PENNANTPARK INVESTMENT CORP (PNNT)
US7080621045 - Common Stock
We assign a fundamental rating of 5 out of 10 to PNNT. PNNT was compared to 206 industry peers in the Capital Markets industry. While PNNT seems to be doing ok healthwise, there are quite some concerns on its profitability. PNNT may be a bit undervalued, certainly considering the very reasonable score on growth
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.
In multiple years PNNT reported negative net income over the last 5 years.
PNNT had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of PNNT (-7.00%) is worse than 92.12% of its industry peers.
PNNT has a Return On Equity of -16.08%. This is amonst the worse of the industry: PNNT underperforms 85.71% of its industry peers.
The Return On Invested Capital of PNNT (4.80%) is better than 62.07% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PNNT is significantly below the industry average of 9.56%.
The 3 year average ROIC (2.80%) for PNNT is below the current ROIC(4.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7% | ||
| ROE | -16.08% | ||
| ROIC | 4.8% |
ROA(3y)3.18%
ROA(5y)2.98%
ROE(3y)5.99%
ROE(5y)5.66%
ROIC(3y)2.8%
ROIC(5y)3.08%
1.3 Margins
PNNT's Operating Margin of 48.51% is amongst the best of the industry. PNNT outperforms 83.74% of its industry peers.
In the last couple of years the Operating Margin of PNNT has remained more or less at the same level.
PNNT's Gross Margin of 52.11% is in line compared to the rest of the industry. PNNT outperforms 49.75% of its industry peers.
PNNT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.51% | ||
| PM (TTM) | N/A | ||
| GM | 52.11% |
OM growth 3Y0.17%
OM growth 5Y-0.97%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.16%
GM growth 5Y0.34%
2. Health
2.1 Basic Checks
PNNT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
PNNT has an Altman-Z score of 0.45. 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 0.45, PNNT is not doing good in the industry: 70.44% of the companies in the same industry are doing better.
The Debt to FCF ratio of PNNT is 3.21, which is a good value as it means it would take PNNT, 3.21 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.21, PNNT is in the better half of the industry, outperforming 76.85% of the companies in the same industry.
A Debt/Equity ratio of 1.23 is on the high side and indicates that PNNT has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.23, PNNT is doing worse than 64.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 3.21 | ||
| Altman-Z | 0.45 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.26 indicates that PNNT has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.26, PNNT is doing good in the industry, outperforming 73.40% of the companies in the same industry.
PNNT has a Quick Ratio of 2.26. This indicates that PNNT is financially healthy and has no problem in meeting its short term obligations.
PNNT has a Quick ratio of 2.26. This is in the better half of the industry: PNNT outperforms 73.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
PNNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.00%, which is quite impressive.
PNNT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.48% yearly.
Looking at the last year, PNNT shows a very strong growth in Revenue. The Revenue has grown by 41.42%.
The Revenue has been decreasing by -3.35% on average over the past years.
EPS 1Y (TTM)30%
EPS 3Y-0.98%
EPS 5Y-3.48%
EPS growth Q2Q118.75%
Revenue 1Y (TTM)41.42%
Revenue growth 3Y-2.16%
Revenue growth 5Y-3.35%
Revenue growth Q2Q92.76%
3.2 Future
Based on estimates for the next years, PNNT will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.93% on average per year.
PNNT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.70% yearly.
EPS Next Y49.19%
EPS Next 2Y15.45%
EPS Next 3Y10.93%
EPS Next 5YN/A
Revenue Next Year39.61%
Revenue Next 2Y13.85%
Revenue Next 3Y10.7%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.10, which indicates a rather cheap valuation of PNNT.
Compared to the rest of the industry, the Price/Earnings ratio of PNNT indicates a rather cheap valuation: PNNT is cheaper than 83.74% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.05, PNNT is valued rather cheaply.
The Price/Forward Earnings ratio is 7.23, which indicates a rather cheap valuation of PNNT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PNNT indicates a rather cheap valuation: PNNT is cheaper than 82.27% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.08, PNNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.1 | ||
| Fwd PE | 7.23 |
4.2 Price Multiples
PNNT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PNNT is cheaper than 96.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.19 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y15.45%
EPS Next 3Y10.93%
5. Dividend
5.1 Amount
PNNT has a Yearly Dividend Yield of 12.86%, which is a nice return.
