PROSPECT CAPITAL CORP (PSEC)
US74348T1025 - Common Stock
Taking everything into account, PSEC scores 3 out of 10 in our fundamental rating. PSEC was compared to 220 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PSEC was profitable.
PSEC had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PSEC reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: PSEC reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of PSEC (-1.47%) is worse than 82.03% of its industry peers.
Looking at the Return On Equity, with a value of -2.18%, PSEC is doing worse than 79.26% of the companies in the same industry.
PSEC has a Return On Invested Capital of 4.10%. This is comparable to the rest of the industry: PSEC outperforms 52.07% of its industry peers.
PSEC had an Average Return On Invested Capital over the past 3 years of 4.06%. This is below the industry average of 7.00%.
The last Return On Invested Capital (4.10%) for PSEC is above the 3 year average (4.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.47% | ||
| ROE | -2.18% | ||
| ROIC | 4.1% |
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
PSEC's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 46.74%, PSEC belongs to the best of the industry, outperforming 80.18% of the companies in the same industry.
PSEC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 53.34%, PSEC perfoms like the industry average, outperforming 54.84% of the companies in the same industry.
In the last couple of years the Gross Margin of PSEC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.74% | ||
| PM (TTM) | N/A | ||
| GM | 53.34% |
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
Compared to 1 year ago, PSEC has more shares outstanding
PSEC has more shares outstanding than it did 5 years ago.
PSEC has a better debt/assets ratio than last year.
2.2 Solvency
PSEC has an Altman-Z score of 0.57. This is a bad value and indicates that PSEC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of PSEC (0.57) is worse than 64.52% of its industry peers.
PSEC has a debt to FCF ratio of 6.34. This is a slightly negative value and a sign of low solvency as PSEC would need 6.34 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.34, PSEC is doing good in the industry, outperforming 60.37% of the companies in the same industry.
PSEC has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
PSEC's Debt to Equity ratio of 0.44 is fine compared to the rest of the industry. PSEC outperforms 72.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.34 | ||
| Altman-Z | 0.57 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
PSEC has a Current Ratio of 0.34. 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 Current ratio value of 0.34, PSEC is not doing good in the industry: 78.34% of the companies in the same industry are doing better.
A Quick Ratio of 0.34 indicates that PSEC may have some problems paying its short term obligations.
PSEC has a worse Quick ratio (0.34) than 78.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
PSEC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.26%.
PSEC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.68% yearly.
PSEC shows a decrease in Revenue. In the last year, the revenue decreased by -7.22%.
The Revenue has been growing slightly by 4.13% on average over the past years.
EPS 1Y (TTM)-12.26%
EPS 3Y9.44%
EPS 5Y2.68%
EPS Q2Q%-16%
Revenue 1Y (TTM)-7.22%
Revenue growth 3Y10.89%
Revenue growth 5Y4.13%
Sales Q2Q%-16.9%
3.2 Future
PSEC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -29.70% yearly.
The Revenue is expected to decrease by -8.47% on average over the next years.
EPS Next Y-43.22%
EPS Next 2Y-29.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-12.04%
Revenue Next 2Y-8.47%
Revenue Next 3YN/A
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
PSEC is valuated cheaply with a Price/Earnings ratio of 4.51.
Based on the Price/Earnings ratio, PSEC is valued cheaply inside the industry as 93.55% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PSEC to the average of the S&P500 Index (27.73), we can say PSEC is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.74, the valuation of PSEC can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PSEC indicates a somewhat cheap valuation: PSEC is cheaper than 75.58% of the companies listed in the same industry.
PSEC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.51 | ||
| Fwd PE | 8.74 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, PSEC is valued cheaply inside the industry as 81.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.1 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PSEC's earnings are expected to decrease with -29.70% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.68
EPS Next 2Y-29.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PSEC has a Yearly Dividend Yield of 12.05%, which is a nice return.
