PENNANTPARK INVESTMENT CORP (PNNT)
US7080621045 - Common Stock
PNNT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 220 industry peers in the Capital Markets industry. Both the profitability and the financial health of PNNT get a neutral evaluation. Nothing too spectacular is happening here. PNNT has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
PNNT had positive earnings in the past year.
PNNT had a negative 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 (3.21%) is comparable to the rest of the industry.
PNNT's Return On Equity of 8.70% is in line compared to the rest of the industry. PNNT outperforms 50.93% of its industry peers.
With a Return On Invested Capital value of 3.84%, PNNT perfoms like the industry average, outperforming 48.15% of the companies in the same industry.
PNNT had an Average Return On Invested Capital over the past 3 years of 3.43%. This is significantly below the industry average of 17.68%.
The last Return On Invested Capital (3.84%) for PNNT is above the 3 year average (3.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 8.7% | ||
| ROIC | 3.84% |
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
Looking at the Profit Margin, with a value of 30.24%, PNNT is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
Looking at the Operating Margin, with a value of 45.15%, PNNT is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
PNNT's Operating Margin has been stable in the last couple of years.
PNNT's Gross Margin of 49.69% is in line compared to the rest of the industry. PNNT outperforms 47.22% of its industry peers.
PNNT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.15% | ||
| PM (TTM) | 30.24% | ||
| GM | 49.69% |
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.
PNNT has a better 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.
With a Altman-Z score value of 0.37, PNNT is not doing good in the industry: 72.69% of the companies in the same industry are doing better.
PNNT has a Debt/Equity ratio of 1.67. This is a high value indicating a heavy dependency on external financing.
PNNT's Debt to Equity ratio of 1.67 is on the low side compared to the rest of the industry. PNNT is outperformed by 75.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.37 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 3.80 indicates that PNNT has no problem at all paying its short term obligations.
PNNT has a Current ratio of 3.80. This is amongst the best in the industry. PNNT outperforms 84.26% of its industry peers.
A Quick Ratio of 3.80 indicates that PNNT has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.80, PNNT belongs to the best of the industry, outperforming 84.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.8 | ||
| Quick Ratio | 3.8 |
3. Growth
3.1 Past
PNNT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.40%.
PNNT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.85% yearly.
PNNT shows a small growth in Revenue. In the last year, the Revenue has grown by 0.79%.
PNNT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.06% yearly.
EPS 1Y (TTM)4.4%
EPS 3Y18.96%
EPS 5Y5.85%
EPS Q2Q%-28.57%
Revenue 1Y (TTM)0.79%
Revenue growth 3Y13.2%
Revenue growth 5Y6.06%
Sales Q2Q%-41.86%
3.2 Future
PNNT is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.35% yearly.
The Revenue is expected to decrease by -2.80% on average over the next years.
EPS Next Y-7.41%
EPS Next 2Y-5.29%
EPS Next 3Y-6.35%
EPS Next 5YN/A
Revenue Next Year-0.64%
Revenue Next 2Y-1.22%
Revenue Next 3Y-2.8%
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
With a Price/Earnings ratio of 7.38, the valuation of PNNT can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of PNNT indicates a rather cheap valuation: PNNT is cheaper than 82.41% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 30.52. PNNT is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.74, which indicates a rather cheap valuation of PNNT.
Based on the Price/Forward Earnings ratio, PNNT is valued cheaply inside the industry as 83.80% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.99. PNNT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.38 | ||
| Fwd PE | 7.74 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as PNNT's earnings are expected to decrease with -6.35% in the coming years.
PEG (NY)N/A
PEG (5Y)1.26
EPS Next 2Y-5.29%
EPS Next 3Y-6.35%
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 8.87, PNNT pays a better dividend. On top of this PNNT pays more dividend than 81.94% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.26, PNNT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.9% |
5.2 History
The dividend of PNNT decreases each year by -0.76%.
PNNT has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of PNNT decreased in the last 3 years.
Dividend Growth(5Y)-0.76%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
148.03% of the earnings are spent on dividend by PNNT. This is not a sustainable payout ratio.
PNNT's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP148.03%
EPS Next 2Y-5.29%
EPS Next 3Y-6.35%
PENNANTPARK INVESTMENT CORP
NYSE:PNNT (9/13/2024, 8:04:01 PM)
After market: 7.02 +0.01 (+0.14%)7.01
+0.08 (+1.15%)
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 Cap457.75M
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
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)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 7.38 | ||
| Fwd PE | 7.74 | ||
| 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)1.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 8.7% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 45.15% | ||
| PM (TTM) | 30.24% | ||
| GM | 49.69% | ||
| 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 Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.8 | ||
| Quick Ratio | 3.8 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)4.4%
EPS 3Y18.96%
EPS 5Y
EPS Q2Q%
EPS Next Y-7.41%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.79%
Revenue growth 3Y13.2%
Revenue growth 5Y
Sales 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