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PENNANTPARK INVESTMENT CORP (PNNT) Stock Fundamental Analysis

NYSE:PNNT - New York Stock Exchange, Inc. - US7080621045 - Common Stock - Currency: USD

6.53  +0.12 (+1.87%)

Premarket: 6.59 +0.06 (+0.92%)

Fundamental Rating

4

PNNT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 231 industry peers in the Capital Markets industry. PNNT has only an average score on both its financial health and profitability. PNNT is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

PNNT had positive earnings in the past year.
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.
In multiple years PNNT reported negative operating cash flow during the last 5 years.
PNNT Yearly Net Income VS EBIT VS OCF VS FCFPNNT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M

1.2 Ratios

The Return On Assets of PNNT (3.84%) is comparable to the rest of the industry.
PNNT's Return On Equity of 10.98% is in line compared to the rest of the industry. PNNT outperforms 58.87% of its industry peers.
With a Return On Invested Capital value of 3.42%, PNNT perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PNNT is below the industry average of 7.08%.
Industry RankSector Rank
ROA 3.84%
ROE 10.98%
ROIC 3.42%
ROA(3y)-0.43%
ROA(5y)2.03%
ROE(3y)-0.35%
ROE(5y)4.23%
ROIC(3y)3.87%
ROIC(5y)3.39%
PNNT Yearly ROA, ROE, ROICPNNT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

1.3 Margins

With a decent Profit Margin value of 37.78%, PNNT is doing good in the industry, outperforming 78.36% of the companies in the same industry.
PNNT's Profit Margin has improved in the last couple of years.
The Operating Margin of PNNT (41.97%) is better than 74.46% of its industry peers.
In the last couple of years the Operating Margin of PNNT has declined.
PNNT has a Gross Margin of 46.78%. This is comparable to the rest of the industry: PNNT outperforms 50.22% of its industry peers.
PNNT's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 41.97%
PM (TTM) 37.78%
GM 46.78%
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%
PNNT Yearly Profit, Operating, Gross MarginsPNNT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 100 150 200

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4

2. Health

2.1 Basic Checks

PNNT has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, PNNT has less shares outstanding
The debt/assets ratio for PNNT is higher compared to a year ago.
PNNT Yearly Shares OutstandingPNNT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
PNNT Yearly Total Debt VS Total AssetsPNNT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

Based on the Altman-Z score of 0.35, we must say that PNNT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.35, PNNT is not doing good in the industry: 68.83% of the companies in the same industry are doing better.
The Debt to FCF ratio of PNNT is 610.32, which is on the high side as it means it would take PNNT, 610.32 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PNNT (610.32) is worse than 60.61% of its industry peers.
A Debt/Equity ratio of 1.81 is on the high side and indicates that PNNT has dependencies on debt financing.
PNNT has a worse Debt to Equity ratio (1.81) than 74.89% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.81
Debt/FCF 610.32
Altman-Z 0.35
ROIC/WACCN/A
WACCN/A
PNNT Yearly LT Debt VS Equity VS FCFPNNT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

2.3 Liquidity

PNNT has a Current Ratio of 5.54. This indicates that PNNT is financially healthy and has no problem in meeting its short term obligations.
PNNT's Current ratio of 5.54 is amongst the best of the industry. PNNT outperforms 88.74% of its industry peers.
PNNT has a Quick Ratio of 5.54. This indicates that PNNT is financially healthy and has no problem in meeting its short term obligations.
PNNT's Quick ratio of 5.54 is amongst the best of the industry. PNNT outperforms 88.74% of its industry peers.
Industry RankSector Rank
Current Ratio 5.54
Quick Ratio 5.54
PNNT Yearly Current Assets VS Current LiabilitesPNNT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M

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1

3. Growth

3.1 Past

PNNT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.35%.
Measured over the past 5 years, PNNT shows a small growth in Earnings Per Share. The EPS has been growing by 6.15% on average per year.
Looking at the last year, PNNT shows a decrease in Revenue. The Revenue has decreased by -4.04% in the last year.
The Revenue has been growing slightly by 5.11% on average over the past years.
EPS 1Y (TTM)-18.35%
EPS 3Y19.87%
EPS 5Y6.15%
EPS Q2Q%-16.67%
Revenue 1Y (TTM)-4.04%
Revenue growth 3Y20.79%
Revenue growth 5Y5.11%
Sales Q2Q%-0.38%

3.2 Future

Based on estimates for the next years, PNNT will show a decrease in Earnings Per Share. The EPS will decrease by -6.24% on average per year.
Based on estimates for the next years, PNNT will show a decrease in Revenue. The Revenue will decrease by -3.55% on average per year.
EPS Next Y-14.01%
EPS Next 2Y-6.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-6.42%
Revenue Next 2Y-3.55%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
PNNT Yearly Revenue VS EstimatesPNNT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M
PNNT Yearly EPS VS EstimatesPNNT Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

