PENNANTPARK INVESTMENT CORP (PNNT) Stock Fundamental Analysis
NYSE:PNNT - US7080621045 - Common Stock
7.18 USD
+0.01 (+0.14%)
7.2 USD
+0.02 (+0.28%)
PNNT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 239 industry peers in the Capital Markets industry. PNNT has an average financial health and profitability rating. PNNT has a valuation in line with the averages, but it does not seem to be growing.
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.
In multiple years PNNT reported negative net income over the last 5 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
PNNT has a better Return On Assets (4.15%) than 61.92% of its industry peers.
PNNT has a Return On Equity of 10.83%. This is in the better half of the industry: PNNT outperforms 63.60% of its industry peers.
The Return On Invested Capital of PNNT (3.43%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for PNNT is below the industry average of 7.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 10.83% | ||
| ROIC | 3.43% |
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
The Profit Margin of PNNT (39.76%) is better than 83.26% of its industry peers.
In the last couple of years the Profit Margin of PNNT has grown nicely.
PNNT has a better Operating Margin (40.92%) than 71.55% of its industry peers.
In the last couple of years the Operating Margin of PNNT has declined.
PNNT has a Gross Margin (45.96%) which is comparable to the rest of the 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 | 40.92% | ||
| PM (TTM) | 39.76% | ||
| GM | 45.96% |
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.
PNNT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PNNT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.38, we must say that PNNT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PNNT (0.38) is worse than 67.36% of its industry peers.
The Debt to FCF ratio of PNNT is 3.63, which is a good value as it means it would take PNNT, 3.63 years of fcf income to pay off all of its debts.
PNNT's Debt to FCF ratio of 3.63 is fine compared to the rest of the industry. PNNT outperforms 75.73% of its industry peers.
PNNT has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
PNNT has a worse Debt to Equity ratio (1.57) than 73.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 3.63 | ||
| Altman-Z | 0.38 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 4.46 indicates that PNNT has no problem at all paying its short term obligations.
PNNT has a Current ratio of 4.46. This is amongst the best in the industry. PNNT outperforms 87.03% of its industry peers.
PNNT has a Quick Ratio of 4.46. This indicates that PNNT is financially healthy and has no problem in meeting its short term obligations.
PNNT's Quick ratio of 4.46 is amongst the best of the industry. PNNT outperforms 87.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.46 | ||
| Quick Ratio | 4.46 |
3. Growth
3.1 Past
The earnings per share for PNNT have decreased strongly by -17.89% in the last year.
The Earnings Per Share has been growing slightly by 6.15% on average over the past years.
PNNT shows a decrease in Revenue. In the last year, the revenue decreased by -7.38%.
The Revenue has been growing slightly by 5.11% on average over the past years.
EPS 1Y (TTM)-17.89%
EPS 3Y19.87%
EPS 5Y6.15%
EPS Q2Q%-28%
Revenue 1Y (TTM)-7.38%
Revenue growth 3Y20.79%
Revenue growth 5Y5.11%
Sales Q2Q%18.2%
3.2 Future
Based on estimates for the next years, PNNT will show a very negative growth in Earnings Per Share. The EPS will decrease by -10.21% on average per year.
Based on estimates for the next years, PNNT will show a decrease in Revenue. The Revenue will decrease by -8.35% on average per year.
EPS Next Y-20.56%
EPS Next 2Y-12.3%
EPS Next 3Y-10.21%
EPS Next 5YN/A
Revenue Next Year-13.23%
Revenue Next 2Y-8.89%
Revenue Next 3Y-8.35%
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
With a Price/Earnings ratio of 9.21, the valuation of PNNT can be described as very reasonable.
PNNT's Price/Earnings ratio is a bit cheaper when compared to the industry. PNNT is cheaper than 79.08% of the companies in the same industry.
PNNT is valuated cheaply when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.04, the valuation of PNNT can be described as reasonable.