PNNT's Dividend Yield is rather good when compared to the industry average which is at 7.84. PNNT pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.63, PNNT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.86% |
5.2 History
The dividend of PNNT decreases each year by -10.51%.
PNNT has paid a dividend for at least 10 years, which is a reliable track record.
PNNT has decreased its dividend recently.
Dividend Growth(5Y)-10.51%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
The earnings of PNNT are negative and hence is the payout ratio. PNNT will probably not be able to sustain this dividend level.
DP-52.1%
EPS Next 2Y15.45%
EPS Next 3Y10.93%
PENNANTPARK INVESTMENT CORP
NYSE:PNNT (12/1/2023, 7:17:14 PM)
After market: 6.46 0 (0%)6.46
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)11-15 2023-11-15/amc
Earnings (Next)02-06 2024-02-06/amc
Inst Owners29.7%
Inst Owner Change-4.15%
Ins Owners1.13%
Ins Owner Change6.52%
Market Cap421.32M
Analysts74.67
Price Target7.14 (10.53%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.86% |
Dividend Growth(5Y)-10.51%
DP-52.1%
Div Incr Years1
Div Non Decr Years1
Ex-Date11-15 2023-11-15 (0.07)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.24%
Min EPS beat(2)17.42%
Max EPS beat(2)29.06%
EPS beat(4)2
Avg EPS beat(4)3%
Min EPS beat(4)-19.26%
Max EPS beat(4)29.06%
Revenue beat(2)2
Avg Revenue beat(2)16.28%
Min Revenue beat(2)11.97%
Max Revenue beat(2)20.58%
Revenue beat(4)3
Avg Revenue beat(4)8.74%
Min Revenue beat(4)-2.07%
Max Revenue beat(4)20.58%
PT rev (1m)-0.88%
PT rev (3m)7.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.59%
EPS NY rev (1m)0%
EPS NY rev (3m)7.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.1 | ||
| Fwd PE | 7.23 | ||
| P/S | 3 | ||
| P/FCF | 2.19 | ||
| P/OCF | 2.19 | ||
| P/B | 0.84 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.91
EY14.09%
EPS(NY)0.89
Fwd EY13.82%
FCF(TTM)2.94
FCFY45.57%
OCF(TTM)2.94
OCFY45.57%
SpS2.15
BVpS7.72
TBVpS7.72
PEG (NY)0.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7% | ||
| ROE | -16.08% | ||
| ROCE | 6.07% | ||
| ROIC | 4.8% | ||
| ROICexc | 4.99% | ||
| ROICexgc | 4.99% | ||
| OM | 48.51% | ||
| PM (TTM) | N/A | ||
| GM | 52.11% | ||
| FCFM | 136.9% |
ROA(3y)3.18%
ROA(5y)2.98%
ROE(3y)5.99%
ROE(5y)5.66%
ROIC(3y)2.8%
ROIC(5y)3.08%
ROICexc(3y)2.88%
ROICexc(5y)3.18%
ROICexgc(3y)2.88%
ROICexgc(5y)3.18%
ROCE(3y)3.54%
ROCE(5y)3.9%
ROICexcg growth 3Y-2.85%
ROICexcg growth 5Y-5.95%
ROICexc growth 3Y-2.85%
ROICexc growth 5Y-5.95%
OM growth 3Y0.17%
OM growth 5Y-0.97%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.16%
GM growth 5Y0.34%
F-Score5
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 3.21 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.79 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 2.26 | ||
| Altman-Z | 0.45 |
F-Score5
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
Growth
EPS 1Y (TTM)30%
EPS 3Y-0.98%
EPS 5Y-3.48%
EPS growth Q2Q118.75%
EPS Next Y49.19%
EPS Next 2Y15.45%
EPS Next 3Y10.93%
EPS Next 5YN/A
Revenue 1Y (TTM)41.42%
Revenue growth 3Y-2.16%
Revenue growth 5Y-3.35%
Revenue growth Q2Q92.76%
Revenue Next Year39.61%
Revenue Next 2Y13.85%
Revenue Next 3Y10.7%
Revenue Next 5YN/A
EBIT growth 1Y45.49%
EBIT growth 3Y-1.99%
EBIT growth 5Y-4.29%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y57.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y57.12%
OCF growth 3YN/A
OCF growth 5YN/A