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5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 7.34, the valuation of PNNT can be described as very cheap.
Based on the Price/Earnings ratio, PNNT is valued cheaper than 85.28% of the companies in the same industry.
PNNT is valuated cheaply when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.99, which indicates a rather cheap valuation of PNNT.
81.39% of the companies in the same industry are more expensive than PNNT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.81. PNNT is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 7.34
Fwd PE 7.99
PNNT Price Earnings VS Forward Price EarningsPNNT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, PNNT is valued a bit more expensive than the industry average as 60.61% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 290.07
EV/EBITDA N/A
PNNT Per share dataPNNT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

PNNT's earnings are expected to decrease with -6.24% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.19
EPS Next 2Y-6.24%
EPS Next 3YN/A

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6

5. Dividend

5.1 Amount

PNNT has a Yearly Dividend Yield of 12.90%, which is a nice return.
PNNT's Dividend Yield is rather good when compared to the industry average which is at 8.40. PNNT pays more dividend than 80.95% of the companies in the same industry.
PNNT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
Industry RankSector Rank
Dividend Yield 12.9%

5.2 History

On average, the dividend of PNNT grows each year by 7.09%, which is quite nice.
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
PNNT Yearly Dividends per sharePNNT Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

108.23% 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.
DP108.23%
EPS Next 2Y-6.24%
EPS Next 3YN/A
PNNT Yearly Income VS Free CF VS DividendPNNT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M
PNNT Dividend Payout.PNNT Dividend Payout, showing the Payout Ratio.PNNT Dividend Payout.PayoutRetained Earnings

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PENNANTPARK INVESTMENT CORP

NYSE:PNNT (5/2/2025, 8:17:46 PM)

Premarket: 6.59 +0.06 (+0.92%)

6.53

+0.12 (+1.87%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-10 2025-02-10/amc
Earnings (Next)05-12 2025-05-12/amc
Inst Owners24.26%
Inst Owner Change-3.53%
Ins Owners0.45%
Ins Owner Change0%
Market Cap426.41M
Analysts71.43
Price Target7.01 (7.35%)
Short Float %3%
Short Ratio3.56
Dividend
Industry RankSector Rank
Dividend Yield 12.9%
Yearly Dividend1.01
Dividend Growth(5Y)7.09%
DP108.23%
Div Incr Years3
Div Non Decr Years3
Ex-Date04-15 2025-04-15 (0.08)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.58%
Min EPS beat(2)-7.26%
Max EPS beat(2)-1.9%
EPS beat(4)1
Avg EPS beat(4)-2.92%
Min EPS beat(4)-10.13%
Max EPS beat(4)7.6%
EPS beat(8)5
Avg EPS beat(8)5.59%
EPS beat(12)6
Avg EPS beat(12)0.46%
EPS beat(16)9
Avg EPS beat(16)3.35%
Revenue beat(2)0
Avg Revenue beat(2)-2.92%
Min Revenue beat(2)-4.84%
Max Revenue beat(2)-1%
Revenue beat(4)0
Avg Revenue beat(4)-10.47%
Min Revenue beat(4)-33.13%
Max Revenue beat(4)-1%
Revenue beat(8)3
Avg Revenue beat(8)-3.18%
Revenue beat(12)4
Avg Revenue beat(12)-2.91%
Revenue beat(16)7
Avg Revenue beat(16)-0.29%
PT rev (1m)-1.79%
PT rev (3m)-1.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.59%
Valuation
Industry RankSector Rank
PE 7.34
Fwd PE 7.99
P/S 2.97
P/FCF 290.07
P/OCF 290.07
P/B 0.86
P/tB 0.86
EV/EBITDA N/A
EPS(TTM)0.89
EY13.63%
EPS(NY)0.82
Fwd EY12.52%
FCF(TTM)0.02
FCFY0.34%
OCF(TTM)0.02
OCFY0.34%
SpS2.2
BVpS7.57
TBVpS7.57
PEG (NY)N/A
PEG (5Y)1.19
Profitability
Industry RankSector Rank
ROA 3.84%
ROE 10.98%
ROCE 4.33%
ROIC 3.42%
ROICexc 3.57%
ROICexgc 3.57%
OM 41.97%
PM (TTM) 37.78%
GM 46.78%
FCFM 1.02%
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 Turnover0.1
Health
Industry RankSector Rank
Debt/Equity 1.81
Debt/FCF 610.32
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 1.31
Cash Conversion N/A
Profit Quality 2.71%
Current Ratio 5.54
Quick Ratio 5.54
Altman-Z 0.35
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)-18.35%
EPS 3Y19.87%
EPS 5Y6.15%
EPS Q2Q%-16.67%
EPS Next Y-14.01%
EPS Next 2Y-6.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.04%
Revenue growth 3Y20.79%
Revenue growth 5Y5.11%
Sales Q2Q%-0.38%
Revenue Next Year-6.42%
Revenue Next 2Y-3.55%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-17.99%
EBIT growth 3Y19.1%
EBIT growth 5Y3.45%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-99.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-99.01%
OCF growth 3YN/A
OCF growth 5YN/A