PENNANTPARK INVESTMENT CORP (PNNT) Stock Fundamental Analysis
NYSE:PNNT - New York Stock Exchange, Inc. - US7080621045 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to PNNT. PNNT was compared to 236 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
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.
In multiple years PNNT reported negative operating cash flow during the last 5 years.
1.2 Ratios
PNNT has a better Return On Assets (3.79%) than 63.14% of its industry peers.
The Return On Equity of PNNT (9.76%) is comparable to the rest of the industry.
PNNT has a Return On Invested Capital (3.68%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for PNNT is below the industry average of 7.88%.
| 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
PNNT's Profit Margin of 34.44% is fine compared to the rest of the industry. PNNT outperforms 78.81% of its industry peers.
PNNT's Profit Margin has improved in the last couple of years.
PNNT's Operating Margin of 41.62% is fine compared to the rest of the industry. PNNT outperforms 73.31% of its industry peers.
In the last couple of years the Operating Margin of PNNT has declined.
PNNT has a Gross Margin of 46.37%. This is comparable to the rest of the industry: PNNT outperforms 49.58% of its industry peers.
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.
Compared to 5 years ago, PNNT has less shares outstanding
PNNT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.36, we must say that PNNT is in the distress zone and has some risk of bankruptcy.
PNNT's Altman-Z score of 0.36 is on the low side compared to the rest of the industry. PNNT is outperformed by 68.64% of its industry peers.
PNNT has a debt to FCF ratio of 5.36. This is a neutral value as PNNT would need 5.36 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.36, PNNT is doing good in the industry, outperforming 66.10% of the companies in the same industry.
A Debt/Equity ratio of 1.53 is on the high side and indicates that PNNT has dependencies on debt financing.
With a Debt to Equity ratio value of 1.53, PNNT is not doing good in the industry: 72.46% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 5.36 | ||
| Altman-Z | 0.36 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
PNNT has a Current Ratio of 2.09. This indicates that PNNT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of PNNT (2.09) is better than 69.92% of its industry peers.
A Quick Ratio of 2.09 indicates that PNNT has no problem at all paying its short term obligations.
PNNT's Quick ratio of 2.09 is fine compared to the rest of the industry. PNNT outperforms 69.92% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 6.15% on average over the past years.
Looking at the last year, PNNT shows a decrease in Revenue. The Revenue has decreased by -7.36% in the last year.
Measured over the past years, PNNT shows a small growth in Revenue. The Revenue has been growing by 5.11% on average per year.
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
Based on estimates for the next years, PNNT will show a decrease in Earnings Per Share. The EPS will decrease by -9.31% on average per year.
Based on estimates for the next years, PNNT will show a decrease in Revenue. The Revenue will decrease by -8.01% on average per year.
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 8.41.
Compared to the rest of the industry, the Price/Earnings ratio of PNNT indicates a rather cheap valuation: PNNT is cheaper than 81.78% of the companies listed in the same industry.
PNNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.61.
A Price/Forward Earnings ratio of 9.68 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 75.42% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PNNT to the average of the S&P500 Index (37.13), we can say PNNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.41 | ||
| Fwd PE | 9.68 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, PNNT is valued cheaper than 86.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.35 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as PNNT's earnings are expected to decrease with -9.31% in the coming years.
PEG (NY)N/A
PEG (5Y)1.37
EPS Next 2Y-10.88%
EPS Next 3Y-9.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.90%, PNNT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.23, PNNT pays a better dividend. On top of this PNNT pays more dividend than 83.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, PNNT pays a better dividend.
| 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
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%
7.15
-0.11 (-1.52%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners23.62%
Inst Owner Change-0.42%
Ins Owners0.45%
Ins Owner Change0.67%
Market Cap466.89M
Analysts50.77
Price Target6.95 (-2.8%)
Short Float %3.79%
Short Ratio6.1
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)-0.91%
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 | 8.41 | ||
| Fwd PE | 9.68 | ||
| P/S | 3.37 | ||
| P/FCF | 3.35 | ||
| P/OCF | 3.35 | ||
| P/B | 0.96 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.85
EY11.89%
EPS(NY)0.74
Fwd EY10.33%
FCF(TTM)2.14
FCFY29.89%
OCF(TTM)2.14
OCFY29.89%
SpS2.12
BVpS7.47
TBVpS7.47
PEG (NY)N/A
PEG (5Y)1.37
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 | 0.36 |
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