PNNT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PNNT is cheaper than 72.80% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PNNT to the average of the S&P500 Index (22.76), we can say PNNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.21 | ||
| Fwd PE | 10.04 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, PNNT is valued cheaply inside the industry as 90.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.26 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PNNT's earnings are expected to decrease with -10.21% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.5
EPS Next 2Y-12.3%
EPS Next 3Y-10.21%
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 7.91. PNNT pays more dividend than 84.52% of the companies in the same industry.
PNNT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector 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 paid a dividend for at least 10 years, which is 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
120.44% of the earnings are spent on dividend by PNNT. This is not a sustainable payout ratio.
PNNT's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP120.44%
EPS Next 2Y-12.3%
EPS Next 3Y-10.21%
7.18
+0.01 (+0.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners22.61%
Inst Owner Change-8.48%
Ins Owners0.45%
Ins Owner Change0.67%
Market Cap468.85M
Analysts50.77
Price Target6.89 (-4.04%)
Short Float %4.56%
Short Ratio6.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.9% |
Yearly Dividend1.01
Dividend Growth(5Y)7.09%
DP120.44%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.59%
Min EPS beat(2)-7.88%
Max EPS beat(2)-3.3%
EPS beat(4)0
Avg EPS beat(4)-5.09%
Min EPS beat(4)-7.88%
Max EPS beat(4)-1.9%
EPS beat(8)3
Avg EPS beat(8)-1.62%
EPS beat(12)5
Avg EPS beat(12)-0.08%
EPS beat(16)8
Avg EPS beat(16)3.28%
Revenue beat(2)0
Avg Revenue beat(2)-7.39%
Min Revenue beat(2)-9.29%
Max Revenue beat(2)-5.48%
Revenue beat(4)0
Avg Revenue beat(4)-5.15%
Min Revenue beat(4)-9.29%
Max Revenue beat(4)-1%
Revenue beat(8)1
Avg Revenue beat(8)-8.43%
Revenue beat(12)4
Avg Revenue beat(12)-3.15%
Revenue beat(16)6
Avg Revenue beat(16)-1.07%
PT rev (1m)-0.92%
PT rev (3m)-1.82%
EPS NQ rev (1m)-4.75%
EPS NQ rev (3m)-12.81%
EPS NY rev (1m)-2.78%
EPS NY rev (3m)-5.41%
Revenue NQ rev (1m)-3.54%
Revenue NQ rev (3m)-10.61%
Revenue NY rev (1m)-2.07%
Revenue NY rev (3m)-7.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.21 | ||
| Fwd PE | 10.04 | ||
| P/S | 3.58 | ||
| P/FCF | 2.26 | ||
| P/OCF | 2.26 | ||
| P/B | 0.98 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.78
EY10.86%
EPS(NY)0.72
Fwd EY9.96%
FCF(TTM)3.18
FCFY44.34%
OCF(TTM)3.18
OCFY44.34%
SpS2
BVpS7.36
TBVpS7.36
PEG (NY)N/A
PEG (5Y)1.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 10.83% | ||
| ROCE | 4.34% | ||
| ROIC | 3.43% | ||
| ROICexc | 3.64% | ||
| ROICexgc | 3.64% | ||
| OM | 40.92% | ||
| PM (TTM) | 39.76% | ||
| GM | 45.96% | ||
| FCFM | 158.8% |
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-Score6
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 3.63 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.28 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 399.38% | ||
| Current Ratio | 4.46 | ||
| Quick Ratio | 4.46 | ||
| Altman-Z | 0.38 |
F-Score6
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)-17.89%
EPS 3Y19.87%
EPS 5Y6.15%
EPS Q2Q%-28%
EPS Next Y-20.56%
EPS Next 2Y-12.3%
EPS Next 3Y-10.21%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.38%
Revenue growth 3Y20.79%
Revenue growth 5Y5.11%
Sales Q2Q%18.2%
Revenue Next Year-13.23%
Revenue Next 2Y-8.89%
Revenue Next 3Y-8.35%
Revenue Next 5YN/A
EBIT growth 1Y-16.06%
EBIT growth 3Y19.1%
EBIT growth 5Y3.45%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y8.28%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y8.28%
OCF growth 3YN/A
OCF growth 5YN/A