PENNANTPARK INVESTMENT CORP (PNNT)
US7080621045 - Common Stock
Taking everything into account, PNNT scores 4 out of 10 in our fundamental rating. PNNT was compared to 210 industry peers in the Capital Markets industry. PNNT has only an average score on both its financial health and profitability. PNNT has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PNNT was profitable.
In the past year PNNT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: PNNT reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: PNNT reported negative operating cash flow in multiple years.
1.2 Ratios
With a Return On Assets value of 3.85%, PNNT perfoms like the industry average, outperforming 49.52% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.76%, PNNT is in line with its industry, outperforming 50.48% of the companies in the same industry.
With a Return On Invested Capital value of 4.66%, PNNT perfoms like the industry average, outperforming 56.73% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PNNT is below the industry average of 8.34%.
The 3 year average ROIC (3.43%) for PNNT is below the current ROIC(4.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.85% | ||
| ROE | 9.76% | ||
| ROIC | 4.66% |
ROA(3y)2.69%
ROA(5y)1.57%
ROE(3y)4.76%
ROE(5y)2.8%
ROIC(3y)3.43%
ROIC(5y)3.33%
1.3 Margins
PNNT has a better Profit Margin (32.55%) than 66.83% of its industry peers.
PNNT's Operating Margin of 49.12% is amongst the best of the industry. PNNT outperforms 81.25% of its industry peers.
PNNT's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 53.11%, PNNT perfoms like the industry average, outperforming 54.33% of the companies in the same industry.
PNNT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49.12% | ||
| PM (TTM) | 32.55% | ||
| GM | 53.11% |
OM growth 3Y4.56%
OM growth 5Y-0.48%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.13%
GM growth 5Y-0.09%
2. Health
2.1 Basic Checks
PNNT has about the same amout of shares outstanding than it did 1 year ago.
PNNT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PNNT has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.43, we must say that PNNT is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.43, PNNT is doing worse than 67.79% of the companies in the same industry.
The Debt to FCF ratio of PNNT is 9.65, which is on the high side as it means it would take PNNT, 9.65 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 9.65, PNNT perfoms like the industry average, outperforming 50.96% of the companies in the same industry.
A Debt/Equity ratio of 1.50 is on the high side and indicates that PNNT has dependencies on debt financing.
PNNT has a worse Debt to Equity ratio (1.50) than 71.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | 9.65 | ||
| Altman-Z | 0.43 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.70 indicates that PNNT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.70, PNNT is in the better half of the industry, outperforming 74.52% of the companies in the same industry.
A Quick Ratio of 2.70 indicates that PNNT has no problem at all paying its short term obligations.
PNNT has a better Quick ratio (2.70) than 74.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.7 | ||
| Quick Ratio | 2.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 70.31% over the past year.
PNNT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.85% yearly.
Looking at the last year, PNNT shows a very strong growth in Revenue. The Revenue has grown by 40.49%.
Measured over the past years, PNNT shows a small growth in Revenue. The Revenue has been growing by 6.06% on average per year.
EPS 1Y (TTM)70.31%
EPS 3Y18.96%
EPS 5Y5.85%
EPS growth Q2Q50%
Revenue 1Y (TTM)40.49%
Revenue growth 3Y13.2%
Revenue growth 5Y6.06%
Revenue growth Q2Q14.61%
3.2 Future
The Earnings Per Share is expected to decrease by -3.78% on average over the next years.
PNNT is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.73% yearly.
EPS Next Y-3.95%
EPS Next 2Y-3.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.77%
Revenue Next 2Y-1.73%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 6.55, which indicates a rather cheap valuation of PNNT.
Based on the Price/Earnings ratio, PNNT is valued cheaply inside the industry as 87.02% of the companies are valued more expensively.
PNNT is valuated cheaply when we compare the Price/Earnings ratio to 25.20, which is the current average of the S&P500 Index.
PNNT is valuated cheaply with a Price/Forward Earnings ratio of 7.64.
PNNT's Price/Forward Earnings ratio is rather cheap when compared to the industry. PNNT is cheaper than 83.17% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.63. PNNT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.55 | ||
| Fwd PE | 7.64 |
4.2 Price Multiples
PNNT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PNNT is cheaper than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.02 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as PNNT's earnings are expected to decrease with -3.78% in the coming years.
PEG (NY)N/A
PEG (5Y)1.12
EPS Next 2Y-3.78%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.90%, PNNT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.77, PNNT pays a better dividend. On top of this PNNT pays more dividend than 88.94% of the companies listed in the same industry.
PNNT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.9% |
5.2 History
The dividend of PNNT decreases each year by -0.76%.
PNNT has been paying a dividend for at least 10 years, so it has a reliable track record.
PNNT has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-0.76%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
120.41% of the earnings are spent on dividend by PNNT. This is not a sustainable payout ratio.
The Dividend Rate of PNNT has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP120.41%
EPS Next 2Y-3.78%
EPS Next 3YN/A
PENNANTPARK INVESTMENT CORP
NYSE:PNNT (4/26/2024, 12:56:02 PM)
7.144
+0.09 (+1.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap465.93M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.9% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.55 | ||
| Fwd PE | 7.64 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.85% | ||
| ROE | 9.76% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 49.12% | ||
| PM (TTM) | 32.55% | ||
| GM | 53.11% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.7 | ||
| Quick Ratio | 2.7 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)70.31%
EPS 3Y18.96%
EPS 5Y
EPS growth Q2Q
EPS Next Y-3.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)40.49%
Revenue growth 3Y13.2%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y