In the last 3 months the price of PSEC has falen by -23.68%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 9.13, PSEC pays a bit more dividend than its industry peers.
PSEC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.05% |
5.2 History
The dividend of PSEC has a limited annual growth rate of 5.35%.
PSEC has paid a dividend for at least 10 years, which is 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-323.01%
EPS Next 2Y-29.7%
EPS Next 3YN/A
PROSPECT CAPITAL CORP
NASDAQ:PSEC (12/20/2024, 8:00:01 PM)
After market: 4.19 0 (0%)4.19
-0.04 (-1.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners8.87%
Inst Owner Change-5.87%
Ins Owners28.45%
Ins Owner Change9.59%
Market Cap1.83B
Analysts40
Price Target4.08 (-2.63%)
Short Float %5.19%
Short Ratio4.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.05% |
Dividend Growth(5Y)5.35%
DP-323.01%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)28.64%
Min EPS beat(2)21.11%
Max EPS beat(2)36.17%
EPS beat(4)4
Avg EPS beat(4)19.24%
Min EPS beat(4)6.95%
Max EPS beat(4)36.17%
EPS beat(8)8
Avg EPS beat(8)17.47%
EPS beat(12)12
Avg EPS beat(12)18.32%
EPS beat(16)16
Avg EPS beat(16)17.9%
Revenue beat(2)1
Avg Revenue beat(2)-2.4%
Min Revenue beat(2)-6.01%
Max Revenue beat(2)1.21%
Revenue beat(4)1
Avg Revenue beat(4)-18.53%
Min Revenue beat(4)-62%
Max Revenue beat(4)1.21%
Revenue beat(8)3
Avg Revenue beat(8)-9.48%
Revenue beat(12)7
Avg Revenue beat(12)-4.72%
Revenue beat(16)10
Avg Revenue beat(16)-2.5%
PT rev (1m)-11.11%
PT rev (3m)-20%
EPS NQ rev (1m)-17.65%
EPS NQ rev (3m)-17.65%
EPS NY rev (1m)-11.48%
EPS NY rev (3m)-11.48%
Revenue NQ rev (1m)-6.59%
Revenue NQ rev (3m)-6.59%
Revenue NY rev (1m)-3.91%
Revenue NY rev (3m)-3.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.51 | ||
| Fwd PE | 8.74 | ||
| P/S | 2.22 | ||
| P/FCF | 5.1 | ||
| P/OCF | 5.1 | ||
| P/B | 0.36 | ||
| P/tB | 0.36 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.93
EY22.2%
EPS(NY)0.48
Fwd EY11.44%
FCF(TTM)0.82
FCFY19.62%
OCF(TTM)0.82
OCFY19.62%
SpS1.88
BVpS11.75
TBVpS11.75
PEG (NY)N/A
PEG (5Y)1.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.47% | ||
| ROE | -2.18% | ||
| ROCE | 5.19% | ||
| ROIC | 4.1% | ||
| ROICexc | 4.13% | ||
| ROICexgc | 4.13% | ||
| OM | 46.74% | ||
| PM (TTM) | N/A | ||
| GM | 53.34% | ||
| FCFM | 43.64% |
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 | 0.44 | ||
| Debt/FCF | 6.34 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.61 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | 0.57 |
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)-12.26%
EPS 3Y9.44%
EPS 5Y2.68%
EPS Q2Q%-16%
EPS Next Y-43.22%
EPS Next 2Y-29.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7.22%
Revenue growth 3Y10.89%
Revenue growth 5Y4.13%
Sales Q2Q%-16.9%
Revenue Next Year-12.04%
Revenue Next 2Y-8.47%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-14.13%
EBIT growth 3Y13.69%
EBIT growth 5Y6.06%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y141.6%
FCF growth 3Y108.25%
FCF growth 5Y4.58%
OCF growth 1Y141.6%
OCF growth 3Y108.25%
OCF growth 5Y4.58%