Y2.53%
OM growth 5Y1.85%
PM growth 3Y-51.74%
PM growth 5Y-3.58%
GM growth 3Y2.62%
GM growth 5Y1.89%
2. Health
2.1 Basic Checks
PSEC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PSEC has more shares outstanding
The debt/assets ratio for PSEC has been reduced compared to a year ago.
2.2 Solvency
PSEC has an Altman-Z score of 0.54. This is a bad value and indicates that PSEC is not financially healthy and even has some risk of bankruptcy.
PSEC has a worse Altman-Z score (0.54) than 61.67% of its industry peers.
PSEC has a debt to FCF ratio of 3.69. This is a good value and a sign of high solvency as PSEC would need 3.69 years to pay back of all of its debts.
PSEC's Debt to FCF ratio of 3.69 is fine compared to the rest of the industry. PSEC outperforms 73.57% of its industry peers.
PSEC has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
PSEC's Debt to Equity ratio of 0.41 is fine compared to the rest of the industry. PSEC outperforms 73.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | 0.54 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.59 indicates that PSEC may have some problems paying its short term obligations.
PSEC's Current ratio of 0.59 is on the low side compared to the rest of the industry. PSEC is outperformed by 71.81% of its industry peers.
PSEC has a Quick Ratio of 0.59. This is a bad value and indicates that PSEC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.59, PSEC is not doing good in the industry: 71.81% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
PSEC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.59%.
PSEC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.68% yearly.
Looking at the last year, PSEC shows a decrease in Revenue. The Revenue has decreased by -9.90% in the last year.
Measured over the past years, PSEC shows a small growth in Revenue. The Revenue has been growing by 4.13% on average per year.
EPS 1Y (TTM)-13.59%
EPS 3Y9.44%
EPS 5Y2.68%
EPS Q2Q%-16.67%
Revenue 1Y (TTM)-9.9%
Revenue growth 3Y10.89%
Revenue growth 5Y4.13%
Sales Q2Q%114.85%
3.2 Future
Based on estimates for the next years, PSEC will show a very negative growth in Earnings Per Share. The EPS will decrease by -18.23% on average per year.
PSEC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -8.02% yearly.
EPS Next Y-41.11%
EPS Next 2Y-25.35%
EPS Next 3Y-18.23%
EPS Next 5YN/A
Revenue Next Year-14.92%
Revenue Next 2Y-11.21%
Revenue Next 3Y-8.02%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 4.00, which indicates a rather cheap valuation of PSEC.
Based on the Price/Earnings ratio, PSEC is valued cheaper than 96.04% of the companies in the same industry.
PSEC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.33.
PSEC is valuated cheaply with a Price/Forward Earnings ratio of 6.59.
Based on the Price/Forward Earnings ratio, PSEC is valued cheaper than 91.19% of the companies in the same industry.
PSEC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.37, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4 | ||
| Fwd PE | 6.59 |
4.2 Price Multiples
PSEC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PSEC is cheaper than 88.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.85 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PSEC's earnings are expected to decrease with -18.23% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.49
EPS Next 2Y-25.35%
EPS Next 3Y-18.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 15.17%, PSEC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.41, PSEC pays a better dividend. On top of this PSEC pays more dividend than 90.31% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, PSEC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.17% |
5.2 History
The dividend of PSEC has a limited annual growth rate of 5.35%.
PSEC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)5.35%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PSEC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-404.93%
EPS Next 2Y-25.35%
EPS Next 3Y-18.23%
3.56
+0.07 (+2.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners10.79%
Inst Owner Change0.19%
Ins Owners18.55%
Ins Owner Change8.82%
Market Cap1.59B
Analysts40
Price Target4.08 (14.61%)
Short Float %5.06%
Short Ratio6.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.17% |
Yearly Dividend0.87
Dividend Growth(5Y)5.35%
DP-404.93%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.58%
Min EPS beat(2)21.11%
Max EPS beat(2)40.06%
EPS beat(4)4
Avg EPS beat(4)27.52%
Min EPS beat(4)12.75%
Max EPS beat(4)40.06%
EPS beat(8)8
Avg EPS beat(8)20.9%
EPS beat(12)12
Avg EPS beat(12)19.72%
EPS beat(16)16
Avg EPS beat(16)18.35%
Revenue beat(2)0
Avg Revenue beat(2)-5.07%
Min Revenue beat(2)-6.01%
Max Revenue beat(2)-4.14%
Revenue beat(4)1
Avg Revenue beat(4)-4.07%
Min Revenue beat(4)-7.33%
Max Revenue beat(4)1.21%
Revenue beat(8)3
Avg Revenue beat(8)-9.72%
Revenue beat(12)6
Avg Revenue beat(12)-5.57%
Revenue beat(16)9
Avg Revenue beat(16)-3.76%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.69%
EPS NY rev (1m)0%
EPS NY rev (3m)3.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4 | ||
| Fwd PE | 6.59 | ||
| P/S | 1.99 | ||
| P/FCF | 2.85 | ||
| P/OCF | 2.85 | ||
| P/B | 0.31 | ||
| P/tB | 0.31 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.89
EY25%
EPS(NY)0.54
Fwd EY15.19%
FCF(TTM)1.25
FCFY35.15%
OCF(TTM)1.25
OCFY35.15%
SpS1.79
BVpS11.38
TBVpS11.38
PEG (NY)N/A
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.26% | ||
| ROE | -1.8% | ||
| ROCE | 5.24% | ||
| ROIC | 4.14% | ||
| ROICexc | 4.18% | ||
| ROICexgc | 4.18% | ||
| OM | 46.92% | ||
| PM (TTM) | N/A | ||
| GM | 52.94% | ||
| FCFM | 70.04% |
ROA(3y)2.32%
ROA(5y)4.38%
ROE(3y)3.67%
ROE(5y)6.97%
ROIC(3y)4.06%
ROIC(5y)3.98%
ROICexc(3y)4.1%
ROICexc(5y)4.01%
ROICexgc(3y)4.1%
ROICexgc(5y)4.01%
ROCE(3y)5.14%
ROCE(5y)5.03%
ROICexcg growth 3Y5.53%
ROICexcg growth 5Y-0.41%
ROICexc growth 3Y5.53%
ROICexc growth 5Y-0.41%
OM growth 3Y2.53%
OM growth 5Y1.85%
PM growth 3Y-51.74%
PM growth 5Y-3.58%
GM growth 3Y2.62%
GM growth 5Y1.89%
F-Score3
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 3.69 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.56 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 0.54 |
F-Score3
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.59%
EPS 3Y9.44%
EPS 5Y2.68%
EPS Q2Q%-16.67%
EPS Next Y-41.11%
EPS Next 2Y-25.35%
EPS Next 3Y-18.23%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.9%
Revenue growth 3Y10.89%
Revenue growth 5Y4.13%
Sales Q2Q%114.85%
Revenue Next Year-14.92%
Revenue Next 2Y-11.21%
Revenue Next 3Y-8.02%
Revenue Next 5YN/A
EBIT growth 1Y-14.59%
EBIT growth 3Y13.69%
EBIT growth 5Y6.06%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y180.7%
FCF growth 3Y108.25%
FCF growth 5Y4.58%
OCF growth 1Y180.7%
OCF growth 3Y108.25%
OCF growth 5Y4.58%