PENNANTPARK INVESTMENT CORP (PNNT) Stock Fundamental Analysis
NYSE:PNNT - New York Stock Exchange, Inc. - US7080621045 - Common Stock - Currency: USD
Taking everything into account, PNNT scores 4 out of 10 in our fundamental rating. PNNT was compared to 234 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.
PNNT had a positive operating cash flow in the past year.
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
The Return On Assets of PNNT (3.79%) is better than 63.40% of its industry peers.
With a Return On Equity value of 9.76%, PNNT perfoms like the industry average, outperforming 58.30% of the companies in the same industry.
PNNT's Return On Invested Capital of 3.68% is in line compared to the rest of the industry. PNNT outperforms 47.23% of its industry peers.
PNNT had an Average Return On Invested Capital over the past 3 years of 3.87%. This is below the industry average of 7.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 9.76% | ||
| ROIC | 3.68% |
ROA(3y)-0.43%
ROA(5y)2.03%
ROE(3y)-0.35%
ROE(5y)4.23%
ROIC(3y)3.87%
ROIC(5y)3.39%
1.3 Margins
With a decent Profit Margin value of 34.44%, PNNT is doing good in the industry, outperforming 78.72% of the companies in the same industry.
In the last couple of years the Profit Margin of PNNT has grown nicely.
PNNT has a Operating Margin of 41.62%. This is in the better half of the industry: PNNT outperforms 73.19% of its industry peers.
PNNT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 46.37%, PNNT is in line with its industry, outperforming 49.36% of the companies in the same industry.
In the last couple of years the Gross Margin of PNNT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.62% | ||
| PM (TTM) | 34.44% | ||
| GM | 46.37% |
OM growth 3Y-1.4%
OM growth 5Y-1.58%
PM growth 3Y-45%
PM growth 5Y19.08%
GM growth 3Y-1.58%
GM growth 5Y-1.3%
2. Health
2.1 Basic Checks
PNNT has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for PNNT has been reduced compared to 5 years ago.
PNNT has a worse debt/assets ratio than last year.
2.2 Solvency
PNNT has an Altman-Z score of 0.37. This is a bad value and indicates that PNNT is not financially healthy and even has some risk of bankruptcy.
PNNT has a worse Altman-Z score (0.37) than 69.79% of its industry peers.
The Debt to FCF ratio of PNNT is 5.36, which is a neutral value as it means it would take PNNT, 5.36 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.36, PNNT is doing good in the industry, outperforming 65.96% of the companies in the same industry.
PNNT has a Debt/Equity ratio of 1.53. This is a high value indicating a heavy dependency on external financing.
PNNT's Debt to Equity ratio of 1.53 is on the low side compared to the rest of the industry. PNNT is outperformed by 73.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 5.36 | ||
| Altman-Z | 0.37 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.09 indicates that PNNT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.09, PNNT is in the better half of the industry, outperforming 69.79% of the companies in the same industry.
A Quick Ratio of 2.09 indicates that PNNT has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.09, PNNT is in the better half of the industry, outperforming 69.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 2.09 |
3. Growth
3.1 Past
The earnings per share for PNNT have decreased strongly by -19.05% in the last year.
PNNT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.15% yearly.
PNNT shows a decrease in Revenue. In the last year, the revenue decreased by -7.36%.
PNNT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.11% yearly.
EPS 1Y (TTM)-19.05%
EPS 3Y19.87%
EPS 5Y6.15%
EPS Q2Q%-18.18%
Revenue 1Y (TTM)-7.36%
Revenue growth 3Y20.79%
Revenue growth 5Y5.11%
Sales Q2Q%-14.78%
3.2 Future
PNNT is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.31% yearly.
The Revenue is expected to decrease by -8.01% on average over the next years.
EPS Next Y-18.29%
EPS Next 2Y-10.88%
EPS Next 3Y-9.31%
EPS Next 5YN/A
Revenue Next Year-11.39%
Revenue Next 2Y-8.01%
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
PNNT is valuated reasonably with a Price/Earnings ratio of 8.56.
Based on the Price/Earnings ratio, PNNT is valued cheaply inside the industry as 81.70% of the companies are valued more expensively.
PNNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.50.
A Price/Forward Earnings ratio of 9.86 indicates a reasonable valuation of PNNT.
PNNT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PNNT is cheaper than 76.17% of the companies in the same industry.
PNNT is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.56 | ||
| Fwd PE | 9.86 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, PNNT is valued cheaply inside the industry as 85.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.41 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PNNT's earnings are expected to decrease with -9.31% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.39
EPS Next 2Y-10.88%
EPS Next 3Y-9.31%
5. Dividend
5.1 Amount
PNNT has a Yearly Dividend Yield of 12.90%, which is a nice return.
Compared to an average industry Dividend Yield of 7.84, PNNT pays a better dividend. On top of this PNNT pays more dividend than 82.98% 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.9% |
5.2 History
The dividend of PNNT is nicely growing with an annual growth rate of 7.09%!
PNNT has been paying a dividend for at least 10 years, so it has a reliable track record.
PNNT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.09%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
127.42% of the earnings are spent on dividend by PNNT. This is not a sustainable payout ratio.
The Dividend Rate of PNNT has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP127.42%
EPS Next 2Y-10.88%
EPS Next 3Y-9.31%
7.28
-0.03 (-0.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners23.62%
Inst Owner Change0%
Ins Owners0.45%
Ins Owner Change0.67%
Market Cap475.38M
Analysts50.77
Price Target6.95 (-4.53%)
Short Float %3.1%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.9% |
Yearly Dividend1.01
Dividend Growth(5Y)7.09%
DP127.42%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.57%
Min EPS beat(2)-7.88%
Max EPS beat(2)-7.26%
EPS beat(4)1
Avg EPS beat(4)-2.36%
Min EPS beat(4)-7.88%
Max EPS beat(4)7.6%
EPS beat(8)4
Avg EPS beat(8)0.97%
EPS beat(12)5
Avg EPS beat(12)-0.45%
EPS beat(16)8
Avg EPS beat(16)2.8%
Revenue beat(2)0
Avg Revenue beat(2)-7.07%
Min Revenue beat(2)-9.29%
Max Revenue beat(2)-4.84%
Revenue beat(4)0
Avg Revenue beat(4)-12.06%
Min Revenue beat(4)-33.13%
Max Revenue beat(4)-1%
Revenue beat(8)2
Avg Revenue beat(8)-5.84%
Revenue beat(12)4
Avg Revenue beat(12)-2.99%
Revenue beat(16)7
Avg Revenue beat(16)-0.71%
PT rev (1m)0%
PT rev (3m)-2.68%
EPS NQ rev (1m)1.39%
EPS NQ rev (3m)-8.09%
EPS NY rev (1m)0.87%
EPS NY rev (3m)-4.97%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)-7.9%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-5.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.56 | ||
| Fwd PE | 9.86 | ||
| P/S | 3.44 | ||
| P/FCF | 3.41 | ||
| P/OCF | 3.41 | ||
| P/B | 0.97 | ||
| P/tB | 0.97 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.85
EY11.68%
EPS(NY)0.74
Fwd EY10.15%
FCF(TTM)2.14
FCFY29.36%
OCF(TTM)2.14
OCFY29.36%
SpS2.12
BVpS7.47
TBVpS7.47
PEG (NY)N/A
PEG (5Y)1.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 9.76% | ||
| ROCE | 4.66% | ||
| ROIC | 3.68% | ||
| ROICexc | 3.78% | ||
| ROICexgc | 3.78% | ||
| OM | 41.62% | ||
| PM (TTM) | 34.44% | ||
| GM | 46.37% | ||
| FCFM | 100.87% |
ROA(3y)-0.43%
ROA(5y)2.03%
ROE(3y)-0.35%
ROE(5y)4.23%
ROIC(3y)3.87%
ROIC(5y)3.39%
ROICexc(3y)4.02%
ROICexc(5y)3.5%
ROICexgc(3y)4.02%
ROICexgc(5y)3.5%
ROCE(3y)4.9%
ROCE(5y)4.29%
ROICexcg growth 3Y16.98%
ROICexcg growth 5Y1.66%
ROICexc growth 3Y16.98%
ROICexc growth 5Y1.66%
OM growth 3Y-1.4%
OM growth 5Y-1.58%
PM growth 3Y-45%
PM growth 5Y19.08%
GM growth 3Y-1.58%
GM growth 5Y-1.3%
F-Score3
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 5.36 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.3 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 292.9% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 2.09 | ||
| Altman-Z | 0.37 |
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)-19.05%
EPS 3Y19.87%
EPS 5Y6.15%
EPS Q2Q%-18.18%
EPS Next Y-18.29%
EPS Next 2Y-10.88%
EPS Next 3Y-9.31%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.36%
Revenue growth 3Y20.79%
Revenue growth 5Y5.11%
Sales Q2Q%-14.78%
Revenue Next Year-11.39%
Revenue Next 2Y-8.01%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-19.44%
EBIT growth 3Y19.1%
EBIT growth 5Y3.45%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y379.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y379.72%
OCF growth 3YN/A
OCF growth 5YN/A